Allowed

State Bank of India v. M/S. Madhu Infra

DRT8 Jan 2024OA/189/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Originating Application filed by State Bank of India for recovery of outstanding dues totaling Rs. 36,20,602/- along with future interest against M/s. Madhu Infra. The defendant was absent, and the court examined bank documents to substantiate the claim. The application was allowed with direction to pay costs and authorization to proceed against assets.

What did the court decide?

The applicant bank is entitled to recover a total sum of Rs. 36,20,602/- with future interest, proceed against hypothecated properties, and recover costs of the OA.

State Bank of India versus M/S. Madhu Infra — Contract and Commercial Disputes | DRT (2024)

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IN THE DEBTS RECOVERYTRIBUNAL-I AT HYDERABAD

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DATED THIS THE 8TH DAY OF JANUARY'2024

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFIcER

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OA.No.189 of 2023

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Between:

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State Bank of India, Asset Recovery Management Branch, SARB-II, 1-8-563/1, 1st floor, Opp Sandhya Theatre, RTC cross roads, Chikkadpally, Hyderabad Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Madhu Infra, Represented by its Proprietor, Prop: Madhusudhan, #2-4-45, MAA Residency, Nagole X Road, road No.3, Ranga Reddy district - 500 035.

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Defendant

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Counsel for the Parties:

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For the Applicant Smt B. Ra ma na
For the Defendant Exparte ': .:j
.t<br>I riti
ORDER

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The Applicant Bank filed the present OA

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recovery of a total sum of Rs.36,20,602/- (Rupees Thirty Six Lakhs Twenty Thousand Six hundred and twoonly) i.e.,

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(oA.No.189/2023)

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a) a sum of Rs.32,33,591/- in respect of term loanwith current and future interest @ L2.40o/o p.awith monthly rests from 18.05.2023 till the date of realization;

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b) A sum of Rs.3,87,011/- in respect of cash credit loan account with current and future interest @ 13.40olo p.a with monthly rests from 18.05.2023 till the date of realization;

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and in default for sale of hypothecated property as described in the schedule to OA.

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As per the averments in the application, the Applicant Bank states that the defendant is a proprietary concern availed term loan limit of Rs.45.00 lakhs vide letter of arrangement dated 11.05.2017. The said facility is secured by hypothecation of movables as mentioned in the schedule to OA. Subsequently the defendant availed cash credit facility of Rs.3.50 lakhs vide letter of arrangement dated 02.06.2020 and FITL of Rs.0.23 lakhs vide letter of arrangement dated 28.tt.2020. After availing the loan facilities, the defendant failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NPA and issued legal notice dated 06.05.2023. Inspite of several requests and demands, the

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defendant did not clear the outstanding. He. is OA.

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Defendant called absent and set

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(oA.No.189/2023)

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Shri S. RajendraPrasad, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.10.

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Heard the Ld. Counsel for the Applicant Bank.

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The^point that arise for consideration^{is whether the ApplicantBank is} entitled for the claim made in the OA^{against the Defendantas} prayed for?

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Defendant called absent and^{set exparte.To substantiatethe caseof} the Applicant Bank, AW.1,^{official of the Applicant Bank was} examined and he exhibited^{relevant documents as Ex'A1to A'10'In} view of the above, I^{hold that the Applicant Bank has established} their claim made^{in the OA against the Defendant and hence the} Applicant Bank^{is entitledto recover the claim madein the OA with} future interest and^costs.

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B. In the result,^{the present OA is allowed with costs, as under:}

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The Defendant^{is liable to pay to the Applicant Bank a total sum of} Rs.36,20,6O2l-^{(RupeesThirty Six Lakhs TwentyThousand} Six hundred and^{twoonly)i.e.,}

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cu rrent

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a) a sum of^{Rs.32,33,5e1/- ifi-#tlWiqNoanwith} and future^interest @^{1t.fg"/" p.a'sm1S'fu\023till} the date of realization;

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(oA.No.189/2023)

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b) A sum of Rs.3,87,011/- in respect of cash credit loan account with current and future interest @ 13.40olo p.a from 18.05.2023 till the date of realization;

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10.The Applicant Bank is entitled to proceed against the hypothecated property as described in the schedule to OA towards realization of the debt due.

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the Applicant Bank is also entitled to proceed against the person and properties of defendant towards realization of the debt due.

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t2. The Applicant Bank is entitled to the costs of the OA,

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J-J. The Applicant shall file a cost memo within two weeks from the date of receipt of order.

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Issue Recovery certificate accordingly.

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Communicate a copy of the order to the parties concerned.

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(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open court on this the 8th day of )an,2024)

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'{8" sd/-
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(G. GOPTCHAND)
PRESIDING OFFICER
fl B 'nlt
RUE COP<br>4

State Bank of India v. M/S. Madhu Infra

Case brief

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State Bank of India v. M/S. Madhu Infra

Case brief

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