Allowed

Union Bank of India v. M/s. Shruthi Machine Cutting Works

DRT27 Nov 2024OA/198/2024

Case brief

AI extract

What is this about?

This Debt Recovery Tribunal allowed an Origination Application filed by Union Bank of India for recovery of a loan amount with interest and costs against the principal borrower and guarantors, allowing proceeds against hypothecated properties and personal assets.

What did the court decide?

Defendants jointly and severally liable to pay Rs.21,61,094.29 with future interest; Bank authorized to proceed against hypothecated movables, persons and properties of Defendants 2, 3, and Defendant

Union Bank of India versus M/s. Shruthi Machine Cutting Works — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 27fH DAY OF NOVEMBER' 2024

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.198 ot 20.24

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Between:

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Union Bank of India, Godavarikhani Branch, Near Singareni Super market, Vidyanagar, Godavarikhani, Peddapalli, Telangana Represented by its Manager

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Applicant

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VERSUS

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M/s. Shruthi Machine Cutting works, Represented by its prop. Mrs,G. Uma Devi, H.No.19 _8_212, 1" floor, Laxminagar, Godavarikhani - 505 209.

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Mrs. G. Umadevi, w/o Ravindra Chary, aged about :.5-yea!s,^{femaIe, occ:business,} H_.No.19-B-212, 1'' floor, Laxminagar, Godavarikhani - 5b5 209.5b5 209.209.

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Godavarikhani - 5b5 209.5b5 209.209. 3. Mr. G. Ravindra Chary, S/o Satyanarayana, aged 58 yea rsi' ,@&' O-cc: business, male, ft.Nto.tg'g 2:t2'; 1'' floor, Laxminagar, Godavarikhani _ 505 209. 'i .1.r,.^{2 7 ilobaEfrda,E]l} Counsel for the the pa rties:rties: For the Applicantthe ApplicantApplicant Sr:w

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Counsel for the the pa rties:rties: For the Applicantthe ApplicantApplicant For the Defendants

Expa rte

(oA.No.198 of 2024)

ORDER

1, The Applicant Bank filed the present oA against Defendants for recovery of a total sum of Rs.21,61,O94.2gps (Rupees Twenty One Lakhs Sixty One thousand Ninety four and paise Twenty nine only) i.e., (Rs.1g,50,855.29ps + Rs.3,10,239l_) with further interest @ 11'200/o p.a * 20/o penar interestfrom 08.05.2024 ti, the date of rearization and in defaurt for sare 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 defendant No.1 is the principal borrower represented by its proprietor and guarantor/ defendants 2 & 3 availed term loan of Rs.16.00 lakhs on 19.03.201g. The defendants also availed working capital term loan of Rs.2,80,000/_ on 16.09.2020 and executed a' necessary documents. After avairing the roan facirity, the defendants faired to compry the terms of sanction, hence the appricant bank was constrained to crassify the account as NpA ancl issued legal notice dated tg.Ol.2024. Inspite of several requests and demands, the defendan the outstanding. Hence this OA.

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Defendants called

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09.2024.

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(oA.No.19E of 2024)

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Sri Niranjan Kumar, Manager of the Applicant Bank examined herself as AW.1 and exhibited relevant docu m ents, which are marked as

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Ex.A.1 to A.13.

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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 Applicant Bank is

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entitled for the claim made in the OA against the Defendants as

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prayed for?

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7' Defendants remained exparte, To substantiate the case of the Applicant Bank, AW.1, officiar of the Appricant Bank was examined and he exhibited rerevant documents as Ex.A1 to A.13. In view of the above, I hold that the Applicant Bank has established their claim made in the oA against the Defendants and hence the Appricant Bank is entifled to recover the craim made in the oA with future interest and costs.

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B. In the result, the present OA is allowed with costs, as under: The Defendants are jointly and severally sliable to pay to the Applicant Bank a total sum of Rs.21,61,O94.29ps (Rupees Twenty one Lakhs sixty on%lE)tgltfl +* Ninety ' four --- and --'F!paise Twenty gr.-i!

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n ine on Iy) i.e.,,ffi ffii6$,,hdi:* ?p,Bl\ R s. s.3,10,239l-3, 1 0, 239l_ ) with furt her i nterest @ 1 1. 26fld,lif, u"ffi . ors zSilq\rr . ;8H the date of reatisation. _;{ i:^i' '

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(OA.No.198 of Z1za)

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The Applicant bank is entiued to proceed against the hypothecated movables as described in schedule to oA towards realization of the debt due.

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The Applicant Bank is arso entiued to proceed against the person and properties of defendants No.2 & 3 and properties of defendant no.1 firm towards realization of the debt due.

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The Appricant Bank is entiiled to the costs of the oA.

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72' 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 27rh day of Nov, 2024)

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sd/ - (G. GOPTCHAND) PRESIDING OFFICER

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{,',&
? 7 l'l0, 202[

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TRUE COPY

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Union Bank of India v. M/s. Shruthi Machine Cutting Works

Case brief

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Union Bank of India v. M/s. Shruthi Machine Cutting Works

Case brief

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What the court decided

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