Allowed

State Bank of India v. M/S. N.S. Vaishno Devi Developers India Private Limited.

DRT13 Jun 2024OA/3/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the banking company's application for recovery of a total sum of approximately Rs. 36.88 crores arising from term loans, GECL-I, and GECL-2 accounts extended to the defendant company and its directors, after verifying the documentary evidence of non-compliance by the borrowers.

What did the court decide?

Recovery certificate issued for Rs. 36,88,94,657/- with interest, joint and several liability imposed on respondents, and permission to proceed against mortgaged/hypothecated properties.

State Bank of India versus M/S. N.S. Vaishno Devi Developers… — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL.I AT HYDERABAD

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DATED THIS THE 13TH DAY OF JUNE 2024

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.3 ol2023

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Between:

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State Bank of India, Stressed Assets Management Branch-II, (SAMB-II), first floor, TSRTC bus stand complex, Kachiguda, Hyderabad Represented by its Asst. General Manager

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Applicant

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VERSUS

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M/s. N.S. Vaishno Devi Developers India Private Limited,

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Represented by its Directors - the Defendants2to5herein

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D.No. 15-1 1-16, oppMaruthi Showroom, beside Vasavi Wholesale Cloth & Merchant Society, Mangalagiri road, Guntur -522 OOl.

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Sri Kurapati Naga Malleswararao, s/o Sri K. Subba Rao, aged about 56 years, male, occ: business and director of 1't defendant company, D.No.8-9-33, Sri Lakshmi Narayana Nil,ayam, 3'd floor, Nehru nagar, 2"" lane, Guntur - 522 1el.

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H.No.12-17-32/33B, Somuvari street, Basavapunnaiah Hospitals, Kothapet, Guntur - 522 001.

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SriNerellavenkata Satya Suresh, S/o Sri N. Venkateswarulu,

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o.',
%##,

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(oA.No.3/2023)

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Aged about 54 years, male, Occ: business & director of 1't defendant company, D.No.7- 15- 15A, 9th lane, Vall urivarithota, donka road, Guntur - 522 OO2.

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Sri AlapatiVenkata Lakshmi Narasimha Gupta, S/o Sri A. Nancharaiah, aged About 52 years, male, Occ: business & director of 1st defendant company. D.No.76-1-39, Sangadigunta, 302, B block, Vasavi apartment, Guntur - 522 003.

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& H.No.19-1-19, factory ward, Part Guntur - 3, Kothapet, Guntur - 522 001.

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Sri AtmakuriNageswara Rao, S/o Sri A. Venkateswarulu, Aged about 48 years, male, Occ: business & director of 1't defendant company,

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D.No,. 12- 15-35, flat no.9, Kakumanuvari street, Soudha Apartment, Kothapeta, Guntur - 522 002.

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Defendants

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Counsel for the Parties:

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For the Applicant

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For the Defendants

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The Applicant Bank filed

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for

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recovery of a total sum of Rs.36,88,94,657 / - (Rupees Thirty Six

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(oA.No.3/2023)

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Crores Eighty Eight lakhs Ninety four thousand Six Hundred and fafty seven only) i.e.,

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A) A sum of Rs.28,77,96,0L8/- under term loan account with interest @ l7o/o p.a with monthly rests from date of filing of OA till the date of realization;

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B)A sum of Rs.4,7!,43,1621- under GECL-I account with interest @ 9.25% p.a with monthly rests from date of filing of OA till the date of realization;

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C) A sum of Rs.3,39,55 ,477/- under GECL-2 account with interest @ 9.25olo p.a with monthly rests from the date of application till the date of realization;

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and in default for sale of mortgaged immovable properties and hypothecated assets as described in the schedule to OA.

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As per the averments in the apprication, the Appricant Bank states that defendant No.1 company represented by its directors/ defendants 2 to 5 and also as guarantors for the loan facilities. The defendant no.1 company represented by its directors availed working capital loan of Rs.7.50 crores, and Rs.12.50 crores under cash credit loan for construction of commercial mall vide sanction letter dated 07.07.2015. To secure due ve loan facilities, the

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defendants executed ag t of hypothecation of goods and assets, I ."st After merger of loan a ,^hasbeen

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(oA.No.3/2023)

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transferred to SBI, SME branch, Guntur and availed project loan of Rs.31 crores by enhancing the existing loan from Rs.20 crores to Rs.51 crores. To secure due repayment of overall loan facilities of Rs.51 crores, the defendant no.1 company represented by defendants 2 and 3 executed supplemental agreement of loan and supplemental agreement of hypothecation of goods. Defendant no.1 company availed GECL of Rs.5.35 crores in addition to existing term loan of Rs.31 crores. After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NpA on 30.05.2022 and issued demand notice dated 02.06.2022. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this oA.

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Sri DamodarMundra filed vakalath for defendants but not filed WS. 4. Shri D. Madhusudhan Reddy, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.58.

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Heard the Ld. Counsel for the Applicant Bank. _ 6. The point that arise for c54sq@{p41 is whether the Applicant Bank is gli?; tne aaVrdft&ffitt"s*\sainst the Derendants as ':--':: ::::"j,:: prayed for? ii^t'|" ; 1 I Julr zffzf ;ij W,*#

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(OA.No.3/2023)

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Though Defendants counsel filed vakalath failed to file WS. To substantiate the case of the Applicant Bank, AW.1, oFficial of the Applicant Bank was examined and he exhibited relevant documents as Ex.A1 to A.58. 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 Applicant Bank is entifled to recover the claim 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:

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The Defendants are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.3G,gg,94,657/- (Rupees Tharty Six Crores Eighty Eight lakhs Ninety four thousand Six Hundred and fifty seven only) i.e.,

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a) A sum of Rs.28,77,96,0L8/- under term loan account with interest @ t7o/o p.a from date of filing of OA till the date of rea lization ;

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b) A sum of Rs.4,7!,43,162/- under GECL-I account with interest @ 9.25olo p.afrom date of filing of OA till the date of realization;

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c) A sum of Rs.3,39,5 GECL-2 account with interest @ 9.25W6a application till the ip

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date of realizatiffrg .i

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,'.Q-rY;

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':*#il

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(oA.No.3/2023)

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The Applicant bank is entifled to proceed against the mortgaged properties and hypothecated movables as described in 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 defendants No.2 to 5 and properties of defendant no.1 firm towards realization of the debt due.

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The Applicant Bank is entiued to the costs of the OA.

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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 13th day of :une, 2024)

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sdl(G. GOPTCHAND) PRESIDING OFFICER

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State Bank of India v. M/S. N.S. Vaishno Devi Developers India Private Limited.

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. N.S. Vaishno Devi Developers India Private Limited.

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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