Bank of Maharashtra v. Dr. Bodati Lakshmi Narayana
Case brief
What is this about?
The Court adjudicated an Original Application filed by the Bank of Maharashtra for recovery of a defaulting term loan of Rs. 5.00 crores. The borrowers and guarantors failed to comply with loan terms, leading the bank to declare the account as NPA and initiate proceedings. The defendants, borrower and guarantor, were called absent. The bank's representative examined and exhibited documentary evidence (Ex.A.1 to A.17) substantiating the claim, including loan agreements, demand promissory notes, mortgage deeds, and notices. The Court held that the bank established its case. It held that the bank was entitled to recover the outstanding sum of Rs. 4,17,59,119 along with future interest at 9.60% p.a. and penal interest at 20% p.a. with monthly rests from the date of application. Furthermore, the Court permitted the bank to proceed against the mortgaged property and other properties of the defendants for realization of the debt. The application was disposed of in favor of the applicant with the issuance of a recovery certificate.