Allowed

Union Bank of India, (E- Andhra Bank) v. Mr. Palnati Phani Kumar

DRT7 May 2024OA/219/2023

Case brief

AI extract

What is this about?

This order in OA.No.219 of 2023 allows the Applicant Bank's application for recovery of dues aggregating to Rs.43,19,068/- against six respondents. The court held the bank's claim established prima facie and awarded joint and several liability along with future interest and costs.

What did the court decide?

Respondents jointly and severally liable to pay Rs.43,19,068/- with future interest, and Applicant Bank entitled to proceed against hypothecated movables and mortgaged property.

Union Bank of India, (E- Andhra Bank) versus Mr… — Contract and Commercial Disputes | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE 7TH DAY OF MAY' 2024

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.219 OF 2023

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Between:

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Union Bank of India, (E- Andhra Bank) Vadlagudem, Mustibanda (PO) Dammapeta Mandal, Bhadradri, Kothagudemdist Telangana State - 507 306. Represented by its Branch Head

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Applicant

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VERSUS

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Mr. PalnatiPhani Kumar, s/o Subba Rao, male, aged 36 years, #3-39, Ganglneedupalem village, T. Narasapurammandal, West Godavari Dist- 534 456. Andhra Pradesh.

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Mrs. Gorepati Lakshmi, w/o Subba Rao, female, aged 36 years, #l-22, church road, Utasamudram village, Chinthalapudimandal, West Godavari dist- 534 460. Andhra Pradesh.

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(OA.No.219 of 2023 )

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M rs. PalnatiVijayalakshmi, w/o Subbarao, female, aged 55 years, RS.No.240-2, Gangineedupalem Village, T. Narasapurammandal, West Godavari district - 534 456. Andhra Pradesh.

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Mrs. Ya rramsettiKa lyani, w/o Vedha Raju, female, # 2-82, Makkinavarigudem, T. Narasapurammandal, West Godavari district - 534456. Andhra Pradesh.

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Mr.Yerramsetty Veda Raju, s/o Madhava Rao, male, aged 33 years, # 2-82, Makkinavarigudem village, T. Narasapurammandal, West Godavari dist -534 456 Andhra Pradesh.

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Defendants

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Counsel for the Pa rties:

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For the Applicant

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For the Defendants No.1,4 & 5

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Defendants No.2,3 & 6

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Sri S rin ivasa Rao chakrala Sri V.V.R. Sekhar Expa rte

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ORDER

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The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.43,19,068/- (Rupees Forty Three Lakhs Nineteen thousand and Sixty eight only) i.e.,

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a) Defendants 1,4 and 5 to pay a sum of Rs.13,56,588.06ps with future interest @ 9.75olo till the date oF '-e*s^{' rrr} rea lization; rtf ,t,,AI I z^,,1 ruzr

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(OA.No.219 of 2023)

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b) Defendant No.1 to pay a sum of Rs.1,87,577.78ps with future interest @7.85o/o p.a from 03.06.2023 till the date of realization;

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c) Defendants 1,2 and 3 to pay a sum of Rs.57,403.66ps with future interest @ 8.75olo p.a from 03.06.2023 till the date of realization;

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d) Defendants 1,4 and 5 to pay a sum of Rs.24,89,228.44ps withfuture interest @ 9.90o/o p.a from 03.06.2023 till the date of realization;

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e) Defendants L,4 and 5 to pay a sum of Rs.t,t5,744/- with future interest @ 9.45olo p.a from 03.06.2023 till the date of realization;

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Defendants L,4 and 6 to pay a sum of Rs.1,12,586/- with future interest @ 8.75olo p.a from 03.06.2023 till the date of realization;

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and in default for sale of hypothecated movables and mortgaged 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 availed agriculture credit of Rs.1.00 lakh and defendants No.2 & 3 stood as guarantors and hypothecated the goods. The defendants 1 to 3 executed composite agreement, DP note on 04.11.2016. Th,q,@qp!pn,tt,t e!.d 4 availed housing loan .'-'--r.1., "'",..r-'\

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of Rs.20.00 lakhs on 13.04.2017 and eiqcuBf,d demand^promissory i . :-'.

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note, composite agreement^pn...l

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(OA.No.219 of 2023)

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memorandum of deposit of title deeds, registered as document no.97l/2017 and deposited original settlement deed No.53OI/20L6 more fully described in the schedule to OA. On 24.10.2018, the defendants 1,4 and 5 made renewal application for agriculture of Rs.9.00 lakhs and executed revival letter and also availed Rs.1.00 lakh for tobacco barn repair. On 27.03.2019, the defendants 1,4 and 5 executed composite agreement, Dp note etc and defendant no.1 availed common loan application of Rs.99,000/-. On 10.01.2020, the defendants 1,4 and 6 executed composite agreement for agriculture, DP note. 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 25.10.2021 and issued Possession notice dated L3.05.2022. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants No.2,3 & 6 called absent and set exparte on e4.01.2024 and Counsel for defendants 1,4 & 6 filed vakalath but not filed Written statement.

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Shri G. Venkanna, Senior Branch Manager of the Applicant Bank examined himself as AW.1 and ex which

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are marked as Ex.A.1 to a.+t. f/"5

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ii ri

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Heard the Ld. Counset for theiApptic*rt/aj|ftI. 2024

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(oA.No.219 of 2023)

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The point that arise for consideration is whether the Applicant Bank is entitled for the claim made in the oA against the Defendants as prayed for?

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Defendants No.2,3 & 6 called absent and set exparte. Counsel for Defendants no.1,4 and 5 filed vakalath but not filed 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.41. 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 entiued 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.43,19,0,6'31- (Rupees Forty Three Lakhs Nineteen thousand and Sixty eight only) i.e.,

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a) Defendants 1,4 and 5 to pay a sum of Rs.13,56,588.06ps with future interest @ 9.75olo p.a from 03.06.2023 till the date of realization;

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b) Defendant No.1 to interest @7.85o/o realization;

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(OA.No.219 of 2023)

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c) Defendants 1,2 and 3 to pay a sum of Rs.57,403.66ps with future interest @ 8.75olo p.a from 03.06.2023 till the date of realization;

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d) Defendants 1,4 and 5 to pay a sum of Rs.24,89,228.44ps with future interest @ 9.90olo p.a from 03.06.2023 till the date of realization;

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e) Defendants 1,4 and 5 to pay a sum of Rs.1,15,744/- with future interest @ 9.45olo p.a from 03.06.2023 till the date of realization;

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f) Defendants 1,4 and 6 to pay a sum of Rs.1,12,586/- with future interest @ 8.75olo p.a from 03.06.2023 till the date of realization;

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The Applicant bank is entitled to proceed against the hypothecated movables and mortgaged property 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 of the

(OA.No.219 of 2023)

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 7th day of May' 2024)

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sdl - (G. GOPTCHAND) PRESIDING OFFICER

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RI.JE 6OP}1
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DFIT.J, HYDFR,484N.

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Union Bank of India, (E- Andhra Bank) v. Mr. Palnati Phani Kumar

Case brief

What is this about?

What did the court decide?

Union Bank of India, (E- Andhra Bank) v. Mr. Palnati Phani Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

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