Allowed

State Bank of India v. Pps Hospitality Services

DRT16 Apr 2024OA/25/2023

Case brief

AI extract

What is this about?

In OA No.25 of 2023, the Debts Recovery Tribunal, Hyderabad, allowed State Bank of India's claim for relief against PPS Hospitality Services and Mr. Panugothu Pul Singh for a total sum of Rs.91,04,008/- along with interest and costs, holding that the bank established its claim through documentary evidence.

What did the court decide?

Defendants jointly and severally liable to pay Rs.91,04,008/- plus future interest on five loan accounts; Bank entitled to proceed against hypothecated property and personal assets for realization.

State Bank of India versus Pps Hospitality Services — Specific Performance | DRT (2024)

¶1

IN THE DEBTS RECOVERYTRIBUNAL-I AT HYDERABAD

¶2

DATED THIS THE 16TH DAY OF APRIL'2024

¶3

PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

¶4

OA.No.25 OF 2023

¶5

Between:

¶6

State Bank of India, Stressed Assets Recovery Branch (SARB), second floor, TSRTC Commuter Amenity Centre, Bus Terminal complex, Koti, Hyderabad. Represented by its authorized signatory ..

¶7

Applicant

¶8

VERSUS

¶9

PPS Hospitality Services, Represented by its Proprietor, 103, first floor, Paradigm SSS Square, Laxmi Cyber City, kothaguda X road, Hi-tech city, Serilingampallymandal, R.R. District, TS - 500 081.

¶10

Mr. PanugothuPul Singh, s/o JamlaPanugothu, aged about 36 years, occ: business, male, R/o H. No.4- 1 t-23 / BC/ 126, Blossom city, Anmagal, Hayathnagar, Injapur road, Ranga Reddy district - 501 505. Defendants Cou nsel for the Parties: For the Applicant in Mohammed Rafiq For the Defendants 1 6 nPff zur

¶11

(oA.No.2s of 2023)

¶12

ORDER

¶13

The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.91,O4,OOS/- (Rupees Ninety One Lakhs Four thousand and Eight only) i.e.,

¶14

a) A sum of Rs.58,75,577/- under term loan account with future interest @13olo with monthly rests from date of application till the date of realization;

¶15

b) A sum of Rs.7,82,780/- under cash credit loan account with

¶16

' future interest @ l2.3Oo/o with monthly rests from date of application till the date of realization;

¶17

c) A sum of Rs.8,89,700/- under WCTL account with future interest @ 9.80% with monthry rests from date of apprication tiil the date of rea lization ;

¶18

d) A sum of Rs.,4,08,039/- under FITL account with future interest @ 8.650lo with monthry rests from date of apprication tiil the date of realization

¶19

e) A sum of Rs.rr,47,9L2/- under GECL account with future interest @10.15olo with monthry rests from date of apprication tiil the date of realizationand in defaurt for sare of hypothecate! property as

¶20

described in the schedule to

¶21

As per the averments that defendant No.1

¶22

icant Bank states represented by ri. .2 :..

¶23

(OA.No.25 of 2023)

¶24

defendant no.2 as its guarantor. The defendants availed term loan of Rs.58.00 lakhs vide letter of arrangement dated 21.08.2019. The defendants availed cash credit of Rs.10.00 lakhs on 20.OS.2O2O and executed letter of arrangement, supplemental agreement, guarantee agreement etc. The defendants again availed working capital term loan of Rs.11.00 lakhs on 30.05.2020 and executed necessary documents. The defendants availed FITL of Rs.4.00 lakhs on 04.02.2021 and GECL of Rs.11.OO lakhs on 03.06.2021 and executed letter of arrangement, supplemental agreement and guarantee agreement dated 03.06.2021. 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 and issued legal notice dated 06,t0.2022. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

¶25

Defendants No.1 to 5 called absent and set exparte on 02.08.2023.

¶26

Smt K. Geetha Lakshmi, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.18.

¶27

Heard the Ld. Co t*Bank.

¶28

(OA.No.2s of 2023)

¶29

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?

¶30

Defendants called absent and set exparte. 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. 18. 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 entitled to recover the claim made in the oA with future interest and costs.

¶31

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

¶32

The Defendants are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.9l,O4,OOg/- (Rupees Ninety One Lakhs Four thousand and Eight only) i.e.,

¶33

a) A sum of Rs.58,75,577/- under term loan account with future interest @ 13% from date of application till the date of realization;

¶34

b) A sum of Rs.7,82,780/- under cash credit loan account with from of application till the date

¶35

Ir?iI?1^"" 4

¶36

(OA.No.25 of 2023)

¶37

c) A sum of Rs.B,Bg,700/under WCTL account with future interest @ 9.80o/o from date of application till the date of rea lization ;

¶38

d) A sum of Rs.,4,08,039/under FITL account with future interest @ 8.650lo from date of application till the date of realization

¶39

e) A sum of Rs.11,47,912l- under GECL account with future interest @10.15olo from date of applicationtill the date of rea lization .

¶40

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

¶41

The Applicant Bank is also entifled to proceed against the person and properties of defendant No.2 and properties of defendant no.1 firm towards realization of the debt due.

¶42

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

¶43

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

¶44

¶45

(OA.No.25 of 2023 )

¶46

Communicate a copy of the order to the parties concerned.

¶47

(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open court on this the 16th day of April'2024)

¶48

sdl(G. GOPTCHAND) PRESIDING OFFICER

¶49

0:wfry,

¶50

Assr. Regrstra, oitr.l, HyDEnAsan

State Bank of India v. Pps Hospitality Services

Case brief

What is this about?

What did the court decide?

State Bank of India v. Pps Hospitality Services

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

All orders in this case

Similar cases

State Bank of India versus M/S. Aditya Upvc Manufacturerss

Canara Bank versus M/S. Abhinandadna Industries

Indian Bank versus M/S. J.C.Infra

State Bank of India versus Karleen Industries Private Limited

Bank of Maharashtra versus M/S. Srinivasa Packaging Industries

State Bank of India versus Sri. Motor Deepak Kumar