Allowed

Canara Bank v. M/S. Abhinandadna Industries

DRT15 Apr 2024OA/258/2023

Case brief

AI extract

What is this about?

In this recovery application, the bank sought recovery of dues from manufacturers and guarantors who defaulted on a bank loan. Finding the establishment of facts on record with the exclusion of defendants, the Presiding Officer allowed the application.

What did the court decide?

Declaration of joint and several liability to pay Rs.61,39,474.90 + interest; entitlement to proceed against assets; issuance of recovery certificate.

Canara Bank versus M/S. Abhinandadna Industries — Contract and Commercial Disputes | DRT (2024)

¶1

IN THE DEBTS RECOVERYTRIBUNAL.I AT HYDERABAD DATED THIS THE 15TH DAY OF APRIL'2024

¶2

PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

¶3

OA.No.258 OF 2023

¶4

Between:

¶5

Canara Bank, Pochampally branch, H.No.5-3 1, Pochampally, Nalgonda district, Telangana - 508 284. Represented by its Chief manager Cum Authorised officer

¶6

Applicant

¶7

VERSUS

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M/s. Abhinandana Industries, Represented by its partners, H.No.5-5-285, plot no.4, Old Highway,^padmavathi Nagar, Hayathnagar, Rangareddy - 501 505.

¶9

Sri T. Shiva Shankar, s/o.Venkatratnam, aged 33 years, male, occ: business, H.No.3_96/23, plot no.4, DwarakaVenkata Sai Nagar, Road no.1, near Shenishwar

¶10

Temple, Munganoor, Telangana_ 501 511.

¶11

Mrs. T. Tirumala Devi, w/o K. Durga^prasad, aged 29 years, female, occ: business, R/o plot no.3G

¶12

Mythrivihar, Hp Gas godown, Hayathnagar, Telangana - 501 505 1 5 npR zr?r

¶13

Mr. K. Durga prasad,

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s/o.K. Ramanaiah, aged 34 years, male,.occ: business, R/o ploi no. j6,

¶15

Mythrivihar, Hp Gas godown, Hayathnagar, Telangana - 501 505.

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(OA.No.258 of 2023)

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Counsel for the Parties: For the Applicant Smt N. Indira For the Defendants Expa rterte

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Expa rterte

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ORDER

¶20

The Applicant Bank fired the present oA against Defendants for recovery of a total sum of Rs.6l,3g,474.9ops (Rupees Sixty One Lakhs Thirty Eight thousand Four hundred and Seventy four and paise ninety only) with further interest @ l4.7Oo/o p.a with monthry rests from 03.09.2023tiil the date of rearisation and in default for sale of hypothecated movables and mortgaged property as described in the schedule^,'A & 8,, to OA.

¶21

2' As per the averments in the apprication, the Appricant Bank states that defendant No.1 represented by defendants 2 and 3 avaired roan of Rs.50.00 lakhs and agreed to repay in g4 months including 3 months moratorium. The defendants hypothecated the machinery belonging to defendant no.1 more specificaily described in schedure A to oA. Defendants 2,3 and 4 stood as guaiantors and executed guarantee agreeme in favour of Applicant bank. As a secu rity for oan of Rs.50.00 lakhs the defendant no.4 TrPripgefilfv it of original sale deed bearing doc.No. 9 dated 23 9 of immovable property

¶22

(oA'No'258^{of 2023)}

¶23

more^{specifica*y shown in schedure B to oA. After avairing the loan} facirities,^{the defendants failed to comply the terrns of sanction'} hencetheapplicantbankwasconstrainedtoclassifytheaccountas NPAandissuedrecallnoticedatedol.0g.zo23.Inspiteofseveral requests^{and demands, the defendantsdid not clear the outstanding'} Hence^{this OA'}

¶24

3.Defendantscalledabsentandsetexparteon2g.o2.zoT4.

¶25

4.SriC.ShantaRaju,AssistantManageroftheApplicantBankexamined^{himselfas Aw.1 and exhibited relevantdocuments'which} are^{marked as Ex'A'1to A'9'}

¶26

5.^{Heardthe Ld. counserfor the Appricant Bank.}

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is whether^{the APPticantBank is}

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6.^{The point that arise for consideration} OA against^{the Defendantsas}

¶29

entitled^{for the claim made in the} praYed for?

¶30

Defendants^called absent and^{set exParte. To} of the APPlicant Bank, AW.1, official of^tht examined and he exh i bited relevan['Cocu^men .A1 to A.9. In view of the above, I hold that:"'tl+s -AppliCar has established rj':.::r

¶31

their claim made in the OA' against the and hence the tr;^{1s ApB ?w}

¶32

(OA.No.258 of 2023)

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Applicant Bank is entitled to recover the claim made in the OA with future interest and costs.

¶34

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

¶35

The Defendants are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.61,3g,474.gDps (Rupees Sixty One Lakhs Thirty Eight thousand Four hundred and Seventy four and paase ninety only) with further interest @ 14.7Oo/o p.a from 03.09.2023 till the date of realization.

¶36

The Applicant bank is entifled to proceed against the hypothecated movables and mortgaged immovable property AS described in schedule to OA towards realization of the debt due.

¶37

The Appricant Bank is arso entifled to proceed against the person and properties of defendants No.2 to 4 and properties of defendant no.1 firm towards realization of the debt due.

¶38

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

¶39

The Appricant shail fire a cost memo within two weeks from the date of receipt of order.

¶40

..af -r::, l,q
,tf '-i.':r't ':-':ir'
accof-ain-gfv,
4

¶41

Issue Recovery certificate accof-ain-gfv,

¶42

(OA.No.258 of 2023)

¶43

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 1sth day of Aptil'2024)

¶45

sdl_ (G. GOPTCHAND) PRESIDING OFFICER

¶46

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¶47

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Canara Bank v. M/S. Abhinandadna Industries

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Abhinandadna Industries

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

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