Allowed

Central Bank of India v. M/S. Poonam Agro Engg Works

DRT28 Aug 2024OA/259/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's Originating Application against the borrowers and guarantors. The court held that the bank established its claim through the examination of its chief manager and documentary evidence, granting recovery of principal amounts along with future interest and costs.

What did the court decide?

Defendants jointly and severally liable to pay Rs. 37,09,507/- with future interest; Recovery Certificate issued.

Central Bank of India versus M/S. Poonam Agro Engg Works — Execution and Attachment | DRT (2024)

¶1

IN THE DEBTS RECOVERYTRIBUNAL-I AT HYDERABAD

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DATED THrs rHE 28rH DAy oF AUGUsr, 2oz4

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

¶4

OA.No.259 ot 2O23

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Between:

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Central Bank of India, Patancheru branch, Ground floor, H.No.9-L63/ t, Sy.No.586, shanti nagar, Lane beside TSRTC, Patancheru Bus stand, Main road, Pata ncheruvu, Sangareddy, TS - 502 319. Represented by its authorized signatory

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Applicant

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VERSUS

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M/s. Poonam Agro Engg. Works, Proprietary concern of Mr. T. Amarpal Singh, aged major, occ: business, Plot no.D-12, IDA, Phase V, Patancheruvu, Sangareddydist Telangana - 502 319.

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And also at

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M/s. Poonam Agro Engg. Works, Proprietary concern of Mr. T. Amarpal Singh, aged major, occ: business, Plot no.14, IDA, phase V, Patancheruvu, Sanga reddy district, TS - 502 319.

¶12

Mr. TailiyanAmarpal Singh, Prop of M/s. Poonam Agro Engg Works, S/o Sri TailiyanKanwar Singh, Aged major, occ: business,

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#B-180, road no.1, J.P. colony, Patancheru district, Sangareddy - 502

¶14

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319.

¶15

(oA. No.2s9l2023)

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Mrs Poonam Devi, w/o Mr. T. Amarpal Singh, aged major, #B-180, road no.1, J.P. colony, Patancheru district, Sangareddy - 502 319.

¶17

Mr. Madhukarkamle, s/o Mr. Ganapathi Rao, aged major, occ: business, H.No.14-90, Sri Ram Nagar colony, Near DurgaMaaha Temple, Patancheru, Sangareddydist, TS - 502 319. Defendants Counsel for the Parties: For the Applicant : M/s. Chavan& Associates For the Defendant No.4 : Exparte Defendants 1 to 3 : Sri P. Praveen Kumar

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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.37,09,5O7l- (Rupees Thirty Seven Lakhs Nine Thousand Five hundred and Seven only) i.e.,

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a) A sum of Rs.2,33,160/- under GECL with interest @ 7.50o/o p.a from 19.08.2023 till the date of realization ;

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b) A sum of Rs.27,29,636/- under Cash credit with interest @ 11.35o/o p,a from 19.08.2023 till the d lization;

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c) A sum of Rs.7,46,711/- under ! @ a.

¶23

10.600lo p,a from 19.08.2023 till tilE date 2s /,IJE 7m^* \

¶24

(oA. No.2s912023)

¶25

As per the averments in the application, the Applicant Bank states that defendant No.2 is proprietor of defendant no.1 availed credit facilities i.e., credit facility of Rs.6.00 lakhs which was enhanced to Rs.10.00 lakhs and thereafter to Rs.20.00 lakhs vide sanction letter dated 27.06.2019. In June, 2020 the defendants 1 and 2 availed working capital term loan of Rs.4.00 lakhs and on 31.08.2020 the cash credit was enhanced from Rs.20.00 lakhs to Rs.26.00 lakhs and on 05.09.2020 availed term loan of Rs.10.00 lakhs. Defendants 3 & 4 stood as guarantors and executed guarantee deed in favour of Applicant bank. To secure the credit facilities the defendants executed demand promissory note, working capital term loan agreement, agreement of hypothecation and various other documents. After availing the loan facility, the defendants failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NPA on 28.02.2023 and issued legal notice dated 18.08.2023. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendant No.4 called absent and set exparte on 29.04.2024. Sri P. Praveen Kumar filed vakalath for.drfmhnts No.1 to 3 but failed to q'Rd ..g* file written statement. f;'-E :. 2^{g 111g rn2t} : 'j'l :- Vti;a-r-W

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(OA. No.2s9l2023)

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Sri UpendraKulkarni, Chief Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.36.

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Heard the Ld. Counsel for the Applicant Bank.

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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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Defendant No.4 called absent and set exparte. Ld counsel for defendants 1 to 3 filed vakalath but 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.36. 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 madeⁱⁿ 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 su /-^(Rupees Thirty Seven Lakhs Nine nd Seven only) i.e., 2 I Atl8 'fi2t . i '_:.: ) i:,a-+i --Q:.Y^, \S#ltqP

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(oA.No.259/2023)

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d) A sum of Rs.2,33,160/- under GECL with interest @ 7.500/o p.a from 19.08.2023 till the date of realization ;

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e)A sum of Rs.27,29,636/- under Cash credit with interest @ 11.35olo p.a from 19.08.2023 till the date of realization ;

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f) A sum of Rs.7,46,711l- under Term loan with interest @ 10.600lo p.a from 19.08.2023 till the date of realization ;

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The Applicant Bank is also entitled 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.

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The Applicant Bank is entitled 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 by her, corrected, signed and pronounced by me in the open
cou rt , 2024)
d<br>/* B sdl-
(G. GOPTCHAND)
rlJc PRESIDING OFFICER
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60Pr<br>^RUE
Lue;Pffi
Asst. Raglr'r/at
DPf.I, HYD€RAAAD.

Central Bank of India v. M/S. Poonam Agro Engg Works

Case brief

What is this about?

What did the court decide?

Central Bank of India v. M/S. Poonam Agro Engg Works

Case brief

What is this about?

What did the court decide?

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