Allowed

Indian Overseas Bank v. M/S. Laxmi Narasimha Poultry

DRT5 Sept 2024OA/261/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the OA filed by India Overseas Bank against poultry firm and personal guarantors/legals heirs for recovery of described loans with future interest and costs. Court ordered recovery certificate issue.

What did the court decide?

Total sum of Rs.1,40,42,285/- with future interest and costs to be paid; Recovery Certificate issued; Applicant entitled to proceed against specified properties for realization.

Indian Overseas Bank versus M/S. Laxmi Narasimha Poultry — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THrs rHE 5rH DAy oF SEpTEMBER' 2oz4

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.261 of 2023

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Between:

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India n Overseas Bank, branch at D.No.6-2-4 / 5/39 / A, Plot no.62P, S.No.163-164, Hyderabad, Warangal High way, Telangana - 506 167. Represented by its Branch Manager

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Applicant

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VERSUS

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M/s. Lakshmi Narsimha Poultry Represented by its Proprietor BanothMangthyaNaik (deceased) S/o GopiyaNaik, H.No.1-12, Dharma GaddaThanda Devurupputa, Madaorkalanmandal, Jangaon district - 506 303.

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Mr. BanothRamkotNaik, .S/o Late BanothMangthya, Aged 49 years, occ: business, H.No.3-4513, Sapthagiri colony, Komatipally, Hasnaparthimandal, Warangal - 506 370.

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SmtBanothAmala, W/o Mr. BanothRamkotNaik, Aged major, occ: business, H. No.3-45l3, Sapthagiri colony, ["fjif #1r#tffi ""1#at'\ // E^{e</sup> * 4. MrsBanothsatti, {i + w/o Late BanothMangthyal,taik,^{ir -'} 0 5 SEP Z02t ; aged 80, occ: business, \i!. H. r,ro. r^- r z, Dharma ouoournundQr__#^j}

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(oA.No.261 of 2023)

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Devurupputa, Madaorkalanmandal, Jangaon district - 506 303.

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Mr. BanothKishan, S/o Late BanothMangthyaNaik, Aged 53, occ: business, H.No. 1-12, Dharma GaddaThanda, Devurupputa, Madaorkalanmandal, Jangaon district - 506 303.

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M rsDa ravathVijaya, D/o Late BanothMangthyaNaik, Aged 41, occ: housewife, H.No. 1- 12, Dharma GaddaThanda, Devurupputa, Madaorkalanmanda l, Jangaon district - 506 303.

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Mr. BanothRavindar, S/o Late BanothMangthyaNaik, Aged 46 years, occ: business, H.No. 1-1 1 A Dharavaththanda, PedomadurDevuruppula village, Jangaon district - 506 300.

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B. Mr. ChandrakalaGugulethy, D/o Late MangtyaNaik, W/o GugulethuLachirom, Aged major, occ: housewife, H.No. 1-4-202, Girnigadda, Jangaon town and dist - 506 167.

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Defendants

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Counsel for the Parties:

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For the Applicant

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For the

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Mr. Alluri Krishnam Raju

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Ex pa rte

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0 5 sEP ?mf
.,-:: i
1. Iicant Bank..{ilgdrTthe present OA against Defendants for
'"it.- zr'-\:';::=.tJ
f Rs.1,40,42,2851- (Rupees One Crore
recovg.rY.r;;r_rlygp,l'\jj
.,.::.2S{

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(OA.No.261 of 2023 )

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Forty Lakhs Forty two Thousand Two hundred and Eighty five only) i.e.,

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a) A sum of Rs.31,96,628/- in respect of Term loan-Iwith interest @ 14.5o/o p.a from date of application till the date of realization ;

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b) A sum of Rs.40,79,417/- in respect of Term loan-Il with interest @ 14.5olo p.a from date of application till the date of realization ;

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c) A sum of Rs.35,50,467/- in respect of Cash credit loan with interest @ 14.5% p.a from date of application till the date of realization;

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d) A sum of Rs.32,15,7731- in respect of GECL loan with interest @ 14.5o/o p.a from date of application till the date of realization ; and in default for sale of hypothecated movables and mortgaged properties as described in the schedule'.A &8,, to OA.

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As per the averments in the application, the Applicant Bank states that defendant No.1 is a^poultry firm represented by defendants no.2 & 4,5,6 and D.B are legal heirs of Late BanothMangtya and D.3 and D.7 are the guarantors to the loan availed herein. Defendant no.1 represented by defendant no.2 availed cash credit oF Rs.1,55,00,000/- vide letter dated 18.07.2018. As per sa nction letter Rs oan-1, Rs.70.00 lakhs as ternr Loan-ll and s were sanctioned and the defendants e it"o0o6.$SHoSlom note. The defendants executed term ,55,00,000/- and executed

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(OA.No.261 of 2023)

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letter of hypothecation and agreed to pay additionar interest in thc. event of failure to pay instalments in time. After availing the loan facilities, the defendants faired to compry the terms of sanction, hence the applicant bank was constrained to classify the account as NPA on 31.03.2021 and issued legal notice dated 03.09.2023. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants No.1 to B called absent and set exparte on 1.0.07.2024.

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Sri Kashi VishwanathDevatha, Manager of the Applicant Bank examined himserf as AW.1 and exhibited rerevant documents, which are marked as Ex.A.1 to A.29.

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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

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entitled for the claim made in the OA against the Defendants as

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prayed for?

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Defendants called a bsent and set exparte. To substantiate the casr: of the Applicant Bank cial of the Applicant Bank was examined and he ments as Ex.A1 to A.29. In view of the a nt Bank has establishcd ffi:qm their claim ma !^{,,0 6SHo#!,,rrE} fendants and hence th..: 'a s>'r, FY-.'b' ft,e" "$v

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(OA.No.261 of 202 t )

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

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8' In the resurt, the present oA is ailowed with costs, as under: The Defendants are joinfly and severally liable to pay to thi, Applicant Bank a total sum of Rs.L,4O,42,2g5/- (Rupees One Crore Forty Lakhs Forty two Thousand Two hundred and Eighty five only) i.e.,

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a) A sum of Rs'31,g6,628/- in respect of Term roan-I with interesr @ 14.5o/o p.a from date of apprication tiil the date of rearization ;

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b) A sum of Rs.40,79,4r7l- in respect of Term roan-Il with interest @ 14.5% p.a from date of apprication tilr the date of rearizatio.

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c) A sum of Rs.35,50,467/- in respect of Cash credit loan with interest @ 14.5% p.a from date of application till the date of realization;

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d) A sum of Rs.32,15,773l- in respect of GECL loan with interesr @ 14'50/o p'a from date of apprication ti, the date of rearizatio. ;

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The Applicant ban against the hypothecated

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movables and escribed in schedule^,,A &

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B" to OA towa , ?eu r iSt6..$6? t[8t"ot+ .' .;.. . ,.,, .

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'. ., i-\ .a- / '- . :: ,rS^Jl

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'\tl:: . :".:$q,.

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(O4.No.261 of 202 '

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The Applicant Bank is also entitled to proceed against the persol and properties of defendants No.2 to B and properties of defendanr no.1 firm towards realization of the debt due. However, thr.r Applicant bank is entitled to proceed only to the extent of propertics devolved upon the legal heirs/defendants No.2,4,5,6 and B from thr: deceased Late BanothMangthyaNaik.

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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 datl 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. (Dlctated to the P.A., transcribed by her, corrected, signcd and pronounccd by mc in t:he opc court on this the 5th day ol Scpt, 2024)

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sdt (G. GOPTCHAND) PRESIDING OFFICEP

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": ossrPm ;

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Indian Overseas Bank v. M/S. Laxmi Narasimha Poultry

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. M/S. Laxmi Narasimha Poultry

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

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