Allowed

Canara Bank v. M/S. Shiva Ganga Water Plant

DRT5 Feb 2024OA/269/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Canara Bank for recovery of approximately Rs. 1.52 crores against individual and firm defendants. The Bank had established its claim through documentary evidence, leading to an order for the joint and several liability of the respondents to pay the principal, interest, and costs.

What did the court decide?

Defendants ordered to pay Rs. 1,52,34,976.96ps with future interest; Applicant Bank entitled to proceed against mortgaged/hypothecated properties; Recovery certificate issued.

Canara Bank versus M/S. Shiva Ganga Water Plant — Contract and Commercial Disputes | DRT (2024)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE sTH DAY OF FEBRUARY' 2024

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.269 ot 2023

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Between:

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Canara Bank, Kazipet branch, Hanamakonda, Warangal, Telangana - 506 004. Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Shiva Ganga Water plant, Represented by its proprietor, SmtBadavath Sa roja, W/o Sri BadavathKishan,

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Aged about 44 years, occ: business, Sy.No.502/A, Near Goshala, Bhagatnagar, Thorrur village and Mandal, Mahabubabad dist-506 324.

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Also at

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H.No. 12, DhansinghThanda, Ramannagudem, Narsimhulapeta, Mungimadugu - 506 324.

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Sri Bukya Shankar, s/o Sri BhukyaBalu, aged about 44 years, occ: business, CLg, CZl-, BodakaThanda, Ramannag udem Village, Ramannagudem,

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Na rsim h u la peta, Mungimadugu -506 3247& Defendants ir,, Counsel for the Parties: For the Applicant ,r^{ri IW?6an} a iswa I For the Defendants

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(oA. No.269/2023)

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ORDER

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1' The Applicant Bank fired the present oA against Defendants for recovery of a total sum of Rs.1,S2,34,g76.g6ps (Rupees One Crore Fifty Two lakhs Thirty four thousand Eight hundred Seventy Six and paise Eighty sixonly) i.e.,

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a) A sum of Rs.64,60,796.94ps under a/c.No.36087910000606 with futureinterest @ 12.45o/o p.ainclusive of penal interest @ 2olo from 16.09.2023 till the date of realization;

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b)A sum of Rs.23,35,239.93ps under a/c.No.125OO23B7O5O with future interest @ 13.30o/o p.ainclusive of penal interest @ 2vo from 16,09,2023 till the date of realization;

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c) A sum of Rs.64,38,839.99ps under a/c.No .t7OOO32B7}91 wtth futureinterest @ 14.30o/o p.ainclusive of penal interest @ 2o/o from 16.09.2023ti11 the date of realization;

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and in default for sare of mortgaged property as described in the schedule to oA and in defaurt for sare of hypothecated movabres and mortgaged property as described in the schedule^,.A &8,, to OA,

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As per the averrmerenrts in the application, the App lic<tca nt Bank states that defenrdant:Nc{or.1 is a firm-.*epresented by its Proprietor SmtBadI ava t hSa rojaa ava il term loan ;0.t00 lakhs on 07.02.2r016. Defendant J.; ,,""#",-H) htor to the loan

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i: ; .i- il!;:llo24 .. .::,^-2 'i. , .- i--

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(oA.No.269/2023)

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transaction' The defendant executed composite hypothecation agreement, guarantee agreement dated 06.02.2016. The term loan was secured by hypothecation oF water plant and machinery, transport vehicles and gApE autos and equitable mortgage of building constructed on land admeasuring 427 Sq.yds as described in the schedule to OA, The defendants deposited the tiUe deed bearing document no.3O67/2015 of SRO Mahabubabad on 04.02.2016 with an intention to create equitable mortgage as a security. Again defendant no.1 availed term loan facility of Rs.52.00 lakhs, cash credit of Rs.20.00 lakhs on 06.012022. After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the appricant bank was constrained to crassify the account as NPA on 28.I2.2022 and issued notice dated 30.L2.2022. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants called absent and set exparte on L6.01.2024,

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Shri T. Srinivas, Authorised person of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are

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marked as Ex.A.1 to A.22.

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Heard the Ld.

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(oA.No.269l2023)

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

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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.22. 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 Appricant Bank is entired to recover the craim made in the oA with future interest and costs.

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In the resurt, the present oA is ailowed with costs, as under:

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The Defendants are joinfly and severally liable to pay to the Applicant Bank a total sum of Rs.l,S2,34,g76.g6ps (Rupees One Crore Fifty Two lakhs Thirty four thousand Eight hundred Seventy Six and paise Eighty six only) i.e.,

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a) A sum of Rs.64,60,796.94ps under a/c.N..36OB791OOOO6O6 with futureinterest @ 12.45o/o p.ainclusive of penal interest @ 2o/o from 16.09.2023 till the date of realization;

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b) A sum of Rs.23,35,239.93ps under a/c.No.1250023g7050 with future interest @ 13 of penal interest 6D 2o7o

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from 16.09

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0 5 i:3 ?024^* Li Q ,:.( l/

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(oA.No.269l2023)

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c) A sum of Rs.64,38,839.99ps under a/c.No.170003287991 with futureinterest @ 14.30o/o p.ainclusive of penal interest @ 2olo from 16.09.2023ti11 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 the schedule "A & B" to OA towards realization of the debt due.

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the Applicant Bank is also entitled to proceed against the^person and properties of defendant No.2 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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corrected, signed and^pronounced by meⁱⁿ the^oPen :"" lt":""',1?,T'i"ia ; l"i li'i3i9!lr',1i"

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sdl-
(G. GOPICHAND)
i#trt-&<br>PRESIDING OFFICER
{tJ o s tin ?ozr l)}
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Ll/.I
5 4sst
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DRT.I,

Canara Bank v. M/S. Shiva Ganga Water Plant

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Shiva Ganga Water Plant

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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