Allowed

State Bank of India v. M/S. Kr Enterprises

DRT2 Apr 2024OA/295/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Original Application filed by State Bank of India for recovery loans. The court found the bank established its claim through affidavit evidence and documents, holding the defendants liable to repay the principal sum, interest, and costs.

What did the court decide?

Defendants ordered to pay principal sum with interest; bank entitled to proceed against secured assets and realize debt from all respondents.

State Bank of India versus M/S. Kr Enterprises — Contract and Commercial Disputes | DRT (2024)

¶1

IN THE DEBTS RECOVERY TRIBUNAL.I AT HYDERABAD

¶2

DATED THrs THE zND DAy oF ApRrL, zoz4

¶3

PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

¶4

OA.No.295 OF ZO23

¶5

Between:

¶6

State Bank of India, Stressed Assets Recovery Branch, 2nd floor, TSRTC Commuter Amenity Centre, Bus Terminal complex, Koti, Hyderabad - 500 095. Represented by its Chief Manager

¶7

Applicant

¶8

VERSUS

¶9

M/s. KR Enterprises, A partnership firm, represented By its partner, 3-2t5/A, Uppal main road, Uppal, Hyderabad - 500 039.

¶10

Sri Kundarapu Ashish Raj, s/o K. Raja Chari, aged 28 yrs, male, R/oH. No. 2-3-67 6/3/ tsZ, lalithanagar, Road no.9, green lands Dhaba, oppNagole, Hyderabad - 500 068.

¶11

Smt K. Naga Laxmi, w/o Kundarapu Raja Chari, aged 53 years, female, R/o H. No. 2-3-67 6/ 3/ t52, lalithanagar, Road no.9, green la Dhaba, oppNagole, Hyderabad - 500 068. ,4, ry' i/- #;ri.+' EP 'A ti 4. M/s. Laxmi Enterprises, r Represented by its^{proprietrixii} il,^nl-l,PRzui*ⁱⁱ ii^rl Smt K. Na gq a L axmi,axmi, i:, 7it H. No.2-3-676/3/L52,

¶12

(OA.No.295 of 2023)

¶13

lalithanagar, Road no.9, green lands Dhaba, oppNagole, Hyderabad - 500 068.

¶14

Sri Kundarapu Raja Chari, s/o K. Sarvaiah, aged 58 years, male, H. No. 2 -3-67 6/3 / tS2, lalithanagar, Road no.9, green lands Dhaba, oppNagole, Hyderabad - 500 068.

¶15

Defendants

¶16

Counsel for the Parties:

¶17

For the Applicant

¶18

For the Defendants

¶19

Sri C. Prabhakar Exparte

¶20

ORDER

¶21

1' The Applicant Bank fired the present oA against Defendants for recovery of a total sum of Rs.4,1g,O6,397l- (Rupees Four

¶22

Crores Eighteen Lakhs Six thousand Three hundred and Ninety Seven only) i,e., (a sum of Rs.2,25,05,848/- + L,lO,2g,7O3/) with further interest @ 17.25o/o p.a with monthly rests from date of filing of OA till the date of realizationand a sum of Rs. 82,70,g46l with further interest @ 9.92o/o p.a with monthly rests from the date of OA till the date of realization and in default for sale of movable assets and mortgaged schedules "I to IV" to oA. ,) APF tzld^*\

¶23

As per the averments,inl.jlhe Bank states '-1,",... that defendant No.1 is nrintir to 5 stood as

¶24

¶25

(OA.No.295 of 2023)

¶26

guarantors and defendants 3 to 5 are mortgagors. Defendants 1 to 4 availed cash credit of Rs.300.00 lakhs vide letter of arrangement dated 18.11.2020 and executed agreement of loan cum hypothecation dated 18.11.2020. The defendants 2 to 4 executed guarantee agreement dated 18.11.2020 guaranteeing the due repayment of rs.300.00 lakhs. Defendant No.1 hypothecated all movable assets more fully described in schedule I and defendant no.3 created equitable mortgage by deposit of sale deed no.7g/2007 in respect of OA schedule property-Il. Defendant no.4 created equitable mortgage of OA schedule property - III. The applicant bank renewed the existing cash credit loan of Rs.300.00 lakhs and sanctioned GECL l extn loan of Rs.70 lakhs totaling Rs.379.00 lakhs on 29.03.2022. To secure due repayment of aforesaid loans sanctioned to defendant no.1 fir, the defendant no.5 extended mortgage on t7.12.2022 in respect of OA schedule property - IV. 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 29.09.2023. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

¶27

Defendant No.s 1 exparte on t3.03.2024.

¶28

(oA.No.29s of 2023)

¶29

Sri P. Prabhakar, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.29.

¶30

Heard the Ld. Counsel for the Applicant Bank.

¶31

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?

¶32

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.29. 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.

¶33

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

¶34

The Defendants are^jointly and severally liable to^pay to^the Applicant Bank a total sum of Rs.4,18,06,397 l-^(Rupees Four

¶35

Crores Eighteen Three hundred and Ninety Seven only) B4B/- + t,t0,29,703/-) with further @.17.Asyo &nt'ml o.: filing of OA till the date of 'r1-.t o ^H, fu'#

¶36

(OA.No.295 of 2023)

¶37

rea lization and a sum oF Rs. 82,70,846/- with further interest @ 9.92o/o p.afrom the date of OA till the date of realization.

¶38

The Applicant bank is entitled to proceed against the hypothecated assets and mortgaged immovable property as described in schedules "I to IV" to OA towards realization of the debt due.

¶39

The Applicant Bank is also entitled to proceed against the person and properties of defendants No.2, 3 & 5 and properties of defendant no.1 and 4 firms towards realization of the debt due.

¶40

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

¶41

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

¶42

Issue Recovery certificate accordingly.

¶43

Communicate a copy of the order to the parties concerned.

¶44

(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open court on this the 2nd day of Aptil'2024)

¶45

tu.^uor,.rii/ri PRESIDING OFF!CER

¶46

0 ?- l?fi zmt

¶47

d.$fu, ,rl:{,olig,triii

State Bank of India v. M/S. Kr Enterprises

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Kr Enterprises

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

Bank of Maharashtra versus Mrs. Anthony Hariate Margaret

State Bank of India versus S.U. Hygiene Products

State Bank of India versus Sri Gopala Krishna Devulapalli

State Bank of India versus M/S. Sri Vinayaka Enterprises

A Raghavendra versus Andhra Pradesh Grameena Vikas Bank

Indian Bank versus M/S. Yashwanth Enterprises