Allowed

Canara Bank v. M/S. Gayatri Water Plant

DRT5 Mar 2024OA/297/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Originating Application filed by Canara Bank for recovery of dues amounting to approximately Rs. 1.53 Cr from M/s. Gayatri Water plant and its proprietor/guarantor. The court held the bank established its claim and allowed recovery including interest, costs, and proceeded against mortgaged properties.

What did the court decide?

OA allowed; Defendant to pay Rs. 1.53 Cr with future interest; Bank entitled to realize against mortgaged and personal properties; Recovery certificate issued.

Canara Bank versus M/S. Gayatri Water Plant — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERYTRIBUNAL-I AT HYDERABAD

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DATED THrs rHE 5rH DAy oF MARCH, 2024

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING oFFICER

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OA.No.297 ot 2O23

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Between:

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Canara Bank, SME Warangal, VSM complex, Chaitanyapuri, Near NIT, Opp REC^petrol Bunk, Hanamkonda, Warangal- 506 OO1. Represented by its authorised person Sri DameraSatyambabu

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Applicant

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VERSUS

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M/s. Gayatri Water^plant, Represented by its^proprietor SmtBadavathvijaya, W/o Sri BadavathKishan, Aged about 40 years, Occ: business, H.No.3-114/2 (old) 3-800004 (New), Sy.No.5/83, Admeasuring 238.00 Sq.yds, Beerappanagar, Thorrur Village And mandal, Mahabubad District -506 101.

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Also at

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1-2 Dhan Singh Thanda, Ramannagudem, Narsimhulapet Mungimadugu, Warangal - 506 324.

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2, Mr. B. KishanNaik, s/o Sri BadavathVenkatram, aged about 45 years, occ: business, 1-2 Dhan Singh Thanda. Ramannagudem, Narsimhulapet Mungimadugu, Warangal - 506 324.

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(OA.No.297 /20231

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Counsel for the Parties: For the Applicant Ms. Sangeeta Jaiswal For the Defendants Exparte

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ORDER

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The Applicant Bank fired the present oA against Defendants for recovery of a total sum of Rs.L,Sg,Z4,g32.9gps (Rupees One Crore Fifty three Lakhs Twenty four thousand Nine Hundred Thirty two and paise Ninety Eight only) i.e.,

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a) A sum of Rs.85,88,711.54ps in A/c.3959753000002 with future interest @ 12.20o/o p.ainclusive of penal interest @ 2olo from 20.09.2023 till the date of realization;

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b)A sum of Rs.50,681.33ps in A/c. 3959753000002 with future interest @ 72o/o p.a inclusive of penal interest @ 2olo from 01.09.2023 till the date of realization;

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c) A sum of Rs.13,34,091.93ps in A/c. 3959755000036 with future interest @ 11.25olo p.a incluslve of penal interest @ 2olo from 01.09.2023 till the date of realization;

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d) A sum of Rs.53,51,448.18ps in A/c. 3959766000057 with future interest @ 15.25olo p.a inclusive of penal interest @ 2olo from 0L.09.2023 till the date of real

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and in default for ovables and mortgaged property as the schedule "A to OA. ')r ,* o 5 il[R 202[ L. 'J-^ {

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(oA. No.2e7l2023)

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As per the averments in the apprication, the Appricant Bank states that defendant No.1 is a firm represented by its proprietor defendant no.2 availed term loan of Rs.50.00 rakhs on 20.03.2015. Defendant no.2 stood as guarantor to the loan transactions and executed agreement of deed of hypothecation, deed of hypothecation, deed of Hypothecation of machinery, guarantee agreement and guarantee covering letter dated 20.10.2015. To secure the loan facility, the defendants deposited the tifle deed bearing document no.Trgr/20t3 of SRO, Mahabubabad and supplemental deed document no.2475 of SRO, Warangal and created equitable mortgage of schedule mentioned property. On 24.04.2020 the defendant no.1 availed loan facility of Rs.1.00 lakh under Guarantee emergency credit line scheme and executed agreement cum deed of hypothecation dated 24.04.2020. The defendants once again availed Rs.12,60,000/_ under Guarantee emergency credit line scheme on 22.06.2020 and also availed term loan of Rs.39.00 lakhs and cash credit of Rs.15.00 lakhs on 11.01.2021. After availing the loan facilities, the defendants failed to compry the terms of sanction, hence the applicant bank was constrained to crassify the account as NpA on 03.01.2023 and issued regar notice dated 10.09.2023. Inspite of several requests and demands, the defendants did not clear the outstandins. r"".",Ur$-f*GN ,;;f'---+i^-</sup>

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(oA.No.297 /2023)

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Shri Talari Srinivas, Authorisedofficer of the Applicant Bank examined himself as AW.1 and exhibited relevantdocuments, which are marked as Ex.A.1 to A.31.

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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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7, 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.31. 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.

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

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le to pay to the Applicant Bank a total sum of Rs. pees One Crore Fifty three Lakhs -fOur undred Thirty l1two and paise Ninety eititi "n[lf iruli²⁰¹⁴ "'J ,/ t ' ;'.

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(OA.No.297 /20231

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a) A sum of Rs.85,88,711.54ps in A/c. 3959753000002 with future interest @ 12.20olo p.a inclusive of penal interest @ 2olo from 20.09.2023 till the date of realization;

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b) A sum of Rs.50,681.33ps in A/c. 39597S3OOOOO2 with future interest @ l2o/o p.a inclusive of penal interest @ 2olo from 01.09.2023 till the date of realization;

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c) A sum of Rs.13,34,091.93ps in A/c. 3959755000036 with future interest @ 11.25olo p.a inclusive of penal interest @ 2olo from 01.09.2023 till the date of realization;

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d) A sum of Rs.53,51,448.18ps in A/c. 3959766000057 with future interest @ 15.25olo p.a inclusive of penal interest @ 2olo from 01,09.2023 till the date of realization;

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The Applicant bank is entitred to proceed against the hypothecated movables and mortgaged property as described in schedule '.A &B,.to OA towards realization of the debt due.

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the Applicant Bank ls 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 two weeks from the date of receipt of I1AR , 5

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/tx'1€' ,1.". '

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(OA. No.29712023)

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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 to the P.A., transcribed by her, corrected, signed and pronounced by me in the open court on this the sthday of March' 2024)

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sdl(G. coPrCHAND) PRESIDING OFFICER

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Canara Bank v. M/S. Gayatri Water Plant

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Gayatri Water Plant

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Parties & counsel

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Case details

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