Allowed

Canara Bank v. M/S. Vistan Next Gen Pvt. Ltd.

DRT23 Oct 2024OA/319/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Canara Bank for recovery of Rs.2,21,91,945.44 against a corporate defendant and three individual guarantors/mortgagors who failed to clear NST loans and mortgages for service robots.

What did the court decide?

Respondents are directed to pay the principal sum of Rs.2,21,91,945.44 with applicable interest and costs; the bank is authorized to enforce mortgages and proceed against other properties.

Canara Bank versus M/S. Vistan Next Gen Pvt. Ltd. — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE 23RD DAY OF OCTOBER' 2024

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.319 ol 2O23

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Between:

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Canara Bank, Basheerbagh-I branch, Hyderabad - 500 029 Telangana State Represented by its Authorised officer

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Applicant

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VERSUS

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M/s. Vistan Next Gen private Limited, Vasavi MPM Grand, 9th floor, Office No.1006 & 1007, Yellareddyguda, Ameerpet, Hyderabad - 500 073. Represented by its Director Mr. Rama Raju Singam

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Mr. Ramarajusingam, s/o Srihari Singam,

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aged about 48 years, occ: business, R/o H.No.B-3-483,486 to 502, Flat no.402, Suncity Apartments, Yellareddyguda, Ameerpet, Hyderabad - 500 073.

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w/o Mrs. ManjulaBasiboyina,RamarajuSingam, ' I
aged about 43 years, occ: business,,y'/6s
R/o H.No.B-3-483,486 to 502, !i'; %<br>Flat no.402, Suncity Apartments, i' '"
Yellareddyguda, Ameerpet, ii ,'
Hyderabad - s00 073.
i,i_i
4.
Mrs. Singam Jaya Lakshm,, 'i.,'i ;
w/o Singam Srihari, aged about -,i,,ii

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(OA.No.319 of 2023)

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43 years, occ: business, R/o H.No.B-3-483,486 to 502, Flat no.402, Suncity Apartments, Yellareddyguda, Ameerpet, Hyderabad - 500 073.

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Defendants

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Counsel for the Parties:

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For the Applicant : Sri BN Swamiji

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For the Defendants 2 to 4 : Exparte Defendant no.1 : Sri A. Gopal Rao

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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.2,21,91,945.44ps (Rupees Two crores Twenty one Lakhs Ninety one thousand Nine hundred Forty Five and paise forty four only) i.e.,

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a) A sum of Rs.1,75,93,0428/- under overdraft facirity with interest @ L7.95o/o p.a from 01.10.2023 till date of realizaUon;

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b) A sum of Rs.4,47,695.64ps under term roan facirity with interest @ 12.50o/o^p.a from 06.09.2023 till the date of realization;

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c) A sum of Rs.41,51,207.70ps under Emergency Credit facility with

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interest @ 9.25olo p.a from till the date of realization; And in default for ovable property as

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described in the schedui6 to Oa.*, *

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2 3 0rr 2t[t

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As per the averments Bank states

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that defendant No.1 & 3 are its

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(OA.No.319 of 2023)

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directorsand defendant no.4 is the wife of defendant no.2 avaired Overdraft facility of Rs.1,50,OO,OOO/_ and term loan of Rs.49.00 Iakhs in total of Rs.1,99,00,000/_ for manufacture of service robots. The defendants executed pronotes dated 30.09.2020, common hypothecation agreement in favour of Applicant bank. The defendants 2 & 3 executed registered Memorandum of deposit of tire deeds bearing document no.5899/2021 dated 16.09.2021 and mortgaged the schedule property in favour of Applicant bank. After avairing the roan facirities, the defendants faired to compry the terms of sanction, hence the applicant bank was constrained to classify the account as NpA and issued demand notice dated 10.05.2022 and Possession notice dated 24.07.2022. Subsequenfly the Applicant bank issued sare notice dated 13.10.2022 and the defendants fired 5.A.294/2022 which is still pending. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this oA.

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Defendants No.2 to 4 called absent and set exparte on 22.03.2024.Ld counsel for defendant no.1 filed vakalth but failed to

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file written statement.

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Ms. Kiranmai, Mana rH,h exa m in ed herself as AW.1 and exhi frru,*f *-^a[J,ffi,t,, i ich are marked as \I Ex.A.1 to A.39. ,'--i ., o,-+Y ;r,,qry'

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(OA.No.3L9 of 2023)

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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 prayed for?

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7' Defendants No.2 to 4 remained set exparte. counser for defendant no.1 fired vakarath but faired to fire ws. To substantiate the case of the Applicant Bank, AW.1, official of the Applicant Bank was examined and she exhibited rerevant documents as Ex.A1 to A.3g. In view of the above, I hord that the Appricant Bank has estabrished their craim made in the oA against the Defendants and hence the Applicant Bank is entitred to recover the craim 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: The Defendants are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.2,21,9 L,945.44ps (Rupees Two crores Twenty one Lakhs Ninety one thousand Nine hundred Forty Five and paise forty four only) i.e.,

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a) A sum of overdraft facility with

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interest @ till date of realization; "ft'," "ffi",.?

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(OA.No.319 of 2023)

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b) A sum of Rs.4,47,695.64ps under term loan facility with

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interest @ L2.50o/o p.a from 06.09.2023 till the date of realization;

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A sum of Rs.41,51,2OZ.7Ops under Emergency Credit facility with interest @ 9.25olo p.a from 2g.09.2023 till the date of realization;

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The Applicant bank is entitled to proceed against the mortgaged

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property as described in schedule to OA towards realization of the

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debt due.

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The Applicant Bank is also entifled 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 ts entitled to the costs of the OA.

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The Applicant shail fire 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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t4. gf the order to the parties concerned.

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of , corrected, signed and pronounced by me in the open court on
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Canara Bank v. M/S. Vistan Next Gen Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Vistan Next Gen Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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