Allowed

State Bank of India v. S.U. Hygiene Products

DRT1 Apr 2024OA/32/2024

Case brief

AI extract

What is this about?

In OA No.3Z of 2024, the Debt Recovery Tribunal disposed of an application filed by State Bank of India against S.U. Hygiene Products for recovery of outstanding dues from cash credit and term loan accounts. The Tribunal allowed the application, holding that the bank established its claim and entitled to recovery with interest.

What did the court decide?

Applicant allowed to recover Rs.31,37,918/- with future interest and costs; entitled to proceed against hypothecated assets and defendant's properties.

State Bank of India versus S.U. Hygiene Products — Contract and Commercial Disputes | DRT (2024)

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IN THE DEBTS RECOVERY^{TRIBUNAL-I AT HYDERABAD}

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DATED THrs rHE^{lsrDAY oF APRrL' 2024}

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PRESENT: SRI GUMMADI^{GOPICHAND,PRESIDING OFFICER} OA.No.3Z OF 2024

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Between:

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State Bank of India, Stressed Assets Recovery^{Branch (SARB-II)} 1-8-563/1, RTC Cross roads, Opp Sandhya theatre, 1't^floor, Chikkadpally, Hyderabad - 500 020. Represented by its Chief Manager

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Applicant

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VERSUS

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S.U. Hygiene Products, Represented by its Proprtietrix, Smt P. Saritha, H.No.9-K-25, Road no.3, Kanthideepa colony Kachavanisingaram, Ghatkesar - 501 301.

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Defendant

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Counsel for the Parties:

For the Applicant

For the Defendant

Sri C. Prabhakar

Exparte

ORDER

The Applicant Bank fi present OA against Defendant for recovery of a 9L8/- (Rupees Thirty One lakhs Thirty ndred and Eighteen only)

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i.€., a sum "iitr Lof}il,sffi-0ffier ltiqA account No.40392 4s7l4s

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(OA.No.32 of 20241

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with further interest @^{72.40o/op.awith monthly rests from date of} filing of OA till the date^{of realizationand a sum of Rs.21,03,3691-} under loan account^{no.40392404L56 with further interest @ 12.650/o} p.a with monthly rests from date^{of filing of OA till the date of} realization and in default^{for sale of hypothecated assets as} described in the schedule^{to OA.}

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As^per the averments^{in the application, the ApplicantBankstates} that defendant availed^{cash creditloan of Rs.9.00 lakhs and term} loan of Rs.23.00^{lakhs totalinga sum of Rs.32.00 lakhs understand} up India Scheme^{vide letter of arrangement dated 06.08.202t. To} secure due repayment of^{aforesaid loans, the defendantexecuted} agreement of loan cumHypothecation^{dated 06.08.202L. To secure} due repayment the defendant^{created charge by way of} hypothecation of stocks^{more fully described in the schedule to OA.} After availing the loan^{facilities,the defendant failed to comply the} terms of sanction,^{hence the applicant bank was constrained to} classify the account as NPA^{and issued legal notice dated} Lg.L2.2023. Inspite of^{several requests and demands,the} defendant did not clear^{the outstanding. Hence this oA.}

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Defendant called absent on 11 .03.2024.

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i. . ':,
';{
2

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(OA.No.32 of 2024)

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Shri M. Sarala, Manager of the Applicant Bank examined^himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.6.

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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 Defendant as prayed for?

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Defendant 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.6. In view of the above, I hold that the Applicant Bank has established their claim made in the OA against the Defendant 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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The Defendant is iable to pay to the Applicant Bank a total sum of Rs.31,37,918/(ngpffi[!$,tr.1,.pne lakhs rhirty Seven .,.i-'^{-lqt''"'!.r'':,'..:.- :'.} thousand Nine sum of HgndFed lna rigitteE'n only; i.e., a Rs.10,34,549/- under loan account No.40392497845 with fu rthe r nat :,, .,.,'. \.'. '. '', ' 3 ..:..! ,]

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(OA.No.32 of 2024)

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interest @ l2.4Oo/o^p.a from date^{of filing of OA till the date of} realization and a sum of^{Rs,21,03,369/-under loan account} no.40392404156 with further^{interest @ 12.650lop'a from date of} filing of OAtill the date of^realization.

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The Applicant bank is^{entitledto proceed againstthe hypothecated} assets as described^{in schedule to oA towards realization of the} debt due.

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the Applicant Bank^{is also entitled to proceedagainst the personand} properties of defendant towards^{realization of the debt due'}

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The Applicant^{Bank is entitledto 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^{certificateaccordingly.}

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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,signedand pronounced by me in the open} court on this the^{1't day of April'2024)}

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sdl_ (G. GOPICHAND) q PRESIDING OFFICER

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Asst.?eglstrar *t;, rvaenaen4.

State Bank of India v. S.U. Hygiene Products

Case brief

What is this about?

What did the court decide?

State Bank of India v. S.U. Hygiene Products

Case brief

What is this about?

What did the court decide?

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