Allowed

City Union Bank Limited v. M/S. Sri Balaji Fertilizers

DRT10 Jun 2024OA/337/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed a recovery application filed by City Union Bank Limited against several defendants for outstanding bank loans including OLCC, ECLGS, and housing loans, with future interest and costs, and permitted proceedings against secured assets.

What did the court decide?

Recovery of total sum of Rs.85,76,438.02 less Rs.50 lakhs paid, with future interest; permission to proceed against hypothecated movables and mortgaged properties; issuance of recovery certificate.

City Union Bank Limited versus M/S. Sri Balaji Fertilizers — Execution and Attachment | DRT (2024)

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IN THE DEBTS RECOVERYTRIBUNAL-I AT HYDERABAD

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DATED THIS THE 1OTH DAY OF JUNE 2024

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING oFFICER

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OA.No.337 ot 2023

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Between:

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City Union Bank Limited, 4-3-75/2, Hameedpura, Near Nethajichowk, Opp to Big Bazaar, Adilabad - 504 001.

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Represented by its Branch Manager

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Applicant

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VERSUS

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M/s. Sri Balaji Fertilizers, Represented by its Proprietor, Anupothula Naganna,

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S/o Buchanna, D.No.C/3/ 5/408,

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ShivajiChowk, Adilabad - 504 001. Telangana.

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Sri AnupothulaNaganna, s/o BuchannaAnupothula, aged 50 years, male, R/o D. No. 1-28, Bahadurpur, Jainath, Deepaiguda, Adilabad - 504 309.

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SmtAnupothulaHemalatha, w/o AnupothulaNaganna, female, aged major, R/o D.No. 1-28, Bahadurpur, Jainath, Deepaiguda, Adilabad - 504 309.

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Counsel for the Parties: For the Applicant akar 1 0. ;r;l 4fl.. ,i For the Defendants

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(OA. No.33712023 )

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ORDER

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The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.85,76,438.O2ps (Rupees Eighty Five Lakhs Seventy Six thousand Four Hundred Thirty Eight and paise two only) i.e.,

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a) A sum of Rs.70,47,021/- under OLCC loan account with further interest @12.50o/o p.a with monthly rests from date of filing of OA till the date of realization;

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b) A sum of Rs.8,06,558.31ps under ECLGS loan account withfurther interest @ 9.25o/o p.a with monthly rests from date of filing of OA till the date of realization;

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c) A sum of Rs.7,22,858.71ps under housing loan account with further interest @ 10.50o/o p.a with monthly rests from date of filing of OA till the date of realization; and in default for sale of hypothecated movables and mortgaged immovable properties as described in the schedule to OA.

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As per the averments in the application, the Applicant Bank states that defendants 1 and 2 are principal borrowers. Defendant no.2 is the proprietor of o.lconcern, defendant no.2 is the mortgagor an o. applicant. Defendants 1to 3 availed OLC lpan 0.00 and defendant no.1 executed ]'i

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ag reement E,u.^{;L {.,} ,i , $ i uB#8.",,^{lV$#3*,'*,anddemand promissorynote}

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(OA. No.337l2023)

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dated 04.06.2018. Defendants 2 & 3 avaired housing roan of Rs.g.50 lakhs on 02.06.2018. To secure due repayment of aforesaid roan of Rs.69.50 lakhs, the defendant no.2 created equitable mortgage on 13.06.2018 by way of deposit of tiUe deeds i.€., sale deed no.20/2016 dated 31.12.2015 in respect of item no.1 of oA schedure property-Il and sale deed no.6133/20t4 dated lO.t2.2OL4 in respect of item no'2 of oA schedure property. Defendants 1 to 3 avaired ECLGS loan of Rs.12.00 rakhs on 10.06.2020 and executed Dp note dated 30.07.2020. After availing the loan facirities, the defendants failed to comply the terms of sanction, hence the appricant bank was constrained to classify the account as NpA and issued demand notice dated 28.04.2023. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants No.1 to 3 called absent and set exparte on 16.04.2024,

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Shri P. Sai Kumar, Branch Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A. 18. part satisfaction memo filed stating that a sum of Rs.SO.OO lakhs was paid by.th.e defendants.

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Heard the Ld. Counsel for th

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Ir
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(oA.No.337l2023)

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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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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. 18. 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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9, The Defendants are^jointly and severally liable to pay to the Applicant Bank a total sum of Rs.85,76,438.02ps (Rupees Eighty Five Lakhs Seventy Six thousand Four Hundred Thirty Eight and paise two only) LESS a sum of Rs,SO.OO lakhs paid by defendants.

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a) A sum of Rs.7O,47,O2ll- under OLCC loan account with further interest @12.50o/o of filing of OA till the date of

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, -'rt

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(OA.No.337/2023)

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b) A sum of Rs.8,06,558.31ps under ECLGS roan account with further interest @ 9.25% p.a from date of filing of OA till the date of realization;

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c) A sum of Rs.7,22,g58.71ps under housing loan account with further interest @ 10.50% p.a from date of filing of OA till the date of realization;

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10' The Applicant bank is entiued to proceed against the hypothecated movabres and mortgaged properties as described in schedure to oA towards realization of the debt due.

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The Applicant Bank is also entitled to proceed against the person

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and properties of defendants No.2 & 3 and properties of defendant

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no.1 firm towards rea lization of the debt due.

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12, The Applicant Bank is entifled to the costs of the OA.

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13' The Applicant shal fire a cost memo within two weeks from the date of receipt of order.

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t4. Issue Recovery certificate accordingly. 15. Communicate a copy of the order to the parties concerned,

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i,
bytrer, corrected, signed and pronounced by me in the open
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PRESIDING OFFTCER
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City Union Bank Limited v. M/S. Sri Balaji Fertilizers

Case brief

What is this about?

What did the court decide?

City Union Bank Limited v. M/S. Sri Balaji Fertilizers

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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