Allowed

State Bank of India v. M/S Rainbow Collections

DRT16 Apr 2024OA/352/2023

Case brief

AI extract

What is this about?

Dr II allowed SBI 's OA under Section 19 RDB Act, holding defendants liable to pay Rs.38 lakh with future interest and costs, secured by hypothecated assets, and directed issuance of recovery certificate.

What did the court decide?

Defendants liable to pay Rs.38,13,594/- with future interest, costs, and proceed against hypothecated assets; Recovery Certificate issued.

State Bank of India versus M/S Rainbow Collections — Banking and Recovery | DRT (2024)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-II AT HYDERABAD DATED THIS THE 16th DAY OF APRIL, 2024

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PRESENT: SH. RAMESHWAR KoTHE, B,com, L.L.B, (Hons.), M.A. PRESIDING OFFICER

¶3

ORIGINAL APPLICATION No. 3S2 OF 2023

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State Ba nk of India RASMECCC & SARC, Door No.19-3- 13, Hero Showroom (Upstairs), Renigunta Road,Tirupati Tirupati District-5 17501. Rep by its Manager.

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,.......Applicant.

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Versus

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N4ls. Rainbow Collections, Rep by its^proprietor D.No.19-9-29, Near Apo o Ctinic, Kennedy Nagar, Tirupati- 517501, Tirupati District.

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Also at: D.No.10-80/14, Royal Nagar, Tirupati-517501, Tirupati District

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Also at: D.No.19-7-171, Ground Floor, Hathiramji Colony, Ba irag ipateda, Tirupati, Tirupati District. Also at: D. No.17-6- 352, Aravapatti Street, Tirupati, Tirupati District.

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Sri. Boddu Jayacha ndra, S/o. Sri. Boddu Maraia h, Aged a bout 49 years, Occupation : Business and Proprietor of 1't Defenda nt. D.No.19-9-29, Nea r Apollo Clinic, Kennedy Naga r, Tiru pati-517501, Tiru^pati District. y'.Irrr^.r,

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oA.NO.352/2023

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¶13

Also at: D.No.10-80/1A,^{Royal Nagar,} Tirupati-517501,^{Tirupati District'}

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Also at:

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D. No.19-7-^{171, GroundFloor,} Hathiramji^{ColonY, BairagiPateda,} TiruPati,^{TiruPati District.}

¶16

Also at:

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D.No. 17-6-352,^{AravaPalli Street,} Tirupati, TiruPati^District.

¶18

Defenda nts.

¶19

Counsel^{for the APPlicant} Defendants

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: Mr. G. Prabhakar^Sarma

¶21

:Ex-parte.

¶22

ORDER

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The Applicant^{Bank flled the present OA u/s 19 of the Recovery} of Debts and^{BankruptcyAct, 1993 for the recoveryof a total} sum of^{Rs.38,13,5g4/-i.e., (Rs 24,81,498/- under Cash credit} Loan A/c. No.37563602999^{with lnterest @ 13'75olo P a} ' Rs.5,4g,23gl- under^{GECL Loan A/c No 39538847516with} interest @9.250lo^{p.a., Rs.2,09,846/-under ccECL Loan} A/c. No.39540042196^{with interest @9'90o/op'a, Rs 1,10'901/-} under FITL-1 A/c.^{No.40296818768with interest@17250lo p a'} and Rs.4,62,110/-^{under FITL-2 A/c No 402967454469 wilh} lnterest @17.25olo^{p.a.) from the defendantswith monthly rests} from the date of^{thls applicationtill the date of realisationalong} with costs and sale^{of oA schedule hypothecated assets'}

¶24

Summons^{served on D1 and 2 throughpaper publication'They} were set ex-parte on^{09.02.2024,as called absent and no} representation. /{K'r,

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oA.NO.352/2023

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The Applicant Bank examined P. Shravan Kumar, Manager AS

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AW-1 and marked 18 documents through her as Ex. A.1 to

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Ex.A.18.

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Learned Counsel for the applicant bank reported orders may be passed on merits. perused the material placed on record.

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The point that arises for consideration is:_

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Whether the Appticant Bank is enti ed for the claim made in the OA against the Defendants and OA Schedule hypothecated assets?

¶33

As stated supra, defendants remained ex_parte. The Evidence Affidavit coupled with the recitals in the documents viz., Exs. 41 to A.18 marked on behalf of the Applicant Bank clinches the claim of the Applicant Bank against the Defendants. Hence, I hold that the Defendants are liable to pay the OA claim to the Applicant Bank with future interest and costs.

¶34

In the result, the present Original Application No.35212023 is allowed as under: -

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i) the defendants are liable to pay to the Applicant Bank a sum of Rs.38,13,594/- with Future interest @10.70olo p.a. simple from the date of application i.e.,03.03.2023 ti the date of realization;

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ii) the OA claim is secured by way of hypothecation of assets described in the schedule annexed to the OA and the applicant bank is entitled to proceed against the same for recovery ot xt a".r;//ft,nd

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oA.NO.352/2023

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iii) the^{applicant bank is also entitled to proceed} against the^{personand propertiesof the} defendants^{for realization of its dues; and}

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iv) the^{applicant bank is entitledfor the costs'}

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The Applicant^{Bank is directed to file Cost Memo within2 weeks} from the^{date of receipt of this Order'}

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Issue Recovery^{Certificate accordingly'}

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Communicate^{a copy of this order.tothe oarties concerned'} (Dictated to the^{steno, iJnlalnJp'onouncedby me in the open court on this the16th} daY of^APril,2024)'

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/1ry"'""' lnKruesnwnR^KorHE) PRESIDING OFFICER

State Bank of India v. M/S Rainbow Collections

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Rainbow Collections

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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