Allowed

Indian Overseas Bank v. M/S Sreeven Dhara Infra

DRT19 Feb 2024OA/45/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by the bank for recovery of dues arising from a secured cash credit loan and FITL account against the defendant firms and individuals, holding them jointly and severally liable after finding the defendants' defenses unproven.

What did the court decide?

Defendants jointly and severally liable to pay Rs. 22,27,413.25 with future interest; bank entitled to proceed against secured assets and defendant properties for realization; costs awarded.

Indian Overseas Bank versus M/S Sreeven Dhara Infra — Execution and Attachment | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL-II AT DATED THIS THE 19TH DAY oF FEBRUARY,

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PRESENT: SH. RAMESHWAR KOTHE, B.Com, L.LB.

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PRESIDING OFFICER

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ORIGINAL APPLICATION No. 45 oF 2022

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Indian Overseas Bank Raj Bhavan Road Branch Somajiguda, Hyderabad Rep. by its Asst. General Manager.

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....Applicant.

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Versus

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M/s, Sreeven Dhara Infra Rep. by its Managing Director M.N.V. Prasad MCH No. 7-t0-73/t/302 Aditya Nest, Begumpet Hyderabad-5000 1 6.

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Smt. M.N.V.^prasad W/o Sri M.S.V. Chaitanya Aged: Major, Occ: Business Flat No.202, Vinayaka Abode Apartments, East Marredpally Secunderabad-026.

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Also at:

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No. 301, Kranthi Venkateswara Apartments, Near by SacredHeart School, East Marredpally Secundera bad-500026.

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Shri V.R.R. Chandra Raju S/o Sri Gandhi Raju Aged: Major, Occ: Business Flat No.302, A-5 APSFC Officers Colony Ven katag i ri, Yousufg uda Hyderabad-45. .... Defendants, frY*

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oA.4512022

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Counsel for^{the APPlicant} Counsel for^{Defendants 1 & 3} Counsel for^{Defendant No.2}

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: Mr. Dishit^{Bhattacharjee.} : Mr. K.V.L.^{NarasimhaRao.} : Ms. L. Madhavi^Latha.

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1.The:.ApplicantBankfiledthepresentoAfiledu/S19ofthe Recovery^of 'the^{Debts and BankruptcyAct, 1993, for recovery} of ai sum of^{Rs.2, 10,47,829.25psunder cash credit Loan and} Rs;12,26 ,584/-^{towards FITL account from the defendants 1 to} lr^{jciintly and'severallywith future interest @15'650/op'a' and} tr1"850/o^{respectivelywith monthly rests from 01'01'2022till} the date of^{realisation along with costs and sale of oA schedule} assets.^I

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.'.' :.

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The averments ..^{of applicant bank as per the oA, briefly, are that} 1:, {efendgnt^{partnershipfirm, representedby its Managing} partner-2nd; defendant and Partner-3'd defendant,^{availed Cash} credit andt FITL^{under one time restructure for business} purr.poses. Defendants created^{hypothecationover OA A-} schedule assets and^{equitablemortgage over oA B-schedule} property l respectively among other^{requisite documentsfor} availing the credit^{facilities from the applicant ban. However,} defendants did not repay^{the dues in terms of loan agreement,} , , thereby committed breach of contract. Applicant bank^issued notices under sections 13(2) and^{13(4) of SARFAESIAct} f t a-ltI r- !L^ -l--.nst the secured assets. As defendants^{failed to clear the}

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of written statement of defendants 1 and² for non-representation in spite of conditional order. "1\ -^{,. 11 +_--}

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oA.4s/2022

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whereas 3'd defendant filed written statement. The averments in the written statement, in brief, are that oue to znd defendant's mismanagement of the affairs of the 1't defendant f i fm fpctllteal in.rrclr^-t i,Jr:^^ rL^.---anrl ^/aF r rrhirm resulted in cost ove runs and idling charges. The znd defenda nt forged the sig natu res of th is defenda nt a nd presented for clearance. This defendant lodged criminal complaint in this regard on 16.07.202r. Though the oA B- schedule property is in the name of the partnership firm, this defendant is having equar right over the same. 2nd defendant withdrew amounts in lock down period without the knowledge of this defendant. Despite lodging a complaint, applicant bank hasnottakenanyactionagainst2nddefendant.

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The Applicant Bank examined M, Brahmaiah, senior. Manager as

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Defendants right of adducing evidence was forfeited vide docket order dated 04.10.2023 for the reason of non-representation on:

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Heard learned counsel for the applicant. Defendants' riEht^,Of arguments forfeited vide docket order dated 07.02.2024 as there was no representation on their behalf. Perused the material placed on record.

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The point that arises for consideration is:-

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Whether the Applicant Bank is enlitled for the claim made in the OA and sale of OA schedute assersz O%rn

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oA.4s12022

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g. As stated^{supra, defendants1 and 2 though enteredappearance} throughtheircounselhavenotfiledwrittenstatement.The ptea of the 3'd^{defendantis that 2nd defendant played fraud in} running^{the business operations both in contributingher share} o[gapitalbutalsomisusedtheauthorityvestedinherby presentingforgedchequesandwithdrawingamountsduring covid.lg^{lock down period without his knowledge, resultingin} runningthebusinessinaprofitableway.Ascanbeseenfrom the. averments^{of 3'd defendant, availment of loan and default} thereafter^{is not in dispute.The issues raised in the written} statement ,are^{the internal affairs of the partners and has} nothingtodowiththerepaymentofcreditfacilitiesavailedfrom applicantbank.However,thecontendingdefendant,except makingavermentsinthewrittenstatement,didnotchooseto adduce anyr^{evidence nor did he choose to cross examineAW'1} to substantiate^{his averments. Under such circumstances'} Evidence Affidavit^{of Aw.1 coupledwith the recitalsin the} documentsviz.,ExS.A.lto^.2gmarkedonbehalfofthe Applicant^{Bank, the claim of the Applicant Bank against the} defendants^{remains unchallengedand unrebutted'Hence, I hold} that the Defendants^{1 to 3 are jointlyand severally liable to pay} the oA claim^{to the Applicant Bank with future interestand} costs.

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In the^{result, the present Original ApplicationNo'4512022is} allowed as under:^-

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i) the Defendants are^{jointly and severally} liable to^pay to the^{Applicant Bank a sum of}

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rRs.2, !0,47,829.25ps under Cash Credit Loan Oy.*\

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and Rs.12,26,584/- towards FITL a totalling to Rs.2, 22,74,413.25ps with futu re :,1 interest @LZo/o p.a. simple from the application till the date of realization;

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ii) the OA claim is secured by way^, of schedule hypothecation/mortgage of OA assets annexed to the OA and the applicant ,I,' bank is entitled to proceed against the same for recovery of its dues;

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iii) the applicant bank is also entitled to proceed against the person and properties of Ithe defendants for realization of its dues; and

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iii) the applicant bank is entitled for the costs.

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The Applicant Bank is directed to file Cost Memo within 2 weeks from the date of receipt of this Order.

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Issue Recovery Certificate accordingly.

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t2. Communicate a copy of this order to the^parties conce,rned, (Dic'trrtcl to lhe.sleno,,signcd und prorrotrrrc'acl b.1, rrtc in lhe r4ten c'ortrl ort thi,r the l9't' day of February, 2024).

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PRESIDING OFFICER

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''':'

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l;r

Indian Overseas Bank v. M/S Sreeven Dhara Infra

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. M/S Sreeven Dhara Infra

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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