Allowed

Union Bank of India v. M/S. Loknadh Pharmacy and General Stores

DRT25 Sept 2024OA/47/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Union Bank of India against recourse borrowers. The bank established its claim via documentary evidence. The Court held the Defendants jointly and severally liable to pay the outstanding loan amount with future interest. The application is allowed for recovery of debt and sale of hypothecated goods.

What did the court decide?

United and severally liable to pay Rs. 31,63,789 with future interest at 10.85% p.a. Recovery certificate to be issued. Sale of hypothecated movables and other properties allowed for realization.

Union Bank of India versus M/S. Loknadh Pharmacy… — Contract and Commercial Disputes | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 25TH DAY OF SEPTEMBER' 2024

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.47 ot 2024

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Between:

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Union Bank of India, Khammam Bus Station complex Branch, Khammam, Khammam District, Telangana - 507 OO2. Represented by its Sr. Br Manager

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Applica nt

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VERSUS

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M/s. Lokanadh Pharmacy & General Stores, situated at H.No.5-99199, ground floor, Main road, Gudimalla - 507 003. Khammam district, Khammam Telangana State. Represented by its sole^proprietor Mr. Mellache ruv u^pu n na m Raju,

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M r. M ella cheruvu Pu n n a m Raju, S/o Venkateswarlu, aged 26 years, Occ: business, R/o D.No.5-99/99, Ground floor, main road, Chinnavenkatagiri, Gudimalla - 507 003. Khammam district, TS, Sole Proprietor of M/s. Lokanad Pharmacy and general Defendants B *

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Counsel for the Parties: stP Ntl

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For the Applicant Sri For the Defendants

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loA.No.47 /2024)

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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.31,63,789l- (Rupees Thirty One Lakhs Sixty Three thousand Seven Hundred and Eighty Nine only) with future interest @ 10.85o/o^p.a from date of application till the date of realization and in default for sale of hypothecated movables as described in the schedule to OA.

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As per the averments in the application, the Applicant Bank states that defendant No.1 is firm represented by its sole^proprietor defendant no.2 availed working capital^loan of^{Rs.30.00 lakhsunder} CGTMSE for medical and^{general goods.} The^{defendantsexecuted} letter of guarantee, demand^promissory note, hypothecation^of goods and debts. After availing the loan facility, the defendants failed to comply the terms of sanction,^{hencethe applicantbankwas} constrained to classify the account as^{NPA and issued demand notice} dated 08.07.2023. Inspite of^{several requests and demands, the} defendants did not clear the outstanding.^{Hence this OA.}

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Defendants No.1 and rte on 29 .04.2024^. 4. Sri B. Ashok, Manag th? tp$EsaillBan amined himself as AW.1 and exhibited ich are marked as Ex.A.1to A.8.

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loA.No.47 /20241

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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 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.B. 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: The Defendants are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.31,63,789l- (Rupees Thirty One Lakhs Sixty Three thousand Seven Hundred and Eighty Nine only) with fut 10.85% p.a from date of application till the

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2 5^SEP zut

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1. The Applicant bank ri ntitled to p nst the hypothecated mova bles as descri ards realization of the debt due.

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(OA.No.47l2024)

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The Applicant Bank is also entitled to proceed against the person and properties of defendant No.2 and properties of defendant no.1 firm towards realization of the debt due.

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The Applicant Bank is entitled to the costs of the OA,

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within two weeks from the date

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t2. The Applicant shall file a cost memo of receipt of order.

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Issue Recovery ceftificate accordingly.

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L4. Communicate a copy of the order^{to the parties concerned.}

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(Dictated to the P.A., transcribed by her, corrected, signed^{and pronounced by me in theopen} court on this the 25th day of Sept,²⁰²⁴⁾

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sdl_ (G. GOP]CHAND)

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PRESIDING OFFICER

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Union Bank of India v. M/S. Loknadh Pharmacy and General Stores

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/S. Loknadh Pharmacy and General Stores

Case brief

What is this about?

What did the court decide?

What the court decided

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