State Bank of India versus M/S. Vow Interiors — Contract and Commercial Disputes | DRT (2024)

State Bank of India versus M/S. Vow Interiors — Contract and Commercial Disputes | DRT (2024)

IN THE DEBTS RECOVERYTRIBUNAL-I AT HYDERABAD

DI\TED THIS THE 23RDDAY OF JULY' 2024

PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER OA.No.56 ot 2O24

Between:

State Bank of India, Stressed Assets Recovery branch-II, (SARB-II) Opp Sandhya Theatre, RTC Cross Roads, Chikkadpally, Hyderabad, Telangana State. Represented by its Chief Manager

Applicant

VERSUS

M/s. Vow Interiors, A^partnership firm, Represented by its partners The defendants 2 & 3 herein Plot no.19, Sy.No.204 & 238, Pati village, Patancherumandal, Sanga Reddy district - 502 300.

&

H.No. 12- 1-79lSE, flat no.202, Sri Shailajas Vinay Elite, Anandi Enclave, Bandlaguda, Nagole, Hayathnagarmandal, Hyderabad - 500 068.

Sri Paillavikram Reddy, s/o Sri P. Bal Reddy, aged about 46^years, male, occ: business and partner of defendant no.l firm H.No. 12-1-79lSE, flat no.202, Sri Shailajas Vinay Elite, Anandi Enclave, Bandlaguda, Nagole, Hayathnagarmandal, Hyderabad - 500 068.

And

(OA.No.s612024)

Plot no.19, Sy.No.204 & 238, Pati village, Patancherumandal, Sanga Reddy district - 502 300.

Sri Bokka Rama Krishna, S/o Sri B. Malla Reddy, Aged about 37 years, male, Occ: business and partner of Defendant no.1 firm H.No.12-1-2lt02, 103, Rag havendra naga r, Road no.4, nagole, Hayath naga rmanda l, Hyderabad - 500 068.

And

Plot no.19, Sy.No.204 & 238, Pati village, Patancherumandal, Sanga Reddy district - 502 300.

Defendants

Counsel For the Pa rties:

For the Applicant For the Defendants

Sri G. PrabhakarSarma

Expa rte

ORDER

The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.99,97,'321/-(Rupees Ninety Nine Lakhs Ninety Seven thousand Eight Hundred and Seventy One only) i.e.,

a) A sum of Rs.30,73,074/- under loan account with interest @ 13.40olo p.a wi date of filing of OA till the date of realiz 2I JUL 202t^*

(oA.No.s61202a)

b) A sum of Rs.40,27,031/- under term loan account with interest @ t3.40o/o p.a with monthly rests from the date of filing of OA till the date of rea lization;

c) A sum of Rs.28,97,766l- under GECL loan accountwith interest @ 9.25o/o p.a with monthly rests from the 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.

As per the averments in the application, the Applicant Bank states that defendant No.1 is a partnership firm represented by defendants 2 and 3 as its partners availed cash credit of Rs.30.00 lakhs, term loan of Rs.63 lakhs vide letter of arrangement dated 03,11.2020. The defendants also availed GECL loan of Rs.27 lakhs vide letter dated 26.12.202t. The defendants 2 & 3 guaranteed the due repayment of loan and executed guarantee agreement. The defendants hypothecated the plant and machinery, book debts, receivables etc more fully described in the schedule to OA. After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NPA and issued legal 3.12.2023. Inspite of several requests and demffiqf did not clear the /* outstanding. Hence this OA...,

(oA.No.s612024)

Defendants 1 to 3 called absent and set exparte on 06.06.2024.

Sri L. RavindraNaik, Chief Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.23.

Heard the Ld. Counsel for the Applicant Bank.

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?

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.23. 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.

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 7,87L1- (Rupees Ninety Nine Lakhs Ninety ndred and Seventy One only) i.e., 2 3 JUI '[2{

(OA.No.56/2024)

a) A sum of Rs.30,73,074l- under cash credit loan account with interest @ 13.40olo p.a from the date of filing of OA till the date of rea lization ;

b) A sum of Rs.40,27,031/- under term loan account with interest @ 13.40olo p.afrom the date of filing of OA till the date of realization;

c) A sum of Rs.28,97,766/- under GECL loan account with interest @ 9.25olo p.a from the date of filing of OA till the date of rea lization ;

The Applicant bank is entitled to proceed against the hypothecated assets as described in schedule to OA towards realization of the debt due.

The Applicant Bank is also entitled to proceed against the person and properties of defendant No.2& 3 and properties of defendant no.1 firm.

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

t2. The Applicant shall file a cost memo within two weeks from the date of receipt of order.

Issue Recovery certificate accordingly.

t4. Communicate a copy of the order to the parties concerned.

( Dictated to corrected, signed and pronounced by me in the open
court on
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