Allowed

State Bank of India v. M/S. Vamsi Auto Fills

DRT4 Sept 2025OA/104/2025

Case brief

AI extract

What is this about?

The DRT allowed the debtor recovery application against defaulting borrowers and their guarantors. The tribunal held bank evidence unchallenged and granted decree for principal, interest, and recovery from proceeds of mortgaged and hypothecated properties.

What did the court decide?

Decree for principal and interest; entitlement to proceed against hypothecated movables and mortgaged properties; applicants to recover debt.

State Bank of India versus M/S. Vamsi Auto Fills — Execution and Attachment | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 4rH DAy oF SEPTEMBER, 2025

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.1O4 ot 2O2S

¶4

Between:

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State Bank of India, Stressed Assets Recovery Branch, 2nd floor, TSRTC Commuter Amenity Centre, Bus Terminal complex, Koti, Hyderabad - 500 095. Represented by its Authorised Manager

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Applicant

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VERSUS

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M/s. Vamsi Auto Fills, Represented by its proprietor, Smt Budda Vamsi Krishna, S/o B. Kanakayya,

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Add: Sy.No.340/ AA, 340/E, 339/ A And 341, Kakravai village, Thirumalayapalem, Khamma, Telangana - S07 161,

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Mr. Budda Vamsi Krishna, S/o B. Kanakayya, aged about 35 years, Occ: business, male, R/o H.No.Z_O_:g/i, Kothuru Bonakal Road, Dhamsalapuram, Khammam district - 507 OO3.

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Also at:

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R/o Villa no,60/A, Sri Ram Hills, Bonakal road, Dhamsalapuram, Khammam district - 507 001. **6q 7 lP &$ ,g$r "d\n Smt Budda Saraswathi,Budda Saraswathi, y/o P Kanakayya, aged about P Kanakayya, aged about Kanakayya, aged about about 35 yryr ;^nrsipmzr Occ; business, male, R/o H.No.2_6_3H.No.2_6_3

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Smt Budda Saraswathi,Budda Saraswathi, y/o P Kanakayya, aged about P Kanakayya, aged about Kanakayya, aged about about 35 yryr Occ; business, male, R/o H.No.2_6_3H.No.2_6_3 Kothuru Bonakal Road, Dhamsalapura

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Q,.sY

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(OA.104 of 2025)

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Khammam district - 507 OO3.

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Also at:

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R/o Villa no,60/A, Sri Ram Hills, Bonakal road, Dhamsalapuram, Khammam district - 507 001.

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Defenda nts

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Counsel for the Parties:

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For the Applicant

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For the Defendants

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Smt Tarangini Pisipati

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Sri D. Raghavulu

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ORDER

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The Applicant Bank fired the present oA against Defendants for recovery of a total sum of Rs.2,65,74,O57l_ (Rupees Two Crores Sixty Five Lakhs Seventy Four Thousand and Fifty Seven only)

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a) A sum of Rs.2,32,87,572/- under loan A/c.No.38043207696 with interest @ 13olo p.a with monthly rests from 03,03.2025 till the date of realization ;

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b) A sum of Rs.3,41,116/- under loan A/c.No.39576779922 with interest @ 11.25olo p.a with monthly rests from 03.03.2025 till the date of rea lization )

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c) A sum of Rs.29,45,369/- under loan A/c,No.40643252290 with interest @ 11.25olo p.a with monthly rests from 03.03.2025 till the date of realization ; 7:.:!).,- . _'-' -'i\ r- / d:' ''{ "' "r''.' mortgaged properties and in defautt for hypot$piated ffiva as mentioned in the' i; $n"ou't'itfl?d:z$" Ebhedule^.)a&Blo"

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%?-"@Y

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(OA.104 of 2025)

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As per the averments in the application, the Applicant Bank states that defendant No.1 is the proprietorship firm represented by its proprietor defendant no.2 and defendant no.3 stood as guarantor availed loan of Rs.70 lakhs being Rs.55.00 lakhs as cash crectit, Rs.15.00 lakhs as term loan vide letter of arrangement dated 31'10'2018' The defendants hypothecated the machinery situated in the prace of business more fuily described in the schedure to oA in favour of Appricant bank. The defendants mortgaged the schedure B property and executed agreement of roan cum hypothecation, guarantee agreement etc on 31.10.2018 and deposited the title deeds in favour of Appricant bank. The existing facirity was enhanced cc loan of Rs.55.00 rakhs to Rs.g5 rakhs and executed necessary documents' Further the defendants avaired enhanced rimit from Rs.85.00 lakhs to Rs.135.00 lakhs on 22.05.2020 and subsequenUy from Rs.135.00 rakhs to Rs.195 rakhs on 2r.oB.2o2t. It is submitted by the Appricant bank that the Defendants have avaired the said roan facirities and faired to keep up the repayment schedure, as such the account was crassified as NpA on 31.03.2024 and issued recail notice dated t4.02.2025. Inspite of demands made by Applicant the defendants have not regurarized the account, and the defendants did not come forward to repay the same. The total claim of Applicant

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is of Rs.2,65,74,O57/- (Rupees Two Crores i-s;;ffi, Four Thousand and Fifty Seven only)

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(oA.104 of 202s)

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with future interest @ 13olo p.a and \1.25o/o p.a respectively from 03.03.2025 till the date of realization. Hence the OA.

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The Defendants filed written statement and denied the averments made in oA. The defendants denied the execution of documents and hypothecation of machinery / movables. The defendants denied the mortgage of schedule mentioned properties in favour of Applicant bank. It is further submitted by the defendants that they were regular in repaying the loan amount and they denied the classification of account as NPA without foilowing the RBI guiderines and contended that the oA is neither maintainabre nor tenabre. Hence prayed for dismissal of OA.

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The Applicant Bank in support of its claim, filed evidence affidavit duly sworn in by Smt S. Kalyani Rathod, Manager of Bank as AW.1 and through her marked 38 documents as Ex.A.1 to A.38. As against this, the defendants did not choose to adduce any evidence on their behalf in support of their contentions and arso did not choose to cross examine the AW.1 to controvert his Chief Evidence. In spite of repeated adjournments, the defendants failed to file evidence Affidavit, hence the right of firing Defendant Evidence Affidavit was closed on 02.09.2025.

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I have perused the documents placed on record.

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at arise for consideration are:

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icant Bank has proved its claim as made in OA against the def ts?

(OA.10a of 202s)

ii) To what relief ?

Point No.i):

As per the documents fired by the Appricant Bank and arso as per the admissions made by the defendants in the written statement, it is very clear that the defendants have availed roan from the Applicant Bank, but faired to repay the amount. A[ the amounts paid'by the defendants are clearry mentioned in the statement of account fired by Applicant Bank' The defendants have not praced any materiar documents to show their bonafides for estabrishing that the schedure properties were not hypothecated nor mortgaged in favour of Applicant bank. 7. AW.1 is not cross examined by the counsel for defendants. The defendants have not come forward to give evidence to substantiate that their liability is less than the amount mentioned in the oA Under such circumstances, the evrdence of AW.1 coupred with recitals Ex.A,1 to A.38 stood unchallenged and unrebutted. The Applicant bank clearly estabrished that the defendants are riabre to pay the oA amount to the Applicant bank.

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Point No.ii) '

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B. In the result, the present originar apprication is ailowed with costs as under:

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The Defendants are jointly and severally liable to pay to Applicant Bank 5,74,O57l- (Rupees Two Crores Sixty Five sand and Fifty Seven only) 0 t sEp znr

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(oA.104 of 202s)

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a)A sum of Rs.2,32,87,572/- under loan A/c.No.3g043207696 with interest @ 130/o p.a from 03.03.2025 till the date of realization ;

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b)A sum of Rs.3,41,116/-under loan A/c.No.39576779922 with interest @11.25olo p.a from 03.03.2025 till the date of realization ;

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c)A sum of Rs.29,45,369/- under loan A/c,No.40643252290 with interest @ 11.25% p.a from 03.03.2025 till the date of realization ;

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The Applicant bank is entifled to proceed against the hypothecated movables and mortgaged schedule properties as mentioned in the schedule to OA towards realization of the debt due.

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The Applicant Bank is also entifled to proceed against the person and properties of defendant No.2& 3 and properties of defendant no.1 firm towards realization of the debt due,

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

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

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Issue Recovery certificate accordingly.

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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 the open court on this the 4th day of Sept, 2025)

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Zs - "tli*
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(G. GOPTCHAND) PRESIDING OFFICER

State Bank of India v. M/S. Vamsi Auto Fills

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Vamsi Auto Fills

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

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