Allowed

Canara Bank v. M/S. Siri Ayyappa Fertilizers

DRT21 Mar 2025OA/105/2024

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an origin application filed by Canara Bank for recovery of Rs. 23.39 lakhs with interest from the proprietor of SriAyyappa Fertilizers and the firm jointly and severally liable. Judgment 21 March 2025.

What did the court decide?

Defendants to pay Rs. 23,39,297.93 plus future interest at 11.80% p.a. from date of OA till realization. Recovery certificate to be issued.

Canara Bank versus M/S. Siri Ayyappa Fertilizers — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 21STDAY OF MARCH, 2025

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PRESENT: SRI GUMMADI GoPIcHAND, PRESIDING oFFICER

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OA.No.1O5 of 2024

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Between:

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Canara Bank, Adilabad Branch, 6-5-62/5, Hameedpura, Adilabad - 504 001. Rep by its Branch Manager

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Applicant

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VERSUS

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M/s. SlriAyyappa Fertilizers (Sole Proprietary firm) Represented by its proprietor Mr. Mekalaleevan, s/o Mr. MekalaLachanna, #4-29, shop No.11, Near NH 44, Bhoraj- village, Jainandmandal, Adilabad district, TS - 504 309.

¶9

M r. M e ka laJeeva n, w / o Mr. mekalaLachanna, aged about 39 years, occ: business, proprietor of M/s. Ayyappa Fertilizers, R/o H.No.4-83l4, Rampur, Jainad, Adilabad district, TS - 504 309.

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Defendants

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^parties: Sri N. Manohar Reddy Exparte ffi * t1Uls?S6 I W,-#

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Counsel for the^parties:

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For the Applicant

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For the Defendan Exparte

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(oA. No.10s/2024)

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ORDER

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1' The Appricant Bank fired the present oA against Defendants For recovery oF a total sum of Rs.23,39,297.93ps (Rupees Twenty Three Lakhs Thirty Nine Thousand Two hundred Ninety Seven and paise Ninety three onty) with future interest @ 11.80% p.a with monthry rests from date of firing of oA tiil the date oF realization.

¶18

As per the averments in the application, the Applicant Bank states that defendant No.1 isa sole proprietary firm represented by defendant no.2 in the year 2018 availed cash credit facility of Rs.12.00 lakhs on 20.O4.2O|B. The defendants executed demand promissory note, letter of request, cash credit agreement dated 20'04'2019' subsequenry the defendants enhanced the rimit from Rs.12.00 lakhs to Rs.20.00 lakhs on ll.O2.2O2l and executed letter of undertaking, letter of renewal and letter of proprietorship dated 77'02'202L' After avairing the roan facirities, the defendants faired to comply the terms of sanction, hence the applicant bank was constrained to crassify the account as NpA and issued reca, notice dated 22.0L.2024. Lof^{several requests and demands,} the defendants di ding. Hence this OA.

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Defendants Abge on 02.08.2024. >.-'- i-

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(oA. No.105/202a)

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Sri PusaRamesh, Chief Manager of the Applicant Bank examined himself as AW.1 and exhibited releva nt documents, which are marked as Ex.A.1to A.11.

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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 remained exparte. To substantiate the case of the Applicant Bank, AW.1, officiar of the Appricant Bank was examined and he exhibited rerevant documents as Ex.A1 to A.11. In view of the above, I hord that the Appricant Bank has estabrished their craim made in the oA against the Defendants and hence the Appricant 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:

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The Defendants are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.23,39,297.93ps (Rupees Twenty

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Three Lakhs Thousand Two hundred Ninety Seven and pai )^{with future} interest @ 11.g0o/o p.a from d ling arf OA till thg\8ate of realization. ? , 1 I1t\3 ?m ,tii t .- -t'a',3

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(oA.No.105 /2024)

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9' The Appricant Bank is arso entired to proceed against the person

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and properties of defendant No.2 and properties of defendant no.1 firm towards realization of the debt due.

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The Appricant Bank is entitred to the costs of the oA.

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11' 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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13' communicate a copy of the order to the parties concerned.

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Iflffi5if3ffj;k.Til;?f#^{bv her, corrected, sisned and pronouncedbv} me in the open courr on

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sd/ - (G. GOPTCHAND) PRESIDING OFFICER

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¶38

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Canara Bank v. M/S. Siri Ayyappa Fertilizers

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Siri Ayyappa Fertilizers

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

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