Allowed

State Bank of India v. M/S. Fenoplast Limited

DRT3 Dec 2025OA/119/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Originating Application filed by State Bank of India against Fenoplast Limited and its directors. The court held the applicants entitled to recover dues totaling Rs. 21,06,95,335.05 plus interest from the defendants, allowing for a partial satisfaction already received via asset sale during insolvency proceedings.

What did the court decide?

To pay Rs. 21,06,95,335.05 with interest from filing date to realization

State Bank of India versus M/S. Fenoplast Limited — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERYTRIBUNAL.I AT HYDERABAD DATED THIS THE 3RD DAy OF DECEMBER, 2025

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PRESENT: SRI GUMMADI GOPICHAND, PRESTDING OFFICER OA.No.119 ol2022

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Between:

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State Bank f India, Stressed Assets Management Branch-II (SAMB-II) first floor, TSRTC bus stand Complex, Kachiguda, Hyderabad. Represented by its Asst. Gen Manager

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Applicant

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VERSUS

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M/s. Fenoplast Limited, represented by its Directors the defendants 2 to 7 herein

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306-308, 3rd floor, Chenoy Trade centre, Park Lane, Secunderabad - 500 003.

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Unit No.I at2L/A, IDA, Patancheru, Medak dist - 502 319.

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Unit No.U at Sy.Nos. 132 & 133, Nandigaon, Medak District-502 300.

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Unit No. III at Sy.Nos. 165 & 166
AB A A D N a a ndi g g aon M ed ed ak D ti s tttct_ trict-505
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-':l' .,1 f') r<br>2. Sri. Haridas Narsaiah, tt.\r i-'') yl ',,
s/o.Late aged about 85 sri.H.Lachaiah, yea Years, rs, rs, , . _. .' 0 3 Bic s u r u ur-t,, UEIJ {lfJ (r ? r (J r (J fi -,, '. * j , I
O ccupationicupation : Business & Director . , ! -., ,,. ,r .-., * 11:i
of 1st Defendant Company. i:.,,,:"']"- '' " 1.. _ .';;i.-.jl\i' -Lg,',"+jar;j;/.:f)i,'
5-6-196, Saraswathi Nagar,

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(oA.No.119/2022)

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Road No.4, Opposite Municipal park, Nizamabad Town and District-503 001.

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Sri.Haridas Krishna Kumar, s/o.Sri. Haridas Narsaiah, aged about 62 years, Occupation: Business & Director of 1st Defendant Company.

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Villa No.112, First Leaf, Journalist Colony, Gopanpally, Serilingampally, Rangareddy dist-32

¶18

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Flat no.503, The Pooja place, Motilal Nehru Nagar, Begumpet, Hyderabad - 500 016.

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Sri Haridas Kishen, S/o Late Sri H. Lachaiah, Aged about 79 years, occ: business & director of 1st defendant company

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Plot no.B-3, Vikrampuri colony, Behind KFC, Kharkhana, Picket, secunderabad - 500 003.

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Sri Haridas Praveen Kumar, s/o.Sri, Haridas Kishen, aged about 52 years, Occupation GAD Business

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& Director of 1 Defendant Company.

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Plot No. B-15/1, Vikrampuri Colony, Behind KFC, Kharkhana, Picket, Secunderabad-500 003.

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Sri Haridas Mahesh Kumar, s/o, Sri Haridas Kishen, aged about 54 years, Occupation: Business & Director of 1 Defendant Company.

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(OA.No.119/2022)

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Plot No.83, Vikrampuri Colony. Behind KFC, Kharkhana, Picket, Secunderabad-500 003.

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Sri.Haridas Sanjay Kumar, s/o.Sri. Haridas Kishen, aged about 55 years, Occupation: Business & Director of 1" Defendant Company. Plot No.83, Vikrampuri Colony, Behind KFC, Kharkhana, Picket, Secunderabad-500 003.

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Canara Bank, Specialized Mid Corporate Branch, Secunderabad, rep: by its Authorised Officer.

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Canara Bank, Specialized Mid Corporate Branch, D.No.5-2-6913, Kandala Plaza, Near Arya Samaj Building, Bible House, R.P.Road, Secunderabad-500 003, rep: by its Authorised Officer. ....

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Defendants

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Counsel for the Parties:

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For the Applicant

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Sri G. Prabhakar Sarma

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For the Defendant No.lto 3 Exparte Defendants no.4 to 7 S. Ravi KumarRavi Kumar Orders reserved on 20.LL.2025 Pronounced on 03.L2.2025 Uploaded in website on 03.12.2025

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S. Ravi KumarRavi Kumar

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ORDER

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1, The Appl t OA against Defendants for ,,:j"'T'l'il[T#"' ,95,335.O5ps^(Rupees Twenty .tnr#

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(oA.No.119/2022)

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One Crores Six Lakhs Ninety five Thousand Three Hundred thirty five and paise five only) i.e.,

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a) A sum of Rs.19,41,72,930.5gps under A/c. No.31025557316 with interest @ 15.650lo p.a with monthly rests from date of filing of OA till the date of realization;

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b) A sum of Rs.1,65,22,404.47ps under A/c. No.396g6666233 with further interest @ 15.85o/o p.a with monthly rests from date of filing of OA till the date of realization;

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and in default for sale of mortgaged properties as described in the schedule "A to D" to OA.

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As per the averments in the application, the Applicant Bank states that defendant No.1 is Company, defendants no.2 to 7 are directors of defendant no.1 company. The defendants 2 and 4 herein are brothers. Defendant no.2 is the father of defendant no,3. Defendant no.4 is the father of defendants no. 5 to 7. Defendant no.1 Company availed credit facilities from defendant no.8 bank and other consortium banks from time to time. Defendant no.1 company availed cash credit (hyp) of Rs.14.80 crores (with sub limits of CC (EpC) of Rs.1.50 Crores, CC (FBD) of rs.1.50 Crores and CC (DDB) of rs.t.72 crores). Similarly the defendant no.1 availed working capital of Rs.6.60 crores with overall a^{g g} regate worr<inO-aim$lffis. 66 crores from defenda nt no. 8 bank. In consjderatioffi comffiat branch of Appticant bank and other three consfrtprg6bisF i ing defendant no.8 bank,

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(oA.No.119/2022)

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defendant no.1 having availed the loan facilities of Rs.66.00 crores, represented by director defendant no.4 executed the following documents:

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a) Joint deed of hypothecation;

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b) Letter of undertaking for creation of second charge on fixed assets;

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c) Letter of undertaking from the borrower for creating a second

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mortgage on fixed assets;

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d) Consent letter

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e) Undertaking letter

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f) Revival letter

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g) Link letter

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After availing he overall working capital loan facilities, the defendant no.1 company availed forward contract limit of Rs.O.59 crores for a period of one year vide sanction letter dated 25.03,2010 and the same were accepted by the defendants no.1 to 4 and Dr. H. Anuradha. Subsequently the cash credit (Hyp) loan was enhanced from Rs,14.80 crores to Rs.16.40 Crores and executed necessary documents. In consideration of commercial branch and othertwo consortium banks including 8th defendant bank, the defendant no.1 availed enhanced limit of Rs.75 crores and executed the following documents:

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a) Supplemental joint deed of hypothecation for increase in the overall

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limit;
b) f second charge on fixed assets;
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--a-S
".?:,4' tQ,;;ttW

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(oA.No.u9l2022)

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c) Letter of undertaking from the borrower for creating a second mortgage on fixed assets;

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d) Revival letter.

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Subsequently the working capital loan facilities was enhanced to Rs.90.10 crores and defendant no.1 represented by defendant no.4 executed supplemental joint deed of hypothecation for increase in overall limit and revival letter. Later the limit of Rs.90.10 crores was renewed to Rs.95.60 crores and later to Rs.98.60 crores and executed supplemental joint deed of hypothecation and revival letter. The defendants no.2 to 7 guaranteed the due repayment of overall working capital loan facility. Defendant no.1 Company represented by defendant no.3 executed memorandum of deposit of title deeds confirming the creation and extension of mortgage by deposit of original sale deed document no.350/1976 dated 09.02.1976 etc in respect of schedule of properties as mentioned in Schedule A to D to OA. Defendant no.1 hypothecated all the stocks, current assets, raw materials, finished and semi-finished goods, equipments, book debts etc as pari passu first charge in favour of Applicant bank and the defendant no.8 bank in respect of schedule E and F to OA.

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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 notice dated t2.02.2022, Inspite of and demands, the defendants did not clear the outstanding. l^{o31ECfl6 *} t\11 , "'**^{t:T,* ."oqrf} ^FaAq l

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(oA.No.119/2022)

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Defendants no.l to 3 called absent and set exparte. counsel for defendants No.4 to 7 filed vakalath but failed to file written statement.

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During the pendency of proceedings, the Applicant bank counsel filed a memo stating that the Hon,ble National Company Law Tribunal (NCLT), Hyderabad Bench, Hyderabad by order dated 7.02.2023 in Cp (IB) No.10/7/HBD/2022, admitted the case filed by the defendant no.8 bank against the defendant no.l Company by appointing Ms. G. Kalpana as Interim Resolution professional (IRp) and declared moratorium prohibiting the continuation of pending suits or proceedings etc against the defendant no.1 Company.

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Shri K.V. Vasudeva Rao, Chief Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.l to 4.105. The Applicant bank filed part satisfaction memo dated 8.04.2025 stating that a sum of Rs.13ro9r32,73Ol - was received towards its share by virtue of sale of assets of defendant no.1 company in the proceedings Cp (IB) No.10/7/HBD/2022 of Hon'ble NCLT, Hyderabad bench.

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Heard the Ld. Counsel for the Applicant Bank.

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m.ooint.@^b "qE on is whether the Applicant Bank is entitted ro#tne da$ made'6 1OA against the Defendants as prayedfor? [] 3 0EC .:

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(oA.No.119/2022)

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As stated supra, the proceedings against defendant no.1 resolved through CIRP before Hon'ble NCLT. Counsel for Defendants No. 4 to 7 filed vakalath but failed to file written statement. 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.105. In view of the above, I hold that the Applicant Bank has established their claim made in the OA against the Defendants No.2 to 7 and hence the Applicant Bank is entitled to recover the claim made in the OA with future interest and costs.

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In the result, the present OA is allowed with costs, as under: The Defendants No,1 to 7 are jointly and severally liable to pay to the Applicant Bank a total sum Rs.21,O6,95,335.O5ps (Rupees Twenty One Crores Six Lakhs Ninety five Thousand Three Hundred thirty five and paise five only) i.e.,

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