Debts Recovery Tribunal allowed the bank's original application for recovery of Rs.27,57,967/- plus interest and costs against the legal heir of a deceased borrower, rejecting the defense of fraud and limitation.
Allowed with costs. Defendant liable to pay Rs.27,57,967/- plus future interest; bank can proceed against devolved estate for realization.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD
DATED THIS THE 29rH DAy OF ApRrL, 2025
PRESENT: SRI GUMMADI GOPICHAND, PRESIDING oFFICER
OA.No.177 ol 2OZ4
Between :
State Bank of India, Asset Recovery Management branch, (sARB-2), 1-B-563/1, 1't ftoor, Opp Sandhya Theatre, RTC "X" Roads, Chikkadpally, Hyderabad - 500 020. Represented by its Chief Manager
Applicant
VERSUS
female, represented by her legal heir/ successor Sri Geesa Ramulu, male, major, R/o Q.No.D-34, Subhashnagar, Bellampalli, Mancherial, Adilabaddist - 504 25t.
DeFendants
Counsel for the Part
For the Applica Sri P.V. Satyanarayana
Defendant No
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(O A.No.L77 /20241
ORDER
As per the averments in the application, the Applicant Bank states that the defendant No.l availed personal loan limit of rs.15.00 lakhs under the scheme of Xpress Credit on 26.04.2022. To secure the due repayment of loan the defendant no.1 executed personal loan agreement dated 26.04.2022 in favour of Applicant bank and agreed to repay the loan in 72 EMIs @ Rs.29,092/- with interest @ tt.7Oo/o p.a with monthly rests and 2o/o for delay charges and with a total rate of interest @ 13.70o/o p.a with monthly rests. Thereafter the defendant no.1 arso avaired personar roan of rs.10.00 rakhs on 28.04.2022 and executed the personal loan agreement in favour of Applicant bank. Subsequenuy in April, 2023 defendant no.1 expired and defendant no.2 who is the regar heir/ successor produced the
death certi 03.04.2023 and executed letter of underta rF ,: zgapnmzq* ;a? -.i.....-=,-',# it
(OA.No.tt7 /20241
It is submitted by the Appricant bank that the Defendants have availed the said loan facilities and failed to keep up the repayment schedule, as such the account was classified as NpA on27.05.2O23.Inspite of demands made by Applicant the defendant no'1 has not regurarized the account, and the Appricant bank issued legal notice dated 02.04.2024 but the defendants did not come forward to repay the same. The total claim of Applicant against defendants is of Rs.27,57,961 /_ (Rupees Twenty Seven Lakhs Fifty Seven Thousand Nine hundred and Sixty Seven only) (Rs,16,66,655/- * Rs.1O,9l ,gl-2/_) with future interest @ 73'700/o p'a with monthry rests from date of firing of oAti, the date of realization. Hence the OA.
- I have on record. rlrsed fhg ffirqppts o1a
loA.No.177l202al
ii) To what relief ?
Point No.i):
lOA.No.777 /2024)
circumstances, I am of opinion that the defense taken by the defendant No.2 is not tenable. Hence the applicant bank is entitled to claim the OA amount from defendant No.2. Therefore, the OA claim deserves to be allowed against the defendant No.2.
Point No.ii)
The Defendant No.2 is liable to pay to Applicant Bank a total sum of Rs.27,57,967l- (Rupees Twenty Seven Lakhs Fifty Seven Thousand Nine hundred and Sixty Seven only) (Rs.16,66,655/- + Rs.1O,91,gL2/-) with future interest @ L3.7Oo/o p.a from date of filing of OA till the date of realization;
(OA.No.L77 /20241
(Dictated to the P.A., transcrrbed by her, corrected, signed and pronounced by me in the open court on this the 29th day of Aprit, 2025)
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(G. GOPTCHAND) PRESIDING OFFICER
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2 issues framed by the court
Whether the Applicant Bank has proved its claim for recovery of loan amount and interest?
To what extent is the legal heir liable for the deceased's loan obligations?
1 provisions across 1 enactments
State Bank of India
Smt Boga SwarajaLaxmi (died) w/o GeesaRamulu
Mr. GeesaRamulu
SRI GUMMADI GOPICHAND
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
