Allowed

Union Bank of India v. M/S. Sharvani Industries

DRT13 Aug 2025OA/198/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Union Bank of India against M/s. Sharvani Industries and associated individuals for recovery of a loan of Rs. 1,23,51,926/- with interest, holding the defendants liable and directing enforcement against hypothecated movable and mortgaged properties.

What did the court decide?

Defendants directed to jointly and severally pay Rs. 1,23,51,926/- with interest; proceed against hypothecated movables and other properties for realization; recovery certificate issued.

Union Bank of India versus M/S. Sharvani Industries — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 13TH DAY OF AUGUST,2025

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PRESENT: SRI GUMMADI GoPICHAND, PRESIDING oFFIcER

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OA.No.198 ot 2023

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Between:

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Union Bank of India, Jangaon Branch, Jangaon, Warangal, Telangana State. Represented by its authorised officer

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... Applicant

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VERSUS

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M/s. Sharvani Industries, Represented by its partners, R/o H.No.1-10-221/2, Cheetakodur road, Jangaon Town, Jangaon district, Telangana - 506 167.

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Mr. KalakuntlaSatyanarayana, S/o Sri Venkataiah, aged 66 years, Male, occ: business, R/o H.no.1-10-206/4,

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Grain market yard, jangaon town, Jangaon district.

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Mrs. Kalakuntla Sarala,
w/o Sri K.Satyanarayana,
aged 54 years, female, occ: business,
R/o H.no.1-10-206/4,
Grain market yard, jangaon town,
langaon district.
Defendants
FF<br>Counsel for the parti vss'^
For the Applicant
in Mohammed Rafiq
DeFendants ; l r rtrc m2s t'':
, reenivas Reddy
,E , ^S.!9,
W@s,f

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(oA. No.198/2023)

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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.1,23r511926/_ (Rupees One Crore Twenty Three Lakhs Fifty one Thousand Nine Hundred and Twenty Six only) with subsequent interest @ 9.95olo p.a with monthly rests along with penal interest @ additional 2o/o p.afrom date of application tiil the date of rearization and in defaurt for sare of hypothecated movabres and mortgaged properties as described in the schedule to OA.

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As per the averments in the application, the Applicant Bank states that the defendant No.1 represented by defendants no.2 & 3 availed cash credit facility of Rs.1.00 Crore on 30.03.2020. The defendants executed ail necessary roan documents such as demand promissory note, composite agreement, letter of access and general form of guarantee dated 30.03.2020. Defendant no.2 created equitable mortgage over immovabre property fuily described in the schedule B to OA by depositing Sale deed no.137211990 dated 13.12.1990 in favour of Applicant Bank. Defendant no.3 created equitabre mortgage of schedure c property by deposit of sare deed no.B2l1989 dated 21.01.1989. The defendant no.1 represented by defendants 2 W a*AiE f Rs.19,80,000/- on 23.06.2020 , 1>: and executed,dehand e, letter of lien, composite hypoihecation ated 24.06.2020. Further

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W,,--gry

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(oA.No.198/2023)

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the cash credit facirity was renewed for a sum of Rs.l.oo rakh on 24.09.202L and executed demand promissory note, hypothecation agreement, interest agreement, letter of continuity, deed of guarantee.

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It is submitted by the Applicant 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, Inspite of demands made by Applicant the defendants have not regurarized the account, and the Applicant bank issued demand notice dated31.10.2022, but the defendants did not come forward to repay the same. The totar craim of Appricant against defendants is of Rs.1,23,51,925,/- (Rupees One Crore Twenty Three Lakhs Fifty One Thousand Nine Hundred and Twenty Six onty) with subsequent interest @ 9.95o/o p.a with monthly rests along with penal interest @ additional 2o/o p.a from date of application till the date of realization. Hence the OA.

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The Defendant No.1 &2 filed written statement admitting that they have availed OCC facility from applicant bank by creating mortgage in respect of schedure property and they contended that the Applicant bank obtained signatures on blank documents. It is further contended that nk initiated proceedings under and possession notices. so SARFAESI nct,,91r*Slino $""affi the derendanl,:-l"ty?'i}:ffi' tftJlnoricant bank ror ors but

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vrxt

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(OA.No.198/2023)

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Applicant bank was reluctant for settlement. The applicant bank is put to strict proof of the same about the sanction of GECL facility. Defendants no.2 & 3 examined themselves as DW.2& DW.3 and filed Exhibits 8.1 to B.3.

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I have perused the documents placed on record.

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Heard the arguments.

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Now, the points that arise for consideration are:

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i) Whether the Applicant Bank has proved its claim as made in OA against the defendants ?

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ii) To what relief ?

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Point No.i):

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Sri P. VikramJayaprakash, Manager/ AW.1 who was examined on behalf of the Applicant clearly deposed about the liability of the defendants. Exhibits A.1 to A.23 exhibited by the Applicant bank clearly establish the liability of the defendants.

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7 . AW.1 was not cross examined by the defendants. Even though defendantsNo.l to 3 examinedthemselves as DW.1 to DW.3 and filed is in noway helpful to them. The plea they made some payments r,,1^{13 /,Ug 2W} : ^^*J

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:' il1\ ^*

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(oA.No.19812023)

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and that the present OA was barred by limitation, failed to place any substantial proof to that effect. Moreover, a perusal of the documents exhibited by the Applicant bank makes clear that all the relevant documents are executed by the defendants in the normal course of transaction. The defendants very vaguely contended that particulars made in the OA are not correct. But as per the statement of accounts, the defendants No.1to 3 are liable to pay the oA claim. considering all the circumstances, I am of opinion that the defense taken by the defendants is not tenabre. Hence the applicant bank is entitled to claim the oA amount from defendants. Therefore, the oA claim deserves to be allowed against the defendants No.1 to 3.

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Point No.ii)

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B. In the result, the present Original application is allowed with costs as under:

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The Defendants are joinily and severally liable to pay to Applicant Bank a total sum of Rs.1,23,st,926/- (Rupees one crore Twenty Three Lakhs Fifty one Thousand Nine Hundred and Twenty six only) with subsequent interest @ 9.9so/o p.a from date of application till the date of realization.

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proceed against the hypothecated movablesland' tr'*.1't ies as described in the schedule to

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oA towards ,n? of rh,5: ebt due. T.i,tffition

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(oA. No.198/2023)

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The Applicant bank is also entitled to proceed against the person and properties of defendants No.2 and 3 and properties of defendant no.l 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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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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(Drctated to the P A., transcabed by her, corrected, signed and pronounced by me in the open court on thls the 13'h day of Aug,2O25)

sd/-

(G. coPtCHAND)

PRESIDING OFFICER

"111,ffi',,

Union Bank of India v. M/S. Sharvani Industries

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/S. Sharvani Industries

Case brief

What is this about?

What did the court decide?

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