Allowed

City Union Bank Limited v. M/s. Kpg Projects

DRT2 Jan 2025OA/199/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original appeal filed by City Union Bank for recovery of loan amounts totaling Rs. 1.79 crore plus interest from four defendants. The applicant established its claim ex parte, and the court declared the defendants jointly and severally liable.

What did the court decide?

The original appeal was allowed; defendants declared jointly and severally liable to pay principal, interest, and costs; entitled to proceed against mortgaged properties.

City Union Bank Limited versus M/s. Kpg Projects — Contract and Commercial Disputes | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 2ND DAY OF JANUARY' 2025

¶2

PRESENT: SRI GUMMADI GoPIcHAND, PRESTDING oFFICER OA.No.l99 OF 2024

¶3

Between:

¶4

City Union Bank Limited, Branch at t2-2-4I7 /B/35, Ground floor, SBI colony, Near Gudimalkapur junction, Gudimalkapur, Mehdipatnam, Hyderabad, Telangana.

¶5

Represented by its power of Attorney

¶6

Applicant

¶7

VERSUS

¶8

M/s. KpG^projects,

¶9

Represented by its proprietor Sri Kurelli^praveen Goud, H.no.l-7 -L22, South Kamala

¶10

Nagar, Opp Akash Jyothi Apartment, Kapra, Secunderabad, ECIL, Hyderabad - 5OO 062.

¶11

M/s. Shraan Furnitures, Represented by its proprietor Sri Kurelli^prashanth goud, H. No. 24-9 Us9l6A, B6side

¶12

¶13

lagole^{MetroStation, Uppal} Ring Road no.1, Sri dai Nagar, Hyderabad.

¶14

,zf"-q*+l
}: [;[lll3:?::J::11,,i/b'B-'\t
=;
Aged about 38 years, maie, ;i, + - \
,1
occ: business, R/o H.no.1_7_122,i ; 0 Z JAl,| 2025 ,
Jyothi South Apartm"nt, Kamala Nagar, rlp,i. Opp ntasn'iiUi '-'" tr9r r.i
,;:::S::il:?:;""' &ryd-,

¶15

(oA. No.199/2024)

¶16

Sri Kurelli^prashanth Goud, S/o Kurelli Sahadev Goud, Aged about 34 years, male, Occ: business, South Kamala Nagar, Opp Akash Jyothi Apartment, Kapra, Secunderabad, ECIL, Hyderabad - 500 062.

¶17

Defendants

¶18

Counsel for the^parties:

¶19

For the Applicant

¶20

For the Defendants

¶21

Sri R. Rajendra Prasad Exparte

¶22

ORDER

¶23

1' The Applicant Bank fired the present oA against Defendants for recovery of a total sum of Rs.!,79,62,524.1ops (Rupees One crore seventy Nine Lakhs sixty Two Thousand Five hundred Twenty four and paise Ten only) i.e.,

¶24

a) A sum of Rs.4,11,738.87ps from defendant no.1 towards roan account No.512120020024720 with further interest @ 24o/o p.a with monthry rests from r0.04.2024 tiil the date of rearization;

¶25

b) A sum of Rs.17,B1,57t.g7ps from defendants No.3 & 4 towards roan account No.501B12oBoo3g}47 with further interest @ 240/o p.a with monthry rests from r0.04.2024 tiil the date of rearization;

¶26

c) A sum of Rs.r7,75,73B.0Bps from defendant no.2 towards roan

¶27

20024723 with further interest @ 24o/o p.a
tO.O4.2024 till the date of realization;
i: -.-. /
i:.. [i i( 0 2 JAil 2025 *
:iC \i
r'-.i i i'
.'\ tl I
6h,*n$$i:p#fic

¶28

(oA. No.199/2024)

¶29

d) A sum of Rs.22,43,655.69ps from defendant no.1 towards roan account No.501812080056952 with further interest @ 24o/o p.a with monthly rests from r0.04.2024 tiil the date of rearization;

¶30

e) A sum of Rs,66,96,439.92ps from defendant no.1 towards loan account No.501812080057963 with further interest @ 24o/o p.a with monthry rests from 10.04.2024 tiil the date of rearization;

¶31

f) A sum of Rs.3064,861.52ps from defendant no.1 towards loan account No.5018120800070584 with further interest @ 24o/o p.a with monthly rests from 10.04.2024 till the date of realization;

¶32

g) A sum of Rs.19,88,518.05ps from defendant no.1 towards loan account No,501812080087590 with further interest @ 24o/o p.a with monthly rests from 1O.04.2024 till the date of realization; and in default for sale of mortgaged properties as described in the schedule "A to K" to OA.

¶33

As per the averments in the apprication, the Appricant Bank states that defendant No,1 is a^proprietary concern and defendant no.3 is the proprietor availed credit facilities for a sum of Rs.25.00 lakhs. Defendant no.4 stood as guarantor of loan facility and defendants 3 & 4 mortgaged their properties in favour of Applicant by depositing their original title deeds. The defendants 1,3 & 4 executed roan r, demand promissory note, letter of continuity,

¶34

-t

¶35

., ,.-u^gu ment dated 21.06.2018. Defendants 2 to 4 availed ..^{o 2,.:4&fffiritiesr} a sum of Rs.20.00 lakhs and executed necessary

¶36

W-"***f#

¶37

(oA. No.199/2024)

¶38

docu ments. Defendants 1 to 4 availed term loan of Rs.1,50,00,000/- and executed documents on 30.09.2019. The defendants also availed ECLGS additional facilities of Rs.33.00 lakhs dated 25.06.2020 and ECLSGS additional facility of Rs.16,50,000/and executed documents on 28.03.2022. After avairing the roan facilities, the defendants failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NPA on 12.07.2022 and issued demand notice dated 04.17.2022. Inspite of severar requests and demands, the defendants did not clear the outstanding. Hence this OA.

¶39

Defendants called absent and set exparte.

¶40

Sri M. Chaitanya Kumar, Branch Manager of the Applicant Bank examined herself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.47.

¶41

Heard the Ld. Counsel for the Applicant Bank.

¶42

The point that arise for consideration is whether the Applicant Bank is

¶43

entitled for the claim made in the OA against the Defendants as

¶44

exparte. To substantiate the case of the 1, official of the Applicant Bank was examined evant documents as Ex.Al to A.47. In view of

¶45

(oA. No.199/202a)

¶46

the above, I hold that the Applicant Bank has established their claim made in the OA against the Defendants and hence the Applicant Bank is entitled to recover the claim made in the OA with future interest and costs.

¶47

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

¶48

The Defendants are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.1,79,62,524.10ps (Rupees One Crore Seventy Nine Lakhs Sixty Two Thousand Five hundred Twenty four and paise Ten only) i.e.,

¶49

a) A sum of Rs.4,11,738.87ps from defendant no.1 towards loan account No.512120020024720 with further interest @ 24o/o p.a from 10.04.2024 till the date of realization;

¶50

b) A sum of Rs.17,81,57L.97ps from defendants No.3 & 4 towards loan account No.501812080039947 with further interest @ 24o/o p.a from t0.04.2024 till the date of realization;

¶51

c) A sum of Rs.!7,75,738.08ps from defendant no.2 towards loan account No.512120020024723 with further interest @ 24o/o p.a from I0.04.2024 till the date of realization;

¶52

d) A sum of Rs.22,43,655.69ps from defendant no.1 towards loan
account No.501812080056952 with further interest @ 24o/o
0.O4.2024 till the date of realization;
4*e
.6 ''d
t; ,,"'::''/f; u:r? 7<br>flj [ 2 .rrrN zozs *
5
\9..
^3,
Nb",,^,"^F9$ff
.
:)Yp61 1-;.,"

¶53

(oA.No.199/2024)

¶54

e) A sum of Rs.66,96,439.92ps from defendant no.1 towards loan account No.501812080057963 with further interest @ 24o/o p.a from 10.04.2024 ti[ the date of realization;

¶55

f) A sum of Rs.3064,861.52ps from defendant no.1 towards loa n account No.5018120800070594 with further Interest @ 24o/o p.a from 10.04.2024 till the date of realization;

¶56

g) A sum of Rs.19,88,5l8.Osps from defendant no.1 towards loan account No.501812080087590 with further interest @ 24o/o p.a from 10.04.2024 till the date of realization;

¶57

9' The Applicant bank is entitred to proceed against the mortgaged properties as described in schedule '.A to K,, to OA towards realization of the debt due.

¶58

10, The Applicant Bank is also entifled to proceed against the person and properties of defendants No.3 & 4 and properties of defendant no.1 and 2 firms towards realization of the debt due.

¶59

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

¶60

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

¶61

certificate accordi n g ly. 0 2^jAll 2025

¶62

(oA. No.199/2024)

¶63

Communicate a copy of the order to the parties concerned.

¶64

(Dictated to the p.A., kanscribed by her, corrected, signed and pronounced by me in the open court on this the 2nd day of Jan,2025)

¶65

sdl(G. coPrCHAND) PRESIDING OFFICER

¶66

"rf" -8 "ud
J !zJrilzozs :
^J
e,,
%*-'$f,

City Union Bank Limited v. M/s. Kpg Projects

Case brief

What is this about?

What did the court decide?

City Union Bank Limited v. M/s. Kpg Projects

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

Similar cases

State Bank of India versus Smt. Bollu Saritha

State Bank of India versus Smt. Radhika Sontineni

Union Bank of India versus M/s. Hari Priya Infra Projects

M/S. Smith and Kenner Pharmaceauticals Private Limited versus Asset Reconstruction (India) Ltd. (Arcil)

Canara Bank versus M/s. Laksheya Group

Union Bank of India versus Ms. Bachu Soujanya