Allowed

State Bank of India v. Radha Krishna Automobiles Private Limited

DRT24 Mar 2025OA/20/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by State Bank of India for recovery of Rs. 15.55 crores with interest. The court held that the bank established its claim through evidence and granted the recovery certificate against the corporate guarantors and personal guarantors. Defendants 1, 3 to 10 were set aside; defendant 2 appeared by vakalath but did not file a written s

What did the court decide?

Defendants are directed to jointly and severally pay Rs. 15,55,75,291.37 with interest at 17.50% p.a.; recovery certificate issued.

State Bank of India versus Radha Krishna… — Contract and Commercial Disputes | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 24rH DAy OF MARCH, 2025

¶2

PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.2O ot 2024

¶4

Between:

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State Bank of India, Stressed Assets Management Branch-II (SAMB-II), first floor, TSRTC Commuter Amenity Center, Bus Terminal complex, Kachiguda, Hyderabad, Rep by its Asst. General Manager

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Applicant

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VERSUS

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M/s. Radha Krishna Automobiles Private Limited, represented by Managing Director, the defendant No.2 herein, D.No.5-110, NH5 Besides AP Seeds Corporation, Prasadampadu, Vijayawada- 521 108. NTR district, Andhra Pradesh.

¶9

2, Mr. Magantivenkata Srinivas, S/o Late Sri Magantisubrahmanyam, Aged about 61 years, male, Occ: business and managing director Of 1't deFendant company. D.No.40-15-8/2, Nandamuri colony, Labbipet, Vijayawada - 520 010. NTR district, Andhra Pradesh.

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Sri MagantiMadhusudhaha Sharma, S/o Late Sri MagantiSubrahmanyam, Aged about 59 years, male,

¶11

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Occ: business & director of 1't Defendant company, D.No.60-4-4, 1't lane, behind Siddartha Arts College,

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Siddhartha nagar, Vijayawada - 520 010. NTR district, Andhra Pradesh.

¶14

(oA.No.20l2024)

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Sri Magantivenugopal, S/o Late Sri SriMagantisubrahmanyam, Aged about 63 years, male,

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Occ: business and managing director Of 1't defendant company. D. No.40-15-8/2, Nandamuri colony, Labbipet, Vijayawada - 520 010. NTR district, Andhra Pradesh.

¶17

Sri MagantiChandramouli, S/o Late Sri Magantisubrahmanyam, Aged about 54 years, male, Occ: business and managing director Of 1't defendant company. D.No.40- 15-B/2, Nandamuri colony, Labbipet, Vijayawada - 520 010. NTR district, Andhra Pradesh.

¶18

SmtMaga ntiSa rada, w/o Late Sri Magantisubrahmanyam, Aged about 78 years, female, Occ: business D.No.40-15-B/2, Nandamuri colony, Labbipet, Vijayawada - 520 010. NTR district, Andhra Pradesh.

¶19

SmtNethi Janaki, w/o Sri NethiSeshadrisekhar, aged about 56 years, female, occ: business, D.No.3-4-1013/29, Barkathpura, Near Kachiguda Junior college, Kachiguda, Hyderabad - 500 027. TS.

¶20

Sri NethiSeshadriSekhar,
w/o SriNethiSubba Rao,
aged about 59 years, male,
6".hN
occ: business, D. No.3-4- 1013/2
3s & '"q
Barkathputa, Near Kachiguda
Junior college, Kachiguda,
Hyderabad - 500 027. TS.
fi. B- ", 2{lrRszrzs *i;
9. M/s. Krishnapriya Automobiles
foh.,",,*S9
'6,E;?fiW
Private Ltd, represented by its
Managing Directors, defendants

¶21

(OA.No.20l2024)

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No. 2,3 & 6 hereinD.No.4-151, Besides AP Seeds Corporation, Prasadampadu, Vijayawada- 521 108. NTR district, Andhra Pradesh.

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M/s. RadhaMadhav Automobiles Private Ltd, represented by its Managing Director, defendants No. 2 hereinD.No.5-110, NH-5, Besides AP Seeds Corporation, Prasadampadu, Vijayawad a- 52L 108. NTR district, Andhra Pradesh.

¶24

M/s. Leela Krishna Automobiles Private Ltd, represented by its Managing Director, defendants No. 2 hereinD.No.5-110, NH-5, Besides AP Seeds Corporation, Prasadampadu, Vijayawada- 521 108. NTR district, Andhra Pradesh. Defenda nts

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Counsel for the Parties:

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: Sri G. PrabhakarSarma For the Applicant For the Defendants 1,3 to 11 : Exparte Defendant no.2 : Ch. Venkat Raman

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ORDER

¶28

1, The Applicant Bank filed the present OA agalnst Defendants for
recovery of a total sum of Rs,15,55,75,291.37ps (Rupees
Fifteen Crores Fifty Five Lakhs Seventy Five thousand Two
Hundred Ninety One and paise thirty seven only) with interest
@ 17.s ly rests from date of filing of OA till the
&
date and ult for sale of mortgaged property and
E$
hy f'ut?tnlftif&f "'3 bed in the schedule to OA.
fut,,.*u**9

¶29

(oA.No.20l202a)

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As per the averments^{in the application, the Applicant Bank states} that defendant no.1 is a Company.^{The defendant no.6 is the mother} of defendants 2 to 5 and^{7 herein. Defendantno.2 is the managing} director and defendant^{no.3 is the director of Defendantno.1} company. The defendant^{no.1 company represented by directors} availed working capital^{loan facilities under cash credit (hyp) for a} sum of Rs.20.00 crores^{and droplineoverdraft of Rs.3.33 crores vide} sanction letter dated 02.04.2079^{and 31.03.2020.Defendantno.2} guaranteed the repayment of the said^{loan facilities and executed} Defendants no. 2 to 11 and^Sri guarantee agreement. Magantisubrahmanyam^{guaranteed the repaymentof Rs.23.33} Crores and executed^{guarantee agreementdated 29.09.2020. The} defendants No. 9 to^{11 companies in the board of directors meeting} resolved to extend the corporate^{guaranteefor the loan facilities on} 28.09.2020. Defendant no.1 and 9 company,^{represented by} director, the defendant^{no.2 extendedequitable mortgageon} 15.L2.2020 and created^{mortgage of scheduleA property to OA.} All the stocks, current assets,^{receivables were hypothecatedin} favour of Applicant bank.^{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 on}

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16.09.2022 andⁱ dated 19.09.2022.^InsPite s of several req tro^oem ndants did not clear the outstanding. He utr 11 thisp{. ilA, 206

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utr 11 r... 1 -'.f

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(oA.No.20l202a)

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Defendants No.1,3 to 10 called absent and set^exparte on 30.07.2024. Sri Ch. Venkat Raman filed^{vakalath on behalf} of defendant no.2 but not filed Written^statement.

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Sri D. Sreenivas, Chief Manager of^{the Applicant Bank examined} himself as AW.1 and exhibited relevant documents,^{which are} marked as Ex.A.1 to A.28.

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Heard the Ld, Counsel for the^{Applicant Bank.}

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The point that arise for consideration^{is whetherthe ApplicantBank is} entitled for the claim made in the OA^{against the Defendantsas} prayed for?

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Defendants No.1,3 to 10 remained exparte.^{Defendant no.2 filed} vakalath but not filed WS. To substantiate the^{case of the Applicant} Bank, AW.1, official of the Applicant Bank was^{examinedand he} exhibited relevant documents as Ex.A1 to A.28. In view^{of 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}

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and costs.

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B. In the result, t ith costs, as under: 2 I ilAn 2o2s

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(oA.No.20l2024)

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The DeFendants are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.15,55,75,29l.37ps (Rupees Fifteen Crores Fifty Five Lakhs Seventy Five thousand Two Hundred Ninety One and paise thirty seven only) with interest @ 17.50o/o^p.a from date of filing of OA till the date of realization.

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The Applicant bank is entitled to proceed against the mortgaged property and hypothecated movables as described in schedule "A &8" to OA towards realization of the debt due.

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The Applicant Bank is also entitled to proceed against the person and properties of defendants No.2 to7 and properties of defendant no.1, 9 to 11 firms towards realization of the debt due. However the Applicant bank can proceed only to the extent of estate devolved upon the legal heirs/ defendants No. 2 to 7 from the deceased guarantor late Sri MagantiSubrahmanyam.

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The Applicant Bank is entitled 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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unicate a copy of the order to the parties concerned.

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,^{transcrabedby her, corrected,signedand pronouncedby me in the opencourton} tch, 2025)

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2 4 r'tAR 7tl25

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¶52

sd/(G. GOPTCHAND) PRESIDING OFFICER ",sfr?H'

State Bank of India v. Radha Krishna Automobiles Private Limited

Case brief

What is this about?

What did the court decide?

State Bank of India v. Radha Krishna Automobiles Private Limited

Case brief

What is this about?

What did the court decide?

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