Allowed

Bank of India v. M/s. Raj Plastic

DRT20 Feb 2025OA/212/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal at Hyderabad allowed the Original Application filed by Bank of India for recovery of a loan amounting to Rs. 97,54,269.60 along with future interest and costs. The tribunal held that the bank established its claim despite the defendants being absent.

What did the court decide?

OA allowed; Defendants jointly and severally liable to pay total sum of Rs.97,54,269.60 with future interest; Recovery certificate issued; Costs awarded to Applicant.

Bank of India versus M/s. Raj Plastic — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 2OrH DAy OF FEBRUARY,2025

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PRESENT: SRI GUMMADI GoPIcHAND, PRESIDING OFFICER

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OA.No,212 ot 2OZ4

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Between:

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Bank of India, Basheerbagh branch, Hyderabad, Telangana state. Represented by its^power of Attorney holder

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Applicant

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VERSUS

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M/s, Raj^plastic, Rep by its proprietor

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Sri B.J. Rajeshwar Rao,

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Office: 156/C, Industrial Area,

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Katedan, Hyderabad - 5OO 077.

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Mr. Bollure Janardhan Rajeshwar Rao, s/o B.G. Janardhan Rao, male, aged 47 yrs, occ: business, R/o plot no.206, MIG phase _4, LB Nagar, Vanasthalipuram, Hyderabad - 500 070. Defendants Counsel for the For the Applican & ri Momin Mohammed Rafiq For the Defenda parte FEB lffql 1. The Applicant present OA against Defendants for recovery of a total sum of Rs.97,54,26g.60ps (Rupees Ninety Seven Lakhs Fifty Four Thousand Two Hundred Sixty Eight and paise Sixty only) i.e.,

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(oA. No.21212024)

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a) A sum of Rs.56,42,535.77ps towards cash credit with future interest @ 11.85o/o p.a with monthly rests along with penal interest @ 2o/op.a additional from date of application till the date of realization;

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b) A sum of Rs.20,31,683.61ps towards term loan with future interest @ 11.85o/o p.a with monthly rests along with penal interest @ 2o/op.a additional from date of application till the date of realization;

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c) A sum of Rs.4,45,892.22ps towards WCTL account with future interest @ 9.25olo p.a with monthly rests along with penal interest @ 2o/oe.a additional from date of application till the date oF realization;

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d)A sum of Rs.13,88,580/- towards FITL-I account with future interest @ 6.50o/o p.a with monthly rests along with penal interest @ 2o/op.a additional from date of application till the date of realization;

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e) A sum of Rs.2,45,577/- towards FITL-2 account with future interest @ 6.50o/o p.a with monthly rests along with penal interest @ 2o/op.a additional from date of application till the date of realization;

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of Hypothecated property as described in

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(oA. No.21212024)

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As per the averments in the application, the Applicant Bank states that defendant No.1 is a firm represented by defendant no.2 availed cash credit of Rs.50.00 lakhs and term loan of Rs.50.00 lakhs on 08.11.2016. To secure due repayment of loan the defendants executed demand promissory note, agreement, hypothecation cum loan agreement, MCLR Agreement etc on 08.11.2016. Further the defendants availed WCTL loan of Rs.5.00 lakhs and executed sanction letter, demand promissory note, term loan agreement, hypothecatlon cum loan agreement dated 07,09.2020. The defendants also availed WCTL of Rs.12,96,700/- and Rs.2,29,530/and executed sanction letter, demand promissory note, agreement of funded interest term loan, supplemental deed of term loan etc. 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 28.08.2023and issued legal notice dated 23.03.2024. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants called absent and set exparte on 02.01.2025.

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Ms. Gautami Priya, Manager of the Applicant Bank examined herself as AW.1 and exhibited relevant documents, which are

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ma rked as
d<br>5. Heard
:;& for plicant Bank.
0 rt8 M
$m

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loA.No.zt2/2oz4l

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

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

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prayed for?

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Defendants remained exparte To substantiate the case of the Applicant Bank, AW.1, official of the Applicant Bank was examined and she exhibited rerevant documents as Ex.A1 to A.31. 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 Appricant Bank is entired to recover the craim made in the oA with future interest and costs.

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B. In the result, the present OA is allowed with costs, as under: The Defendants are joinily and severally liable to pay to the Applicant Bank a total sum of Rs.9l,S4,26g.6ops (Rupees Ninety Seven Lakhs Fifty Four Thousand Two Hundred Sixty Eight and paise Sixty only) i,e.,

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a) A sum of Rs.56,42,535.77ps towards cash credit with future interest @ 11.85% p.a from date of apprication tiil the date or tio

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Rs.20,31,683.61ps towards term loan with futu re

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,a from date of application till the date of
j ta FEBrrfr
*frL,
S;mS!

¶34

loA.No.272/2024\

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c) A sum of Rs.4,45,892.22ps towards WCTL account with future interest @ 9.25olo p.a from date of application till the date of realization;

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d) A sum of Rs.13,88,580/- towards FITL-1 account with future interest @ 6.50o/o p.a from date of application till the date of realization;

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e) A sum of Rs.2,45,577/- towards FITL-2 account with future interest @ 6.50o/o p.a from date of application till the date of realization;

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The Applicant bank is entitled to proceed against the hypothecated property as described in the schedule 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 defendant No.2 and properties of defendant no.1 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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tr- 8-B
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loA.No.2L2/20241

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Communicate a copy of the order to the parties concerned.

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(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open court on this the 20th day of Feb, 2025)

sdl_ (G. GOPTCHAND)

PRESIDING OFFICER

2 0 tqB ?t}25 -.

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Bank of India v. M/s. Raj Plastic

Case brief

What is this about?

What did the court decide?

Bank of India v. M/s. Raj Plastic

Case brief

What is this about?

What did the court decide?

What the court decided

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Parties & counsel

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