Allowed

State Bank of India v. M/S. Yashoda Krishna Automobiles Private Limited

DRT24 Mar 2025OA/22/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by State Bank of India for recovery of dues against a company, its directors, relatives, and other guarantors. Since respondents were absent, the Bank's claim was established on documentary evidence, and the order allowed recovery from mortgaged assets and the estate of deceased guarantors.

What did the court decide?

Respondents jointly and severally liable to pay Rs. 25,28,43,109.04 with interest at 17.50% p.a.; recovery certificate issued; costs awarded.

State Bank of India versus M/S. Yashoda Krishna Automobiles… — Company and Corporate | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

¶2

DATED THIS THE 24rH DAy OF MARCH, 2025

¶3

PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

¶4

OA.No.22 of 2024

¶5

Between:

¶6

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

¶7

Applicani

¶8

VERSUS

¶9

M/s. Yashoda 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.

¶10

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-B/2, Nandamuri colony, Labbipet, Vijayawada - 520 010. NTR district, Andhra Pradesh.

¶11

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

¶12

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

¶13

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

¶14

'F-x
2W nm zws
W*g'Y'

¶15

loA.No.22l2O2a)

¶16

Sri MagantiVenugopal, S/o Late Sri SriMagantiSubrahmanyam, Aged about 63 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.

¶17

Sri MagantiChandramouli, S/o Late Sri MagantiSubrahmanyam, Aged about 54 years, male, Occ: business and managing director Of 1't defendant company.

¶18

D.No.40- 15-B/2, Nandamuri colony, Labbipet, Vijayawada - 520 010. NTR district, Andhra Pradesh.

¶19

S mtMaga 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.

¶20

SmtNeth iJananki,

¶21

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.

¶22

¶23

Sri NethiSeshadriSekhar

¶24

w/o Sri Nethisubba Rao,

¶25

aged about 59 years, male,

¶26

occ: business, D.No.3-4-1013/29,

¶27

Barkathpura, near Kachiguda Junior College, Kachiguda, Hyderabad -

¶28

1. M/s. Krishnapriya Automobiles ffie\

¶29

Private Ltd, represented by i Managing Directors, defendan No. 2,3 & 6 hereinD.No.4-151 Besides AP Seeds Corporation, { zlirABTmi ; %,t*,*}}

¶30

(OA.No.22/2024]t

¶31

Prasadampadu, Vijayawada- 521 108. NTR district, Andhra pradesh.

¶32

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, Vijayawada- 521 108. NTR district, Andhra^pradesh.

¶33

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.

¶34

M/s. Radha 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 L0B. NTR district, Andhra^pradesh. Defendants

¶35

Counsel for the Parties:

¶36

For the Applicant the Applicant Applicant

¶37

For the Applicant the Applicant Applicant : Sri G. PrabhakarSarma For the Defendants 1,3 to 12 : Expa rte Defendant no.2 Ch. Venkat Raman

¶38

ORDER

¶39

The Applicant Bank filed the present oA against Defendants for recovery of a total sum of Rs.2SAg,4g,1O9.O4ps (Rupees

¶40

Twenty F Eight Lakhs Forty Three Thousand One nd paise four only) i,e., (Rs. ,06,22,5t0.24ps ) with interest @

¶41

%,r.-ry

¶42

loA.No.22l2024)

¶43

t7.50o/o p.a with monthly rests from date of filing of OA till the date of realization and in default for sale of mortgaged property and hypothecated movables as described in the schedule to OA.

¶44

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. Defendants 7 and B are wife and husband and defendant no.2 is the mother of defendants no.2 to 5 and 7 herein. Defendant no.1 company represented by defendant no,2 availed term loan of Rs.B crores and working capital cash credit of Rs.12 crores vide sanction letter dated 26.tL.2012 and executed agreement of loan for overall limit, agreement of hypothecation of goods, letter regarding grant of individual limits and agreement by dealer under electronlc dealer financing scheme. Defendant no.2,4 guaranteed the repayment of the said loan Facilities and executed guarantee agreement. Defendants no. 2to 4 and Sri MagantiSubrahmanyam guaranteed the repayment of Rs.12 Crores and executed guarantee agreement dated t9.02.2013. The defendant no.1 company availed adhoc loan of Rs.3.00 lakhs while continuing existing cash credit loan of Rs.12 cores on 02.04.2016.

¶45

The deFendant 1 in the board of directors meeting held on 3 1 .03.20 1 d the corporate guarantee for the loan fa cil iti nd represented by director, the ""&0.;;^q. defen eF^no.a 4e4qpms^sup ental agreement and g ua ra nteed Prng't

¶46

(oA.No.221202a)

¶47

the repayment of Rs.16 crores and was enhanced to Rs.19 crores and dropline OD of Rs.4.75 crores. Defendant no.2 extended equitable mortgage on t5.L2.2020 and created mortgage of schedule A property to OA. All the stocks, current assets, receivables were hypothecated in 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 16.09.2022 and issued demand notice dated 19.09.2022. Inspite of several requests and demands, the defendants did not clear the outstandlng. Hence this OA.

¶48

Defendants No.1,3 to L2 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.

¶49

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.55.

¶50

Heard the Ld. Counsel for the Applicant Bank.

¶51

The point that arisethat arisearise

¶52

The point that arisethat arisearise whether the Applicant Bank is entitled for the against the Defendants as prayed for? 2tilAR206^* i; W.-Y

¶53

(oA.No.2212024)

¶54

Defendants No.1,3 to 12 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 examined and he exhibited relevant documents as Ex.A1 to A.55. 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 and costs.

¶55

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

¶56

The Defendants are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.25,28,43,LO9.O4ps (Rupees Twenty Five Crores Twenty Eight Lakhs Forty Three Thousand One hundred nine and paise four only) i.e., (Rs.2t,22,20,598.80ps + Rs.4,06,22,510.24ps ) with interest @ 77.50o/o p.a from date of filing of OA till the date of realization.

¶57

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

¶58

The to proceed against the person J.

¶59

and 8 and properties of defendant *

¶60

no.1, e to 12, firrfls4tfrtprflftrea on of the debt due. However t "4" a1.+r -$i

¶61

(oA.No.22l2024)

¶62

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.

¶63

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

¶64

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

¶65

Issue Recovery certificate accordingly.

¶66

Communicate a copy of the order to the parties concerned.

¶67

(Dictated to the P.A., transcribed by her. corrected, signed and pronounced by me in the open court on this the 24th day of March, 2025)

¶68

sdl(G. GOPTCHAND)

¶69

PRESIDING OFFICER

¶70

D27.!. ilfrqRABAD,

State Bank of India v. M/S. Yashoda Krishna Automobiles Private Limited

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Yashoda Krishna Automobiles Private Limited

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

All orders in this case

Similar cases

Union Bank of India versus M/S. Sri Maha Ganapathi Electricals

State Bank of India versus Mr. Tony Mario

State Bank of India versus Mrs. Kedari Shareen Pranitha

State Bank of India versus Radha Krishna Automobiles Private Limited

State Bank of India versus M/S. Leela Krishna Automobiles Private Limited

Canara Bank versus Sanaa Audio Visual Productions Private Limited