Allowed

Central Bank of India v. M/s. Pragathi Industries

DRT28 Apr 2025OA/220/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal at Hyderabad allowed the application filed by Central Bank of India for recovery of outstanding dues totaling Rs. 29,66,010/- comprising cash credit, term loan, GECL, and FITL amounting to the principal sum with future interest, costs, and permission to proceed against hypothecated movables.

What did the court decide?

Recovery of Rs.29,66,010/- with interest and costs; permission to proceed against hypothecated movables and properties of Defendants.

Central Bank of India versus M/s. Pragathi Industries — Banking and Recovery | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL.I^{AT HYDERABAD}

¶2

DATED THIS THE 28TH DAY OF APRIL, 2025

¶3

PRESENT: SRI GUMMADI GOPICHAND,^{PRESIDING OFFICER}

¶4

OA.No.22O of 2024

¶5

Between:

¶6

Central Bank of India, Main branch at Koti, Hyderabad. TS Rep by its GPA holder

¶7

Applica nt

¶8

VERSUS

¶9

M/s. Pragathi Industries,

¶10

Represented by its ProPrietor, H.No,B-2-626/ U A/2, road no.^12, Above Liquor bank, Banjara hills, Hyderabad^-500 034.

¶11

Mr. T.S. Sreeshine,

¶12

Aged about 58^years, occ: business, Male, R/o flat no.412, Jaya Chandra Enclave, Padmaraonagar, Hyderabad.

¶13

Defendants

¶14

Counsel for the Parties:

¶15

For the Applicant Momin Mohammed Rafiq
For the Defenda nts pa rte
*
|,PN M
rrr
',.$
'. .l

¶16

(OA. No.220l2024)

¶17

ORDER

¶18

The Applicant Bank filed the^{present OA against Defendants for} recovery of a total sum of Rs.29,66,010/-^{(Rupees Twenty Nine} Lakhs Sixty Six Thousand and^{Ten only) i.e.,}

¶19

a) A sum of Rs.25,80,199/-^{under cash credit withinterest @} 11.600/o p.a with monthly^{rests along with penal interest@ 2olo} p.a from date of application till the date of realization ;

¶20

b) A sum of Rs.2,46,505/-^{under Term loan with interest@ 9.25o/o} p.a with monthly rests along with^penal interest @^{2olo p.a from} date of application till^{the date of realization} ;

¶21

c) A sum of Rs.1,05,168/-^{under GECLwith interest@ 10.50% p'a} with monthly rests along with^{penal interest} @^2o/o P.a^{from date} of application till^{the date of realization} ;

¶22

d) A sum of Rs.34,138/- under^{FITL with interest@ 10.30o/oP a} with monthly rests along with^{penal interest@ 2o/o} Q.a^{from date} of application till^{the date of realization} ;

¶23

and in default for sale of^{hypothecatedmovablesas mentionedin} the schedule to OA.

¶24

As per the averments in^{theapplication, the Applicant Bankstates} represented by^{proprietor/ defendant} of Rs.22,50,000/- and term^{loan of} daled 22.12.20t7.^{The defendants}

?t' *-^- ",^{;,,I ;}

t.,,. 'r,*-.,$i;y' !

(oA. No.22012024)

executed sanction letter, demand^promissory note, letter of waiver, letter of continuity, interest variation, agreement for non diversion of funds etc. Further the defendants availed GECL limit oF Rs.1,07,000/- and FITL of Rs.44,000/- on 29.05.2021. 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 14.06.2023 and issued legal notice dated 75.O4 .2023 . Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

¶29

Defendants called absent and set^exparte on^15.04.2024.

¶30

Mrs. B. Swathi, Credit Manager of the Applicant Bank^examined herself as AW.1 and exhibited relevant documents, which^are marked as Ex.A.1 to A.24.

¶31

Heard the Ld. Counsel for the Applicant^Bank.

¶32

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

¶33

Defendants exparte. To substantiate the case oF^the Appli of the Applicant Bank was examined A 8'.c(^-f and e exh ibitetlYreleva n ments as Ex.A1 to A.24. In view of the icant Bank has established their claim ft,u,1^fl"rfBn&tn" $ .r a_u{ ,.. t 3 Vi),,S{.i?&;tt

¶34

(oA.No.220l2024)

¶35

made in the OA against the^{Defendantsand hencethe ApplicantBank} is entitled to recover the^{claim made in the oA with future interest} and costs.

¶36

B. In the result,^{the present OA is allowed with costs, as under:} The Defendants are^{jointly and severally llable to pay to the} Applicant Bank a total sum of^{Rs.29,66,OtO/-(Rupees Twenty} Nine Lakhs Sixty Six Thousand^{and Ten only) i.e.,}

¶37

a) A sum of Rs.25,80,199/-under^{cash credit with interest@} 11.60%p.a from date of appllcation^{till the date of realization} ;

¶38

b) A sum of Rs.2,46,505/- under^{Term loan withinterest @} 9.25o/o^p.a from date^{of applicationtill the date of realization;}

¶39

c) A sum of Rs.1,05,168/-^{underGECL wlth interest@ 10'50o/o} p.a from date of application till^{the date of realization} ;

¶40

d) A sum of Rs.34,138/-^{underFITL with interest @ 10.30o/o p'a} from date of application till^{the date of realization;}

¶41

The Applicant^{bank is entitledto proceed against the hypothecated} movables as mentioned^{in the scheduleto oA towards realization of}

¶42

the debt due;
,d<br>rP
*

¶43

(oA. No.220l2024)

¶44

The Applicant Bank is also^{entitled to proceedagainstthe person} and^properties of^{defendant No.2 and properties of defendant no'1} firm towards realization of the debt^due.

¶45

The Applicant Bank^{is entitledto the costs of the OA.}

¶46

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

¶47

Issue Recovery certificate^accordingly.

¶48

14, Communicate a copy of^{the order to the parties concerned'}

¶49

(Dictated to the P.A., transcribed by^{her, corrected, signedand pronouncedby mein the opencourt on} this the 2BLh day of^{APril, 2025)}

¶50

sd/(G. GOPICHAND)

¶51

PRESIDING OFFICER

¶52

2 I AP8 20?5
i't
S;ffii;;'

¶53

' 1. V F-..-'w-V\ .
iitrryp
auttdt#i
Dnr-t, xmeaaado.

Central Bank of India v. M/s. Pragathi Industries

Case brief

What is this about?

What did the court decide?

Central Bank of India v. M/s. Pragathi Industries

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

Thakkallapally Prathyusha versus Repco Home Finance Ltd.

Palleni Sampath Rao and Another versus Repco Home Finance Limited

Union Bank of India versus M/S. Chaitanya Transport

State Bank of India versus Smt Buddharaju Kalyani

G Kalleda Ganga Reddy versus Reliance Asset Reconstruction Company Limited

Canara Bank versus Mr. Matteda Prathap