Allowed

Canara Bank v. Jyothi Enterprises

DRT10 Jan 2025OA/240/2023

Case brief

AI extract

What is this about?

DTAT Hyderabad allowed an original application under Section 19 RD&BA. The court held defendants liable to pay the outstanding debt with interest, less the amount already realised through SARFAESI auction of mortgaged properties.

What did the court decide?

Defendants to pay Rs. 42,71,975.83 plus interest @ 9.40% p.a. less Rs. 36,25,000/- realised under SARFAESI. Recovery Certificate issued.

Canara Bank versus Jyothi Enterprises — Company and Corporate | DRT (2025)

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IN THE DEBTS^{RECOVERYTRIBUNAL-IIAT} HYDERABAD 2025 DATED THIS THE^{1OTH DAY OF JANUARY,}

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(Hons.), M.A. PRESENT: SH.^{RAMESHWAR KOTHE,B.COM, L.LB.} PRESIDING^OFFICER

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ORIGINAL^{APPLICATIONNO' 240 OF 2023}

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Canara Bank Specialised SME^{Bra nch} 6-3-279,^{Ram NagarExtn.} Kamma Bhavan Ananta^pur -^{515 004}

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.......Applicant.

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Versus

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l4/s Jyothi^Enterprises ReP bY its ProPrletrix Degavath Jyothi^Bai Plot No. 205^{& 206} UpperaPalli^Road Nea r RDT Ecology^Centre AnantaPUr -^{515 002, A P'}

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2, D. lyothi^Bai W/o Sudhakar 12-3-181 Sai Nagar,5th^Cross Ana nta PUr - 515⁰⁰² Andhra Pradesh.

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...., Defendants.

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Cou nsel for the^APP|icant Defendants

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I4/s. Alluri Krishnam^Raju.

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Expa rte.

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:: ORDER::

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The Applicant Bank^{filed the present OA u/s 19 of The Recovery} of Debts & Bankruptcy Act,^{1993 for recoveryof a sum of} Rs.42,78,975,83Ps^jointly and^{severallyfrom the defendants}

.^,,.,o. ,.,

oA.z4ol2o23

with future interest @10.50o/o p.a. with monthly rests from 17.17.2022 till the date of realisation along with costs.

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The averments of applicant banl( as per the OA, briefly, are that 1st defendant is a proprietorship concern represented by 2nd defendant proprietrix. The 1st defendant availed a term loan of Rs.31.50 lakhs on 30.05.2019 for purchase of machinery and another term loan (GECL) of Rs.5,00,000/- on 16.06.2020. The loan is primarily secured by way of hypothecation of the machinery so purchased and OA schedule immovable property as a collateral security. Defendant executed the requisite loan documents including Memorandum of Deposit of Title Deeds of the mortgaqed property duly registered on 25.05.2019. The mortgage covers both the loans. However, defendants committed default in repayment, resulting in the loan account becoming NPA and subsequent Securitisation proceedings. As the defendants failed to repay the outstanding dues, applicant filed the present OA.

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Defendants were set exparte on 24.07.2024 for nonrepresentation despite summons through paper publication.

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The Applicant Bank examined S. Aswartha Narayana, Manager, as AW-1 and marked 15 documents through him as Ex. A.1 to Ex. A.15. It is submitted that applicant bank realised a sum of R9.9,O6,25O/- on 3O,O7.2O23 and Rs,27,78,75O/on 13.02.2023 totalling to RS.36,25,OOO/- by way of sale of mortgaged^properties under the^SARFAESI proceedings.

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Learned counsel appearing for the applicant^{prayed for passing} orders based on records. OXle

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oA.24012023

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The^polnt that arises for conslderation^is:-

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Whether the Applicant^{Bank is entitled} for the oA claim against^the Defendants as PraYed^for?

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As stated supra, defendants remained^{exparte. Under such facts} and circumstances, the OA^claim of^{the applicant bankcoupled} with the recltals in Exs.A.1 to A.15 remain^{unchallengedand} unrebutted. Accordingly, I hold^{that the defendants are liable to} pay the OA claim to the applicant bank along with^future interest and costs less Rs,36,25,OOO/-^{realisedunder} SARFAESI^{proceeclings,}

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In the result, the^{present Original Appllcation No.240/2O23is} allowed as under:^-

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i) the defendants are^jointly and^{severallyliable} to^pay to the Appllcant^Bank a total^{sum of} Rs.42 ,7I ,97 5 .83Ps along with^interest @9.40olo^p.a. simple^{from the dateof} application till the date of realization,^less Rs.36,25,O0O/- realised under^SARFAESI

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proceedings;

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ii) applicant bank is also entitled to^proceed against the^person and^{propertles of} defendants for realization^of its^dues;and

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iii) the applicant bank is entitled^{for the costs.} ,r'..r.-)

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oA.z4ol2o2t

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The Applicant Bank is directed to^file Cost^{Memo within2 weeks} from the date of receipt of this Order.

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Issue Rgcovery Certificate accordingly.

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Communicate a copy of this order to the^{partiesconcernedand} upload in Web Portal,

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(Dictated to the steno, signed and pronounced by me in the open court on this the^10th day ofJanuary,2025)

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Aw.rou

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,(#;\l;^*o,,., PRESIDING OFFICER

Canara Bank v. Jyothi Enterprises

Case brief

What is this about?

What did the court decide?

Canara Bank v. Jyothi Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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