Allowed

State Bank of India v. M/S. Novelty Reddy and Reddy Motors Private Limited

DRT25 Jul 2025OA/268/2023

Case brief

AI extract

What is this about?

Decided the OA filed by the Bank against corporate borrowers and individual guarantors for recovery of a loan classified as NPA. The Court allowed the claim in the absence of the Defendants, ordering joint and several recovery with interest and authority to proceed against mortgaged properties.

What did the court decide?

Defendants jointly and severally liable to pay Rs.99,38,367 with interest; Applicant Bank entitled to proceed against mortgaged and personal properties; Recovery certificate issued.

State Bank of India versus M/S. Novelty Reddy and Reddy… — Company and Corporate | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE 25TH DAY OF JULY, 2025

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.268 ol 2023

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Between:

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State Bank of India, Stressed Assets Recovery Branch-II, Chikkadpally, RTC X roads, Hyderabad, Telangana. Represented by its Chief Manager

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... Applicant

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VERSUS

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M/s Novelty Reddy and Reddy Motors Private Limited

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Rep. by its Managing Director

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Mr. G. Ramakrishna Reddy

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Regd. office at 8-2-293182/BE/s8,

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Road No.71, Navanirman Nagar, Jubilee Hills, Hyderabad - 500033.

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and also at

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Door No. 8-1-301/86&87, Plot
No. 101, ShaikpetNala, Saipriya
Residency, Lakshmi Nagar
colony, Hyderabad-500008
and also at Tadepalligudem
Road, Bhimavaram- 534202.
2,.:::
,;z'fr-.<br>2. Mr. G. Ramakrishna Reddy .,,i'<!--"'
S/o G. Satyanarayana Reddy, tI i;, J:fl "&,'i
Major, M. D. of M/s Novelty ll o :i:t' 7
ffi#tT[:5:I,:T:J:',,.,'i(H 2 s JUt zo2s j
Sai Apartments, Bhimavaram -\s1, -r
"j
Andhra 534202, Pradesh West Godavari District\1,1j-'." , Jp..S;n'/t
*,:, ,,i;#;iW

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loA.268/2023)

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3.	Mr.G.VenkataReddy.Major, S/oG.SatyanarayanaReddy DirectorofM/s NoveltyReddy& ReddyMotors Private Limited R/OHIG-103-41,Housing BoardColony,StreetNo.7, Bhimavaram-534202. West GodavariDistrict AndhraPradesh
4.	Mr.G.SriRama Reddy, Major S/oG.SatyanarayanaReddy DirectorofM/s NoveltyReddy& Reddy MotorsPrivateLimited R/o26-B-28,S1, ShiridiSai Apartment Balusumudi,Sivarao Pet,Bhimavaram-534202. WestGodavari District AndhraPradesh

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5, Smt. G.Lakshmi Parvathi, Major D/o P. Satyanarayana Director of M/s Novelty Reddy & Reddy Motors Private Limited R/o HIG-103-41, Housing Board Colony, Street No.7, Bhimavaram- 534202 West Godavari District Andhra Pradesh

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Smt. G. Radha D/o G.S.Reddy
Major, Director of M/s Novelty
Reddy Motors Private Limited
R/o F-8, Shirdi Sai Apartments,
Bhimavaram - 534202,
West Godavari District
Andhra Pradesh .r.-.^., __-.^ -:":-...":-:.,----._
7.
Smt. G. VeeraVenkata Naga /.r t 't . . ,:T'."<br>"f<br>Satya Prabha D/o G. Sri Rama . ,ir- .iii
Dorlelrr Mrin- Reddy, Major, Director ni-^-r.^- of ^c ^n M/s t^ ; 1 ' "1.\ '}";{
Novelty Reddy Motors p,riu.u.^t:, j,.r. ? S J|JL M *.
Limited R/o 26-8-28, S1, shiridi :i.
Sai Apartment, Balusumudi, ',!-. 1.' '
., i::ii
Sivarao Pet, Bhimava.u,i]'' ,.'=..,i,
534202, West Godavari District
' ' :,1'i )l/
Andhra Pradesh

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(oA.26812023)

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B.	Mr.I.RamakrishnamRaju S/o VenkataSubba Raju,Major R/OMIG-2,720,APHBColony, Bhimavaram-534201 WestGodavari District AndhraPradesh(died,the LegalHeirDef No.13)
9.	Mr.S.Lokesh Reddy, Major S/o SuryaNarayanaReddy R/o9-1-1,VenkatewaraNagar, Near4seasonsApartments, Bokkavaripalem,Bhimavaram- 534201,West GodavariDistrict AndhraPradesh
10,	Smt.B.Radhika, Major D/oV.V.Satyanarayana R/o17-9-38/1,Motupallivari Veedhi, nearMasjid, Bhimavaram-534207, WestGodavari District AndhraPradesh
11.	Mr. G.SrinivasaRao, Major S/o SriRama Murthy R/OMIG-Z,L20,APHBColony, Bhimavaram-534201 WestGodavari District AndhraPradesh
12.	Mr.B.S.R,S.S.S.N.Venkata NarsimhaRaoS/oSriRama VenkataRayulu,Major, R/o HIG-105,APHBColony, Bhimavaram-534201 WestGodavari District AndhraPradesh.
13.	Smt. Surya Kumarilndukuri W/o lateI.RamakrishnamRaju R/o MIG-2,L20,APHBColony, Bhimavaram-534201 AndhraPradeshState(LR) (impleaded as per ordersin I.A.No.L5B/2025dated L5-4-25) Defendants

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(o A.268/ 2023l|

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Counsel for the^parties: For the Applicant Sri K. Narayana Rao For the Defendants No.1 to 3 & 5: Sri B. Sreenivasa Reddy Defendants No.4,6,7,9 to 13 Expa rte

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ORDER

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The Applicant Bank fired the present oA against Defendants for recovery of a total sum of Rs.99,3g,367l_ (Rupees Ninety Nine Lakhs Thirty Eight Thousand Three Hundred and Sixty Seven

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only) with subsequent interest @ l4.7;o/o p.a with monthly rests from 25.09.2023 tiil the date of rearization and in defaurt for sare of mortgaged properties as mentioned in the schedule ., A to E,, to OA. 2. As per the averments in the application, the Applicant Bank states that defendant no.1 is the private Limited company and 2nd defendant is managing director and defendants 3 to 7 are directors who availed cash credit facility of Rs.6.00 crores, term loan of Rs.9.00 crores, E-DFS rimit of Rs.2.00 crores and bank guarantee of Rs.4.00 crores on 29.03.2018. Defendants No.2 to 12 stood as guarantors for due repayment. The loan was secured by schedule mentioned mortgaged properties belonging to defendant no.8,9,10,11 and 12 more fully mentioned in A,B,C,D and E to OA. Defendants no.12 to 12 executed guarantee vour of applicant on 08.06.2020. Defendant no.B dant no.13 was added as legal heir. After z ilptm","l cilities, the defendants failed to comply the terms =,

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(oA.268/20231

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of sanction, hence the appricant bank classified the account as NpA and legal notice was issued on 30.09.2023. Inspite of severar requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants No.4,6,7,9 to 12& 13 called absent and set exparte on 06.03'2025. counser for defendants no.1 to 3 and 5 fired vakarath but failed to file Written statement.

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sri saroj Mishra, Manager of the Appricant Bank examined herserf as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.29.

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Heard the Ld. Counsel for the Applicant Bank.

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The point that arise for consideration is whether the Applicant Bank is entitled for the claim made in the oA against the Defendants as prayed for?

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Defendants No,4,6,7, 9 to 12&13 remainedexparte. Counsel for Defendants no.1 to 3 and 5 fired vakarath but faired to fire ws. To substantiate the case of the Appricant Bank, AW.1, officiar of the Applicant Bank was examined and she exhibited relevant documents as Ex.A1 to A.29. In view of the above, I hold that the Applicant Bank has established their claim made in the OA against the Defendants hence the Applicant Bank is entitled to recover the cla ith future interest and costs. d. A is allowed with costs, as under: 2 S IULI6^* ?

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loA.268l2O23l

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The Defendants are joinily and severally liable to pay to the Applicant Bank a total sum of Rs.99,3g,3,67/_ (Rupees Ninety Nine Lakhs Thirty Eight Thousand Three Hundred and Sixty Seven only) with subsequent interest @ L4.75o/o p.a from 25.09.2023 till the date of realization.

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The Applicant bank is entiUed to proceed against the mortgaged properties as mentioned in the schedule .'A to E,, 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 to 6 and properties of defendant no.1 firm towards realization of the debt due. However the Applicant bank is entifled to proceed only to the extent of estate devolved upon the legal heir/ defendant no,13 from the deceased Sri I. Ramakrishnam Raju/ defendant no.g.

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11'. The Applicant Bank is entifled to the costs of the OA.

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The Applicant shail fire 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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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 !br6.,thg29'l- dor of July, 2O2s)

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State Bank of India v. M/S. Novelty Reddy and Reddy Motors Private Limited

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Novelty Reddy and Reddy Motors Private Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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