Allowed

Union Bank of India v. M/S. Sree Medical and General Stores

DRT6 Mar 2025OA/270/2024

Case brief

AI extract

What is this about?

In this OA, the Debt Recovery Tribunal adjudicated on the bank's claim for recovery of Rs. 25.16 lakhs along with future interest. Having heard the bank's witness and documentation while the defendants remained in default, the Tribunal held that the bank established its claim and allowed the original application.

What did the court decide?

The OA is allowed; Defendants must pay Rs. 25,16,274/- with future interest; Bank entitled to proceed against hypothecated movables, person and properties of Defendants for realisation of debt.

Union Bank of India versus M/S. Sree Medical and General… — Insolvency and Bankruptcy | DRT (2025)

¶1

IN THE DEBTS RECOVERYTRIBUNAL.I AT HYDERABAD

¶2

DATED THIS THE 6THDAY OF MARCH, 2025

¶3

PRESENT: SRI GUMMADI GOPICHAND, PRESIDING^OFFICER

¶4

OA.No.27O ot 2024

¶5

Between:

¶6

Union Bank of India, Khammam Bus station complex Branch, Khammam, Khammam district, Telangana State. Rep by its Senior Branch Manager

¶7

Applicant

¶8

VERSUS

¶9

M/s. Sree Medical & General Stores, Situated at H.No.4-172, main road, l.R. Prasad Hospital, Nehru nagar, Khammam - 507 002. Khammam district, Telangana State. Represented by its^proprietrix Mrs. Kothapalli Asha

¶10

Mrs. Kothapalli Asha, D/o ChinnaNagulu, aged 43^years, Occ: business, R/o D.No.1l-5-5/A, LR. Prasad Hospital, Nehru nagar, Khammam - 507 002. Khammam district, Telangana State.

¶11

Defenda nts

¶12

Counsel for the Pa rties:

¶13

For the Applicant

¶14

Sri M.V.S. Prasad

¶15

For the Defendants Expa rte 6 }|rnM

¶16

(oA. No.270l2024)

¶17

ORDER

¶18

The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.25,L6,274l- (Rupees Twenty Five Lakhs Sixteen Thousand Two hundred and Seventy Four only) with future interest @ 10.54olo p.a from date of filing of OA till the date oF realization and in default for sale of hypothecated movables as described in the scheduleto OA.

¶19

2, As per the averments in the application, the Applicant Bank states that defendant no.2 is the proprietor of defendant no.1 firm availedcash credit of Rs.25.00 lakhs under CGTMSE under union Nari Sakti Scheme on 09.12.2022 for trading business. The defendants executed Hypothecation agreement, demand promissory note, letter of guarantee, interest agreement etc on 72.t2.2022. After availing the loan facility, the defendants failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NPA on 27.05.2024 and issued recall notice dated 07,03.2024.lnspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

¶20

Defendan set exparte on 20.01.2025.
$P
1 .f 06 f'!48 2ii25
,$
r$'L

¶21

loA.No.270/20241

¶22

Sri Burra Ashok, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.9.

¶23

Heard the Ld. Counsel for the Applicant Bank.

¶24

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?

¶25

Defendants remained exparte. 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.9. 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.

¶26

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

¶27

The Defendants are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.25,16t274/- (Rupees Twenty Five Lakhs Sixteen Thousand Two hundred and Seventy Four

¶28

only) with .54o/o p.a from date of filing of OAtill

¶29

the date of '^'') ; OE nlH 7l{

¶30

(oA.No.27012024l,

¶31

The Applicant bank is entitled to proceed against the hypothecated movables as described in schedule to OA towards realization of the debt due.

¶32

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.

¶33

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

¶34

t2. The Applicant shall file a cost memo within two weeks from the date of receipt of order.

¶35

13, Issue Recovery certificate accordingly.

¶36

Communicate a copy of the order to the parties concerned.

¶37

(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open court on this the 6thday of March, 2025)

sd/(G. GOPTCHAND)

PRESIDING OFFICER

jtl"s

ooP
'';,,m'"'
n?.4d I l.t\r6fl"0F,f D.

¶42

Union Bank of India v. M/S. Sree Medical and General Stores

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/S. Sree Medical and General Stores

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

Pajjuri Lasyapriya versus Tata Capital Housing Finance Ltd.

Union Bank of India versus M/s. Varalaxmi Saw Mill

Union Bank of India versus M/S. Saraswathi Engineering Works

N v Subba Rao versus State Bank of India

Ms Sona Collections Rep Neeraja versus Union Bank of India

State Bank of India versus Smt. Sapavat Deepa