Allowed

Bank of Baroda v. Varalaxmi Seed Processing Plant

DRT7 Apr 2025OA/277/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Bank of Baroda for recovery of loan dues against the proprietor and guarantors who defaulted on OD and housing loans. The defendants appeared absent and ex parte.

What did the court decide?

Recovery of Rs. 1,45,67,407.22 with future interest and costs; issuing Recovery Certificate.

Bank of Baroda versus Varalaxmi Seed Processing Plant — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 7TH DAY OF APRIL, 2025

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.277 ot 2023

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Between :

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Bank of Baroda, Branch office at Karimnagar, Situated at 2-6-111, Market Road, Opp Municipal office, Karimnagar, Telangana - 505 OO1. Rep by its Chief Manager

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Applicant

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VERSUS

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Varalaxmi Seed^processing plant, Rep by its Proprietor Mr. Eega Gattumallaiah, flat no.503, H.no.10-1-36, Block - A, Adithya enclave, Ramnagar, Karimnagar - 505 001.

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Sri Eega Gattumallaiah, s/o Eega Narsaiah, aged about 41 years, occ: business, male, Flat no.503, H.no.10-1-36, Block - A, Adithya enclave, Ramnagar, Karimnagar - 505 001.

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Sri Reddy Rajamallu alias Reddiveni Rayamallu, S/o Mallaiah, aged about 66 years, occ: business, male, R/o H. No. 1-95, Narsingapur, Boinpally mandal, Karimnagar- 505 524.

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lo^A.No.277 /20231

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Sri Seepali Rajaiah, s/o Lalaiah, Aged about 76 years, occ:business, Male, R/o H.No.5-69, velichala Village, Ramadugu mandal, Karimnagar - 505 451.

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Mamindla Yallaiah, s/o Mallaiah, aged about 40 years, occ: business, male, R/oH.No.9-3-43, Bhagawanthrao nagar, Vemulawada, Karimnagar, Telangana - 505 001.

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Defendants

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Counsel for the Parties:

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For the Applicant

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For the Defendants

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Sri Venkat Sri Maithreya Exparte

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ORDER

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The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.L,45,67,4O7.22ps (Rupees One Crore Forty Five Lakhs Sixty Seven Thousand Four Hundred Seven and paise Twenty two only) i,e.,

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a) A sum of Rs.1,20,90,852.78ps in OD loan account with interest @ 11.15o/o^p.a from 31.03.2021 till the date of realization ;

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b) A sum of Rs.6,25,953.26ps FITL account with interest @ 9.90olo p.a from 31.03.2021 till the date of realization ;

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c) A sum of Rs.3,34221.9 loan account with interest 10.30% p.a from 3 ,#t rhl of rea lization ; A\ €$ d) A sum of Rs.5,3B n-dema nd loa* account with interest qPR 206 9.30% p.a from trll tne da realization;

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loA.No.277 /2023)

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e) A sum of Rs.g,77,9BB.B7ps in housing roan account with interest 8.55% p.a from 31.03.2021 till the date of realization ; and in defaurt for sare of mortgaged properties as described in the schedule to OA.

¶27

As per the averments in the application, the Applicant Bank states that defendant no.1 is a proprietary concern represented by its Proprietor the defendant no.2 and defendants 3 to 5 stood as guarantors to the credit facilities availed by defendants l and 2. The defendants 1 and 2 avaired oD facirity of Rs.50.00 rakhs and executed necessary documents. The defendants no.2 to 5 created mortgage by deposit of title deeds of immovable properties vide memorandum of deposit of titre deeds dated 27.0g.2013 bearing document no.t0466/2013 more fuily mentioned in the schedure to OA. In 2015, the said OD facility was enhanced to Rs.90.00 lakhs and defendants no.3 to 5 extended the mortgage and deposited tiue deeds bearing doc. No.1667/2015. The defendants 1 and 2 availed FITL of Rs.3,72,000/- and executed necessary documents. After avairing the roan facirity, the defendants faired to compry the terms of sanction, hence the appricant bank was constrained to crassify the account as NPA on 31.03.2021 and issued demand notice dated 27.04.202t. and demands, the defendants did not this OA.

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(OA.No.27712023)

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Defendants called a bsent^and set exparte on 06.11.2024.

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Sri K.D. Singh, Chief^{Managerof the Applicant Bank examined} himself as AW.1 and exhibited^{relevant documents,which are} marked as Ex.A.1 to A.50.

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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 ApplicantBank is} entitled for the claim^{made in the OA against the Defendantsas} prayed for?

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Defendants remained^{exparte.To substantiatethe case of the} Applicant Bank, AW.1,^{officialof the Applicant Bank was examined} and he exhibited^{relevant documentsas Ex.Al to A'50' In view of} the above, I hold that^{the Applicant Bank has established their claim} made in the OA against^{the Defendantsand hencethe Applicant Bank} is entitled to recover the claim^{madein the oA with future interest} and costs.

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B. In the result, the^{present OA is allowed with costs, as under:}

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The Defen intly and severallY^liable to^pay to the Applica Rs.L,45,67,4O7.22Ps (Rupees One v

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f ,P S$

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c i l-@--t\Forty Fivd Lakhs^Sj Seven Thousand Four Hundred n,ana $"7iraPfJH., .s only) i.e., ."it,, -o$ i:ta,,,"""-$ {€ofi;'i9

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(OA.No.277 /20231

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a) A sum of Rs.1,20,90,852.78ps in OD loan account with interest @ 11.15olo p.a from 31.03.2021 till the date of realization;

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b) A sum of Rs.6,25,953.26ps FITL account with interest @ 9.90o/o p.a from 31.03.202t till the date of realization ;

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c) A sum of Rs.3,34221.98ps in demand loan account with interest 10.30o/o p.a from 3t.03.202t till the date of rea lization ;

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d) A sum of Rs.5,38,423.33ps in demand loan account with interest 9.30o/o p.a from 31.03.2021 till the date of realization ;

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e) A sum of Rs.9,77,988.87ps in housing loan account with interest 8.55% p.a from 3t.03.202t till the date of realization )

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The Applicant bank is entitled to proceed against the mortgaged immovable properties as described in schedule 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 5 and properties of defendant

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no.1 firm towa rds rea li
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11. The Applicant Bank is rtitled to tWcosts oA.
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(oA,No.277 lz0z3)

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L2. The Applicant shall file a cost memo within two weeks from the date

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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 this the 7th day of April, 2025)

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sd/(G. GOPTCHAND) PRESIDING OFFICER

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¶55

TRUE OFY
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Bank of Baroda v. Varalaxmi Seed Processing Plant

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Varalaxmi Seed Processing Plant

Case brief

What is this about?

What did the court decide?

What the court decided

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