Allowed

State Bank of India v. M/S. Vvflex Pack Private Limited

DRT18 Feb 2025OA/290/2024

Case brief

AI extract

What is this about?

The Tribunal adjudicated an origination application for recovery of dues, interest, and costs. The court upheld the bank’s claim against the corporate debtor and individual guarantors, ordering payment and authorizing proceedings against mortgaged properties.

What did the court decide?

The Defendants are jointly and severally liable to pay Rs.15,43,20,717.47 along with interest and costs, and the Bank is authorized to proceed against mortgaged properties.

State Bank of India versus M/S. Vvflex Pack… — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE 18rH DAy OF FEBRUARY,2025

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PRESENTI SRI GUMMADI GOPICHAND, PRESIDING oFFIcER

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OA.No.290 of 2024

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Between:

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State Bank of India, Stressed Assets Management Branch-II (SAMB-II) first floor, TSRTC commuter Amenity Centre, Bus Terminal Complex, Kachiguda, Hyderabad Represented by its Asst Gen Manager

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Applicant

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VERSUS

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M/s. Vvflex Pack Private Limited, Represented by its Managing director The 2nd defendant and directors-the Defendants 3,4,5 and B herein. 1594, Prasanthinagar, Khadi colony, Thirupathi - 517 507.

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Plot No.s1 & 2, APICC Industrial park, Phase II, Panchayat APIIC-IALA,ADB Road, Near old Toligate, Peddapuram Village and mandal, East Godavari District - 533 437.

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Sri DugginaVeeraVenkata Satya Ramesh, S/o D. Venkateswara Rao, Aged about 55 years, male, Occ: business & managing director Of 1't defendant company Plot no.60/4, flat no.7, Sri Lakshmi nilayam, Road no.12, Jubilee Hills, Hyderabad - 500 033.

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Mrs. DugginaRajya Lakshmi, w/o Sri DugginaveeraVenkata Satya Ramesh, aged 53 years, female,

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(oA.No.290 of 2024)

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O_cc: business and director of 1" defendant company, Plot no.60/4, flat no.7, Sri Lakshmi nilayam, Road no.12, Jubilee Hiils, HyderabaO _ SOO OjS.

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Sri Garapatisuryanarayana Murthy, S/o Sri G. Narasimha Rao, aged S+ yrs, M-ale, occ: business and direitor of 1't defendant company D. No.-1-4, Kurmapuram village, Near Ramachandrapuram, Rayarammandal, Rayaram _ 533 25S.

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H,No.2-6411, main road, Manepalli village, East Godavari dist_ 533 249.

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SriMerlaVenkat Rao, S/o Sri Merla Surya Rao, Aged 63 years, male, O-cc: business and director of 1" defendant company D.no.A-701, majestic towers, Near Aquarium, Ramakrishna beach, Visakhapatnam - 530 003.

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SmtMerlaPadmini, w/o Sri MerlaVenkat Rao, aged 50_years, female, occ: business, D.no.A-701, majestic towers, Near Aquarium, Ramakrishna beach, Visakhapatnam - 530 003.

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Sri Achanta Srinivas, s/o Sri T. Timma Raju, aged about 54 years, male, occ: business, D.No. 13-93, Venkatagiri, Pidimgoyyi, Rajahmundry- 533 107.

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1 I FE8 2[05 Sri Akkina Narayana Murthy, s/o Sri Akkinavenkata Rao, aged about 52 years, male, occ: business and director of 1sr

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(OA.No.290 of 2024)

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defendant company. Ramalayamveedhi, panchayat Vemuluru, Vemuluru, West Godavari Dist - 534 350.

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M/s. Orion^printers private Ltd, Rep by its Directors the defendants 2 and 3 herein, D.No.11-6-871, Red hills, Hyderabad -500 OO4.

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Defen da nts

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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 G. PrabhakarSarma Expa rte

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ORDER

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1' The Applicant Bank filed the present oA against Defendants for recovery of a total sum of Rs.15,43,2O,1L7.47ps (Rupees Fifteen Crores Forty Three Lakhs Twenty Thousand Seven Hundred Seventeen and paise forty seven only) i.e.,

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a) A sum of Rs.8,70,7t,73r.76ps under term roan account with interest @ 14.50% p.a with monthly rests from date of application till the date of realization ;

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b) A sum of Rs.3,98,25,95t.42ps under cash credit with interest @

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14.50% p.a rests from date of application till the

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date of
ftB 7075

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(OA.No.290 of 2024)

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c) A sum of Rs.1,41,81,170.83ps under GECL loan with interest @ L4'500/o p.a with monthry rests from date of apprication tiil the date of realization ;

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d) A sum of Rs.15,93,126.80ps under CCECL loan with interest @ L4.50o/o p.a with monthly rests from date of application till the date of realization ;

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e) A sum of Rs.1,16,48,736.66ps under GECL with interest @ 14.50o/o p.a with monthly rests from date of application till the date of realization ;

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and in default for sare of mortgaged and hypothecated properties as described in the schedules "A to I,, to OA.

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As per the averments in the apprication, the Appricant Bank states that defendant No.1 is a Company and defendant no.2 is the Managing director and defendants 3,4,5 and B are Directors of Defendant no.1 company. Defendants 2 to 7 herein are directors oF defendant no.1 company. Similarly the defendant no.9 company in the board of directors meeting herd on 20.to.2or7 resolved to extend corporate guarantee for the roan avaired by defendant no.1 company. The defendants 2,3 and 9 stood as guarantors for the

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term loa n and on 21.10.20t7 executed guarantee agree mpany availed cash credit of Rs.5.00 Cror ,000/- on 29.05.2020 and Common Covi d a*",J",Lf[fl"ffi,, Rs.50.00 lakhs while continuing the

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(OA.No.290 of 2024)

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existing term loan of Rs.B.00 crores and cash credit of Rs.s crores (overall facilities of Rs.15.61 crores). Defendant no.1 company represented by defendant no.2 created mortgageof schedure A property by depositing original Regd Agreement of sale. On 26.08.202L defendant no.1 and 3 created mortgage of Schedule B property and deposited the title deeds. Defendant no.1 and 4 created equitable mortgage of Schedule C and D properties and deposited the tiUe deeds. Defendant no.1 and 5 created equitable mortgage of Schedule Eproperty and deposited the tiUe deeds. Defendant no.l and 6 created equitable mortgage of Schedule F property and deposited the tiUe deeds. Defendant no.1 and 7 created equitable mortgage of Schedule Gproperty and deposited the iitle deeds. Defendant no.1 and B created equitable mortgage of schedure Hproperty and deposited the tire deeds. In terms of roan agreement, all plant and machinery, stocks, current assets, receivables, of defendant no.1 company more fully described in Schedule I to OA are hypothecated to Applicant Bank.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 29.t2.2023 and issued legal notice dated 22.06.202 f several requests and demands, the defen fihear i$h)rA nding. Hence this OA. * I

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Defen to and set exparte on 30.t2.2024.

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(OA.No.290 of 2024)

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Sri D. Srinivas, ChieF Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are

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marked as Ex.A.1 to A.96.

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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

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entitled for the claim made in the OA against the Defendants as prayed for?

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Defendants remained exparte. To substantiate the case of the Applicant Bank, AW.1, officiar of the App[cant Bank was examined and he exhibited rerevant documents as Ex.A1 to A.96. 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 Appricant Bank is entitled to recover the claim made in the oA with future interest and costs.

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B. In the result, the present OA is allowed with costs, as under: The Defendants are joinily and severally liable to pay to the Applicant Bank a total sum of Rs.15,43,2O,717.47ps (Rupees

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Fifteen Forty Three Lakhs Twenty Thousand Seven nd paise forty seven only) i.e., 1 f iln 'n1q

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(oA.N0.290 of 2024)

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a) A sum of Rs.8,70,71 ,73L.76ps under term loan account with interest @ 14.50% p.a from date of application till the date of rea lization ;

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b) A sum of Rs.3,98,25 ,95L.42ps under cash credit with interest @ 14.50o/o p.a from date of application tiil the date of realization;

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c) A sum of Rs.1,41,81,170.g3ps under GECL roan with interest @ 14.50o/o p.a from date of application till the date of realization;

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d) A sum of Rs'15,93,126.80ps under ccECL roan with interest @ 74.50o/o p.a from date of apprication tiI the date of rearization ;

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e) A sum of Rs.1,16,4g,736.66ps under GECL with interest @

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14.50o/o p.a from date of application till the date of realization ;

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9' The Appricant bank is entitred to proceed against the mortgagedand hypothecated properties as described in the schedures '.A to I,,to oA towards realization of the debt due.

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The is a lso entitled to proceed against the person a L5 No.2 to 8 and properties of defendants lization of the debt due.

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to the costs of the OA.

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(OA.No.290 of 2024)

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t2. 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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L4. Communicate a copy of the order to the parties concerned.

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by her, correcred, sisned and pronounced by me in the open court on

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[flf:X,""iJS f.i, ?;l;;["!;;!i"o

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sd/ - (G. GOPTCHAND) PRESIDING OFFICER

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TROE COPY*Reglctrar'V{/
nol-t a.rl-ri FE t F /r it.

State Bank of India v. M/S. Vvflex Pack Private Limited

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Vvflex Pack Private Limited

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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Case details

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