Allowed

Canara Bank (Syndicate Bank) v. M/s. Sarayu Fuel Point

DRT25 Apr 2025OA/296/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the OA filed by Canara Bank against M/s. Sarayu Fuel Point and individual guarantors for recovery of dues, interest, and costs relating to OD/CC and GECL facilities, holding the debt established.

What did the court decide?

Defendants jointly and severally liable to pay Rs. 2,22,91,309.54 with future interest; proceedssale of hypothecated/mortgaged properties allowed.

Canara Bank (Syndicate Bank) versus M/s. Sarayu… — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THrS THE 25rH DAy OF APRIL, 2025

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PRESENT: SRI GUMMADI GoPIcHAND, PRESIDING oFFICER

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OA.No.296 ot 2024

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Between:

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Canara Bank, (E-syndicate bank) Hanamkonda-II branch, 2-5-39, Water tank road, Near Naveena Children Hospital, Nakkalagutta, Hanamkonda, Warangal dist - 506 001.Ts. Rep by its Chief Manager

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Applicant

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VERSUS

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1, M/s. Sarayu Fuel Point, Represented by its^proprietor Sri GanduSrinivasaGoud, s/o Sri G. Srihari Goud, major, H.No.2-9-1030/1 to 4, 100 ft road, Waddepally cross Road, Hanamkonda, Warangal District, TS - 506 001.

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2, Sri GanduSrinivasaGoud, s/o Sri G. Srihari Goud, major, H. No.2-9-2 13/1, Vikasnagar, NGOs colony road, Hanamkonda Warangal, fS - 506 001.

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Mrs. G. Vakula, w/o Sri GanduSrinivasagoud, major, H. No.2 -9-2L3/ t, Vikasnag NGOs colony road, Hanamkonda^, Warangal, fS - 506 001.

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(oA,No.296/202a)

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Counsel for the ParUes:

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For the Applicant Sri G. Rangaia h For the Defendants Sri K. Kranthi Kumar

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ORDER

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The Appricant Bank fired the present oA against Defendants for recovery of a total sum of Rs,2,22,9L,3Og.54ps (Rupees Two crores Twenty Two lakhs Ninety one thousand rhree hundred Eight and paise fifty four onty) i.e.,

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a) A sum of Rs.1,88,72,720.08ps in respect of OD/CC facility with future interest @ 11.650lo p.a from Ot.O7.2}24till the date of realization;

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b) A sum of Rs.12,81,522.72ps in respect of GECL with future interest @ 9.25% p.afrom 01.07.2024 tiil the date of rearization

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c) A sum of Rs.21,37,065.74ps in respect of GECL (Ext) with future interest 9.25o/o p.a from 0r.07.2024 tiil the date of rearization ; and in defaurt for sare of hypothecated and mortgaged properties as described in the schedule to OA.

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As per the averme cation, the Applicant Bank states ,'/3

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that defendant nbS is concern represented by its

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Proprietor the dsfenda*? no..tpR 2W dants 3 stood as guarantor

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(OA. No.29612024)

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to the credit facilities availed by defendants 1 and 2. The

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defendants 1 and 2 availed ccl OD facility of Rs.45.OO lakhs and executed necessary documents. The defendants no.2 & 3created mortgage by deposit of tiue deeds of immovable properties vide memorandum of deposit of tiUe deeds dated 24.03.2016 bearing document no.3625/20L6 more fuily mentioned in the schedure to oA. In 2015, the said oD facirity was enhanced to Rs.45.00 rakhs to Rs.145.00 lakhs and defendants extended the mortgage. The defendants t and 2 availed addl loan of Rs.45,00,000/_ and executed necessary documents. Again the cc rimit was enhanced from Rs.145.00 lakhs to Rs.160 lakhs and further to Rs.190 lakhs. After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the appricant bank was constrained to classify the account as NpA on 05.07.2023 and issued demand notice dated 06.07.2023. Inspite of severar requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Sri K. Kranthikumar filed vakarath on beharf of defendants but faired to file Written statement.

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4, Sri B. MadhavaReddy, Chief Manager of the Applicant Bank exa W.1 and exhibited relevant documents, which are ed

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s. Hqqro u?ei-o4edo?fl6"r roj Applicant Bank.

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(oA.No.296/2o2a)

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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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Counsel for defendants filed vakalath but failed to file WS. To substantiate the case of the Applicant Bank, AW.1, official of the Applicant Bank was examined and he exhibited relevant documents as Ex.Al to A.35. In view of the above, I hold that the Applicant Bank has estabrished their craim 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.

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

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The Defendants are joinUy and severally liable to pay to the Applicant Bank a total sum of Rs.2,22,91,30g.54ps (Rupees Two Crores Twenty Two lakhs Ninety One thousand Three hundred Eight and paise fifty four only) i.e.,

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A) A sum of Rs.1,88,72,720.08ps in respect of OD/CC facility with future interest @ 11.650lo p.a from 01.07.2024 till the date of realization;

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B)A sum of 22.72ps in respect of GECL with future inte 01.07 .2024 ti,| the date of realization *

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? * 25 rnn46

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(oA. No.29612024)

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C)A sum of Rs.21,37,065.74ps in respect of GECL (Ext) with future interest 9.25o/o p.a from 01.07.2024 till the date of realization ;

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The Applicant bank is entitled to proceed against the hypothecated movables and mortgaged immovabre 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 & 3 and properties of defendant no.1 firm towards realization of the debt due.

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The Applicant Bank is entifled to the costs of the OA,

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12' The Applicant shall file 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 this the 25th day of Aprit, 2025)

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sd/-

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(G. GOPTCHAND)

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PRESIDING OFFICER

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TRTIE COPY

Canara Bank (Syndicate Bank) v. M/s. Sarayu Fuel Point

Case brief

What is this about?

What did the court decide?

Canara Bank (Syndicate Bank) v. M/s. Sarayu Fuel Point

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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