Allowed

State Bank of India v. Sri. Challa Venkateshwar Rao

DRT7 Nov 2025OA/310/2025

Case brief

AI extract

What is this about?

In this original application filed by the State Bank of India for recovery of a loan, the Debts Recovery Tribunal, Hyderabad, allowed the claim after the defendant appeared in absentia. The tribunal held that the bank established its case through the applicant's witness and marked documents, permitting recovery of the principal, interest, and costs.

What did the court decide?

Recovery of Rs. 66,10,156/- with interest; proceeding against hypothecated/mortgaged properties/personal properties; issuance of Recovery Certificate.

State Bank of India versus Sri. Challa Venkateshwar Rao — Banking and Recovery | DRT (2025)

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

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA. No.310 OF 2025

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Between :

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State Bank of lndia, Stressed Asset Recovery Branch, 2nd Floor, TSRTC commuter Amenity Centre, Bus Terminal Complex, Koti, Hyderabad - 500 095 Represented by its Chief Manager Applicant VERSUS Sri Challa Venkateswar Rao, S/o Anjaneyulu, Mallareddygudem Road, Mellacheruvu Village and mandal, Suryapet - 508 216, Telangana. Defendant Counsel for the parties : For The Applicant C. Prabhakar For the Defendant Exparte K&^\1. Reserved on 30.10.2025 I 7/P iI +J' Pronounced on * 07.11.2025 n ,:Q7.11.2025 Upload inwebsiteon^{U /1:7t1} "n, .l

(OA. No. 310/2025)

ORDER

The Applicant Bank filed the present OA against Defendant for recovery of a total sum of Rs.66,10,15G.00/_ (Rupees Sixty Six Lakhs Ten Thousand One Hundred and Fifty Six Only) with interest @ 16.25% p.a with monthly rests from the date of filing of OA till the date of realization and in default for sale of Hypothecation of stocks and Mortgaged properties as mentioned in the Schedutes t to ilt to OA.

¶12

As per the averments in the application, the Applicant Bank states that defendant avaired cash credit roan of Rs.75.00 Lakhs and executed Agreement of Loan cum Hypothecation on 1g.12.201g and created mortgage on 18.12.201g in respect of the schedure r propefi to OA in favor of the applicant bank. The defendant availed guaranteed Emergency credit Line(wrcl) facirity of Rs. 15.00 Lakhs on 01.06.2020 and executed Supptementat Agreement of loan cum hypothecation on 01 .06.2020 and created equitable mortgage morefuily mentioned in schedure r to ilr to oA by depositing title deeds on 01.06.2020. The defendant renewed Cash credit loan of Rs.67 Lakhs and GECL loan of Rs.4 Lakhs totaling Rs.71 Lakhs on 31.10.2023 with the interest @17.25% p.a calculated on daily products at monthly rests. After availing the loan facilities, the defendant failed to comply the terms of henge the appticant bank classified the account as NpA iit.f*Er,

-,;

(oA. No. 310/202s)

and issued legar notice on 09.07.2025. rnspite of severar requests and demands, the defendant did not clear the outstanding. Hence this OA.

¶18

Defendant called absent and set exparte on 22.10.2025.

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Sri, S. Prathik Yadav, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.17.

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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 Defendant as prayed for?

¶22

Defendant remained exparte. To substantiate the case of the Applicant Bank, AW.1 , officiat of the Applicant Bank was examined and he exhibited relevant documents as Ex.A.1 to A.17. ln view of the above, I hold that the Applicant Bank has established their claim made in the OA against the Defendant and hence the Applicant Bank is entitled to recover the claim made in the OA with future interest and costs.

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ln the result, the present OA is allowed with costs, as under : 0/NrV7W *

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¶25

(oA. No.3to/zlzs)

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9' The Defendant is liable to pay to the Applicant Bank a total sum of Rs.66,10,1s6.00/- (Rupees sixty six Lakhs Ten Thousand one Hundred and Fifty Six Only) with interest @ 16.250/o p."from the date of filing of OA till the date of realization.

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The Applicant Bank is entifled to proceed against the Hypothecated Movables and Mortgaged properties mentioned schedules I to lll to the oA towards realization of the debt due.

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The Applicant Bank is also entiiled to proceed against the person and properties of defendants towards realization of the debt due.

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That Applicant Bank is entifled to the costs of the OA.

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

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lssue Recovery Certificate accordingly.

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communicate a copy of the order to the parties concerned.

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(?i9tal-ed_19 the P.A., transcribed by her, corrected, signed and pronounced by me in the open court on this thd.7s, day of Nov, 2025) 't. ,^'., ]i ,

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COPY
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sd/(G. coPtcHAND) PRESIDING OFFICER

State Bank of India v. Sri. Challa Venkateshwar Rao

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sri. Challa Venkateshwar Rao

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Parties & counsel

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Case details

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