Allowed

Union Bank of India v. Mr. Palnati Vamsi Krishna

DRT8 Jul 2025OA/317/2024

Case brief

AI extract

What is this about?

This order allows a recovery application filed by Union Bank of India against multiple defendants for outstanding dues from housing, agricultural, tobacco, and crop loans with interest and costs.

What did the court decide?

Order allowed; Defendants jointly and severally liable to pay Rs.34,14,459/- with future interest and costs; Recovery certificate issued.

Union Bank of India versus Mr. Palnati Vamsi Krishna — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL.I AT HYDERABAD

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DATED THrs rHE 8rH DAy oF JULv, 2o2s

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.3l7 OF 2024

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Between:

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Union Bank of India, (t-Andhra Bank), Vadlagudem branch, Bhadradri Kothagudem district, Kothagudem - 507 306. Telangana. Represented by its Senior Manager

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Applicant

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VERSUS

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Mr. Palnativamsi Krishna, s/o PalnatiRatnaShekar, aged 30 years, male, # 3-39, Bandivarigudem, Gangineedupalem, I Narasapuram, Eluru A.P - 534 456.

¶10

Mrs.PalnatiBharathalakshmi, w/o PalnatiRatnaShekar, female, # 3-39, Bandivarigudem, Gangineedupalem, I Narasapura m, Elu ru A.P - 534 456.

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Mr.Yarramshettivedaraju, S/o Madhava Rao, male, aged 44 years, ain road, M a kkinava rigudem, -^{534 456.}

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,^{aged 28 years,} o ff#61ft f;^j;: lJ#'. o'"" ris udem' T Narasapuyarn, Eluru

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W,:,::31'4s6

¶14

(OA.3U of 2024]|

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Mr. PalnatiPhani Kumar, s/o Palnatisubba Rao, aged 37 years, male, # 3-39, Bandivarigudem, Ga ng in eed u pa lem, T Narasapuram, Elu ru A.P - 534 456.

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Mr. UppalalpatiNageswara Rao, S/o UppalapatiKannayya, Aged 75 years, male, #B-90, Kollivarigudem, Makkinavarigudem, Na rasa pu ra m Taluk, Eluru district - 534 456.

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Defe nda nts

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Counsel for the Parties: For the Applicant : Sri Srinivasa Rao Chakrala FortheDefendants3&6 : Expa rte DefendantsNo.1,2,4&5 : Sri L Sai Krishna Rao

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ORDER

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The Applicant Bank fired the present oA against Defendants for recovery of a total sum of Rs.34,14,459/- (Rupees Thirty Four Lakhs Fourteen Thousand Four Hundred and Fifty Nine only)

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i.e .,

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a) The defendants r,2 and 3 are riabre in housing roan account for a
.16,90,69I/- with future and pendetiliteinterest @
f8. B.
te of application till the date of realization ;
,fr

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(OA.317 of 2o2al

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b) The defendants 1,4 & 5 are liable in agricultural term loan account for a sum of Rs.1,48,213l- with future and pendetilite lnterest @ 8.75o/o p.a from date of application till the date of realization ;

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c) The defendants 1,4 & 6 are liable in tobacco loan for a sum of Rs.13,12,893/- with future and pendetilite interest @ 8.50o/o p.a from date of application till the date of realization ;

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d) The defendants 1,4 & 6 are liable in Agricultural term loan account for a sum of Rs.I,32,748l- with future and pendetilite interest @ 8.50o/o p.a from date of application till the date of realization ;

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e) The defendants L,4 & 6 are liable for crop loan account for a sum of Rs.1,29,9L4/- with future and pendetilite interest @ 7.00o/o p.a from date of application till the date of realization ; and in default for sale of mortgaged and hypothecated properties as mentioned in the schedule to OA.

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As per the averments in the application, the Applicant Bank states that defendants no.1 and 2 being the Applicant and co-applicant availed housing loan of Rs.15.00 lakhs for which defendant no.3 stood as guarantor. The defendants No.1 to 3 executed demand promissory note, composite agreement on 17.O4.21le and the original settlement deed no.3205/2017 dated n 20.11,2018, defendants 1,4 and 5 availed

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& loan for a sum of Rs.1.00 lakh on hypothecation of

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0 0 .t|][ mx stanotng crops, stocks along with personal guarantee of defendants

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' .t: . . :..:^: ..

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(oA.317 of 2024l'

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1,4 & 5 and executed necessary documents. On 11.02.2020, the defendants L,4 and 6 availed tobacco crop loan of Rs.9.00 lakhs and also availed tobacco processing expenditure loan for a sum of Rs.99,000/-. On 04.06.2022, the defendants 1,4 & 6 availed crop loan of Rs.1,60,000/- and executed necessary documents. After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the applicant bank classified the account as NpA and demand notice was issued on 2t.05.2024. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants No.3 & 6 called absent and set exparte on 15.04.2025. counsel for Defendants No.1,2,4 & 5 filed vakalath but failed to file WS.

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Smt K. Brahmendra, Assistant Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.37.

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Heard the Ld. Counsel for the Applicant Bank.

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The a rise for consideration is whether the Applicant Bank is m made in the OA against the Defendants as

r? *

Er, * l0$flrrr(

lOA.317^{of 2024)}

Defendants No.3 & 6 remained exparte. Counsel for Defendants No.1,2,4 & 5 filed vakalath but failed to file WS. To substantiate thecase of the Applicant Bank, AW.1, official of the Applicant Bank was examined and he exhibited relevant documents as Ex.A1 to 437. In view of the above, I hold that the Applicant Bank has established their claim made in the OA againsl 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 jointly and severally liable to pay to the Applicant Bank a total sum of Rs.34,14,459/- (Rupees Thirty Four Lakhs Fourteen Thousand Four Hundred and Fifty Nine only) i.e.,

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a)The defendants 1,2 and 3 are liable in housing loan account for a sum of Rs.16,90,691/- with future and pendetilite interest @ 8.50o/o p.a from date of application till the date of realization ;

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b)The defendants 1,4 & 5 are liable in agricultural term loan account for a sum of Rs.1,48,213l- with future and pendetilite interest @ 8.75o/o p.a from date of application till the date of realization ;

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defendants 1,4 & 6 are liable in tobacco loan for a sum of 893/- with future and pendetilite interest @ 8.50o/o p .a

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mda application till the date of realization ;

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tlJmrtfls :

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(OA.3U of 2024)

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d)The defendants 1,4 & 6 are riable in Agriculturar term loan account for a sum of Rs.l,32,748/- with future and pendetilite interest @ 8.50o/o p.a from date of apprication tiil the date of rearization ;

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e)The defendants 1,4 & 6 are liable for crop loan account for a sum of Rs.L,29,9L4/- with future and pendetilite interest @ 7.00o/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 mortgaged and hypothecated properties as mentioned in the schedure to oA towards realization of the debt due;

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The Applicant Bank is also entitled to proceed against the person

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and properties of defendants towards realization of the debt due.

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

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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 rhrs the 8rh day of July, 2025)

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t 0 JUL?m :

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sd/(G. GOPTCHAND) PRESIDING OFFICER DPf-1,^HIOERABA'

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Union Bank of India v. Mr. Palnati Vamsi Krishna

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Mr. Palnati Vamsi Krishna

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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