Allowed

State Bank of India v. M/S. Subhiksha Enterprises

DRT13 May 2025OA/318/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Applicant Bank's Originating Application for recovery of Rs. 22.47 lakhs and costs against three Defendants based on a cash credit facility and subsequent default. The Tribunal held the bank established its claim following the examination of its manager and documents.

What did the court decide?

Recovery of Rs. 22,47,110 plus interest and costs from Defendants; entitlement to proceed against hypothecated movables and properties of Defendants.

State Bank of India versus M/S. Subhiksha Enterprises — Specific Performance | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE 13THDAY OF MAY, 2025

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.318 ot 2024

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Between:

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State Bank of India, SARB-II, Chikkadpally, Opp Sandhya Theatre, RTC "X" roads, Hyderabad, Telangana state.

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Represented by its Chief Manager

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Applica nt

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VERSUS

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M/s. Subhiksha Enterprises, Plot no.12, North part, Malkapur (V), Choutuppalmandal, Choutuppal, Yadadri, Telangana - 508 252.

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Mr. Raja Sekhar Anne, s/o Venkateshwara Rao Anne, aged 44 years, occ: business, R/o 5-4-31/72, Kamala nagar, Vanasthalipuram, Rangareddy Telangana - 500 070.

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Sri Entha Raja, s/o Sri EnthaMukundha Reddy, aged 39 years, occ: busine ffi"% R/o l-1-27/7713, Ram Nar Nagar, Hydernagar, Kuka llt' Hyderabad, Rangareddy, 1 r !,!AY zffi : Telangana - 500 085. efenda nts Counsel for the Pa rties:rties: W".iS, For the Applicantthe ApplicantApplicant S en katDiva ka r For the Defendantsthe DefendantsDefendants Expa rte

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Counsel for the Pa rties:rties:

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For the Applicantthe ApplicantApplicant For the Defendantsthe DefendantsDefendants

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(OA.No.318 of 2024)

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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.22,4L,7LOl- (Rupees Twenty Two Lakhs Forty one thousand Seven Hundred and Ten only) with Further interest @ 11.55% p.awith monthly rests and penal interest @ 2olo^p.a from 17.08.2024 till the date of realization and in default for sale of hypothecated movables as mentioned in the schedule to oA.

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As per the averments in the application, the Applicant Bank states that defendants availed cash credit of Rs.20.00 lakhs on 14.09.2022 and hypothecated the stock, receivables more fully described in the schedule to OA. The defendants No.2 & 3 executed agreement of loan cum hypothecation dated 14.09.2022. After availing the loan facility, the defendants failed to comply the terms of sanction, hence the applicant bank classified the account as NpA on 20.01.2024 and demand notice was issued on L6.02.2024. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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DefendantsNo.1to trffF$* parte on 26.02.2025. * t 3 !tl:l

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(OA.No.318 of 2024)

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Smt M. Sarala, Manager of the Applicant Bank examined herself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.8.

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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 Defendants as prayed for?

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Defendants No.1 to 3 remained exparte. To substantiate the case of the Applicant Bank, AW.1, official of the Applicant Bank was examined and he exhibited relevant documents as Ex.A1 to A.g. 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 Applicant Bank is entitled to recover the claim made in the OA with future interest and costs.

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

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The Defendants No.1 to 3 are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.22,4L,7LO/- (Rupees

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Twenty Two Lakhs thousand Seven Hundred and

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Ten only) with fu 7o p.a from L7.08.2024 till ,'i , the date of reali tfpn. r{pl^?f!rl

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(OA.No.318 of 2024)

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The Applicant bank is entiiled to proceed against the hypothecated movables as mentioned in the schedule to 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 No.2 & 3 and properties of defendant no,1 firm towards realization of the debt due.

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The Applicant Bank is entitled 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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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., transcnbed by her, corrected, srgned and pronounced by me rn the open court on this the l3thday of May, 2025)

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sd/-

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(G. GOPTCHAND) PRESIDING OFFICER

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muE.coPY" 11,.91*4t'--.=-ds.uo

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Asst. Rigtstrar DRT.T,HYDERA, AD.

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State Bank of India v. M/S. Subhiksha Enterprises

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Subhiksha Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

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