Allowed

Canara Bank v. M/S. Bhanu Traders (Sole Proprietary Firm)

DRT22 Apr 2025OA/344/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application by Canara Bank to recover a debt of over Rs. 6.44 crores from M/s. Bhanu Traders and individual guarantors via OD CC, vehicle loan, and GECL accounts, ordering payment with future interest and authority to realize against mortgaged properties.

What did the court decide?

Defendants to pay Rs. 6,44,27,667.90 with future interest; Bank entitled to proceed against mortgaged properties and other assets; Recovery certificate issued.

Canara Bank versus M/S. Bhanu Traders (Sole Proprietary… — Execution and Attachment | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THrS THE 22ND DAy OF ApRrL, 2025

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PRESENT: SRI GUMMADI GoPIcHAND, PRESIDING oFFICER

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OA.No.344 of 2024

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Between:

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Canara bank, Nizamabad main branch, Godown road, Nizamabad district, Telangana State - 503 224. Rep by its Senior Manager

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Applicant

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VERSUS

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M/s. Bhanu Traders (sole proprietary firm) Represented by its^proprietor Mr. GourangKataria,

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H. No.6-2-150, subhashnagar, Near Ram Mandir, Nizamabad, TS - 503 002.

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Sri GourangKataria, s/o Mr. JeevanlalKataria, aged 43 years, occ: business, H. No.6-2-150, subhashnagar, Near Ram Mandir, Nizamabad, TS - 503 002.

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Mr. MihirKataria, s/o Mr. Amrut Lal Kataria, aged about 36 years, occ: H.No.6-2- 150, subhashnag150, subhashnagMandir, NizamasubhashnagNizama Near Ram Mandir, NizamaH.No.6-2- 150, subhashnag150, subhashnagMandir, NizamasubhashnagNizama TS - 503 002.- 503 002.503 002.002.

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Near Ram Mandir, NizamaH.No.6-2- 150, subhashnag150, subhashnagMandir, NizamasubhashnagNizama 2 1^{lPc rttl5} ,-:i: TS - 503 002.- 503 002.503 002.002. Counsel for the^pa rties: For the Applicant r Reddy For the Defendants Expa rte

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(oA.No34a/2o24]|

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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.6,44t22,667.9ops (Rupees Six crores Forty four Lakhs Twenty seven thousand six Hundred Sixty seven and paise ninety only) i.e.,

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a) a sum of Rs.5,42,09,81.2/- in oD cc roan account with future interest @ 11.80o/o p.a(including penal interest @ 2olo p.a) with monthly rests from date of filing of oA till the date of realization;

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b) a sum of Rs.1,OO,B45.02ps in vehicle loan account with future interest @ 11.35% p.a(including penal interest @ 2olo p.a) with monthry rests from date of firing of oA tiil the date of rearization;

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c) a sum of Rs.36,oo,79B.BBps in GECL-I account with future interest @ 11.2S% p.a(including penal interest @ 2olo p.a) with monthly rests from date of filing of oA till the date of realization;

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d) a sum of Rs.65,16,212l- in GECL-II roan account with Future interest @ 11.25% p.a(including penal interest @ 2o/o p.a) with monthry rests from date of firing of oA ti, the date of rearization; and in defaurt for sare ofmortgaged properties as mentioned in the schedule to OA.

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As per the averments in the application, the Applicant Bank states that defendanf jqo:f iepggsdritgO by defendant no.2 availed OD CC - ",i i. facility of Rs.1.50 ', 2z criet'es ApRzl[s on:rO3,0S.20tO* and deFendant no.1 ,! ,)

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loA.No.344/2o2al

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represented by defendants no.2 & 3 stood as guarantors and executed guarantee agreement dated 03.05.2010 in favour of

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Applicant bank. subsequenily the oDCc rimit was enhanced from Rs.1.50 crores to Rs.1.75 crores on 13.04.2011 and rater from Rs.1.75 crores to Rs.3.00 crores on 77.04.2014. Thereafter the oDCc limit was enhanced from Rs.3.00 crores to Rs.4.00 crores on 30.03.2016' Defendants 2 7 3 executed and extended mortgage of immovable properties as mentioned in the schedule to oA. Later the oDCc rimit was enhanced from Rs.4.00 crores to Rs.5.00 crores on 08.08.2019 and subsequenily to Rs.5.50 crores on 14.02.2022. The defendant no.2 avaired vehicre roan of Rs.12.00 rakhs on L5.07.2019, GECL-I of Rs.95.00 lakhs on 2B.tO.2OZO and GECL_II of Rs.70.00 lakhs on 24.rr.202t. After avairing the roan facirities, the defendants faired to compry the terms of sanction, hence the applicant bank was constrained to crassify the account as NpA on 74.72.2023 and issued demand notice dated 15.12.2023. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants called absent and set exparte on 23.01.2025.

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Ms. M. Himabindu, Senior Manager of the Applicant Bank exa m ined documents, wh ich a re herself as AW.1 and 6 marked as Ex.A.1 to -rH:.

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(O A.No .344 I 2oz4)

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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

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prayed for?

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Defendants remained exparte, To substantiate the case of the Applicant Bank, AW.1, official of the Applicant Bank was examined and he exhibited rerevant documents as Ex.A1 to A.113. 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 entiued to recover the craim 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 jointly and severally liable to pay to the Applicant Bank a total sum of Rs.6,44,27,667.9Ops (Rupees Six crores Forty four Lakhs Twenty seven thousand six Hundred Sixty seven and paise ninety only) i.e.,

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a) a sum of Rs'5,42,09,8r2/- in oD cC roan account with future interest @ 9.80o/o p.afrom date of filing of OA till the date of rea liza tio n ; b) a sum of Rs.1,00,845.02ps in vehicle loan account with future interest @ 9.35% p.a from date of filing of OA till the date of

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2 z apn nrfr

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lOA.No3a4/20241

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c) a sum of Rs.36,00,798.88ps in GECL-I account with future interest @ 9.25olo p.a from date of filing of OA till the date of rea lization;

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d) a sum of Rs.65,16,2r2/- in GECL-II roan account with future interest @ 9.25o/o p.a from date of filing of OA till the date of realization;

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The Applicant bank is entitled to proceed against the mortgaged properties as mentioned in the schedule to OA towards realization of

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the debt due;

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10' The Applicant Bank is arso entitred to proceed against the person and properties of defendant No.2 and 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 shaI fire 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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. {3i"#",ff;Btl*Tf "::r]?:d^{bv her, corrected, sisnedand pronouncedby mein the} open court on

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sd/_ (G. GOPTCHAND) PRESIDING OFFICER c,vtffi ,t$[f:r':J*

Canara Bank v. M/S. Bhanu Traders (Sole Proprietary Firm)

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Bhanu Traders (Sole Proprietary Firm)

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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