Allowed

Idbi Bank Ltd. v. M/s. Karvy Stock Broking Limited

DRT17 Feb 2025OA/346/2024

Case brief

AI extract

What is this about?

The tribunal allowed the origin application filed by IDBI Bank Ltd for recovery of dues totaling Rs. 18,09,61,490/- plus interest and costs from the respondent companies and the personal guarantor, who were sanctioned cash credit and working capital facilities.

What did the court decide?

Orders joint and several recovery of Rs. 18,09,61,490/- plus interest and costs against Defendants 1 and 2. Right to proceed against hypothecated and mortgaged properties granted.

Idbi Bank Ltd. versus M/s. Karvy Stock Broking… — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THrS THE 17rH DAy OF FEBRUARY,2025

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

OA.No.346 ol 2024

Between:

IDBI Bank Ltd,

NPA management group at 5-9-89/1 & 2, Chapel road, Hyderabad - 500 001.

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Applicant

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VERSUS

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M/s. Kaarvy Stock Broking Ltd, KarvyMillenium, Plot no.31/P, Nanakramguda, Financial dist

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Gachibowli, Hyderabad - 500 032.

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Sri C. Parthasarthy, s/o Ramakrishna Rajapet RajagopalanComma ndur,

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Aged about 59 years, occ:business,

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D. No. 8-2- 293 / 82/ A/ 648,

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Plot no.648, road no.34, Jubiless Hills, Hyderabad - 500 033.

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M/s. Karvy Data Management Services(NCLT) Limited (KDMSL) represented by its Interim Resolution Professiona l, Karvy House, 46, Avenue 4, Street No.1, Banjara Hills, Hyderabad- 34. Defendants

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Counsel for the
For the Applica t PSS Sujatha
pa rte
For the Defenda ts 17 trBM:

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(oA.346/2024]'

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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.18,O9,61,49O/- (Rupees Eighteen Crores Nine Lakhs Sixty One Thousand Four hundred and Ninety only) i.€., (Rs.8,50,25,388.74ps towards CC loan; Rs.3,27,39,392l- towards WCDL(I); Rs.2,83,75,881.26ps towards WCDL (II) and a sum of Rs.3,48,20,828/- towards WCDL (III) with further interest @ 16.300/o p.aplus penal interest @ 2olo p.a from 01.08.2024 till the date of realization and in default for sale of hypothecated movables and mortgaged properties as described in the schedules "I and II" to OA.

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As per the averments in the application, the Applicant Bank states that defendant No.1 is the Company registered under Companies Act, 1956, defendant no.2 is the personal guarantor for the due repayment and defendant no.3 is a Company within the meaning of Companies Act, 1956. The defendants availed cash credit limit of Rs.20.00 Crores and bank guarantee of Rs.5.00 crores. The defendant no.3 pursuant to sanction oF cash credit executed facility agreement dated 21.06.2014, deed of hypothecation hypothecating the movables as d bed in the schedule I to OA. The defendant

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no.3 ex counter guarantee agreement dated {€4 d* 2L.o6EgM in ffior. licant bank. Pursuant to facility 17 rEBilE

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(oA.346/20241

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agreement dated 21.06.201, the defendant no.2 executed guarantee agreement and an undertaking both dated 2L.06.2014. Defendant no.3 again availed working capital facilities with an overall limit of Rs.55 crores comprising cash credit of Rs.25 crore and bank guarantee of Rs.30,00 crores vide sanction letter dated 09.11.2015 and executed supplemental facilities agreement dated16.11.2015. The defendants 1 to 3 have given the letter of acknowledgement of debt and conFirmation of security vide letter dated 05.11.201g in favour of Applicant bank. The defendant no.3, the main borrower herein under Corporate Insolvency Resolution process (cIRp) under section 7 of IBC before Hon,ble NCLT and the Hon,ble NCLT Hyderabad vide order dated 15.09.2023 in Cp (IB) No.25/7/HDB/2022 has admitted the petition and interim resolution professional was appointed to carry out the functions of defendant no.3 company. Hence the Applicant filed OA against defendants 1 and 2 for recovery of its dues.

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J.) Defendants called absent and set exparte on 20.12.2024. 4. Sri Bhagabat Prasad^patra, Dy. General Manager of the Applicant Bank examined himself as AW,1 and exhibited relevant documents, which are mark 35.The Applicant bank filed part :/,& satisfaction remo gth eFendants paid a sum of Rs.37,36,6 /-^{(Rt.?7PS,ffi-} +.ne to,L7,s32/ -) , .,,J t - "- ).t 43r",

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(oA.346/2024l,

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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 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.35. In view of the above, I hord that the Appricant Bank has estabrished their craim made in the oA against the Defendants and hence the Appricant Bank is entitled 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 No.1 and 2 are jointry and severaily riabre to pay to the Applicant Bank a total sum of Rs.1g,O9,61 ,4gO/- (Rupees Eighteen crores Nine Lakhs saxty one Thousand Four hundred and Ninety only) i.e., (Rs.g,50,25,388.74ps towards CC loan; Rs.3,27,39,392/- towards WCDL(I); Rs.2,83,75,gg1.26ps towards WCDL (II) and a suTn of Rs.3,48,20,828/_ towards WCDL (III) with further inte from 01.08.2024ti11 the date of ,36t664/- (Rs.27,08,732/- + Rs. 10, 1 7, by defendants ; ) q'f

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loA.346/2O24].

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The Applicant bank is^entitled to^{proceed against the hypothecated} movables and mortgaged^{propertiesas described in the schedules "I} and II" to OA towards^{realization of the debt due.}

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The Applicant Bank is also entitled^{to proceedagainstthe person} and properties of defendant^{No.2 and properties of defendant no'1} firm towards realization of the debt^due.

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The Applicant Bank^{is entitledto 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., transcribed by her, corrected,^{signedand pronouncedby mein the opencourt on} this the 17th day of^{Feb, 2025)}

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sdl(G. GOPICHAND) PRESIDING OFFICER

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TO+ GOPY
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Idbi Bank Ltd. v. M/s. Karvy Stock Broking Limited

Case brief

What is this about?

What did the court decide?

Idbi Bank Ltd. v. M/s. Karvy Stock Broking Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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