Allowed

State Bank of India v. M/S. Janatha Oil Depot

DRT19 May 2025OA/398/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's objection application seeking recovery of dues and proceeds against hypothecated movables against the defendants who failed to repay a working capital loan.

What did the court decide?

Defendants jointly and severally liable to pay Rs. 23,25,967 with interest; entitlement to proceed against hypothecated movables and properties of defendants for debt realization; issuance of recovery

State Bank of India versus M/S. Janatha Oil Depot — Specific Performance | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE lgrHDAY OF MAY, 2025

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING oFFIcER

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OA.No.398 ot 2(J24

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Between:

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State bank of India, Retail Assets & Small Medium Enterprises City Credit Centre, (RASMECCC) JPN road, Warangal Warangal district, Telangana State. Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Janatha Oil Depot, Represented by its ProprietorSri Hasan Ali Merchant, The 2nd defendant herein, H.No. 1 1-16-103, Kashibugga, Near Indira Gandhi Statute, Warangal - 506 002.

¶10

Mr. Hasan Ali Merchant, s/o Sri Yousuf Ali Merchant, aged about 50 years, male, occ: business & proprietor of 1st defendant, H.No.8-B-54/25, ICCS colony, Khoja Mohallam, Near lamath Khana, GR Gutta, Warangal. Defendants

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Counsel for the Parties: For the Applicant bhakarSarma For the Defendants ^{rry</sup> ig [tNzmSt,1t fu},rr*r#

¶12

(oA.398/2O24]|

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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.23,25,967l- (Rupees Twenty three Lakhs Twenty Five Thousand Nine Hundred and Sixty Seven only) with interest @ 12.25o/o p.awith monthly rests from date of filing of OA till the date of realization and in default for sale of hypothecated movables as mentioned in the schedule to OA.

¶15

As per the averments in the application, the Applicant Bank states that defendant no.1 is a proprietary concern represented by its proprietor/ defendant no.2 availed working capital loan under cash credit for a sum of Rs.20 lakhs vide letter of arrangement dated 06.01.2020 and executed agreement of loan cum hypothecation. The defendants hypothecated all the stocks, edible oils, finished and semi-finished raw material, equiptment book debts and receivables etc more fully described in the schedule to OA. After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the applicant bank classified the account as NpA and legal notice was issued on 08.70.2024. Inspite of several requests and demands, the defendants dld not clear the outstanding. Hence this oA. ffi

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Defendants No.1& , te on 09.04.2025.
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loA.398/2024)

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Sri P. Vijay,Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.11.

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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 & 2 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. 11. 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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B. In the result, the present OA is allowed with costs, as under:

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The Defendants No.1 and 2 are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.23,25,967,/- (Rupees Twenty three Lakhs Thousand Nine Hundred and

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p.a from date of fillng of

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(oA.3e8l2oz4l

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The Applicant bank is entitled 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 entitled to^proceed against the^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 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., transcribed by her, corrected, signed and pronounced by me in the open court on this the lgthday of May,2025)

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¶34

sd/(G. GOPTCHAND) PRESIDING OFFICER

State Bank of India v. M/S. Janatha Oil Depot

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Janatha Oil Depot

Case brief

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What did the court decide?

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