Allowed

Canara Bank v. M/S. P.L. Reset Gym

DRT11 Dec 2025OA/408/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Origin Application filed by Canara Bank for recovery of outstanding loans and costs against a proprietorship firm and its proprietor who defaulted on term loans and overdraft facilities.

What did the court decide?

Defendants directed to pay Rs. 24,55,379.51 with interest and costs. Authority permitted to proceed against hypothecated movables and respondent properties for realization.

Canara Bank versus M/S. P.L. Reset Gym — Banking and Recovery | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL - I AT HYDERABAD DATED THIS THE l1th DAY OF DECEMBER,2025

¶2

PRESENT: SRt GUMMADT GOptCHAND, PRESIDtNG OFFTCER

OA. No. 408 OF 2025

Between:

Canara Bank,

Gandhi Nagar Branch, Hyderabad,

¶7

Represented by its Senior Manager

¶8

Applicant

¶9

VERSUS

¶10

M/s.P.L. Reset Gym,

¶11

Rep. by its Prop. Sri Yaprala Laxminarayana, 1-3-1042t45,

¶12

Kavadiguda, Main Road,

¶13

Hyderabad - 500 008,

¶14

Sri Yaprala Laxminarayana,

¶15

S/o. Y. Krishna,,

¶16

Aged about 36 years, Occ. Business,

¶17

Proprietor M/s. P.L. Reset Gym,

R/o. 1-3-183/29lA,

Kavadiguda, Main

Hyderabad - 500

1i ilEC^)!]fr

Defendants

(oA. No. 408/202s)

Counsel for the parties :

¶26

For The Applicant P. Naga Durga Prasad For the Defendant Exparte Reserved on 08.12.2025 Pronounced on 11.12.2025 Upload in website on 11.12.2025

¶27

ORDER

¶28

The Applicant Bank fired the present oA against Defendants No. .l and 2 for recovery of a total sum of Rs.24,SS,379.S1 ps. (Rupees Twenty Four Lakhs Fifty Five Thousand Three Hundred Seventy Nine and paise Fifty One Only) with future interest @ 18.00o/o p.a with monthry rests from the date of this application till the date of realization and in default for sale of Hypothecated Movables as mentioned in the Schedule of Property to OA.

¶29

2' As per the averments in the apprication, the Appricant Bank states that Defendant No. 'r is a proprietorship Firm represented by its ,.,, ,, ' , Proprietor Defendant No. 2 availed Term Loan facility of ,'d\ o'E.ifu.,4.00 Lakhs with interest @11.g0% p.a with monthty rests Composite Hypothecation Agreementdated 1, 1 *gffiZ.ZOZi in favor of the Applicant Bank. The Defendants @

¶30

(oA. No. 408/202s)

¶31

availed Over Draft facility of Rs.5.00 Lakhs with interest @9.4% p.a with monthly rests and executed Cash Credit Agreement dated 30.01 .2023 in favor of the Applicant Bank. The Defendants renewed the overdraft facility on 31 .01 .2024. After availing the loan facility, the defendants failed to comply the terms of sanction, hence the applicant bank classified the account as NpA on 07.03.2024 and issued Legat Notice dated 30.06.2025 to the defendants. lnspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

¶32

¶33

Defendants called absent and set exparte on 0g.12.2025.

¶34

Smti. G. Kasi Visalakshi, Senior Manager of the Applicant Bank examined herself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A..16.

¶35

¶36

Heard the Ld. Counsel for the Applicant Bank.

¶37

b. 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?

¶38

¶39

Defendants and remained exparte. To substantiate the case of the Applicant Bank, AW..l, officiat of the Appticant Bank was examined end she exhibited relevant documents as Ex.A.1 to 4.16. ln vieW of the above, I hotd that the Appticant Bank has

¶40

(oA. No. a08l202s)

¶41

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.

¶42

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

¶43

The Defendants No. 1 and 2 are joinfly and severally liable to pay to the Applicant Bank a totat sum of Rs.24,S5,379.51 ps. (Rupees Twenty Four Lakhs Fifty Five Thousand Three Hundred Seventy Nine and Paise Fifty One Only) with future interest @ 18.00% p.a from the date of this application tilt the date of realization.

¶44

¶45

The Applicant Bank is entifled to proceed against the Hypothecated Movables mentioned in the Schedule of property to the OA towards realization of the debt due.

¶46

The Applicant Bank is also entifled to proceed against the person and properties of defendant No. 2 and properties of Defendant No. 1 firm towards realization of the debt due.

¶47

That Applicant Bank is entifled to the costs of the OA.

¶48

.<br>': ,l
. rt
:

¶49

(oA. No. 408/202s)

¶50

The Applicant shall file a cost memo within two weeks from the date of receipt of order.

¶51

lssue Recovery Certificate accordingly.

¶52

14. Communicate a copy of the order to the parties concerned.

¶53

(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open @urt on thjs the 1^'lth day of Dec, 2025)

¶54

.I
sd/-
'.,:r?
(G. GOPTCHAND)
:_'r i F
L i:-, PRESIDING OFFICER
COPY
FleEistraf
;w
aat"t', tiYoeaesao'

Canara Bank v. M/S. P.L. Reset Gym

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. P.L. Reset Gym

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Karur Vysya Bank versus M/S. Stick Lables India Private Limited

State Bank of India versus M/S. Dudipala Groups

Canara Bank versus Pokkula Sandhya

Smt Sangeeta Agarwal versus the Agrasen Cooperative Urban Bank Ltd.

Mr Paravelli Rajesh versus Cholamandalam Investament and Finance Company Limited

Ms Nanditha Enterprises Private Limited versus Canara Bank