Allowed

State Bank of India v. M/S. Vamsi Furniture World

DRT12 Feb 2025OA/413/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's application for recovery of a total sum of Rs. 1.19Crore from the respondent firm and individual borrower, who were liable for outstanding MSME loans and failed to comply with loan terms, ordering attachment of secured assets and issuance of recovery certificate.

What did the court decide?

Respondents to pay total sum of Rs.1,19,25,099/- with future interest and costs; order proceedings against hypothecated and mortgaged assets.

State Bank of India versus M/S. Vamsi Furniture World — Company and Corporate | DRT (2025)

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IN THE DEBTS RECOVERYTRIBUNAL-I AT HYDERABAD DATED THIS THE 12rH DAy OF FEBRUARY,2025

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PRESENT: SRI GUMMADI GOPIcHAND, PRESIDING oFFIcER

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OA.No.413 ol 2024

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Between:

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State Bank of India, Branch office at Stressed Assets Recovery branch, 2nd floor, TSRTC Commuter Amenity Centre, Bus Terminal complex, Koti, Hyderabad - 500 095. Represented by its authorized officer

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Applicant

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VERSUS

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M/s. Vamsi Furniture World, Represented by its Proprietor, SmtBuddaSobhaBhuvana Sri,

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Wo^{B. Vamsi} Krishna, Sy. no.340/AA, Kaka ravai village, Thirumalayapalemmandal,

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Khammam district, TS - 507 161.

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Mrs. BuddaSobhaBhuvana Sri, w/o B. Vamsi Krishna, aged major, occ: business, fema le, R/o H.No.20- 6-39/ I, Kothuru Bonakal road, Dhamsalapuram, Khammam district - 507 001.

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Also

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R/o Villa no.60/4, Sri Ram Hills, Bonakal roa d, Dhamsalapuram, Khammam di

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Defendants

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Co u nsel for t For the 12 rEBz[[ For the

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Smt Tarangini Pisipati Ex^pa rte

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(oA. No.413/2024)

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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,1,!8,25,O99/- (Rupees One Crore Eighteen Lakhs Twenty Five Thousand and Ninety Nine only) i.e.,

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a) A sum of Rs.36,45,098/- under Loan A/c.No.40191401595 with interest @ 19.25olo p.a with monthly rests from 05.tt.2024 till the date of realization ;

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b) A sum of Rs.57,83,363/- under Loan A/c. No.39502344783 with interest @ 14.40o/o p.a with monthly rests from 05.LL.2024 till the date of realization ;

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c) A sum of Rs.23,96,638/- under Loan a/c.No.40663219011 with interest @ 11.25% p.a with monthly rests from 05.t1.2024 till the date of realization ;

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and in default for sale of Hypothecated movables and mortgaged property as described in the schedule "A & B" to OA.

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As per the averments in the application, the Applicant Bank states that defendant No.1 is the proprietorship firm represented by its proprietor/ defendant 2. Defendant no.2 is the borrower and stood as mortgagor availed MSME loan of Rs.100, lakhs. Out of which a sum of Rs.30.00 and a sum of Rs.70.00 lakhs da s

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towards term vide gement dated 11.07.2020 ;tr

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-1 1? rcg

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(OA. No.413l2024)

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The loan facilities were secured by hypothecation of stocks more fully described in the schedure A to oA and coilaterar security of mortgaged immovabre property more fuily descrrbed in schedure B to OA. Defendant no.2 availed GECL loan of Rs.22.00 lakhs on 23.I2.202t and executed supplemental agreement of loan cum hypothecation and guarantee agreement dated 23.L2.202L. After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NPA on 31.03.2024 and issued recall notice dated 06.Ll.2024. 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 30.72.2024.

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SmtKalyaniRathod, Manager of the Applicant Bank examined herself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.14.

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Heard the Ld. Counsel for the Applicant Bank.

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6' The point that arise for consideration is whether the Applicant Bank is entitled for the claim made in the oA against the Defendants as

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Defendan rte. To substantiate the case of the Applicbft BAmriir,hw.i ial of the Applicant Bank was examined 3

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(oA.No.413/2024)

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and she exhibited relevant documents as Ex.A1 to A.14. 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 Appricant 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: The Defendants are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.1,19,25,099l- (Rupees One Crore Eighteen Lakhs Twenty Five Thousand and Ninety Nine only) i,e.,

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a) A sum of Rs.36,45,098/- under Loan A/c.No.40191401595 with interest @ 19.25olo p.a from 05.tt.2024 till the date of realization;

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b) A sum of Rs.57,83,363/- under Loan A/c. No.39502344783 with interest @ t4.40o/o p.a from OS.LL.2024 till the date of realization;

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c) A sum of Rs.23,96,638/- under Loan a/c.No.40663219011 with interest @ 11.25olo p.a from 05.Lt.2024 till the date of realization;

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The proceed against the hypothecated

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dr.

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mov # andm as described in the schedule "A & B" t; the debt due.

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(oA.No.413 /2024)

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10' 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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L2' The Applicant shall file a cost memo within two weeks from the date of receipt of order.

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Issue Recovery ceftificate 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 12th day of Feb, 2025)

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sd/(G. GOPTCHAND) PRESIDING OFFICER

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State Bank of India v. M/S. Vamsi Furniture World

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Vamsi Furniture World

Case brief

What is this about?

What did the court decide?

What the court decided

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