Allowed

Canara Bank v. M/S Sai Teja Steel Corporation

DRT7 Jul 2025OA/414/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal-II at Hyderabad allowed Original Application No. 414 of 2024 filed by Canara Bank against two respondents. The court held the respondents jointly and severally liable to pay the outstanding loan sums with future interest, costs, and to realize the debt through hypothecated assets.

What did the court decide?

Debt Recovery. Defendants jointly and severally liable to pay Rs. 1,26,87,189.77 plus future interest and costs. Bank entitled to realization from hypothecated assets.

Canara Bank versus M/S Sai Teja Steel Corporation — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY^{TRIBUNAL-II AT HYDEMBAD}

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DATED THIS THE OTTH DAY^{OF JULY,2025}

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PRESENT: SH. RAMESHWAR^{KOTHE,B.COM.,L'LB.(HONS.), M.A.} PRESIDING OFFICER

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ORIGINAL APPLICATION^{No: 414 OF 2024}

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Canara Bank., (erstwhile Synd icate Bank) H.No.6-3-144, 1" Floor lahanara Kareem ComPlex Balanagar, Medchal^{lvla lkajgiri} District, Telangana State-500037. .. ..Appllcant. Rep. by its Chief l\4anager.

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Versus

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M/s. Sai Teja Steel^{Corporation.,} H. No.5-5-36/1/A, Prashanthinagar Kukatpally, H^ydera ba^{d - 5 0 0 0 7 2} Telangana. Represented bY^lts Proprietor Sri Kotagiri^Rajesh S/o. Madhusudana^CharY.

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Sri Kotagiri Raiesh, S/o.Kotagiri Mad h usudana CharY,^{Aged about} 43 Years, Occ: Business,^{R/o.Flat No.503} H. No.3-5- 3 3/26, Yogitha^Residency Sumitranagar, Kukatpally,^Hyderabad Telangana state - 500072'

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...Defendants

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: lY/s.Daram Srinivasulu Counsel for the Applicant

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Defendants : Ex-Parte

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:: qLLEL ::

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The Applicant Bank filed^{the present OA for the recoverya total} sum of Rs.1,26,87 ,f89.77ps^{as on 30.06.2024i.e., a sum of} zVlY/;,9

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(//// -a-,y

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oA.NO.474l2O24

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Rs.1,65,458. 19ps towa rds OSL-Synd MSE- MCLR A/c. No.30699910000144 with future interest @10.90olo p.a.. a sum of Rs.1,10 ,1},026.72ps towards SOD Working Capitat A/c. No.30691400 ooo477 with future interest @11.g50/o p.a., a sum of Rs.4,53,153.58ps towards cECL 1.0 Loan A/c. No.30699160000223 with future interest @10.90% p.a. and a sum of Rs.10,58,551.28ps towards GECL 3.0(Extension) Loan A/c. No.170 002787876 with future interest @9.25olo p.a. from the defendants joinuy and severally with monthly rests from the date of application till the date of realization atong with costs and in default for sale of hypothecated assets.

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Summons served on D1 through paper publication, whereas summons served on D2. They were set ex-parte on 10.01.2025 as called absent and no representation.

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The Applicant Bank examined lranna Guruling Konali, Chief Manager, as AW-1 and marked 42 documents through him as Ex. A.1 to Ex. A.42.

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Ld. Counsel for the Applicant Bank reported orders may be

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passed through merits. perused the material placed on record.

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The point that arises for consideration is:_

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Whether the Appticant Bank is enti ed for the claim made in the OA against the Defendants and OA hypothecated assets2

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As stated supra, the Defendants remained ex-parte. The Evidence Affidavit coupled with the recitals in the documents viz., Exs. A.1 to A.42 marked on behatf of ryt*fpticgt Bank

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/ /\ ./t/,t/ 'q-t'"

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oA.NO.414l2024

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clinches the claim^{of the Applicant Bank against the Defendants'} Hence, I hold that^{the Defendants are jointly and severallyliable} to^pay the OA^{claim to the Applicant Bank with future interest} and costs.

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In the result, the^{present Original Application No'4t412O24is} allowed as under:^-

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i) The DeFendants are^{jolntly and severally} liable to^pay to the^{Applicant Bank a sum of} Rs.1,26,87,189.77ps^{as on 30.06.2024 i.e} ,^a sum of Rs.1,65,458.19ps^{towards OSL-} SyndMSE-MCLR^{A/c.No.30699910000144,a} sum of Rs.1,1O ,L0,026-72ps^towardsSOD working capital^{A/c.No.30691400000477} ,^a sum of Rs.4,53,153.58ps^{towardsGECL1.0} Loan A/c. No.30699160000223^{and a sum of} Rs.10,58,551.28ps towa rds GECL 3.0(Extension) Loan^{A/c.No.1700027A7876)} with future interest @9.250lo^{p.a. simple from} the date of application till^{the date of} realization;

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ii) the OA claim is secured^{bY way of} hypothecation of assets described in^the schedule annexed to the oA and^the applicant bank is entitled to^{proceed against} the same to realise its debt;

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iii) the appllcant bank is also^{entitled to proceed} against the^person and^propertiesof defendants for reallzation ot^fts dues;/2,2*,ta

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oA.NO.4t4l2024

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iv) the applicant bank is entitled for the costs.

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B. The Applicant Bank is directed to file Cost Memo within 2 weeks from the date of receipt of this Order.

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Issue Recovery Certificate accordingly.

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Com.municate a copy of this order to the parties concerned. (utcrareo to the steno, corrected, signed and pronounced by me in the open court on this the 07rh Day of July, 2025).

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fltry.^,,ar ../ ,r/ 6Sr'1nn/esHwnn KorHE) PRESIDING OFFICER

Canara Bank v. M/S Sai Teja Steel Corporation

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S Sai Teja Steel Corporation

Case brief

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What did the court decide?

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