Allowed

Union Bank of India v. Mrs. Cherukuri Usha Rani

DRT18 Dec 2025OA/42/2025

Case brief

AI extract

What is this about?

The Tribunal allowed an original application filed by Union Bank of India for recovery of dues against three defendants. The court held defendants jointly and severally liable despite their plea of non-wilful default, as they failed to produce evidence of prior requests to the bank. The order grants sale of scheduled assets and recovery certificate.

What did the court decide?

Defendants jointly and severally liable to pay Rs. 25,27,596/- with interest; OA claim secured by hypothecated/mortgaged properties; bank entitled to recover dues from persons and properties; costs aw

Union Bank of India versus Mrs. Cherukuri Usha Rani — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL.II AT^HYDERABAD DATED THIS THE 18TH DAY OF DECEMBER, 2025

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PRESENT: SH. RAMESHWAR KOTHE, B.COM, L.LB.^{(HONS,),14.A.} PRESIDING OFFICER

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ORIGINAL APPLICATION NO. 42 OF²⁰²⁵

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Union Bank of India (e-Corporation Bank) #256/ tC Kadiri Road Bathala palli-515 661. Ananthapur Dist. A.P.

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...... .Applicant.

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Versus

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Mrs. Cherukuri Usha^Rani W/o Cherukuri ChalaPathi Age: 51^years, #4-177-A O C Colony,^{YarraYaPalli,} SanjeevaPUram,^BathalaPallY AnanthaPur Dist.515^{661, A.P.}

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Mr. Cherukuri^Chalapathi S/o Cherukuri^VenkataPPa Age: 56 Years, #4-177-A O C Colony,^{YarraYaPalli,} SanjeevaPuram,^BathalaPallY AnanthaPur^{Dist.515 661, A.P'}

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lvlr. Mullag uri^Rammohan S/o 14ullaguri^RamaPPa Age: 56 Years, #5-24 SanjeevaPUram,^BathalaPallY Ananthapur Dist.515^{661, A.P.} ..... Defendants.

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counsel for^{the APplicant:} Mr. Srlnivasa^Raochakrala. Counsel^{for the Defendants:} Ms. S. Anuradha.

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O R D E R^::

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The Applicant^{Bank filed} the^present OA u/s^{19 of The Recovery} of Debts &^Bankruptcy Act, 1993 for^{recovery of a sum of} \1t,.-.r-, '-\q+

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oA.t212025

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Rs.23,40,106.34ps due against account No. 560931000298601, Rs.49,733/- due against account No. 029926050000002 and Rs.1,37,845.70ps due against account No.560381001711524 totalling to Rs.25,27,596/_ from the defendants joinfly and severally with pendenuite and future interest @11.40olo per annum till realisation along with costs and sale of OA schedule assets.

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The averments of the OA, in brief, are;

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Defendants No.1 availed agriculture term loan of Rs.1,OO,OOO/_ and agriculture loan of Rs.5O,OO0/_ vide applications dated 21.03.2076 and 23.02.2027 by executing requisite loan documents respectively. Defendants 1 and 2 availed agricultural loan of Rs.1O,OO,OOO/- vide loan application dated 21.05.2016 with defendant No.3 being the guarantor to the said loan. The OA schedule assets were hypothecated/mortgaged towards the loan. However, defendants committed default in repayment. Despite repeated requests and demands, defendants did not liquidate the liability. Hence the present oA.

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Defendants filed written statement. The averments of the written statement in brief, are;

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They utilised the loan amount for mango and pomegranate plantations. Due to contraband fertilizers, viruses, drought conditions or heavy rains, defendants suffered loss and could not pay the loan instalments as per agreed terms. The default is neither wilful nor wanton. Defendants are ready to pay back the loan amounts if some more time is granted and the dues are brought down to some extent with liberal repayment reschedute on the lines ot tndustrialists. /A\4 19 t/ '\1J"

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oA.1212025

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examlned Y.

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1. In order to^{prove its claim, ApPlicantBank} Harikrishna, Senior^{Manager, as AW-1 and} marked 30 documents^{through him as Ex A.1 to Ex' A'30'}

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defendants^{examinedCherukuri}

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1. In support of thelr^defence, Usha Rani, defendant^{No.1 as} DW1, and^{marked no documents.}

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Heard learned^{counsel appearlngfor the applicantbank'} Learned counsel^{for the defendants rePorted no oral arguments'} perused the written arquments filed by the applicant^bankand the material Placed^{on record.}

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Learned counsel^{appearing for the applicant bank submits that} the defendants^{admitted the defaultand that the applicantbank} initlated^{steps for recoveryof dues as per law Therefore'the} OA claim^{may be allowedas prayedfor'}

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The^point that^{arises for consideration is:-}

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Whether^{the AppticantBank is entitled} for the OA^{claim againstthe} Defendants^{1 to 3and the oA} schedule^assets?

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It is the case^{of the defendants that the default is neither} wanton nor^{wilful and that theyare ready to clear the dues} provided some^{more timels granted Despite pleading on these} lines, defendants^{have not produced any material evidence to} show that^{they tookup the matter with the applicant bank prior} to filing^{the written statementbefore this Tribunal' It is settled} taw that^{mere assertionswlthoutessential material are of no} use. On^{the other hand, in order to prove its claim' applicant}

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t, A.42t2o2s

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unrebutted. Accordingly, I hold that defendants 1to 3 are joinUy and severally liable to pay the OA claim to the applicant bank along with interest and costs.

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In the result, the present Original Application No.42/2025 is allowed as under: _

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i) defendants 1 to 3 are joinfly and severally liable to pay to the Applicant Bank a total sum of Rs.25,27,596/_ along with interest @IO.40o/o per annum simple from the date of application till the date of realization; ii) the OA claim is secured by way of hypothecation/mortgage of properties as described in the schedules annexed to the OA and the applicant bank is entired to proceed against the same to recover its dues; iii) the applicant bank is entifled to proceed against the person and properties of the defendants for realization of its dues; and iv) the applicant bank is entifled for the costs.

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11' The Appricant Bank is directed to fire 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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Communicate a copy of this order to the parties concerned and upload in official Web portal.

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(Dictated to the steno. si{ and pronounced by me in the open court on this the 18th d., "t;;;;;";';;;;ilt""'

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, (in*_-.,,,-r, ,.,!1. (RAMESHWAR , KOTHE) PRESIDING OFFICETi

Union Bank of India v. Mrs. Cherukuri Usha Rani

Case brief

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Union Bank of India v. Mrs. Cherukuri Usha Rani

Case brief

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