Allowed

Canara Bank v. M/S. Guru Krupa Powerloom Industry

DRT25 Nov 2025OA/426/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of a loan amount of Rs.1.41 crores with interest against the borrowers, who failed to provide evidence to rebut the bank's documents.

What did the court decide?

Defendants jointly and severally liable to pay Rs.1,41,52,437.13 with interest; Recovery Certificate issued; Authority to proceed against mortgaged properties.

Canara Bank versus M/S. Guru Krupa Powerloom Industry — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY^{TRIBUNAL-I AT HYDERABAD}

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DATED THIS THE 21"1^{DAY OF NOVEMBER,2025}

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PRESENT: SRI GUMMADI^{GOPICHAND, PRESIDING OFFIGER}

OA.No.426 ot 2024

Between:

Canara Bank,

Warangal Hanamkonda^Branch Represented by its^{Authorized Officer}

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Applicant

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VERSUS

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M M/s. Guru Krupa^{Powerloom lndustry'}

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Represented by its^{Managing Partner Kota Uma Nagesh,} R/o Plot No.192,^{SY No. 179112,}

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Madikonda, KaziPet, Warangal Telangana..

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Kota Uma Nagesh,

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Wo Kota Nagesh,

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Aged about 46^{years, Occ: Business, Female,} R/o Plot No.86, Gokul^Nagar,

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Parvat, Surat City, Gujarat - 395 010.

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Defendants

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Counsel for the Parties^:

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FolThe Applicant t'

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Smt. Tarangini^PisiPati

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Sri. V. Narender.

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18.11.2025 20.11.2025 25.11.2025

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(OA.No.42512024)

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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.1,41} ,52,437.13^{Ps' (RupeesOne} Crores Forty One^{Lakhs Fifty Two ThousandFour Hundred} Thirty Seven and^{Paise ThirteenOnly) i.e a sum of} -

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(i) Rs.1,31,59,363.60 Ps.^{(Rupees One Crore ThirtyOne} Lakhs Fifty Nine Thousand^{Three HundredSixty Three and} Paise Sixty Only) with^interest @^{13.20% p.a with monthly} rests from 05.11.2024^{till the date of realization.}

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(ii) Rs.1,45,891.47 Ps'^{(Rupees One Lakhs FofiFive} Thousand Eight^{HundredNinety One and PaiseForty} Seven Only) with^{future interest} @^{9.25Yo p.a with monthly} rests from 05.11.2024^{tillthedate of realization.}

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(iii) Rs.8,47,182.06 Ps.^{(Rupees Eight Lakhs Forty Seven} Thousand One Hundred^{Eighty Two and Paise Six Only)} with future interest @^{9.25% p.a with monthly rests from} 05.11.2024 till^{the date of realization.}

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and in default^for sale of Hypothecated^Movablesand as mentionedⁱⁿ the^{SchedulesA and B} Mortgaged ProPerties in the application, the^{Applicant Bank states} is a Proprietorship^{Firm RepresentedBy its} No. 2 availed Term^{Loan of Rs.98.31Lakhs}

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(oA.No.42612024)

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with interest 1O.2Oo/o^{p.a repayable in EMI's of Rs'1 ,53,272and} cash credit^{Loan facility of Rs.15.00 Lakhs with interest @10.20o/o} p.awithmonthlyrestsandexecutedCompositeHypothecation Agreementdaledl2.O2.2o20infavouroftheapplicantbank.The Defendant No.2^{created equitable mortgagemorefully mentionedin} Schedule B to the^{OA and executedAgreementto mortgage} daled. 12.02.2020^{and deposited original title deeds in favor of the} ApplicantBank.ThedefendantsavailedGECLfacilityofRs.2.00 Lakhs with interest @7.50o/o^{p'a repayablein 36 monthly} installments and^{executed commonHypothecationAgreement} dated 26.06.2020^{in favor of the Applicant Bank. The defendants} availed GECL ll^{facility of Rs.7.48 Lakhs with interest @9.25o/o p.a} repayable in 60^{monthlyinstallmentsand executed supplemental} common Hypothecation^{Agreement dated 19.01.2023in favor of} theApplicantBank.Thesaidloanfacilitieswererenewedand enhanced from^{time to time by the defendants. lt is submittedby the} Applicant bank that^{the Defendants have availed the said loan} facilities and^{failed to keep up the repayment schedule, as such the} account was classified^{as NPA on.29.10.2023 and issuedRecall} notice on 14.1:.t.*iq,24.^{lnspite of demandsmade by Applicant the} ll :i :i i..., befenOants have nbt^{regularized the account,and the defendants} t. ';':',;6;6 - ll<'^{not come forward to repay the same. The total claim of} 3 '' t... . . "^{-;-:::::.:---} t, l,,^{,' r}

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loA.No.426l2o24l

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Applicant against defendants^{is of Rs.1,41,52,437.13Ps. (Rupees} One Crores Forty One^{Lakhs Fifty Two Thousand Four} Hundred Thirty Seven^{and Paise Thirteen Only) with future} interest @13.2OYo^{p.a and 9.25o/o p'a respectively from 05.11'2024} till the date of realization.^{Hence the OA'}

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The Defendants filed^{written statementand deniedthe averments} made in OA. The defendants^{denied the execution of documents} and hypothecation of^{machinery/ movables.lt is further submitted} defendant No.2 along^{with her husbandleft for Surat for} establishing the industry^{and came to Hanumakondato run the} Power Loom Factory^{but the purpose of the defendantNo' 2 was} not served and also^{the husband of the Defendant no.2 was died} due to that, the^{defendant no. 2 unableto contactthe applicant bank} for payment of the loan.^{The defendantswere regularin repaying} the loan and contended^that the^{oA is neither maintainablenor} tenable. Hence^{prayed for dismissal of OA.}

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The Applicant Bank in^{supportof its claim,filed evidenceaffidavit} rn in by Sri. B. Madhava^{Reddy, Chief Managerof Bank as} ugh his marked 21^{documentsas Ex.A.1 to A.21.} evidence of the Applicant^{Bank the defendants did}

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il;^{2 -c '\E(dHEain$!!} ', I not choose to adduce any evidence on^{their behalf in support of} 4

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(oA.No.42612024].

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their contentions and also^{did not choose to cross examine the}

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AW.1 to controvert his^{Chief Evidence.}

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I have^perused the^{documents placed on record.}

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Now, the^{points that arise for considerationare:}

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i) Whether the Applicant^{Bank has proved its claim as made in}

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OA against the defendants^?

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ii) To what relief ?

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Point No.i):

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7 . As^per the documents^{filed by the Applicant Bank and also as per} the admissions made^{by the defendants in the Written statement, it} is very clear that the^{defendants have availed loan from the} Applicant Bank, but failed^{to repay the amount. AII the amounts} paid by the defendants are clearly mentioned^{in the statement of} account filed by Applicant Bank.^{The defendants have not placed} any material documents^{to show their bonafidesfor establishing} that the schedule^{propertieswere not hypothecatednor mortgaged} in favour of APPlicant^bank.

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.". - '..-,-,i.* .. r:+\ -.rn.r--' '.., "*r. ::1 "..^{.;^}

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i7^6' 8. AW.1 ir,ttitpross examined^{by the counselfor defendants.The} " t,\ .-r il^t# ll * 1^{| defeffints xaje not adduced any to give evidence in support of} 1..: ii their conbntiohs . Under^{such circumstances,the evidence of AW.1} *,," i.r -"".n ' i'.. -nl;)rA :.rt''1,!t!' 5 ' ."^_'-.itt '''' -""';':i;:'-''"'

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(oA.No.a261202a)

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coupled with recitals^{Ex.A.1 lo A.21 stood unchallengedand} unrebutted. The Applicant^{bank clearly established that the} defendants are liable to^{pay the OA amount to the Applicant bank'}

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Point No.ii)

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ln the result, the^{present Original applicationis allowed with costs} as under:

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The Defendants^{are jointly and severally liable to pay to Applicant} Bank a total sum of Rs.l,41,52,437-13^{Ps. (Rupees One Grores}

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Forty One Lakhs Fifty^{Two ThousandFour HundredThirty} Seven and Paise Thirteen^{Only) i.e a sum of} -

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(i) Rs.l,31,59,363.60 Ps.^{(Rupees One Crore ThirtyOne} Lakhs Fifty Nine Thousand^{Three HundredSixty Three and} Paise Sixty Only) with^interest @^{13.20o/o p'afrom} 05.11.2024 till^{the date of realization.}

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(ii) Rs.1,45,891.47 Ps.^{(Rupees One Lakhs Forty Five} Thousand Eight Hundred^{Ninety One and Paise Forty} Seven Only)^{with future interest} @^{9.25Yop'a from} 05.11.2024 till the date^{of realization.}

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. .lr

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(iii) R\8,47,182.06 Ps.^{(Rupees Eight Lakhs Forty Seven} *i.'.1 fnodSgltO One Hundred^{Eighty Two and Paise Six Onlv)} )5 '^r''t ,ffhh fuuib intere st @ 9.25%^p.a from^{05.11 .2024 till the date} .rr i;

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of r0aF#tion.

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',p...'.., ...^;.'..it

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, 1.'i'-,::;'o -^t,,.,-

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(oA.No.42612024)

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The Applicant bank^{is entitled to proceed against the hypothecated} movables and mortgaged schedule^{propertiesas mentioned in the}

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schedule to OA towards^{realizationof 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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12.The Applicant Bank is entitled^{to the costsof the OA'}

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13.The Applicant shall file a cost^{memowithin two weeks from the date} of receipt of order.

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lssue 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 andpronounced by me in the} court on this the 2't"t day of^{Novembet,2025)}

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sd/-
(G. GOPICHAND)
0.:t,
PRESIDING OFFICER

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Canara Bank v. M/S. Guru Krupa Powerloom Industry

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Guru Krupa Powerloom Industry

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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