Allowed

Bank of India v. Sri Ashpa Printers

DRT20 May 2025OA/451/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Bank of India for recovery of dues totaling Rs. 41,00,941.06 from Sri Ashpa Printers and its proprietor Sri E. Prathap Reddy, including future interest and costs, and directed the issuance of a recovery certificate.

What did the court decide?

Applicant bank allowed to recover total sum of Rs.41,00,941.06 with interest and costs; recovery certificate issued; rights to proceed against hypothecated movables and other properties granted.

Bank of India versus Sri Ashpa Printers — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THrS THE 2OrH DAY OF MAY, 2025

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA,No.451 ot 2024

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Between:

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Bankof India, Azamabad branch, RTC X roads, Chikkadpally, Hyderabad, Telangana State. Represented by its Constitued attorney

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Applicant

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VERSUS

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Sri Ashpa Printers, Represented by its^proprietor, Sri E. Prathap Reddy, # t-B-540 / t, Chikkadpa[y, Hyderabad - 500 020.

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Mr. E. Prathap Reddy, S/o E. Bagavanth Reddy,

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Aged about 45 years, occ:business, R/o H.No.2-2 -23/t/1,

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SBH colony, Near SBH park,

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Bagh Amberpet, Hyderabad - 13.

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Defendants

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Counsel for the Parties:

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For the Applicant
Sri Momin Mohammed Rafiq
For the Defendants
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loA.4s1./2o24)

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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.4l,OO,g41.O6ps (Rupees Forty One Lakhs Eight Hundred Forty one and paise six only)i.e,,

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a) A sum of Rs.26,27,s19.14ps under cash credit accountwith future interest @ I2.2Oo/o p.a with monthly rests along with penal interest @ 2vo p.a from date of application till the date of realization;

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b) A sum of Rs.5,86,868.37ps under Term roan accountwith future interest @ l2.2Oo/o p.a with monthly rests along with penal interest @ 2o/o p.a from date of application till the date of realization;

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c) A sum of Rs.5,35,269.72ps under GECL accountwith future interest @ t2.2Oo/o p.a with monthly rests along with penal interest @ 2o/o p.a from date of application till the date of realization;

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d) A sum of Rs.2,31,004.1gps under cess cc roan accountwith future interest @ 12.20o/o p.a with monthly rests along with penal interest @ 2o/o p.a from date of application till the date of realization;

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e) A sum of Rs.1,1g,705.56ps under Cess CC loan accountwith

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future in //d"--w with monthly rests along with penal Fq?

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loA.4sLlz124l

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interest @ 2o/o p.a from date of application till the date of realization;

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and in default for sale of hypothecated movables as menUoned in the schedule to OA.

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As per the averments in the application, the Applicant Bank states that defendant no.1 is a proprietary firm represented by its Proprietor/ defendant no.2 availed term loan of Rs.16,g3,000/_ and working capital of Rs.2.00 rakhs on 22.0g.2016. To secure due repayment of loan, the defendants executed demand promissory note, letter of installment, agreement, hypothecation cum loan agreement and MCLR agreement. Further the defendants availed the cash credit enhancement from Rs.2.00 rakhs to Rs.7.00 rakhs on 20.11.2077 and subsequenfly from Rs.7.00 rakhs to Rs.16.00 rakhs on 14.08.2018. The defendants also availed GECL term loan of Rs.3,85,000/- on t4.07.2020 and FITL of Rs.B3,S47/_ and executed necessary documents in favour of Applicant bank. After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the applicant bank classified the account as NpA and notice

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was issued. It!!I!g- of several requests and demands, the defendants nding. Hence this OA.

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Defenda $".,2*0,^[81iffi0,",i d set exparte on 23.04.2025. w

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(oA.45L/2024)

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Sri B. Sunder Singh, Asst. Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are

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marked as Ex.A.1 to A.42.

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Heard the Ld. Counsel for the Applicant Bank.

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The point that arise for consideration is whether the Applicant Bank is

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entitled for the claim made in the OA against the Defendants as prayed for?

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7' Defendants remained exparte. To substantiate the case of the Applicant Bank, AW.1, officiar of the Appricant Bank was examined and he exhibited rerevant documents as Ex.A1 to A.42. 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.41,OO,g41.06ps (Rupees Forty One Lakhs Eight Hundred Forty one.and paise six only)i.e.,

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a) A sum of-8$ ..14ps under cash credit accountwith tuturTl,fiftst date of apptication til the Blr.rei\from datq/oJ {.'=i't'ilit'im realization ;^I .*} .1 Elh,i6Y

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(oA.4sL/20241

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b) A sum of Rs.5,86,868.37ps under Term loan accountwith future interest @ 12.20o/o p.a from date of application till the date of realization ;

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c) A sum oF Rs.5,35,269.12ps under GECL accountwith future interest @ 12.20o/o p.a from date of application till the date of realization ;

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d) A sum of Rs.2,31,004,19ps under Cess CC loan accountwith future interest @ t2.2oo/o p.a from date of application till the date of realization ;

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e) A sum of Rs.1,18,705.56ps under cess cc roan accountwith future interest @ g.g5o/o p.a from date of application till the date of realization ;

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The Applicant bank is enilUed to proceed against the Hypothecated

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movables as mentioned in the schedule to OA towards realization of

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the debt due;

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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.

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The Applicant Ban
tled to the costs of the OA.
t2. The Appl
o within two weeks from the date
tiF
of recei of order.
* 2s fiN tfi

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(oA.4s1./2024)

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Issue Recovery certificate accordingly.

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L4. 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 20th day of May, 2025)

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sdl-

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(G. GOPTCHAND) PRESIDING OFFTCER

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#F.
2 0 t-'lP,Y ,{Y[

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Bank of India v. Sri Ashpa Printers

Case brief

What is this about?

What did the court decide?

Bank of India v. Sri Ashpa Printers

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Parties & counsel

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Case details

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