Allowed

Union Bank of India v. M/S. Dayakar Transport

DRT25 Feb 2025OA/473/2024

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed the bank's application for recovery. The defendants were declared absent, and the bank's evidence was accepted. The court directed recovery of the principal, interest, and costs, and authorized the sale of hypothecated assets.

What did the court decide?

Order allowed OA. Defendants directed to pay Rs.43,67,574/- with interest. Bank entitled to sell hypothecated movables and attach properties of defendants.

Union Bank of India versus M/S. Dayakar Transport — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE 25rH DAy OF FEBRUARY,2025

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PRESENT: SRI GUMMADI GoPICHAND, PRESIDING oFFICER

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OA.No.473 oJ 2024

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Between:

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Union Bank of India, (erstwhile Andhra Bank) Branch office at Burhanpuram Branch, Khammam - 507 OO2. Represented by its Authorised officer

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Applicant

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VERSUS

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M/s. Dayakar Transport, Represented by its proprietor, Siddineni Laxmi, office at 2-3-I, Gudurupadu, Khammam, TS - 507 002.

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Smt Siddineni Laxmi, w/o Karna Kumar, aged 44 years, female, R/o H.No.2-3-1, Gudurupadu, Khammam,

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Telangana - 507 003.

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Defendants

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Counsel for the Parties:

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For the Applicant

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For the Defendants

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: Smt Tarangini Pisipati Expa rte

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ORDER

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The Applicant Ba e present OA against Defendants for recovery 43,67,574.L1ps (Rupees Forty three La n Tho Five Hundred Seventy Four and pai u."J,5"r,,i,vflffi,n^,I, @ 13.25o/o p.a with monthly

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W-*+P

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(oA.473/2024)

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rests from 11.L2.2024 tilt the date of realization and in default for sale of nypothecated movables as described in the schedule to OA.

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2' As per the averments in the apprication, the Appricant Bank states that defendant No.1 is the proprietorship firm represented by its proprietor/ defendant no.2 who is also a guarantor availed loan of Rs.72.50 lakhs vide arrangement letter dated OB.O4.2O2L. The defendants hypothecated the movables as described in the schedule to OA. The defendants executed term loan agreement, general term loan agreement, demand promissory note, interest agreement, AD02A, Letter of undertaking and retter of free access etc. After availing the loan facilities, the cefendants failed to comply the terms of sanction, hence the appricant bank was constrained to crassify the account as NpA on 08.07.2024 and issued recail notice dated 09.07.202_4. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants calleci absent and set exparte on 06.02.2025.

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Smt B. Apurupa, Branch 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.13.

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q the Applicant Bank.

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(oA.473/2024)

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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.Al to A. 12. In view of the above, I hord that the Appricant Bank has estabrished their craim made in the OA against the Defendants and hence the Applicant Bank is entitled to recover the craim 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 joinUy and severally liable to pay to the Applicant Bank a total sum of Rs.43,67,Sl4.:-tps (Rupees Forty three Lakhs Sixty Seven Thousand Five Hundred Seventy Four and paise Eleven only) with interest @ 13.25o/o p.a from 17.72.2024 till the date of realization;

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The Applicant bank is entitled to proceed against the hypothecated

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movables as described in the schedule to
OA towards rea lization oF
'?,fro%"H
iq, ?5rrgmn
t\9a r \r,
-;
fu*#

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(o A.47 3/20241

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The Appricant Bank is arso entiued 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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The Applicant shail fire a cost memo within two weeks from the date of receipt of order.

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Issue 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 , tran'cribed by her, corrected, signed and pronounced by me in the open court on this the 25th day of Feb, 2025)

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sd/(G. GOPTCHAND) PRESIDING OFFICER

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4.
I

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Union Bank of India v. M/S. Dayakar Transport

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/S. Dayakar Transport

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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