Allowed

Canara Bank v. M/S. Shiva Sai Executive Boys Hostel

DRT17 Jun 2025OA/479/2024

Case brief

AI extract

What is this about?

OA in debt recovery jurisdiction. Applicant sought recovery of specific sum with interest and sale of hypothecated movables. Defendants appeared ex parte. Proprietor examined, established claim. OA allowed to recover the debt with interest and sale of security.

What did the court decide?

Recovery of Rs.25,68,594.87 plus future interest and costs. Sale of hypothecated movables. Proceeding against persons and properties of defendant No.2 and firm.

Canara Bank versus M/S. Shiva Sai Executive Boys Hostel — Execution and Attachment | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE ITTH DAY OF JUNE, 2025

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PRESENT: SRI GUMMADI GoPIcHAND, PRESIDING oFFIcER

OA.No.479 ol 2O24

Between:

Canara Bank,

Branch office at Shah Ali Banda, 20-4-194/7/A, New Road, Shah Ali Banda, Hyderabad -5OO OO3.

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Represented by its senior Manager

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Applicant

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VERSUS

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1, M/s. Shiva Sai Executive Boys Hostel, Represented by its sole proprietor

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Sri laldi Shankar, S/o Sri Chenna

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KesavuluJaldi, H. No.62,63,

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Madhuranagar colony,

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Yousufuguda, Hyderabad - 500 073.

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Sri Jaldi Shankar, s/o Sri ChennaKesavuluJaldi,

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H.No.62,63, Maduranagar colony,

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Yousufguda, Hyderabad -500 073. ..

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Defendants

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Counsel for the Pa rties:
or the Applicant Srl AVSS Prasad
For the D
Exparte
7 JUN ?116
j1rP
14-
t. 1? Il
r;' i,' l/
1. The present oA asainst Derendants for
IFSryt
recovery o
''bf Rs.25,68,594.87ps (Rupees Twenty

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loA.No.479/2024],

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Five Lakhs Sixty Eight Thousand Five Hundred Ninety four and

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paise eighty seven only) i.e.,

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a) a sum of Rs.19,37,125.09ps with future interest @ 11.90%

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p.awith monthly rests from 03.12.2024 till the date of realization;

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b) a sum of Rs.6,31,469.78ps with future interest @ 10.90olo p.aFrom 01.L2.2024 till the date of realization;

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and in default for sale of hypothecated movables as mentioned 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 sole proprietary firm represented by defendant no.2 availed working capital term loan of Rs.20.00 lakhs and secured over draft loan of Rs.5.00 lakhs dated 03.02.2022. fhe defendants executed agreement cum deed of hypothecation and cash credit agreement dated 03.02.2022 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 legal notice was issued on 07.11.2024. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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ffi

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Defe
2
; 1, ruilzm #;
w@

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t exparte on 06.05.2025.

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(oA.No.479l2024)

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4' sri K. Dhanavath, senior Manager of the Appricant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.B.

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

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Defendants remainedexparte. To substantiate the case of the Applicant Bank, AW.1, official of the Applicant Bank was examined and he exhibited relevant documents as Ex.A1 to A.g. 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 Applicant 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 joinily and severally liable to pay to the Applicant Bank a total sum of Rs.25,6g,594.g7ps (Rupees Twenty

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Five Lakhs Sixty Eight Thousand Five Huodred Ninety four and paise eighty flalmli.p+h 6^{'t--$ '.-*}

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a) a sum of y37,1251$pps rt tu re interest @ 11.80o/o p.a from 03. 12.2 n; tiil?ttr $ef?0F

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(oA.No.479l2024)

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b) a sum^{of Rs.6,31,469'78pswith future interest @ 10'90o/o} p.afrom 0L.12.2024^{till the date of realization;}

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against the^hYPothecated

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The Applicant^{bank is entitled to proceed} to OA towards^realization

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movables^{as mentioned in the schedule} of the debt^due;

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The^{ApplicantBank is also entitled to proceed againstthe 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 Bankis entitledto the costs of the OA'}

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

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Issue^{Recovery ceftificate 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 and pronouncedby mein the opencourt on} thLs the 17th lune,²⁰²⁵⁾

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sd/-

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(G. GOPICHAND) PRESIDING^OFFICER

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tr'^Y"," DRI.I, HYAERABAD. "^d

Canara Bank v. M/S. Shiva Sai Executive Boys Hostel

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Shiva Sai Executive Boys Hostel

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

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