Allowed

State Bank of India v. M/S.Sree Sainath Engineerings Works

DRT7 Aug 2025OA/53/2025

Case brief

AI extract

What is this about?

An applicant bank filed an Original Application for recovery of a flagged loan account against the defendant firm and proprietor. The Presiding Officer found the claim substantiated and allowed the OA directing payment. The bank is also entitled to enforce rights over mortgaged properties.

What did the court decide?

The OA is allowed with costs; Defendants jointly and severally liable to pay Rs.2,91,90,901/- with future interest and costs, with liberty to proceed against mortgaged properties.

State Bank of India versus M/S.Sree Sainath… — 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 7rH DAy OF AUGUST,2025

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.53 of 2025

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Between:

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State Bank of India, SRB-II, Opp Sandhya Theatre, RTC cross roads, Chikkadpally, Hyderabad. TS. Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. SreeSainath Engineering Works, Represented by its Proprietor,

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Mr. Neerudu Ashok Kumar, 7- Il-64 /8, ChinnaThokatta, New Bowenpally, Secunderabad.

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Mr. Neerudu Ashok Kumar, s/o Late Mr. N. Mahesh,

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male, aged major, R/o l-ll-76,

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Chinnathokatta, New Bowenpally, Secunderabad - 500 011.

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Defendants

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Counsel for the Parties:
For the Applica nt A.M. Kiran Kumar
ed
obi<br>For the Defendants K. Srinivas
ffi .A
BTItEEUgen*
1. OA against Defendants for
recovery of a tota I L,9O,gOL/- (Rupees Two Crores

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(oA.s3 of 202s)

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Ninety one Lakhs Ninety Thousand Nine Hundred and One only) (Rs.2,2O,72,526/- + Rs.71,18.,375/-) with future interest @ 12.90%^p.a with monthly rests from date of filing of OA till the date of realization and in default for sale of mortgaged properties 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^{proprietorship} firm represented by its Proprietor/ defendant no.2 availed cash credit of Rs.60.00 lakhs and bank guarantee of Rs.20.00 lakhs on 15.02.2019. To secure the due repayment of loan amount, the defendants executed agreed of loan cum hypothecation & guarantee agreement. Defendants mortgaged the schedule mgntioned properties and deposited the title deeds in favour of Applicant bank. After availing the loan facility, the defendants failed to comply the terms of sanction, hence the applicant bank classified the account as NpA on t2.06.2024 and issued demand notice dated t4.06.2024. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Counsel for filed vakalath but failed to file Written

statement.

87fl0a[t

(oA.s3 of 202s)

Sri SarojMishra, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked AS Ex.A,1to A.26.

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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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Counsel for defendants filed vakalath but failed to file WS. 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 4.26. 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^jointly and severally liable to^pay to the Applicant Bank a total sum of Rs.2,91,9O,9OL/- (Rupees Two Crores Ninety one Lakhs Nanety Thousand Nine Hundred and One only) ( /-+ Rs.7 L,t8,375l-) with future interest @1 b p.a ing of OA till the date of realization; *,

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- - 0Ttljcm6

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(oA.53 of 202s)

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The Applicant Bank is entitled to proceed against the mortgaged properties as mentioned in the schedule to OA towards realization of 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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The Applicant Bank is entitled to 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 pronounced by me in the open court on this the 7th day of Aug, 2025)

sd/(G. GOPTCHAND)

PRESIDING OFFICER

*
07AUC2m

-TRUE COPY o*,ffiq?.!, IIYDERP,BAD. '

¶41

State Bank of India v. M/S.Sree Sainath Engineerings Works

Case brief

What is this about?

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State Bank of India v. M/S.Sree Sainath Engineerings Works

Case brief

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