Allowed

Canara Bank v. M/S. Phalanx Life Sciences

DRT20 Jun 2025OA/59/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal at Hyderabad allowed the origin application filed by Canara Bank against M/s. Phalanx Life Sciences for recovery of a loan amount, future interest, and costs, after the defendant was set ex-parte for non-appearance. The court ordered the issue of a recovery certificate.

What did the court decide?

The respondent is directed to pay Rs. 34,09,330.70 with future interest @ 13.25% p.a. from 03.01.2025 along with costs. Recovery certificate to be issued.

Canara Bank versus M/S. Phalanx Life Sciences — Banking and Recovery | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL.I AT HYDERABAD

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DATED THIS THE 2OTH DAY OF JUNE'2025

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.59 of 2025

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Between:

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Canara Bank, Pochampally branch, Yadadri, Bhuvanagiri - 508 284. Telangana State. Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Phalanx Life Sciences, Represented by its Proprietor, Mr. ArgulaRaghuveer, s/o PrasenArgula, aged major, occ: business, D.No.1-16-40, LIG 8-496, 2nd floor, Dr AS Rao nagar, Kapra, ECIL post, Hyderabad - 500 062.

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Also at 101, C- block, Prashanthi homes, Sri nagar colony, Near Yendala towers Nizambad HO, Nizambad - 503 001.

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Defendant

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Counsel for the Parties:

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For the Applicant haJaiswal For the Defendant J^{z'o Jrrffiff"} : M 1. The Applicant Bank filed the OA against Defendant for

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recovery of a total sum oF Rs.34,O9,33O.7Ops (Rupees Thirty

¶15

(oA.No.s9l202s)

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Four Lakhs Nine Thousand Three hundred Thirty and paise

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seventy only) with future interest @ 13.25olo p.ainclusive of penal interest @ 27o from 03.01.2025 till the date of realization and in default for sale of hypothecated assets as mentioned in the schedule to OA.

¶18

As per the averments in the application, the Applicant Bank states that defendant firm represented by its proprietor availed cash credit facility of Rs.30.00 lakhs and executed pronote, request for overdraft facility and cash credit agreement dated L2.05.2020. The defendant hypothecated all the stocks and book debts in favour of applicant bank. After availing the loan facility, the defendant failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NPA on t7.07.2024 and issued legal notice dated 28.72.2024. Inspite of several requests and demands, the defendant did not clear the outstanding. Hence this OA.

¶19

Defendant called absent and set exparte on L2.06.2025.

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Sri S. Raghavender Manager of the Applicant Bank examined herself ag,lA' releva nt documents, which are ,1'S\ 2 0 ,luH ZU6 5. Counsel for licant Bank. TrnY

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(oA.No.59/202s)

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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 Defendant as

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prayed for?

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7 ' Defendant cared absent and set exparte. To substantiate the case of the Applicant Bank, AW.1, ofFicial of the Applicant Bank was examined and she exhibited relevant documents as Ex.A1 to A.14. In view of the above, I hord that the Appricant Bank has estabrished their craim made in the oA against the Defendant and hence the Appricant Bank is entired to recover the craim made in the oA with future interest and costs.

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B' In the resurt, the present oA is alowed with costs, as under: The Defendant is riabre to pay to the Appricant Bank a totar sum of Rs.34,O9,33O.7ops (Rupees Thirty Four Lakhs Nine Thousand Three hundred Thirty and paise seventy only) with future interest @ 13.25% p.a from 03.01.2025till the date of realization.

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The Applicant bank is entitled to proceed against the hypothecated movables as mentioned in e to OA towards rea lization of

the debt due.9. r-B

J^{zorunzms *} i

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(oA.No.s9l202s)

the Applicant Bank is also entiued to proceed against the person and properties of defendant 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 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 and pronounced by me in the open court on this the 2oth day of June,2O25)

sd/(G. GOPTCHAND)

PRESIDING OFFICER

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n#-',]'ivi"sn'oens

Canara Bank v. M/S. Phalanx Life Sciences

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Phalanx Life Sciences

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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