Allowed

Karnataka Bank Limited v. M/S. Kanakadurga Cotton Company

DRT4 Jul 2025OA/617/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Karnataka Bank Ltd. for recovery against four respondents, including a cotton company and individuals. The respondents appeared ex-parte. The Tribunal held them jointly and severally liable to pay the decree amount, interest, and costs, and directed the issuance of a recovery certificate.

What did the court decide?

Defendants ordered to pay sum with interest and costs; recovery certificate issued; security of mortgaged properties affirmed.

Karnataka Bank Limited versus M/S. Kanakadurga Cotton Company — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II AT HYDEMBAD

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DATED THIS THE O4TH DAY OF JULY, 2025

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PRESENT: SH. RAMESHWAR KOTHE, B.com., L.LB. (Hons.), M.A. PRESIDING OFFICER

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OR]GINAL APPL]CATION No: 617 OF 2024

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Karnataka Bank Ltd., 20/28-7, Rajshri Hotel Complex Railway Station Road, Adoni Kurnool District, Andhra^pradesh. Rep. by its General Power of Attorney Holder.

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. ....Applica nt.

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Versus

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M/s. Kanaka Durga Cotton Company Sy.No. 180/3A, Parvathapuram Road Adoni, Kurnool District, Andhra Pradesh-518301. Rep by its Partners E.Hari Prasad and E.Haritha.

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lvlr. Elluru Hari Prasad S/o. E. Suryanarayana Setty Aged about 57 Years, Occ: Business R/o. D. No.1-667/22-B, Plot No.52 Raghavendra Nagar, AAS College Road Adoni, Kurnool District - 518301.

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Smt. Elluru Haritha, W/o.E.Hari Prasad Aged about 48 Years, Occ: Business R/o. D. No.1-667/22-B, Plot No.52 Raghavendra Nagar, AAS College Road Adoni, Kurnool District - 518301.

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Mr. Yaggati Shiva Prasad, S/o.Y.Rachappa Aged about 38 Years, Occ: Business R/o. D. No.21-270, Mandagiri, Adoni Kurnool District - 518301.

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.. . Defendants

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Counsel for the Applicant

: M/s.N.Rama Rao

Defendants

:Ex-partelwp

oa.No,577 12024

::^qLLE.]L ::

The Applicant Bank^{filed the present OA for the recovery a total} sum of Rs.7,91,25,801.3ops^{i.e.,a sum of Rs.4,40,06,745.36ps} with future interest @13.10o/o^{p.a., a sum of} Rs.2,69,29,018.46ps with future^{interest @11.45olop.a. and a} sum of Rs.81,90,037.51ps^{with future interest @13.109o p.a'} from the defendants^jolntly and^{severally compounded with} monthly rests from the date of^{applicationtill the date of} realization along with costs and^{in default for sale of OA} schedule^propertles.

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Summons served on Dl,^{whereas summons servedon D2 and} 3 through^{paper publication.They were set ex-parte on} 28.03.2025 as called absent^{and no representation.}

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The Applicant Bank examined Shaik^{AbdulGaffar,Manager,as} AW-1 and marked 41 documents throuqh^{him as Ex. A.1 to Ex.} A.41.

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Heard the Ld. Counsel for the Applicant Bank.^{Perused the} material placed on record.

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The point that arises for consideration is:-

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Whether the Applicant Bank is entitled for the claim made in the OA against the Defendants and OA schedule propefties?

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As stated supra, the Defendants remained ex-parte. The Evidence Affidavit coupled with the recitals in the documents viz., Exs. A.1 to A.41 marked on behalf of the Applicant Bank clinches the claim of the Applicant Bank against the Defendants.

ffi.a*

oA.NO.517l2024

Hence, I hold that the Defendants are jointly and severally liable to^pay the OA claim to the Applicant Bank with future interest and costs.

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In the result, the present Original Application No.6L7 /2024 is allowed as under: -

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i) The Defendants are jointly and severally liable to pay to the Applicant Bank a sum of Rs.7,91,25,801.30ps i.e., a sum of Rs.4,40,06,745.36ps, a sum of Rs.2,69,29,018.46ps and a sum of Rs.81,90,037.51ps with future interest @9.45olo^p.a. simple from the date of application till the date of realization;

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ii) the OA claim is secured by way of mortgage of properties described in the schedule annexed to the OA and the applicant bank is entitled to proceed agalnst the same to realise its debU

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iii) the applicant bank is also entitled to proceed against the person and properties of defendants for realization of its dues;

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iv) the applicant bank ls entltled for the costs.

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The Applicant Bank is directed to file Cost Memo within 2 weeks from the date of receipt of this Order.

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Issue Recovery Certificate accordingly.

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oA.NO.6r7l2024

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Communicate^{a copy of this order to the parties concerned'} (Dictated to the steno, corrected, signed^{and pronounced by me in the open court on} this the o4h^{Day of July, 2025).}

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PRESIDING OFFICER

Karnataka Bank Limited v. M/S. Kanakadurga Cotton Company

Case brief

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Karnataka Bank Limited v. M/S. Kanakadurga Cotton Company

Case brief

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What the court decided

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