Allowed

Maximus Arc Limited v. M/S. Aishwarya Cottons Private Limited

DRT23 Jul 2025OA/636/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 6.69 crores against six respondents. The order confirmed joint and several liability after deducting amounts realized via property sale. The Relief Certificate issues and proceedings secured by mortgage.

What did the court decide?

Respondents are directed to pay the balance recovery sum with future interest; Relief Certificate issued; OA secured by mortgage is entertained. Cost Memo directed to be filed.

Maximus Arc Limited versus M/S. Aishwarya Cottons Private… — Banking and Recovery | DRT (2025)

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IN THE DEBTS^{RECOVERYTRIBUNAL-II AT HYDERABAD} DATED THIS^{THE 23RDDAY OF JULY,2025}

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PRESENT: SH.^{RAMESHWAR KOTHE,B'Com', L'LB (Hons')' M A'} PRESIDING OFFICER

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ORIGINAL APPLICATION^{No: 636 OF 2024}

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M/s. Maximus^ARCLimited., 3028, Jain Sadguru^Image's Capital Park,^{ImageGardensRoad} VIP Hills, Madhapur,^{Hyderabad-500081} Telangana State. Rep. by its chief Manager.

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.....Applicant.

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Versus

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lvus. Aishwarya^{Cottons PrivateLimited.,} Rep by its Directors^{Sri G.Sivanna&} G. Lakshmi,^{GodownNo.48, Market} Yard, Adoni, Kurnool^Dist Andhra Pradesh - 518301'

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Mr. Gudisi Sivanna,^{S/o.G.PeddaLinganna} Major, Occ: Business,^{Godown No.48,} Market Yard, Adoni,^{Kurnool Dist} Andh ra Pradesh -^518301.

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lvlrs. G.Lakshmi,^{W/o.Gudisi Sivanna} Aged Major, Occ:^{Business& Housewife} Godown No.48,^{Market Yard, Adoni} Kurnool Dist, Andhra^Pradesh -^518301.

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Mr. G.Malleshappa,^{S/o.G.PeddaLlnganna} 14ajor, Occ: Business,^{R/o.H. No.121292} Kuruva Colony, Pedda^{Kadabur Village} Kurnool District- 518323,^{AndhraPradesh.}

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M/s.Sree Kasi Visweswara^{Swamy Traders.,} Rep by its Proprietor, Sri Gudisi Sivanna Godown No.48, Market^{Yard, Adoni} Kurnool Dist. Andhra Pradesh - 518301. /2flt,^,, ,c

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i.,,,///'1,si*

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oa.No.636/2024

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M/s. Sri Rajalakshmi Traders. Rep by its^proprietor, Smt.C.iaksnmi Godown No.48, Market yard, Adoni Kurnool Dist, Andhra pradesh _ 518301.

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,,.Defendants

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Counsel for the Applicant

Defendants

M/s. campa Rangaiah

Ex-parte

:: oRDER ::

The Applicant Bank filed the present OA for the recovery a total sum of Rs.6,69,58,409/ - i.e., a sum of Rs.4,69,55,988/-, a sum of Rs.1,64,88,910/- and a sum of Rs.35,13,S11l- from the defendants joinfly and severally with future interest at MCLR + 1olo p.a. with monthly rests from O!.ll,2OZ4 till the date of realization along with costs and in default for sale of OA schedule properties.

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Summons served on D1 to 6 through paper publication. They were set ex-parte on 25.04.2025 as ca lled absent and no representation.

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.1. The Applicant Bank examined R.Venkata Raju, Chief Manager, as AW-1 and marked 69 documents through him as Ex. A.1 to Ex. 4.69. The applicant bank filed part satisfaction memo dated 23-07.2025 reporting that the bank realized the amount of Rs.2.21 crores i.e., Item-I of Schedule-I on 31.03.2025 for an amount of Rs.35,00,000/-, Item-U of Schedule-II on 13.03.2025 for an amount of Rs.1,46,00,000/_ and Item_III of Schedule-II on 13.03.2025 for an amount of Rs.40,OO,OOO/_.

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Heard the Ld. Counsel for the Applicant Bank. perused the materiar ptaced on record. 6v*U

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oA.NO.636/2024

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The^point that arises^{for consideration is:-}

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Whether the Applicant^{Bank is entitled} for the balance claim^{made in theOA} against the^{DefendantsandOA} schedules ProPerties?

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As stated supra, the^{Defendants remained ex-parteThe} Evidence Affidavit^{coupled with the recitalsin the documents} viz., Exs. A.1 to A.69^{marked on behalf of the ApplicantBank} clinches the claim of^{the Applicant Bank against the Defendants'} Hence, I hold that^{the Defendantsare jointlyand severallyliable} to pay the OA claim,^{Less Rs.2.21 Crores beingthe amount} realised by way of^{sale of OA schedulesproperties to the} Applicant Bank with^{futureinterestand costs.}

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In the result, the^{present Original Application No.636/2024is} allowed as under:^-

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l) The Defendants are^jointly and^severally liable to pay to the Applicant^Bank a^total sum of Rs.6,69,58,409/( Less Rs.2,21,00,000/-) i.e., the defendants^1,2,3 & 4 are^jointly and severally liable to^{pay a} sum of (Rs.4,69,55,988/- Less Rs.2,21,00,000/- realized by sale of ltem-I of Schedule-I and Items-II & Iu of Schedule-Il under SARFAESI Proceedings),^the defendants ?,3,4 & 5 are^jointly and severally liable to pay a sum of Rs.1,64,88,910/- and the defendants 2,3,4 & 6 are^jointly and severallv liable to Dav a sum of Aw"

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oA.NO.636/2024

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Rs.35,13,511/-; with future interest @9.80o/o p.a. simple from the date of application till the date of realization i

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ii) the OA claim is secured by way of mortgage of properties described in the schedules annexed to the OA and the applicant bank is entitled to proceed against the same to realise its debt;

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

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iv) the applicant bank is entitled for the costs.

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B. 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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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 23'd Day of July, 2025).

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Ow*o (RK(ESHWAR KoTHE) PRESIDING OFFICER

Maximus Arc Limited v. M/S. Aishwarya Cottons Private Limited

Case brief

What is this about?

What did the court decide?

Maximus Arc Limited v. M/S. Aishwarya Cottons Private Limited

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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Case details

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