Allowed

Bank of Maharashtra v. M/S Esjay Engineering Industries

DRT19 Dec 2025OA/685/2023

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed the Original Application filed by Bank of Maharashtra for recovery of a loan. The court accepted the bank's unopposed claim as defendants forfeited their right to file a written statement or adduce evidence. The bank was ordered to recover the principal sum along with future interest and costs.

What did the court decide?

Defendants jointly and severally liable to pay Rs. 7,33,48,581.92 with future interest; OA claim secured by mortgage/hypothecation; applicant bank entitled to costs and proceed against person and prop

Bank of Maharashtra versus M/S Esjay Engineering… — Contract and Commercial Disputes | DRT (2025)

¶1

IN THE DEBTS^{RECOVERY TRIBUNAL-II AT HYDERABAD} DATED THiS^{THE 19TH DAY OF DECEMBER,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. 685OF 2023}

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Between:

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Bank of Maharashtra SAM Branch,^{Zonal Omce} Vinootha^{PittysAPartment} Sultan Bazar,^HYderqabad Rep. by^{its ChiefManager.}

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....Applicant.

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And

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M/s. Esjay^{EngineeringIndustries} SY. No 557/B^{GullaPalli Village} ongole Prakasham^Dist' Andhra Pradesh -⁵⁰¹³⁰⁹

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Also at:

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B-48lA,^{ElectronixComPIex} Kushaiguda,^{ECILHYderabad} Telangana-500^062.

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lvlr. Potluri^{Subramanyeshwar Rao} A/a Major,^{Occ: Business}

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H. No. r-247/269^{& 270} Bhavani^{Nagar, KaPra, ECIL Post} Ranga ReddY,^Hyderabad Tela nga^{na- 500062}

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I4r. Magam^JawaharBabu A/a Major,^{Occ: Buslness}

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H. No. 1-1-24U208

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Road No.^{5N, Bhavani Nagar} Kapra,^{ECIL Post} Ranqa Reddy,^Hyderabad Telangana-500062 -.2<l /'/4-/ ((_,,

¶16

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oA.6A5/2023

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Mr.^po uri Manoj Krishna Occupation: Business H. No. 7-24t/269 & 27O Bhavanj Nagar, Kapra, ECIL post Kanga Reddy, Hyderabad r elangana_500062

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P!.^{Sr!, pofluri Lakshmi Tejeswini} uccupation: Doctor H. No. 7-241/269 & 27o Bhavanj Nagar, Kapra, ECIL post Ranga Reddy, Hyderabad r etangana-500062.

¶20

I/s.^{Te]aswi TechnoFab Industnes} iHX 3lJ::.?i,"J,"}::"i,,t",.ul' 14edchat Matkajgiri, iiyderabad r eranagana-500051.

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...,. Defendants.

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Counsel for Applicant Mr. M.R.S. Gopal. Counsel for Defendantsl,2&6 Mr. B. Sanjay Kumar. Defendants 3,4 and 5 Exparte,

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:r ORDER ::

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The Applicant Bank filed the present OA for the recovery of a total sum of Rs.7,33,48,581.92ps (Rs.1,66,41,065 towards A/c No.60374079422 and Rs.5,67,07,516.92ps towards account No. 60412964018) along with interest @14.35o/o per annum from the defendants from date of Application till the date of realisation along with costs and sale of OA schedule assets.

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The averments of applicant banl K as per the oA' briefly' are: Defendant No.1 represented appricant ror sanction "r ,":;:":H,t"r^f ;::f":: //fre,' /t/

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oA.585/2023

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Rs.1,5O,OO,OOO/-^{and applicant sanctioned the same vide letter} dated 31.10.2020^{against security of supply bills, running} account receipts,^{partial/full clalms,security depositsand book} debts, monies^{receivablefrom clients, guarantee for all facilities} except agricultural^{security, deposit of titledeeds/declaration/} confirmation of^{equitable mortgage, MODTof OA 2'd schedule} properties. The loan facllities^{were restructuredat the request} of the defendants.^{Defendants acknowledgedthe sanction letter} and accepted^{the termsand conditions therein Defendant No 1} represented by^{defendant executed demand promissorynote,} deed of hypothecatlon,^{power of attorney in favour of applicant} bank. Defendants^{committeddefault in repayment'Loan} became NPA.^{Accordingly, applicantissuednotices calling back} the debt.^{Since defendants failed to dlscharge the liability'} present OA is filed.

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Mr. B. Sanjay^{Kumar, Advocate,Rled Vakalat on behalf of the} defendants 1,2^{and 6. However,he did not choose to file} written statement.^{Defendants right of flling writtenstatement} was forfeited^{vide docket order dated 06'1t'2024'}

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Applicant^{Bank examinedPavan Kumar Mahto' ChiefManager} as AW-1^{and marked 24 documents through her as Ex' A'1 to} Ex. A.24.

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Contesting^{defendantsfailed to adduce evidenceon their} behalf.^{Accordingly,their right of adducing evidencewas} forfeited^{vide docket order dated01'09'2025'} //.xYti"'-.U,/ⁿ

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oA.68s/2023

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Heard learned counsel for the applicant bank. Defendants,right of advancing arguments forfeited on 27.17.2025. perused the material placed on record.

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Learned counsel appearing for the applicant bank would submit that the defendants not only committed default in repayment of loans but also failed to pursue the case by choosing not to file written statement, adduce evidence and advance arguments in the OA proceedings. Accordingly, applicant bank proved its claim against the defendants unopposed on the strength of Exhibits A.1 to A.24 filed through the evidence affidavit of AW.1. With these submissions, learned counsel prayed for allowing the OA claim in the tnterest of justice.

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B The point that arises for consideration is:_

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Whether the Appticant Bank is enti ed for the OA claim against the Defendants and the OA schedute assets2

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As stated supra, defendants di not pursue the case right from

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the beginning. under such .,..0 or AW.1 coupred *,,n ,n" .".nj',T]::::il5" *:T:T:l A.24 marked on behalf of the applicant bank remains

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uncha|enged and un_rebutted. to 6 are joinry and sev"rarry ,llH;'rli1J:jilT11; the Applicant Bank in the O.A with future interest and costs.

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In the result, the present Original Application No.6g5/2023 is allowed as unaer. - ,44ft^)-().'

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oA.68sl2O23

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defendants^{1 to 6 are jointly and severally} i) liable to^{pay a total sum of 7,33,48,581'92Ps} (Rs.1,66,41,065/-^{plus Rs'5,67,07,516'92Ps)} to the applicant^{bank with future interest} @10.90o/o^{per annum simple from the date of} application^{till the date of realization;} the OA claim^{is secured by way of mortgage/} ii) hypothecation^{of OA schedule properties and} the applicant^{bank is entitled to proceed} against^{the same for recovery of its dues;} iii ) the applicant^{bank is also entitled to proceed} against the^{person and propertiesof the} defendants^{for realization of its dues;and} iv) the applicant^{bank is entitled for the costs'}

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11, The Applicant^{Bank is directed to file Cost Memo within2 weeks} from the date^{of receipt of this Order'}

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t2. Issue Recovery^{Certificate accordingly'} 13. Communicate^{a copy of this orderto the partiesconcernedand} upload on^{officialWeb Portal'}

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(Dictated to the^{steno, signed and pronouncedby me in the opencourt on this the l9'h} day of December,^2025).

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W.*,

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(RAMESHWAR^KOTHE) PRESIDING^OFFICER

Bank of Maharashtra v. M/S Esjay Engineering Industries

Case brief

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Bank of Maharashtra v. M/S Esjay Engineering Industries

Case brief

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