Allowed

City Union Bank Limited v. M/S Andela Textiles Private Limited

DRT20 Mar 2025OA/72/2024

Case brief

AI extract

What is this about?

The DRT-II at Hyderabad allowed the bank's Original Application under Section 19 of the RDB Act 1993. Since the defendants failed to file written statements or adduce evidence, the bank's Evidence Affidavit remained unchallenged. The court held all defendants jointly and severally liable for the principal, future interest, and costs, and granted proceedings against mortgage assets.

What did the court decide?

Defendants 1 to 6 directed to pay total sum of Rs.13,26,77,730/- along with future interest @11% p.a. simple; recovery certificate to be issued; applicant entitled to proceed against schedule assets.

City Union Bank Limited versus M/S Andela Textiles Private… — Banking and Recovery | DRT (2025)

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IN THE^{DEBTSRECOVERYTRIBUNAL-IIAT HYDEMBAD} DATED^{THIS THE2OTH DAYOF MARCH' 2025}

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PRESENT:^{sH. RAMEsHwARf<ff1%tir?.tJfl'LLB' (Hons')' M'A'}

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ORIGINAL^{APPUCATIONNO: 72 OF 2024}

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Between:

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Citv Union^{Bank Ltd',} CuddaPah^Branch ' Rep. bY^{its Branch Manager'}

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... ,ApPlica^nt.

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And

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M/s Andela^{TextllesPvt' Ltd''} ReP bY^{its ManagingDirector} sri Andela^DhanunjaYa, 6ree^{veerabnadraShoPPingMall} No.18/530,^{BKM Street'} KadaPa -^516001'

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Also at:M/s.Andela^{TextilesPvt Ltd} ' D.No.42l109,^{6 to 421109- 10'} r.lCo coionY,^{Revenue t//.ard 42'} KadaPa -⁵¹⁶⁰⁰² '

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Mr.Andela^Dhanunjaya, s/o.A.Veerabhadraiah,^{Aged Major'} lzJzzz,^{Povi sreeramulustreet'} Kadapa -^516001'

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-' Mrs.Andela wlo.enO"tu^Sreedevi, Dhanunjaya, Aged Major' 7;1232,^{Pofii Sreeramulu Street'} KadaPa -^516001'

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Mr.Andela^PawanKumar, S/o.Andela^{DhanunjaYa, Aged Major'} 72/232,^{Polli Sreeramulu Street,} Kadapa^_ s16oo1.

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M r.Andela Veerendra. j ?iu", i,Ull?lii lf ,".X Jl " " i{ Kaoapa - - - - 516001.

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I4s.Andela Aiswarva. 1]i2,1?:?&,?i',:tililt;i'ilJ," Kaoapa - 516001.

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j""

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.... Defendants

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Counsel for the Applicant : Ms.Ch. Laxmi Chaya Counsel for Defendants : No representation

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ORDER

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The Applicant Bank filed the present OA u/s 19 of The Recovery of Debts & Bankruptcy Act, 1993 for recovery of a total sum of Rs.73,26,7 t,t3o/- (i.e., a sum of Rs.4,36,33,698/- from defendants 1 to 6 under OLCC Limit with subsequent interest @ 13.50o/o p.a. with monthly rests, a sum of Rs.7g,22,O3g/_ + Rs.tg,34,325/- from defendants 2 and 3 under OSL Term Loan A/c. Nos.5018120800504012 & 5018120800504013 with subsequent interest @ 73.25o/o p.a. with monthly rests, a sum of Rs.3,94,64,268/- from defendants 1 to 6 under OSL Term Loan account of 1"t defendant with subsequent interest @ 74-25o/o p.a., with monthly rests a sum of Rs.3,21,53,239l_ from defendants 1to 4 under Covid Crisis Credit (ECLGS_ Regular Facility) with subsequent interesl 612.75o7o p.a. with monthly rests and a sum of Rs.1,45,63, 561/- from defendants 1 to 4 under OSL Special Loan account of 1st defendant with subsequent interest @ 14.75o/o p.a. with monthly rests) from the respective defendants joinuy and severally from the date of OA till the date of realisation along with costs and sale OA schedu le assets. flwr,<<1 //r/'".g'u-

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oa.7212OZ4

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The averments of applicant^{bank as per the OA, briefly, are that} 1't defendant private company^{representedby its Managing} Director 2nd defendant, availed^{varlous loans i.e.,OLCCLimit,} OSL Term Loan, Covid^{Crisls Credit(EcLcs-Regular Facility)and} OSL Special Limit^{from the appllcant bank. Defendants 2 and 3} together and defendants 3 and^{2 togetheravailedOSLterm} loans of Rs.150 lakhs each.^{Defendants 2 to 6 are the} guarantors to the loan availed by 1sr defendant^{and defendants} 2 to 4 created mortgage over^{OA schedule-B properties by} deposit of original title deeds both for^{the loans availed by} defendant No.1 as well as defendants^{2 and 3 and 3 and 2} respectively. Due to default in^{repayment, the 1't defendant's} loan accounts have become NPAS by^{22.04.2022and} defendants 2 and 3 accounts^{havebecome NPAs by} 26.04.202i,. Except executing revival^{letters-cum-acknowledge-} ment of debt on 04.0!.2022, defendants^{did not clear the dues.} The securitisation measures initlated by the^{applicant bank are} under challenge vide SA.461/2023. Defendants^deposited Rs.1,35,00,000/- in compliance of a conditional^{order dated} 03.11.2023^passed by the DRT-2^{ln the SA proceedingsand the} same has been appropriated to the loan accounts.^{The SA is} pending adjudication.

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Defendants entered appearance through their counsel^K Kranthi Kumar, but they did not choose to file^written statement. Accordingly, defendants right of filing^written statement has been forfeited vide docket order^dated tt.tt.2024.

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Applicant Bank examined S V V N D Vinod, Branch Manager AS AW-1 and marked 61 documents throug h him as Ex.A.1 to Ex.A.61. we

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0,A.7212024

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Defendants right of adducing evidence was forfeited for nonrepresentation vide docket order dated 79.02.2025.

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Heard the Learned counsel for the applicant bank. Defendants' right of advancing arguments forfeited on 05.03.2025. 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 OA claim against the Defendants and OA schedule assets?

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According to the learned counsel for the applicant, after availing loan facilities, the defendants committed default in repayment despite notice. Hence applicant bank is entitled to the OA claim considering the documents exhibited as Exs.A.1 to A.61 through AW.1 and the recitals therein.

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As stated supra, though defendants entered appearance through their counsel, they did not choose to file^written statement, adduce evldence or advance arguments. Under^such circumstances, the Evidence Affidavit of AW.1 coupled with^the recitals in Exs. A.1 to 4.61 marked on behalf of the applicant bank remains unchallenged and un-rebutted. Hence, I^{hold that} the defendants 1to 6 are 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 Appllcation^No.7212024is allowed as under:^-

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i) Defendants 1 to 6 are^jointly and severally liable to pay a total sum^of Rs.13,26,77,7301- i.e., the defendants 1to⁶ ,,.n ,^n$\v'wt\1 4

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oa.7212024

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are^jointly and severally liable to^pay a sum of Rs.4,36,33,698/- under OLCC Limit & Rs.3,84,64,26a/- under OSL Term Loan, the defendants 2 and 3 are^jointly and severally liable to pay a sum of Rs.19,22,039/-⁺ Rs.19,34,325/- under OSL Term Loan A/c. N os. s018120800504012 and 5018120800504013 and the defendants 1to 4 are^jointly and severally liable to^pay a sum of Rs.3,21,53,239/- under Covid Crisis Credit( ECLGS-Regular Facility) & Rs.1,45,63,56U- under OSL Special Loan respectively to the applicant bank along with future interest @11% 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 hypothecation/mortgage of assets described in the schedules annexed to the OA and applicant bank is entitled to^proceed against the same for realization of its dues; and

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iii) the applicant bank is also entitled to^proceed against the person and^properties of defendants 1to 6 in respect of OLCC, OSL Term loan accounts, defendants 2 and 3 in respect of OSL Term loan accounts, defendants 1 and 4 in respect of ECLGS and OSL Term Loan accounts respectively for realisation of dues uryjg; the respective heads; and //l*>-^ +, '/^1tY'

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L-.'

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oA.7212024

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iii) the applicant bank^{is entitledfor the costs.}

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The Applicant Bank is directed^{to file CostMemowithin2 weeks} from the date of receipt of^{this Order.}

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L2, Issue Recovery Certificate^accordingly'

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Communicate a copy^of this^{orderto the partiesconcernedand} upload in Web Portal.

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(Dictated to the steno, siSned and^{pronouncedby me in the open courton this the20th} day of March, 2025.)

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M^rgt5 /^/.,, -,o, 1fuo(esHwnR^KorHE) PRESIDING OFFICER

City Union Bank Limited v. M/S Andela Textiles Private Limited

Case brief

What is this about?

What did the court decide?

City Union Bank Limited v. M/S Andela Textiles Private Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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