Allowed

Canara Bank v. M/s. Sri Siddhi Garments

DRT26 May 2025OA/93/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the application filed by Canara Bank for recovery of approximately Rs. 26.90 lakhs as an NPA, ruling the respondent firm and proprietor liable to pay with future interest and permitting action against hypothecated movables.

What did the court decide?

Respondents directed to pay Rs.26,90,221.46 with interest; recovery certificate issued against hypothecated movables and properties of respondents.

Canara Bank versus M/s. Sri Siddhi Garments — Banking and Recovery | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE 26TH DAY OF MAY, 2025

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.93 of 2025

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Between:

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Canara Bank, Branch office at Rajanna Sircilla, Telangana state. Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Sri Siddhi Garments, Represented by its^proprietor, VasamLavanya,

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Office at #9-93, Rajeev nagar, Mushtipally, Sircilla - 505 301.

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Also at

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R/o H.No.3-4-66,

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Post office, Sircilla - 505 301.

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2, M rs.VasamLavanya, w/o Rajesh, aged about 35 years,

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occ: business, female,

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R/o H.No.3-4-66,^post office Sircilla - 505 301.

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Also at #9-93, Rajeev nagar, Mushtipally, Sircilta - 505 301.

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Co u nse
For the
ffi'<br>For the EFenolng tfy &S :
r.at'; rJ

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Defendants

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SmtTa ra ng iniPisipati Expa rte

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(oA.No.93/202s)

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ORDER

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The Applicant Bank filed the present oA against Defendants for recovery of a total sum of Rs.26,9O,221.46ps (Rupees Twenty Six Lakhs Ninety Thousand Two Hundred and Twenty One and paise forty Six only) i.e.,

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a) A sum of Rs.13,69,813.g4ps with interest @ 13.30o/o p.a with monthly rests from 06.02.2025 till the date of realization ;

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b) A sum of Rs.13,20,407.62ps with interest @ t2.75o/o p.a wlth monthly rests from 06.02.2025 till the date of realization ;

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and in defaurt for sare of hypothecated movabres as mentioned in the schedule to OA.

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As per the averments in the application, the Applicant Bank states that defendant No.1 is a proprietorship firm represented by defendant no.2 avaired MSE roan of Rs.B.00 rakhs vide retter dated 08.09.2017 and the loan was secured by hypothecation of goods, raw materiars and stocks more fu[y described in the schedure to oA. The defendants also availed term loan of Rs.5.00 lakhs on 02.02.2018 and executed necessary documents. After availing the loan facilities, the defendants faired to compry the terms of sanction,

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hence k classified the account as NpA on 10. h1;"ffi,,": F ll notice dated 03.02.2025. Inspite of ?. 26ilff46 * *

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(OA.No.93/202s)

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several requests and demands, the defendants did not clear the

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outstanding. Hence this OA.

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Defendants called absent and set exparte on 14.05.2025.

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Sri K. Srinu, Manager of the Applicant Bank examined himself as AW.1 and exhibited rerevant documents, which are marked as Ex.A.1 to A.17.

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Heard the Ld. Counsel for the Applicant Bank.

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The point that arise for consideration is whether the Applicant Bank is entitred for the craim made in the oA against the Defendants as prayed for?

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Defendants remained exparte. To substantiate the case of the Applicant Bank, AW.1, officiar of the Appricant Bank was examined and he exhibited relevant documents as Ex.A1 to A,17. In view of the above, I hold that the Applicant Bank has established their claim made in the oA against the Defendants and hence the Appricant Bank is entitled to recover the craim made in the oA with future interest and costs.

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B. In the result, the present OA is allow.ed with costs, as under: The and severally liable to pay to the Appl 26,9O,22L.46ps ( Rupees Twenty a^26ilrYzm Iil W,**rttF#

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(OA.No.93/202s)

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Six Lakhs Nanety Thousand Two Hundred and Twenty One and paise forty Six onty) i.e.,

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a) A sum of Rs.13,69,813.84ps with interest @ 13.30% p.a from 06.02.2025 tilt the date of realization ;

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b) A sum of Rs.13,20,407.62ps with interest @ L2.75o/o p.a from 06.02.2025 till the date of realization ;

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9' The Appricant bank is entiued to proceed against the hypothecated movabres as mentioned in the schedure to oA towards rearization of the debt due;

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The Applicant Bank is also entifled to proceed against the person

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and properties of defendant No.2 and Properties of defendant no.1

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firm towards realization of the debt due.

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The Applicant Bank is entifled to the costs of the OA.

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The Applicant shall file a cost memo within two weeks from the date

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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., transc,bed bv her, corrected, signed and pronounced by me in the open court on lhis_ule^{26'h dayof} {ay,^2025).:

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sd/-
6*w (G. GOPTCHAND)
\ 2tilr1rf,f * PRESIDING OFFICER
odili'ivuEnas"n
&**#

Canara Bank v. M/s. Sri Siddhi Garments

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/s. Sri Siddhi Garments

Case brief

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What did the court decide?

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