Allowed

Canara Bank v. M/S.Sarojini Textiles

DRT9 Apr 2026OA/112/2026

Case brief

AI extract

What is this about?

In this ORS case, Canara Bank sought recovery of approximately Rs. 2.16 Crores from M/s. Sarojini Textiles and its proprietor for defaulted term loans, cash credit, and mortgage facilities. The Tribunal allowed the application, holding the bank entitled to the sum with interest and costs, and authorized proceeding against secured assets and the guarantor.

What did the court decide?

Defendants liable to pay Rs. 2,15,97,294.71 with interest; Recovery Certificate issued; Authority to proceed against secured and other properties granted.

Canara Bank versus M/S.Sarojini Textiles — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL - IAT HYDERABAD DATED THIS THE Ogth DAY OF APRIL, 2026

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PRESENT: SRt cUMMAD! cOptCHAND, PRESID|NG OFFTCER

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OA. No. 112OF 2026

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Between:

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Canara Bank, Main Branch, 8-4-4, Krishna Colony, Station Road, Warangal- 506 002. Telangana State. Represented by its Manager

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Applicant

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VERSUS

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M/s. Sarojini Textiles, Rep. by its Proprietor, Manchala Sarath Kumar Plot No.221, Survey No. 1791/1, Textile Park, Madikonda, Khazipet,

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Warangal - 506 142, Telangana State.

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Kumar,

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Textiles Arya Nagar, -^{503 111}

Defendants

APH 2025

loA.^No.772/20261

Counsel for the parties :

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For The Applicant M.V Kini For the Defendant Exparte Reserved on 06.04.2026 Pronounced on 09.04.2026 Upload in website on 09.04.2026

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ORDER

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The Applicant Bank fired the present oA against Defendants for recovery of a total sum of Rs.2,15,97,294.71 ps. (Rupees Two Crores Nineteen Lakhs Ninety Four Thousand Three Hundred Ninety Two and paise Ninety Nine Only) i.e a sum of-

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(i) Rs.1,56,08,624.68 Ps. in the Term Loan account with future interest @ 10.00% p.a with monthry rests from the date of firing of the application till the date of realization.

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(ii) Rs.6,48,350.58 ps. in the GECL - 1 loan facility with future interest @ 8.85o/o p.a with monthly rests from the date of filing of the application till the date of realization.

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(iii) Rs'25,14,914.15 ps. in the GECL Extension with future ..1 interest @ 8.85o/o p.a with monthly rests from the date of filing of tfre application till the date of realization.

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0 S ApF io2i 2

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(oA. No. LLz/2o261

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(iv) Rs.28,15,405.20 ps. in the OCC toan account with future interest @ 10.75% p.a with monthly rests from the date of filing of the application till the date of realization.

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and in default for sale of Hypothecated Movables and Mortgaged Properties as mentioned in the Schedule of properties A and B 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 its Proprietor Defendant No. 2 availed Term Loan facility of Rs.92,50,000/- and Cash Credit timit of Rs.7,50,000/_ and executed Common Hypothecation Agreement dated 29.03.2019 in favor of the Applicant Bank. The Defendants availed GECL Term Loan facility of Rs.8,50,000/- and executed Supplemental Common Hypothecation Agreement dated 11.06.2020 in favor of the Applicant Bank. The Defendants availed GECL Term Loan 1.0 Extension Term Loan facility of Rs.20.00 and executed Supplemental Common Hypothecation Agreement dated 23.12.2021 in favor of the Applicant Bank. The defendants created Equitable Mortgage morefully mentioned in Schedule B to the oA and executed Memorandum of Deposit of rifle Deeds dated 22.11.2021 and deposited originar sare Deed in favor of the Applicant Bank. The Defendant No. 2 stood as a Guarantor and executed Guarantee Agreement in favor of the Applicant Bank. ,ri; The defendants ':r ' renewed and enhanced the existing facirities ll* ll* from time ,to time and executed Supplemental Common [9 [t., \F"*, \" '

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(oA. No. 11212026)

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Hypothecation Agreement dated 30.05.2023 in favor of the Applicant Bank. After availing the loan facility, the defendants failed to comply the terms of sanction, hence the applicant bank classified the account as NPA on 01.11.2023 and issued Legal notice dated 11,11.2025 to the defendants. lnspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants called absent and set exparte on 06.04.2026.

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Mrs. Vankudothu Anusha, Manager of the Applicant Bank examined herself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.30.

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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 entitled for the claim made in the OA against the Defendants as prayed for?

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exparte. To substantiate the case of official of the Applicant Bank was relevant documents as Ex.A.1 to I hold that the Applicant Bank has in the OA against the Defendants

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(oA. No. 11212020)

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and hence the Applicant Bank is entifled to recover the claim made in the OA with future interest and costs.

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ln the result, the present OA is allowed with costs, as under:

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The Defendants No. 1 and 2 are joinfly and severally liable to pay to the Applicant Bank a total sum of Rs.2,15,g7,294.71 ps. (Rupees Two Crores Nineteen Lakhs Ninety Four Thousand Three Hundred Ninety Two and paise Ninety Nine Only) i.e a sum of-

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(i) Rs.1,56,08,624.68 Ps. in the Term Loan account with future interest @ 10.00o/o p.a from the date of filing of the apprication tiil the date of realization.

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(ii) Rs.6,48,350.68 Ps. in the GECL - 1 loan facility with future interest @8.85o/o p.a from the date of filing of the application tiil the date of realization.

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(iii) Rs.25,14,914.15 ps. in the GECL Extension with future interest @8.85% p.a from the date of filing of the apptication tiil the date of realization.

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fatfi^rF ll* ll" B^g tpl:i ?cz6 \B * '\or'.'; N'l

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Ps. in the OCC loan account with future from the date of filing of the application realization.

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(oA. No. 11212026)

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The Applicant Bank is entifled to proceed against the Hypothecated Movables and Mortgaged properties mentioned in the Schedule of Properties A and B to the OA towards realization of the debt due.

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The Applicant Bank is also entitled to proceed against the person and properties of defendants No. 2 and properties of Defendant No. 1 firm towards realization of the debt due.

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That Applicant Bank is entitled to the costs of the OA.

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The Applicant shall file a cost memo within two weeks from the date of receipt of order.

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13. lssue Recovery Certificate accordingly.

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Communicate a copy of the order to the parties concerned.

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(Oictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open murt on this the 09rh day ofApr, 2026)

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sd/(G. GOPTCHAND) PRESIDING OFFIGER

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di"4w

Canara Bank v. M/S.Sarojini Textiles

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S.Sarojini Textiles

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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