Allowed

Canara Bank v. M/S Ravvala Textiles

DRT9 Apr 2026OA/117/2026

Case brief

AI extract

What is this about?

The DT allowed Canara Bank²s OA against M/s. Rawala Textiles and Smt. Rawala Tejaswi for recovery of outstanding loans totaling Rs. 2.05 Cr. The court held the bank established its claim and ordered payment with future interest.

What did the court decide?

Defendants jointly and severally ordered to pay Rs. 2,05,27,999.35 with future interest; bank entitled to proceed against hypothecated and mortgaged properties; Recovery Certificate issued.

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

¶1

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

¶2

PRESENT: SRt GUMMADT GOP|CHAND, pREStDtNG OFFICER

¶3

OA. No. 117 OF 2026

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Between ;

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Canara Bank, Hanumakonda - 1 Branch, Warangal Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Rawala Textiles, Rep. by its Proprietor,

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Smt. Rawala Tejaswi Plot No.96, Survey No. 1791/1, Madikonda Textile Park, Madikonda (V), Kazipet (M), Warangal,

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Telangana - 506142.

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Smt. Rawala Tejaswi, D/o. Markandeya, Aged about 33 years, R/o. H.No. 1 5-21 -68t201, Samath Towrs, Balaji Nagar,

¶12

Defendants

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(oA. No. L77 /20261

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Counsel for the parties :

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For The Applicant P. Naga Durga^prasad For the Defendant Exparte Reserved on 06.04.2026 Pronounced on 09.04.2026 Upload in website on 09.04.2026

¶16

ORDER

¶17

¶18

The Appricant Bank fired the present oA against Defendants for recovery of a total sum of Rs.2,05,27,ggg.35 ps. (Rupees Two Crores Five Lakhs Twenty Seven Thousand Eight Hundred Eighty Eight and paise Thirty Five Only) i.e a sum of _ Rs.l,49,97,197.99 ps. in the Term Loan account, Rs.25,54,081.19 ps. in the OD facility, Rs.5,15,423.47 ps. in the GECL - 1 toan facitity and Rs.24,61,185.70 ps. in the GECL _ 1 loan facirity together with future interest @ 1g.ooo/o p.a with monthly rests from the date of filing of the apprication till the date of realization and in defaurt for sare of Hypothecated Movabres and Mortgaged^properties as mentioned in the Schedure of properties A and B to OA.

rO ., 9

(oA. No. 117/2026)

As per the averments in the apprication, the Appricant Bank states that Defendant No. 1 is a proprietorship Firm represented by its Proprietor Defendant No. 2 avaired rerm Loan facirity of Rs.92,50,000t- and OD/OCC of Rs.7,50,000/_ together with future interest @1o.4oo/o p.a with monthry rests and executed common Hypothecation Agreement dated 24.04.2019 in favor of the Appricant Bank. The Defendants avaired GECL Term Loan facirity of Rs.9,50,000/- with future interest @7.90% p.a with monthly rests and executed Supplemental Common Hypothecation Agreement dated 17.06.2020 in favor of the Appricant Bank. The Defendants avaired GECL Term Loan 1.0 Extension Term Loan facirity of Rs.20.00 with future interest @7.50o/o^p.a with monthly rests and executed Supplemental Common Hypothecation Agreement dated 12.11.2021 in favor of the Applicant Bank. The defendants created Equitable Mortgage morefuily mentioned in schedure A to the oA and executed Memorandum of Deposit of Tifle Deeds dated 22.11.2021 and additionar Supprementar Memorandum of Deposit of rifle Deeds dated 30.03.2024 and deposited originar Sare Deed in favor of the Appricant Bank. The defendants renewed and enhanced the existing facirities from time to time and executed supprementar common Hypothecation Agreement dated 09.08.2023 in favor of the Appricant Bank. After avairing tfe roan facirity, the defendants faired to compry the terms of sanitien, hence the applicant bank classified the account as NpA ,'bn 28.02'.2024 ,.: and issued Demand notice dated 07.03.2024 ., ] : .*_. under Section 13(2) of the SARFAEST Acl, 2OO2 to the B9^''i ;-;'; 3

¶23

"^{,",-;a.:,',,,-r, . t'}

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(OA. No. 7L712026l

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defendants. lnspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

¶26

Defendants called absent and set exparte on 06.04.2026.

¶27

Mr. Jakka Nagaraju, chief Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to 4.26.

¶28

Heard the Ld. Counsel for the Applicant Bank.

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6' The point that arise for consideration is whether the Applicant bank is entitled for the craim made in the oA against the Defendants as prayed for?

¶30

¶31

Defendants and remained exparte. To substantiate the case of the Applicant Bank, AW.1 , officiar of the Applicant Bank was examined and he exhibited relevant documents as Ex.A.1 to 4.26. ln view of the above, I hold that the Applicant Bank has established their claim made in the oA against the Defendants and hence the Applicant Bank is entifled to recover the claim made in the OA with future interest and costs.

¶32

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¶33

(OA. No. 11712026)

¶34

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

¶35

The Defendants No. 1 and 2 are joinfly and severally liable to pay to the Applicant Bank a total sum of Rs.2,05,27,ggg.35 ps. (Rupees Two Crores Five Lakhs Twenty Seven Thousand Eight Hundred Eighty Eight and paise Thifi Five Onty) i.e a sum of - Rs.1,49,97,i97.99 ps. in the Term Loan account, Rs.25,54,081.19 Ps. in the OD facitity, Rs.5,15,423.47 ps. in the GECL - 1 loan facility and Rs.24,61,195.70 ps. in the GECL _ 1 loan facilfty together with future interest @ lg.ooyo p.a from the date of filing of the application till the date of realization.

¶36

¶37

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.

¶38

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

¶39

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

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1,'o '.. ,.. - --.;;;*:

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(oA. No. 1ul2026)

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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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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, correcred, signed and pronounced by me in the open court on this the 09rh day of Apr, 2026)

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sd/-

¶47

(G. eoPrcHAND) PRESIDING OFFICER

¶48

ffi"w*

¶49

A*r?ceffiar

¶50

ORTJ, HYDERABAD.

Canara Bank v. M/S Ravvala Textiles

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S Ravvala Textiles

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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