Allowed

Canara Bank v. Bharath Power Looms Industry

DRT5 May 2026OA/120/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Originating Application filed by Canara Bank for recovery of dues from borrowers, holding the bank established its claim under the SARFAESI Act and ordering the release of a recovery certificate with interest.

What did the court decide?

Recovery of Rs. 1,92,65,281.17 with future interest; issuance of Recovery Certificate; authorization to proceed against hypothecated and mortgaged properties.

Canara Bank versus Bharath Power Looms Industry — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL - IAT HYDERABAD DATED THIS THE Osth DAY OF MAY, 2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA. No. 120 OF 2026

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Between :

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Canara Bank, Hanamkonda - ll Branch, H.No.2-5-39, Water Tank Road, Nakkalgutta, Hanamkonda, Warangal - 506 001. T.S Represented by its Senior Manager

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Applicant

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VERSUS

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M/s. Bharath Powerlooms lndustry,

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Rep. by its Proprietor,

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Smt. Macha Veeranna,

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S/o. Ramachandraiah,

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Rio. Plot No. 135, Sy No. 1791/1,

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Power Loom Park, Kakatiya Textile Park, 450.0 Sq Mtrs at

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zipet (M),

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/6,^ward$alU ;^r5uRynzn I &r9

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i t i

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(oA. No. 120/2026)

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2. Smt. MachaVeeranna,
S/o.Ramachandraiah,
Aged about45 years, Occ.Business
R/o.4-16,Kuravi (V&M),
Mahabubabad,
WarangalDistrict,
T.S-506105.		Defendants
Counselfortheparties.
ForTheApplicant	Sri. K.V Nage	swaraRao
FortheDefendant	Exparte
Reservedon	24.04.2026
Pronouncedon	05.05.2026
Uploadinwebsiteon	06.05.2026

¶19

ORDER

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The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.1,92,65,281.17 Ps. (Rupees One Crores Ninety Two Lakhs Sixty Five Thousand Two Hundred Eighty One and Paise Seventeen Only) i.e a sum of -

¶21

t.t. .(.i):, Rs.1,62,82,018.26. Ps. being the Term loan account with
- -J i- \ .
d'
'il; futuH$krest @ 10.65% p.a with monthly rests and also overdue
&-
,aT interesl @%p.a compounded monthly from the date of this
!, : u0 I 5 I l|aiiolir ' rr';531,"rt,tltirr't'" date of reatization.
rrt
2
3fu -"r,+t#
Qfu*,*',rr'S
S;m,'-i)
lt&

¶22

(oA. No. 120/2026)

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(ii) Rs.20,80,080.29 Ps. being the Cash Credit account with future interesl @11.45%o p.a with monthly rests and also overdue interest @2o/op.a compounded monthly from the date of this application till the date of realization.

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(iii) Rs.79,483.13 Ps. being the GECL account with future interest @ 13.65% p.a with monthly rests and also overdue interest @2%p.a compounded monthly from the date of this application till the date of realization.

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(iv) Rs.8,23,699.49 Ps. being the GECL account with future interest @ 13.650/" p.a with monthly rests and also overdue interest @2o/op.a compounded monthly from the date of this application till the date of realization.

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and in default for sale of Hypothecated Movables and Mortgaged Property as mentioned in the Schedule of Property 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.98,31 ,0001 and Cash Credit facility of Rs.15.00 Lakhs and ../' ... _. .t-':, ,:.-; exeQ!,tqd \i:1j.. .:_Composite Hypothecation Agreement dated 10.02.2020 oil^{taVrii::otithe Applicant Bank. The defendants availed cECL} P {f}citity^:%itt Rs.2.00 Lakhs and executed Common * 05 L{h^{Agreementdated 20.06.2020 in favor of the} g r{1 eq,s Qfo-,*,r,-.r,rl'Es;ffitg""lH

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(oA. No. 120/202 6)

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Applicant Bank. The defendants availed GECL^{facility of} Rs.6,50,000i- and executed Demand^Promissory Note^dated 20.12.2021 in favor of the Applicant Bank.^{The Defendants} created Equitable Mortgage morefully^{mentionedin ScheduleB} to the OA and executed Agreement to Mortgage^dated 10.01 .2020 in favor of the Applicant Bank and^Defendants deposited Original Sale deed dated⁰¹ .03.2023^{in favorof the} Applicant Bank. After availing the loan^facility, the^defendants failed to comply the terms of sanction, hence the^{applicantbank} classified the account as NPA and issued Demand^{notice dated} 06j1.2023 under Section 13(2) of the SARFAESI^{Act, 2002 and} to the defendants. lnspite of several requests^{and demands,the} defendants did not clear the outstanding. Hence this^OA.

¶31

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Defendants called absent and set exparte on 24.04.2026.

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Sri. Srinivas Devasoth, Senior Manager of the Applicant^Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.'l lo 4.22.

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Heard the Ld. Counsel for the Applicant Bank.

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point that arise for consideration is whether the Applicant is entitled for the claim made in the OA against the -'.;:4-:':$qqk r'a:.$.i "iflh nts as prayed for? d\ h,l^'r,

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remained exparte. To substantiate the case of the * ank, 4W.1, official of the Applicant Bank was 11 5^ul'APPlicar*

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(OA. No. 12012026)

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examined and he exhibited relevant documents as Ex.A.1 to 4.22. 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 entitled 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.l,92,55,281.17 Ps. (Rupees One Crores Ninety Two Lakhs Sixty Five Thousand Two Hundred Eighty One and Paise Seventeen Only) i.e a sum of -

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(i) Rs.1,62,82,018.26. Ps. being the Term loan account with future interest @ 10.65% p.a from the date of this application till the date of realization.

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(ai) Rs.20,80,080.29 Ps. being the Cash Credit account with future interesl @11.45o/o p.a from the date of this application till the date of realization.

¶43

(iii) Rs.79,483.13 Ps. being the GECL account with future
13.6s% p.a from the date of this application till the
4fr1#H zation.
* kslI5untml6 *
g ^s
W;WP

¶44

(OA. No. 120/202 5)

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(iv) Rs.8,23,699.49 Ps. being the GECL account with future interest @ 13.65% p.a from the date of this application till the date of realization.

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

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'10. 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.

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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

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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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(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open court on this the 05th day of May,2026)

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ffi"<br>* o5uAtmrs :
W,.'#

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sd/-
(G. GOPTCHAND)
PRESIDING OFFICER

Canara Bank v. Bharath Power Looms Industry

Case brief

What is this about?

What did the court decide?

Canara Bank v. Bharath Power Looms Industry

Case brief

What is this about?

What did the court decide?

What the court decided

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