Allowed

Canara Bank v. M/S Sindhu Textiles

DRT4 May 2026OA/160/2026

Case brief

AI extract

What is this about?

The Tribunal allowed an application filed by Canara Bank for recovery of nearly Rs.2.19 Cr towards outstanding loans, demand deposits, and interest against the proprietor firm M/s. Sindhu Textiles and its proprietor, Smt. Vengala Sunitha, who failed to pay dues despite notices.

What did the court decide?

Defendants jointly and severally liable to pay Rs.2,19,29,855.70 plus future interest. Recovery Certificate issued. Application for costs allowed.

Canara Bank versus M/S Sindhu Textiles — Company and Corporate | DRT (2026)

¶1

IN THE DEBTS RECOVERY^TRIBUNAL -^{IAT HYDERABAD}

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DATED THIS THE O4th DAY^{OF MAY, 2026}

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PRESENT: SRI GUMMADI GOPICHAND,^{PRESIDINGOFFIcER}

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OA. No.160 OF 2026

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Between:

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Canara Bank, Plot No. A 2/1, Balasamudram Main Road, Hanamkonda, Warangal, Telangana - 506 001

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Represented by its Authorized Signatory

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Applicant

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VERSUS

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M/s. Sindhu Textiles,

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Rep. by its Proprietor

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Smt. Vengala Sunitha,

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W/o. Sri. Ashok,

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Aged about 42years, Occ. Business, H.No. 8-4-368/43 and A4lB-818223,

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Erragadda, Metro Police.

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Janapriya, Balanagar,

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K.V. Ranga Reddy District - 500 01 8.

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Also at -

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Factory Plot No.219,

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J v\Fr.fns.qt,TEFns 506142
P^n -".J
Q,mqry

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(oA. No. 1s9l202 6)

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Also at -

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Smt. Vengala Sunitha, R/o. 301, Ploy No. 55, Sunrise Residency, Kalyan Nagar, S.R. Nagar, Hyderabad - 500 038.

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Smt. Vengala Sunitha, Proprietor M/s. Sindhu Textiles, W/o. Sri. Ashok, Aged about 42years, Occ. Business, H.No. 8-4-368/43 and A4lB-818223, Erragadda, Metro Police, Janapriya, Balanagar, K.V. Ranga Reddy District - 500 018

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Also at -

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Factory Plot No.219, Survey No.^'1791/1 , Madikonda Village, Kazipet Mandal, Hanamkonda District, Warangal, Telangana - 506 142

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Also at -

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Smt. Vengala Sunitha, R/o. 301, Ploy No. 55,

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ll {^{ulv tnrs}

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(oA. No. 1s912026)

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Counsel for the^parties :

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For The Applicant M/s Chavan & Associates Law Firm For the Defendant Exparte Reserved on 21.04.2026 Pronounced on 04.05.2026 Upload in website on 06.05.2026

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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.2,19,29,855.7 Ps. (Rupees Two Crores Nineteen Lakhs Twenty Nine Thousand Eight Hundred Fifty Five and Paise Seven Only) i.e a sum of -

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(i) Rs.1,55,78,302.43 Ps. under Term Loan account with future interest @10 00% p.a with monthly rests from the date of flling of this application till the date of realization;

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(ii) Rs.6,60,883.83 Ps. under GECL account with future interest @8.85%^{p.a with monthly rests from the date of filingof this} application till the date of realization;

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5,40,624.04 Ps. under GECL 1.0 Extension accou nt with rest @8.85% p.a with monthly rests from the date of f,f 1{\application^{till the date of realization;} * ttI wt

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(OA. No. 1s9l202 6)

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(iv) Rs.31,50,045.40 Ps. under OD/OCC Loan account with interest @10.50% p.a with monthly rests from the date of filing of this application till the date of realization,

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and in default for sale of Mortgaged Property as mentioned in the Schedule of Property 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/- repayable in 72 monthly installments of Rs.1,29,000/- p.m with interest @10.40% p.a with monthly rests and working capital facility of Rs.7,50,000/- together with [email protected]% p.a with monthlyrests and executed Common Hypothecation Agreement dated 29.03.2019 in favor of the Applicant Bank. The defendants availed GECL facility of Rs.8,50,000/- with interest @7.50% p.a with monthly rests and executed Supplemental Common Hypothecation Agreement dated 16.06.2020 in favor of the Applicant Bank. The defendants availed GECL 1.0 Extension facility of Rs.20,00,000/- with interest @7.50% p.a with monthly rests and executed Supplemental Common Hypothecation Agreement dated 12. 11.2021 in favor of the Applicant Bank. dant no. 2 being the Proprietor of Defendant No. 1 ffi quitable Mortgage morefully mentioned in Schedule k {,i+ . OT to OA and executed Memorandum of Deposit of 4 J^g4unvm* ; qh--ry

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(oA. No. 1s9l2026)

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Title Deeds dated 22.11.2021 in favor of the Applicant Bank and deposited Sale deeds dated 29.06.2021 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 29.10.2023 and issued Legal notice dated 09.11 .2024 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 21 .04.2026.

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Sri. Nagaraju Jakka, Chief Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A. 1 to A.41.

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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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Defendants remained exparte. To substantiate the case of the Applicant Bank, AW.'l , official of the Applicant Bank was

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mined and he exhibited relevant documents as Ex.A.1 to ew of the above, I hold that the Applicant Bank has r claim made in the OA against the Defendants j o 4 iilAY^{lor^ *} HT ,9.a

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(OA. No. 159/2026)

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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^jointly and severally liable to pay to the Applicant Bank a total sum of Rs.2,19,29,855.7 Ps. (Rupees Two Crores Nineteen Lakhs Twenty Nine Thousand Eight Hundred Fifty Five and Paise Seven Only) i.e a sum of -

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(i) Rs.1,55,78,302.43 Ps. under Term Loan account with future interest @10.00o/o p.a from the date of filing of this application till the date of realization;

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(ii) Rs.6,60,883.83 Ps. under GECL account with future interest @8.85%^{p.a from the date of filing of this application till the} date of realization;

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(iii) Rs.25,40,624.04 Ps. under GECL 1 .0 Extension account with future interest @8.85% p.a from the date of filing of this application till the date of realization;

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31,50,045.40 Ps. under OD/OCC Loan account with
K** .50% p.a from the date of filing of this application
lF
&itn" o"tLNrreatization;
J o4 uqv,nm *
11L :
Qe,**sry

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(oA. No. 1s9l2026)

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The Applicant Bank is entitled to proceed against the Mortgaged Property as mentioned in the Schedule of Property to the OA towards realization of the debt due

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The Applicant Bank is also entitled to proceed against the properties of Defendant No. 1 firm and person and properties of Defendant No. 2 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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(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open court on this the O4h day of l,4ay, 2026)

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Canara Bank v. M/S Sindhu Textiles

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S Sindhu 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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