Allowed

State Bank of India v. M/S. Laxmi Modern Rice Mills

DRT8 Jul 2026OA/164/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application filed by State Bank of India for recovery of secured debt from the borrower and guarantors who forfeited their right to defend. The court directed payment of principal, future interest, and permission to enforce security. Quality: thin

What did the court decide?

The respondents are jointly and severally liable to pay Rs. 1,08,52,957.00 with future interest and costs. The bank is entitled to proceed against mortgaged/hypothecated property and property of guara

State Bank of India versus M/S. Laxmi Modern Rice Mills — Company and Corporate | DRT (2026)

¶1

!N THE DEBTS RECOVERY TRIBUNAL - I AT HYDERABAD DATED THIS THE OSth DAY OF JULY, 2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA. No. 164 OF 2026

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Between :

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State Bank of lndia, SME Huzurabad Branch H.no.'12-3-90, Near DCMS, Complex, Huzurabad, Karimnagar District - 505 468 Represented by its Branch Manager

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Applicant

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VERSUS

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M/s.Laxmi Modern Rice Mills A Proprietary Concern, Rep: by its ProprietrixSmt. Thanuku Bhagyalaxmi the Defendant No.2 herein, H.No.6-1 3714, Sy. No.71 0/E Molangur X Road, Molangur Village, Shankarpatnam Mandal, Karimnagar District - 505 470

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Smt. Thanuku Bhagyalaxmi, Wo. Sri. T. Narayana, aged about 64 years, Female, Occupation: Business & Proprietor of 1st Defendant. H.No.44, Kothagattu Village, Shankarpatnam Mandal, Karimnagar District - 505 470

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(OA. No. 16412026)

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3. Sri.ThanukuSuresh,
Sio.Sri.T.Narayana, agedabout 49^years,Male,
Occupation:Business,
H.No.4-4,Kothagattu Village,
ShankarpatnamMandal,
KarimnagarDistrict - 505 470		Defendants
Counsel forthe^parties:
For TheApplicant	G.PrabhakarSarma
Forthe Defendants	N.Hari Prasad
Reservedon	07.07.2026
Pronouncedon	08.07.2026
Uploadinwebsiteon	08.07.2026

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ORDER

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The Applicant Bank filed the^{present OA againstDefendants} for recovery of a total sum of Rs.l,08,52,957.00'^{Ps. (Rupees} One Crores Eight Lakhs FiftY Two^{Thousand Nine} H Seven Only) i.e a sum^of -

¶14

til'r-n'zo,t;:";tN= under the cash credit loan account
interest @13.650/o p.a with monthly
l'i , with iutuqq^r"t"^'i1
,.' t'r'"' -i],
i1 ' !; ,:,. _.' /'i ':'i ;!
,^"t,ffi

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(OA. No. 15al2026)

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rests from the date of filing of this application till the date of realization

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(ii) Rs.37,56,525.00 Ps. under the Term loan account with future rate of interest @9.00% p.a with monthly rests from the date of filing of this application till the date of rea lization

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and in default for sale of Mortgaged Property and Hypothecated Movables 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. 'l is a proprietorship firm represented by its Proprietor Defendant no. 2 availed cash credit Loan facility of Rs.70.00 Lakhs with interest @9.50% p.a with monthly rests and executed necessary loan documents such as Agreement of Loan cum Hypothecation dated 21 .10.2022 in favor of the Applicant Bank. The Defendants Term Loan facility of Rs.45.00 Lakhs repayable in 54 equated monthly installments of Rs.83,334/- with interest @9.00ok p.a with monthly rests and executed necessary loan documents such as Letter of arrangement dated 21 .10.2023- in favor of the Applicant Bank. Thd Defendants.--no. 2 and 3 stood as a .r.,..' Gua ra nto r a nd executed Guaia nt6ii'gltgement dated 2t . 1 0.2023 in favor of the Applicantr.Elank. Defendants created Equitable Mortgage linOreftJluylfi26me in Schedule of

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(OA. No. 164/2026)

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property to OA and executed Memorandum of Deposit of Title Deeds dated 31.10.2022 and deposited Sale Deed^dated 3'1.07.2006 in favor of the Applicant Bank. The^Defendants renewed and enhanced the above mentioned loan^{facilitiesfrom} time to time and executed necessary loan documents^{in favor of} the Applicant bank. After availing the loan^{facility, the} defendants failed to comply the terms of^{sanction,hencethe} applicant bank classified the account as NPA^{on 07.09.2025} and issued Demand Notice dated^{10.09.2025under section} 13(2) of the SARFAESI Act, 2002 to the defendants.^{lnspite of} several requests and demands, the^{defendantsdid not clear the} outstanding. Hence this OA.

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Sri. N. Hari Prasad filed Vakalat on behalf of^DefendantsNo 1 to 3 Even after the lapse of 45^{Days WS of DefendantsNo.} 1 to 3 not filed and hence the right^{of filingof WS of Defendants} No. 1 to 3 was forfeited on 29.06.2026.

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Sri. Srikanth Konda, Deputy^{Managerof the ApplicantBank} examined himself as AW.1 and exhibited^{relevantdocuments,} which are marked as Ex.A.1 to A.34.

e Applicant Bank.

ration is whether the APPIicant aim made in the OA against the

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(oA. No. L6412026)

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Defendants no. 1 to 3 did not file WS even after availing sufficient time and hence the right of filing of WS of Defendants No. 1 to 3 was forfeited. To substantiate the case of the Applicant Bank, AW.1, official of the Applicant Bank was examined and he exhibited relevant documents as Ex.A.1 to A.34. 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 to 3 are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.1,08,52,957.00. Ps. (Rupees One Crores Eight Lakhs Fifty Two Thousand Nine Hundred and Fifty Seven Only) i.e a sum of -

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(i) Rs.70,96,432.00 Ps. under the cash credit loan account with future rate of interest @13.65% p.a from thedate of filing of this application till the date of realization

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(ia) Rs.37,56,525.00 Ps. under the Term loan account with future @9.00%^{p.a from the date of filing} of fifr'ftrr," of reatization

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:^{solt['rur g}

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(oA. No. 164/2026)

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v. The Applicant Bank is entitled to^{proceed againstthe Mortgaged} Property and Hypothecated^{Movablesas mentioned in the} Schedule of Property A^and B^{to the OA towardsrealization of} the debt due.

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The Applicant Bank is entitled^{to proceed againstthe person} and properties of Defendants^{no. 2 and} 3^{and propertiesof} Defendant no. 1 firm towards^{realizationof the debtdue.}

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That Applicant Bank is entitled^{to the costs of the OA.}

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The Applicant shall file a^{costmemowithin 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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(Dictated to the P.A., transcribed by her, corrected, signed^{and pronouncedby me in the open courton} this the 08'h day ofJul, 2026)

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sd/-
(G. GOPICHAND)
PRESIDING OFFICER
$$ JjL {fl$
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State Bank of India v. M/S. Laxmi Modern Rice Mills

Case brief

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State Bank of India v. M/S. Laxmi Modern Rice Mills

Case brief

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