Allowed

Canara Bank v. M/S.Hanuman Powerlooms Industry

DRT8 Jul 2026OA/180/2026

Case brief

AI extract

What is this about?

In this Order Appeal (OA), the Debt Recovery Tribunal allowed the application filed by a banking company to recover dues from a proprietorship firm and its proprietor. The tribunal upheld the claim for term, overdraft, and asset creation loan amounts along with future interest.

What did the court decide?

Joint and several liability of Defendants to pay Rs. 2,48,58,173.59 with future interest; allowed recovery from hypothecated and mortgaged properties; issuance of Recovery Certificate.

Canara Bank versus M/S.Hanuman Powerlooms Industry — Company and Corporate | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL - IAT HYDERABAD DATED THIS THE OSth DAY OF JULY, 2026

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PRESENT: SRI cUMMAD| GOP|CHAND, pREStDtNG OFFIGER

OA. No. 180 OF 2026

Between:

Canara Bank,

Hanumakonda - ll Branch, H.No. 2-5-39, Water Tank Road, Near Naveena Childrens Hospital, Nakkalgutta, Hanumakonda, Warangal District - 506 001, Telangana State

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Represented by its Authorized Officer

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Applicant

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VERSUS

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M/s. Hanuman Powerloom lndustry, Rep. by its Sole Proprietor Sri Deekonda Anjaiah, Plot No.244, Survey No. 1791/1, Textile Park, Madikonda Village, Kazipet Mandal Warangal Urban District, Telangana - 506 142

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,...:"**-.:'.-..

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Sri Deekonda Anjaiah S/o. Sri Deekonda Somanarsaiah fua 70 yrs, Occ: Business, Male R/o. #1-16, Sadireddypalli (v), Kothagudem (M), Kothagudem Dist. - 506135 Cell:8919418906

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(OA. No. 180/2026)

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Counsel for the parties :

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For The Applicant A.V.S.S. Prasad For the Defendants Exparte Reserved on 07.07.2026 Pronounced on 08.07.2026 Upload in website on 08.07.2026

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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.2,48,58,173.59 ps., (Rupees Two Crores Forty Eight Lakhs Fifty Eight Thousand One Hundred and Seventy Three and Fifty Nine paise Only) i.e a sum of-

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(i) Rs.l,86,82,316.87 Ps. under Term Loan account with future interest @10.650/0 p.a with monthly rests from 01.06.2025 till the date of realization;

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(ii) Rs.l9,08,095.72 Ps. under OD Loan account with future interest @11.45% p:g3ylth monthty rests from 01.06.2025 till

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the date of rea

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(oA. No. 180/2026)

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(iii) Rs.4,14,002.83 Ps. under the GECL - I account with future interest @13.65% p.a with monthly rests from 01.06.2025 till the date of realization;

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(iv) Rs.38,53,758.17 Ps. under the GECL - 2 account with future interest @13.65% p.a with monthly rests from 01.06.2025 till the date of realization;

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and in default for sale of Hypothecated Movables^and Mortgaged Property as mentionedⁱⁿ the^{Scheduleof Property A} and B to OA.

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As per the averments in the^{application,the ApplicantBank states} that Defendant No. 1^is a^{ProprietorshipFirm represented by its} Proprietor Defendant no. 2^{availed Term Loan facilityof} Rs.98,31,000/- with interest^{and working capital facility of} Rs.15.00 Lakhs together^{with interestand executedCommon} Hypothecation Agreement^{dated25.03.2019 in favor of the} Applicant Bank. The^{defendants availed GECL-1 loan facility} of Rs.5.00 Lakhs^{with interest and executedCommon} Hypothecation^{Agreement dated 20.06.2020in favor of the} Applicant Bank. The^{defendants availed GECL} -^{2 loan facility} of Rs.32.00 Lakhs^{with in} and executed SuPPlemental dated 06.11.2021^{in favor} Common HYPothecation' of the Applicant^{Bank. T[e} no. 2 being the ProPrietor^of Defendant No. OI E^cJgetqf,t * itable Mortgage^morefullY to OA and executed mentioned

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(oA. No. 180/2026)

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Memorandum of Deposit of Title Deeds dated 07.01.2022ⁱⁿ favor of the Applicant Bank and deposited^{title deeds 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 29.10.2023and} issued Demand notice dated 06.11.2023^{under Section 13(2) of} the SARFAESI Act, 2002 to the^{defendants. lnspiteof several} requests and demands, the^{defendantsdid not clearthe} outstanding. Hence this^OA.

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Defendants called^{absent and set exparteon 07.O7.2026.}

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Mr. B. Madhava^{Reddy,Chief Managerof the Applicant Bank} examined himself as^{AW.1 and exhibited relevant documents,} which are marked as^{Ex.A.1to A.28.}

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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 againstthe} Defendants as PraYed^for?

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exparte. To substantiate^{the caseof the} official of the^{APP|icant Bankwas} examined relevant documents as^{ExA.1 to} old that the APPlicant^Bankhas A.28. the OA against the^Defendants

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(OA. No. 180/2025)

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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.2,48,58,173.59 ps., (Rupees Two Crores Forty Eight Lakhs Fifty Eight Thousand One Hundred and Seventy Three and Fifty Nine paise Only) i.e a sum of -

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(i) Rs.l,86,82,316.87 Ps. under Term Loan account with future interest @10.65% p.a from 01.06.2025 till the date of realization;

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(ii) Rs.19,08,095.72 Ps. under OD Loan account with future interest @11.45% p.a from 01.06.2025 till the date of realization;

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(iii) Rs.4,14,002.83 Ps. under the GECL - | account with future interest @13.65% p.a from 01.06.2025 till the date of realization;

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(iv) Rs.38,53,758.17 Ps. under-the GECL - 2 account with future from 01.06.2025 till the date of realization;

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(oA. No. L$o/2oz6l

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The Applicant Bank is entiiled to proceed against the Hypothecated Movables and Mortgaged Property as mentioned in the schedule of Property 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 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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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 08th day of Jul, 2026)

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sd/-
(G. GOPTCHAND)
PRESIDING OFFICER

Canara Bank v. M/S.Hanuman Powerlooms Industry

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S.Hanuman Powerlooms Industry

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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