Allowed

Canara Bank v. Sri B. Phani Sriram

DRT11 Feb 2026OA/184/2025

Case brief

AI extract

What is this about?

In OA No. 184 of 2025, the Debts Recovery Tribunal allowed Canara Bank's application for recovery of overdue loans from three defendants. Discarding the non-appearance of Defendant No. 3 as a forfeiture of their right to file a written statement, the court held the bank's claim established and ordered joint and several liability with interest.

What did the court decide?

Defendants directed to jointly and severally pay Rs. 1,67,46,392.00 plus future interest at 10.55% p.a., costs awarded, and recovery certificate issued.

Canara Bank versus Sri B. Phani Sriram — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL _ IAT HYDERABAD DATED THIS THE 1lth DAY OF FEBRUARY,2026

¶2

PRESENT: SRI cUMMAD| cOptCHAND, PRESIDING OFFTCER

¶3

OA. No. 184OF 2025

¶4

Between :

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Canara Bank, Chikkadapally Branch, RTC Cross Road, Chikkadpally, Hyderabad - 500 020 Represented by its Senior Manager

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Applicant

¶7

VERSUS

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Sri. B. Phani Sriram, S/o Sri B. Nageswar Rao, Aged 42 years, Occ : Business/ Service. H.No. 8-2-693 l2l3tct\t 1, Mithila Nagar, Road No. 12, Khairatabad, Hyderabad

¶9

Telangana - 500 034

¶10

Smt. BoddetiSirisha,

¶11

Wo. Sri. B. Phani Sriram,

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Aged 36 years, Occ : Business/ Service. H.No. 8-2-693 lzl3tct\t 1,

¶13

Mithila Nagar, Road No. 12, Khairatabad, Hyderabad Telangana - 500 034

¶14

,',,"f*l d_t,<br>i'; t.,0 .' :1'oX. 11 FEB zw \ *
- ri,
' ,.g,fP

¶15

(oA. No. 184/202s)

¶16

3.M/s.Beccun lnfrastructuresLtd,
Represented by itsManagingDirector, SriPrashanth KumarPuram, fuaMajor,Occ Business,& Director SriRatanPrasad, tua-Major
102,ModelHouse,
Punjagutta,Hyderabad-500 082	Defendants
Counsel fortheparties.
ForTheApplicant	Sri.A.V.S.S.Prasad
FortheDefendantsNo.1 and2	Exparte
Forthe DefendantNo.3	ShriB.NaveenKumar
Reservedon	06.02.2026
Pronouncedon	11.02.2026
Uploadinwebsiteon	11.02.2026

¶17

ORDER

¶18

The Applicant Bank filed the present OA against Defendants No. 1 and 2 for recovery of a total sum of Rs.1,67,46,392.001(Rupees One Crore Sixty Seven Lakhs Forty Six Thousand Three Hundred and Eighty Two Only) i.e a sum of Ps. being Loan AJc No. 160001112515 and

¶19

,ffi,ag being the Loan A,/c no. 160001 172562 CD 2

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(OA. No. 184/2025)

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together with future interest @ 10.55% p.a with monthly rests from the date of filing of OA till the date of realization and in default for sale of Mortgaged Properties as mentioned in the Schedule of Property of A and B to OA.

¶22

As per the averments in the application, the Applicant Bank states that Defendant No. 1 and 2 availed Housing Loan Facillty of Rs.86,13,000/- repayable in 348 equated monthly installments of Rs.67,3041 and executed Housing Loan Agreement dated 21.10.2022 in favor of the Applicant Bank. The defendant no. 1 and 2 created equitable mortgage morefully mentioned in Schedule of Property A to the OA and deposited Original Agreement of Sale dated 18.10.2022 in favor of the Applicant Bank. The Defendants No. 1 to 3 executed Tripartite Agreement dated 21 .10.2022 to formalize the terms of disbursing the housing loan and security for the same. The Defendant No. 1 and 2 availed Housing Loan Facility of Rs.93,60,000/- repayable in 348 equated monthly installments of Rs.73,141l- and executed Housing Loan Agreement dated 21.10.2022 in favor of the Applicant Bank. The defendant no. 1 and 2 created equitable mortgage morefully mentioned in Schedule of Property B to the OA and deposited Original Agreement of Sale dated 18.10.2022 in favor of the Applicant Bank. The Defendants No. 1 to 3 executed Tripartite Agreement dated 21 .10.2022 to formalize the the housing loan and security for the same. acility, the defendants failed to comply the of the applicant bank classified the account *li 11 -it F,l'

¶23

(oA. No. 18al202s)

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as NPA on 23.11.2024 and issued Demand notice dated 28.11.2024 under section 13(2) of the SARFAESI Act, 2002, to the defendants and Legal Notice dated 24.03.2025 to the Defendants. The Applicant Bank also imitated SARFAESI proceedings against the Schedule properties and issued various notices to the Defendants. lnspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

¶25

¶26

Shri B. Naveen Kumar filed Vakalat on behalf of Defendant No. 3. Even after the lapse of 45 Days WS of Defendant No.3 not filed and hence the right of filing of WS of Defendant No. 3 was forfeited on 21.08.2025. Defendants No. 1 and 2 called absent and set exparte on 17.07.2025.

¶27

Sri. Banoth Manthu, Senior Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A..17.

¶28

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?

¶30

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.1

(oA. No. 184/202s)

Defendant no. 3 did not file his ws even after availing sufficient time and hence the right of filing of WS of Defendant No. 3 was forfeited. Defendants No. 1 and 2 called absent and set exparte. 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 lo A.11 . 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.

¶36

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

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The Defendants No. 1 to 3 are joinfly and severally liable to pay to the Applicant Bank a total sum of of Rs.1,67,46,3g2.001_ (Rupees One Crore Sixty Seven Lakhs Forty Six Thousand Three Hundred and Eighty Two Only) i.e a sum of Rs.79,51,491.00 Ps. being Loan tuc No. 160001172S7S and Rs.87,94,891.00 Ps. being the Loan A./c no. 160001172562 together with future interest @ lo.ssyo p.a from the date of filing of OA till the date of realization.

¶38

¶39

The Applicant Bank is entitled to proceed against the Mortgaged Properties as mentioned in the Schedule of Property A and B to the/f:f^{^&'u$} on ofthe debt due. r?^11FEgfrlE Q'dl

¶40

(oA. No. 184/202s)

¶41

The Applicant Bank is also entifled to proceed against the person and properties of defendants No. 1 and 2 and properties of Defendant No. 3 Firm towards realization of the debt due.

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That Applicant Bank is entiiled 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 murt on this the 11ih day of Feb, 2026)

¶47

sd/(G. GOPTCHAND) PRESIDING OFFICER

¶48

dv^ffi

¶49

ir:i '!, ii''/B;RABAD'

¶50

Canara Bank v. Sri B. Phani Sriram

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri B. Phani Sriram

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

Coram

Case details

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