Allowed

Union Bank of India v. Mohammed Ali

DRT3 Jun 2026OA/197/2026

Case brief

AI extract

What is this about?

In OA No. 197 of 2026, Debts Recovery Tribunal at Hyderabad allowed Union Bank of India's application for recovery of a vehicle loan against Mohammed Ali. The court found the bank's claim established and granted recovery of the principal, interest, and costs.

What did the court decide?

Ordered recovery of Rs. 22,81,713.76, future interest, proceedings against hypothecated vehicle, and issuance of Recovery Certificate.

Union Bank of India versus Mohammed Ali — Service and Employment | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL - t AT HYDERABAD DATED THIS THE O3Td DAY OF JUNE, 2026

¶2

PRESENT: SRI cUMMADI cOptCHAND, PREStDING OFFTCER

¶3

OA. No. 197 OF 2026

¶4

Between :

¶5

Union Bank of India, Naik's Prudvi Golden Towers, Ground Floor, Vidyanagar, OU Main Road, Hyderabad - 500 044 Represented by its Chief Manager Applicant

¶6

VERSUS

¶7

Mr. Mohammed Ali, S/o. Mohammed Zahooruddin, Aged about 39 years, Occ. Business, R/o. H.No. 18-10-30/3/3, Barkas, Chandraangutta, Bandlaguda, Hyderabad - 500 005 Defendant

¶8

Counsel for the parties :

¶9

For The Applicant K. Srinivasulu For the Defendant Exparte Reserved on 02.06.2026 r,r: Pronounced on^u- 03.06.2026 ffi Upload in website"on .06.2026 _j 0 3 JUII ti,'r

(oA. No. 19712026)

ORDER

The Applicant Bank fired the present oA against Defendant for recovery of a total sum of Rs.22,91,113.76 ps. (Rupees Twenty Two Lakhs Eighty One Thousand Seven Hundred Thirteen and Paise Seventy Six Only) with future rate of interest @9.75o/o p.a with monthly rests from the date of this application till the date of realization and in default for sale of Hypothecated Vehicle as mentioned in the Schedule of Property to OA.

¶15

As per the averments in the application, the Applicant Bank
states that Defendant availed Vehicle loan of Rs.25,00,000/
repayable in 84 equated monthly installments of Rs.41,1g0/ p.m
with interest @10.90% p.a and executed lnterest Agreement
dated 12.01.2024and sanction Letter dated 0g.01.2024 in favor
of the Applicant Bank. The Defendant hypothecated vehicle
morefully mentioned in schedure of property to oA and executed
Hypothecation (Vehicle) Agreement dated 12.01.2024 in favor of
the Applicant bank. After availing the loan facility, the defendant
failed to comply the terms of sanction, hence the applicant bank
classified the account as NpA on 10.09.2025 and issued Legal
Notice dated 15.09.2025 to the defendant. lnspite of several
req
the defendant did not clear the
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¶16

(OA. No. 197l202G)

¶17

Defendant called absent and set exparte on 02.06.2026.

¶18

Sri. Suneel Kumar Kodali, Branch Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 toA.11.

¶19

Heard the Ld. Counsel for the Applicant Bank.

¶20

The point that arise for consideration is whether the Applicant bank is entitled for the claim made in the OA against the Defendant as prayed for?

¶21

¶22

Defendant remained 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 to A.1'1. ln view of the above, I hotd that the Applicant Bank has established their claim made in the oA against the Defendant and hence the Applicant Bank is entifled to recover the craim made in the OA with future interest and costs.

¶23

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

¶24

The Defendant is liable to pay to the Applicant Bank a total sum of Rs.22,81,713.76 Ps. (Rupees Twenty Two Lakhs Eighty One Hundred Thirteen and Paise Seventy Six Or$y) of interest @9.75o/o p.a from the date of this appli tiil of realization. o 3 ,llitt )tw

¶25

(oA. No. 19712026)

¶26

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

¶27

The Applicant Bank is also entitled to proceed against the person and properties of Defendant towards realization of the debt due.

¶28

That Applicant Bank is entitled to the costs of the OA.

¶29

The Applicant shall file a cost memo within two weeks from the date of receipt of order.

¶30

lssue Recovery Certificate accordingly.

¶31

Communicate a copy of the order to the parties concerned.

¶32

(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open court on this the 03rd day of Jun, 2026)

¶33

sd/(G. GOPTCHAND) PRESIDING OFFICER

¶34

ART-r, HYDEfl,,lI,';",

Union Bank of India v. Mohammed Ali

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Mohammed Ali

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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