Allowed

State Bank of India v. Ms Sri Laxmi Narasimha Traders

DRT8 May 2026OA/199/2026

Case brief

AI extract

What is this about?

The DRT allowed the OA filed by State Bank of India to recover Rs. 39,94,841 with future interest from the proprietors of a loan account, which was classified as NPA and demanded under the SARFAESI Act.

What did the court decide?

Defendants jointly and severally liable to pay Rs. 39,94,841 plus future interest at 11.40% p.a.; entitlement to proceed against hypothecated movables and properties.

State Bank of India versus Ms Sri Laxmi Narasimha Traders — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL - IAT HYDERABAD

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DATED THIS THE OSth DAY OF MAY,2026

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PRESENT: SRI GUMMADI cOPICHAND, PRESIDING OFFICER

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OA. No. 199 OF 2026

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Between :

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State Bank of lndia, l.E. Sarangapur Branch, 2-22, lnduslrial Estate, Sarangapur, Nizamabad, Telangana Represented by its Branch Manager

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Applicant

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VERSUS

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M/s. Sri Laxmi Narasimha Traders,, Represented by its Proprietor, Smt. Chiluka Samyuktha, Sy.No. 16/8, Opp. Bus stand, Jankampet Village, Yedapally Mandal, Nizamabad.

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Smt. Chiluka Samyuktha, Wo. Chiluka Praveen Kumar, Aged about 39 years, Occ : Proprietrix, M/s. Sri Laxmi Narasimha Traders Rio. H. N_o-p-36, Jankampet,

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Defendants

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(oA. No. 199/2025)

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Counsel for the parties :

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For The Applicant M/s. S. Vikramaditya Babu For the Defendant Exparte Reserved on 06.05.2026 Pronounced on 08.05.2026 Upload in website on 12.05.2026

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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.39,94,841 .00 PS. (Rupees Thirty Nine Lakhs Ninety Four Thousand Eight Hundred and Forty One Only) with future interest @11.40% p.a with monthly rests from the date of this application till the date of realization and in default for sale of Hypothecated Movables as mentioned in OA.

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As per the averments in the application, the Applicant Bank states Defendant No.1 is a Proprietorship Firm Represented by its Defendant No. 2 availed Cash Credit Loan of ;^{together with interestand executedAgreement of} iY * ecation dated 30.03.2021 in favor of the 12 ,A$[rilB[t The Defendants renewed and continue the

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(OA. No. 199/2026)

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above mentioned loan facility from time to time and executed necessary loan document 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 25.02.2025 and issued Demand notice on 15.03.2025 under Section 13(2) of the SARFAESI Act, 2002 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 06.05.2026.

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Sri. P. Venkata Vamsi Krishna, Branch Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.'l to A.19.

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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 nt Bank, AW.1, official of the Applicant Bank was d he exhibited relevant documents as Ex.A.1 to &^{f -;.&,.-r%NI the above, I hotd that the Appticant Bankhas} esGbtisleO itqr'ift ctaim made in the OA against the Defendants 1 2 fiAY '026

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tkryry

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(oA. No. 199/2026)

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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.39,94,841 .00 PS. (Rupees Thirty Nine Lakhs Ninety Four Thousand Eight Hundred and Forty One Only) with future interest @11.40% p.a from the date of this application till the date of realization.

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

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The Applicant Bank is entitled to proceed against the person and properties of Defendant No. 2 and properties of Defendant no. 1 Firm 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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icant shall file a cost memo within two weeks from the
of order.
''rf B -U
j 12 ilAY ?n7F *
\J hr.
Ed .L
Wu->e'/

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(OA. No. 199/2026)

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13. lssue Recovery Certificate accordingly.

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14. Communicate a copy of the order to the parties concerned.

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(Dictated to the P A, transcribed by her corrected srgned and pronounced by me in the open court on this the 08'h day of May, 2026)

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(G. GOPTCHAND) PRESIDING OFFICER

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lo
,/

State Bank of India v. Ms Sri Laxmi Narasimha Traders

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ms Sri Laxmi Narasimha Traders

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

All orders in this case

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