Allowed

Canara Bank v. M/S. Indian Rice Depot

DRT12 Mar 2026OA/7/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application for recovery of a loan amount of Rs. 22,75,137/- including interest. The bank established its case, and the court directed instant payment with recovery proceedings against hypothecated properties.

What did the court decide?

Defendants jointly and severally liable to pay Rs. 22,75,137/- plus future interest; bank entitled to proceed against hypothecated property for realisation.

Canara Bank versus M/S. Indian Rice Depot — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY^{TRIBUNAL-I AT HYDERABAD} DATED THIS THE 12TH DAY^{OF MARCH, 2026}

¶2

PRESENT: SRI GUMMADI GOPICHAND,^{PRESIDING OFFICER}

¶3

OA.No.7 ol2026

¶4

Between:

¶5

Canara Bank, Branch office at #9-4-76/2, Saleem Masood Bhaktawarguda, Toli Chowki Branch, TS- 500 008.

¶6

Represented by its Manager

¶7

Applicant

¶8

VERSUS

¶9

M/s. Indian Rice Depot, Rep by its Proprietor Sri Intikhab Ahmed, B-l-4/ t7 0 / C, Samatha colony, 7 Tombs, Tolichowki, Shaikpet, Hyderabad - 500 008.

¶10

Mr. Intikhab Ahmed, 8-L-4/ 17 0 / C, Samatha colony, 7 Tombs, Tolichowki, Shaikpet, Hyderabad - 500 008. Defendants

¶11

Counsel for the Parties:

¶12

For the Applicant Sri Daram Srinivasulu
Reserved on 10.03.2026
Pronounced on h..l, t2.o3.2026
Uploaded in websitp'on ,P$ 2.03.2026
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¶13

(oA.No.7 of 20261

¶14

ORDER

¶15

The Applicant Bank filed the present OA against Defendants for recovery of a total sum of R*22,75[37 /- (Rupees Twenty Two Lakhs seventy Five Thousand one Hundred and rhirty seven

¶16

only) with future interest @ 10.90o/o p.a from date of filing of OA till the date of realization and in default for sale of hypothecated property as mentioned in the schedule to OA.

¶17

As per the averments in the application, the Applicant Bank states that defendant no.1 is a sole proprietorship concern represented by defendant no.2 who is both borrower and guarantor availed cash credit loan of 24.00 lakhs and executed necessary loan documents. Defendant no.1 executed deed of hypothecation and hypothecated the stocks in favour of 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 11.08.202s, L7.09.2025 and issued legal notice dated L7.10.2025. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this oA.

¶18

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¶19

(OA.No.7 of 2026)

¶20

Ms. S. Nahida Akhtar, Manager of the Applicant Bank examined herself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.17.

¶21

Heard the Ld. Counsel for the Applicant Bank.

¶22

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?

¶23

Defendants 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.A1 to A.17. In 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.

¶24

In the result, the present OA is allowed with costs, as under: The Defendants are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.22,75,1371- (Rupees Twenty Two Lakhs seventy Five Thousand one Hundred and rhirty seven onry)

¶25

12/|i{n?W

¶26

(OA.No.7 of 20261

¶27

The Applicant Bank is entitled^{to proceed against the hypothecated} property as mentioned in the schedule to OA towards realisation of the debt due.

¶28

The Applicant Bank is also entitled to^{proceed against the personand} properties of defendant No.2 and properties of defendant no.1 firm towards realization of the debt due.

¶29

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

¶30

L2. The Applicant shall file a cost memo within two^{weeks from the date} of receipt of order.

¶31

Issue Recovery certificate accordingly.

¶32

Communicate a copy of the order to the^{parties concerned.}

¶33

(Dictated to the P.A., transcribed by her, corrected, signed and^{pronouncedby me in the opencourt on} this the 12h day of March, 2026)

¶34

sd/-

¶35

(G. GOPTCHAND) PRESIDING OFFICER

¶36

T CORY
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¶37

Canara Bank v. M/S. Indian Rice Depot

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Indian Rice Depot

Case brief

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What did the court decide?

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