Allowed

Canara Bank v. Mrs. Samalla Latha

DRT20 May 2026OA/225/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Canara Bank for recovery of a loan facility availed by a deceased borrower. The Tribunal found the bank's claim established upon evidence and legal notices sent to the legal heir.

What did the court decide?

Directed payment of Rs. 49,50,733.67 and future interest; authorized realization via hypothecated and other properties; issued Recovery Certificate.

Canara Bank versus Mrs. Samalla Latha — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL - IAT HYDERABAD DATED THIS THE 20th DAY OF MAY, 2026

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PRESENT: SRI GUMMADI cOPICHAND, PRESIDING OFFICER

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OA. No. 225 OF 2026

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Between :

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M/s Canara Bank, Bhemadevarapally Branch, Mulukonoor Womens Co-op Dairy Village, Bhemadevarapalle,

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Warangal- 505 495 Represented by its Senior Manager

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Applicant

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VERSUS

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Mrs. Samalla Latha (as per LR of Late Savula Srikanth), Wo. Late Savula Srikanth, H.No. 4-22, Nallaralla Wada, Husnabad,

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Siddipet - 505 467

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Defendant

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Counsel for the parties :

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N. lndira

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For the Exparte Reserved 19.05.2026 20.o5.2026 20.05.2026 Upload ip websitetir^F -) .1 2 0 ttA,( 2,|116 r-{^*

¶15

(oA. No. 2ssl2025)

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ORDER

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The Applicant Bank filed the present OA against Defendant for recovery of a total sum of Rs.49,54,733.67 Ps. (Rupees Forty Nine Lakhs Fifty Four Thousand Seven Hundred and Thifi Three and Paise Sixty Seven Only) with future interest @10.80%^{p.a at monthlyrests and penalinterest} @^{2% p.a} from the date of this application till the date of realization and in default for sale of Hypothecated Property as mentioned in the Schedule of Property A to OA

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As per the averments in the application, the Applicant Bank states that Late Savula Srikanth availed Term loan facility of Rs.48,75,000.00 with interest @11.80%p.a and executed Common Hypothecation Agreement dated 27 .09.2024 in favor of the Applicant Bank. Late Savula Srikanth hypothecated movables morefully mentioned in Schedule A Property to OA and executed Deed of Hypothecation for Vehicles dated 27.09.2024 in favor of the Applicant Bank. After availing the loan facility, the defendant failed to complytheterms of sanction, hence the applicant bank classified the account as NPA and issued Loan Recall Notice dated 29.10.2025 and Legal Notice dated 28.11.2025 to the defendant. Later borrower died on 07.12.2025 and Defendant ir of the Late Savula Srikanth. lnspite of several ,IeqtdiS.1l and demands, the defendant did not clear the butstanaifig. Hen8i: this oA.

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2 B il,^:

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(oA. No. 2ssl2026)

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Defendant called absent and set exparte on 19.05.2026

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Sri. Sai Charan Anchuri, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.8.

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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 Defendant as prayed for?

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Defendant 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^to A.8. ln view of the above, I hold that the Applicant Bank has established their claim made in the OA against the^Defendant 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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pay to the Applicant Bank a total sum (Rupees Forty Nine Lakhs Fifty Hundred and Thirty Three and Paise future interest @10.80% p.a^from till the date of realization

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(OA. No. 2s512026)

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L The Applicant Bank is entifled to proceed against the Hypothecated Movables as mentioned in the Schedule of the Property A to the OA towards realization of the debt due.

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The Applicant Bank is also entitled to proceed against the persons and properties of Defendant 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^pronounc€d by me in the open court on this the 206 day of May, 2026)

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PRESIDING OFFICER

¶38

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¶39

Canara Bank v. Mrs. Samalla Latha

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mrs. Samalla Latha

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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