Allowed

Union Bank of India v. Ushasri Cotton Ginning Mills Private Limited

DRT3 Jul 2026OA/244/2026

Case brief

AI extract

What is this about?

The DRT allowed the Bank's Original Application for recovery. The court found the Bank established its claim and ruled it entitled to recover principal, future interest, and costs against the mortgagor, guarantors, and security properties.

What did the court decide?

The respondents are jointly and severally liable to pay Rs. 2,41,75,833.72 with future interest; the Bank can realize the debt from mortgaged and hypothecated properties.

Union Bank of India versus Ushasri Cotton Ginning Mills… — Insolvency and Bankruptcy | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL - !AT HYDERABAD

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DATED THIS THE O3'd DAY OF JULY, 2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA. No. 244 OF 2026

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Between :

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Union Bank Of lndia, Gandhi Chowk Branch, Khammam Branch^-2 Khammam - 507002

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Represented by its Authorized^Officer

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Applicant

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VERSUS

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Ushasri Cotton & Ginning^{Mills Private Limited} CIN: U1 71¹ 5TG2008PTC060565 Rep by its Directors

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H. No.6-1-339, VDO's^Colony,

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Khannapuram Haveli^(rural), Khammam,

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Telangana - 507002

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Chekuri Sridhar

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S/o. Satyam Babu, Aged about 56 Years, Occ: Business, Male, R/o.HNo.6-1-339,VDOs Khanapuram Haveli, Khammam -507002 JF. r*

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(OA. No. 24412026)

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Chekuri Nagendramma Wo. Satyambabu, Aged about 69 years, Occ: Business, Female, R/o.H No.6-'1-183/1, Khammam Urban, Khanapuram Haveli, Khammam -507002

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Chekuri Praveena Wo. Sridhar, Aged about 52 years, Occ: Business, Female. R/o. H No.6-1 -18311, Khammam Urban, Khanapuram Haveli, Khammam 507002

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Gannamraju Padma Wo. Ramchandar Rao, Aged about 53 years, Occ: Business, Female. R/o. H No.3-5-18413, Pamping Well Road, Khammam - 507003.^I

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Chekuri Krishna Chaita S/o. Sridhar, Aged about 29 years, JUL ?[26 I Occ: Business, Male, &) R/o.H No.6-1-339, V D Os Colony, Khanapuram Haveli, #.ffi Khammam -507002.

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(oA. No. 24412026)

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Chekuri Chanakya S/o. Sridhar, Aged about 29^years, Occ: Business, Male, R/o.H No.6-1-339, V D Os Colony, Khanapuram Haveli, Khammam - 507002 Defendants

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Counsel for the Parties^:

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For The Applicant Tarangini Pisipati For the Defendants Exparte Reserved on 01.07 .2026 Pronounced on 03.07.2026 Upload in website^on 03.07.2026

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ORDER

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The Applicant^Bank filed the^{present OA against Defendants} sum of Rs.2,41,75,833.721'^{(Rupees Two} for recovery of a^total Crores Forty^One Lakhs SeventY Five^{ThousandEight} irty Three and SeventY^Two Paisa^OnlY) t/.d\ ,{P' 0 3^{JilL 2026} fu,"fu*,--W

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(oA. No. 24412026)

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(i) Rs.2,33,55,111.74. Ps. with future rate of interest @12.95oh^{p.a with monthly rests from 17.03.2026 till the} date of realization

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(ii) Rs.8,20,721.98. Ps. with future rate of interest @9.50% p.a with monthly rests from 17.03.2026 till the date of realization

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and in default for sale of Mortgaged property and Hypothecated Movables as mentioned in the Schedule of Property A to D to OA.

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As per the averments in the application, the Applicant Bank states that Defendant no. 1 is a private limited company proprietorship firm represented by its Directors Defendant No. 2 to 4 availed loan facility of Rs.250.00 Lakhs with interest and executed necessary documents such as Composite Hypothecation agreement dated 01 .10.2021 in favor of the Applicant Bank. The Defendants created Equitable Mortgage morefulty mentioned in Schedule of property B to D to OA and executed Memorandum of Deposit of Tifle Deeds dated -,.,;11,:}q,gS 2OOg, 20.04.201A in favor of the Appticant Bank. The availed additional working capital loan facilities of ,^{. Rs.24.00 Lakhs and executedTermLoan Agreementdated} '"'b.AlO2bZ|^composite Hypothecation Deed dated 28.10.2021 in ,. ::;l fav-orjof the Appricant Bank. The defendants stood as a Guarantor

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loA.^No.244/20261

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and executed letter of Guarantee dated 28.10.2021 in favor of^the applicant bank. The defendants renewed the above^mentioned loan facilities from time to time and executed^{loan documents in} favor of the Applicant Bank. After availing^{the loan facility,the} defendants failed to comply the^{terms of sanction, hencethe} applicant bank classified the^{account as NPA on 09.02.2026} and issued Demand notice dated^{28.03.2026 underSection} 13(2) of the SARFAESI Act, 2002^{to the defendants.lnspite of} several requests and^{demands,the defendants did not clearthe} outstanding. Hence this^OA.

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Defendants called absent^{and set exparteon 01 .07 .2026.}

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Sri. K. Goutham Alexander,^{ChiefManager of the Applicant Bank} examined himself as AW.'l^{and exhibited relevantdocuments,} which are marked as^{Ex.A.1to A.48.}

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Heard the Ld. Counsel^{for the ApplicantBank.}

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The point that arise^{for consideration is whetherthe Applicant} bank is entitled^{for the claim made in the OA against the} Defendants as PraYed^for?

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T.Defendantsremainedexparte.Tosubstantiatethecaseofthe Applicant Bank,^AW.1 ,^{official of the ApplicantBank was} examl exhibited relevant^{documents as Ex.A.1 to} ,^{I hold that the APPlicant Bank has} 5 $^{3 JUL 'ln'n}

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(oA. No. 24412026)

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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.

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

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The Defendants No. 1 to 7 are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.2,41,75,833.721(Rupees Two Crores Forty One Lakhs Seventy Five Thousand Eight Hundred and Thirty Three and Seventy Two paisa Only) i.e a sum of -

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(i) Rs.2,33,55,11 1.74. Ps. with future rate of interest @12.95o/o^{p.afrom17.03.2026} till the dateof realization

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(ii) Rs.8,20,721.98. Ps. with future rate of interest @9.S0% p.a from 17.032026 till the dateof realization

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The Applicant Bank is entifled to proceed against the Property and Hypothecated Movables as mentioned $. ,iGt he ule of Property A to D to the OA towards realization dr 6fihe Appli Bank is entitled to proceed against the person .:1 of Defendant No. 2 to 7 and properties of No. 1 company towards realization of the debt due.

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loA.^{No. 244/2026)}

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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, srgned and pronounced by me in the open court on this the 03rd day of Jul, 2026)

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sd/(G. GOPTCHAND) PRESIDING OFFICER

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0 3 Ji.l!. f#$

Union Bank of India v. Ushasri Cotton Ginning Mills Private Limited

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Ushasri Cotton Ginning Mills Private Limited

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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