Allowed

Indian Overseas Bank v. M/s. AKS-2 Traders

DRT19 Jun 2026OA/246/2026

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Indian Overseas Bank against two defendants for recovery of approximately Rs. 1.33 crore towards cash credit and term loan dues, granting the bank a recovery certificate.

What did the court decide?

Defendants liable to pay Rs. 1,32,69,879.42 with future interest @ 8.40 p.a. from date of application; Recovery Certificate issued.

Indian Overseas Bank versus M/s. AKS-2 Traders — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-II AT HYDERABAD

¶2

DATED THIS THE 19TH DAY OF ]UNE, 2026

¶3

PRESENT: SH. RAMESHWAR KOTHE, B.Com. L.LB. (Hons.), M.A. PRESIDlNG OFFICER

¶4

ORIGINAL APPLICATION No: 246 OF 2026

¶5

Indian Overseas Bank, Having its registered office at # 762, Anna Salai, Chennai And a Branch at Hindupur, Rahmathpur Circle, Hindupur-515201, Andhra Pradesh

¶6

......Applicant

¶7

Versus

¶8

M/s. AKS-2 Traders, a proprietary, Concern, D.No.12-01, Chinnannapalli, Chilamathur Mandal, Sri Sathya Sai Dist, 515341, A.P.

¶9

Mr. Narayana Swamy, S/o. lvlr. Obulappa Major, Malle, R/o TS No.2084/1 & 2OA4/74A, Beside Court Road, 1oth Block, 13th Ward, Abakavarlpalli village, Kasaba, Hoblt, Bagepa i Tq. Chickballapur District - 516207, Karnataka state

¶10

..... Defendants

¶11

Counsel for the Applicant

¶12

Counsel for the Defendants

¶13

: Sri Gampa Rangaiah :ex_carte'fu$s

¶14

oA.NO.24612026

¶15

:: ORDER ::

¶16

The Applicant Bank filed the present OA for the recovery a total sum of Rs. 7,32,69,879.42 ps i.e., Rs. 1,16,07,458.26 towards cash credit facility with future interest @ 11.15olo p.a. and Rs. 76,62,427.76 ps towards the term loan with future interest @ 10.85o/o p.a. from defendants 1 & 2 joinuy and severally with monthly rests from 01.01.2026 till the date of realization along with costs and, in default, sale of O.A. schedule moveable and immoveable assets/ properties.

¶17

Summonses served on Defendants 1 & 2 and were set exparte on 18.06.2026 as called absent and no representation.

¶18

The Applicant Bank examined Mr.^p. Santosh, I4anager, as AW1 and marked 28 documents through them as Ex.A.1 to Ex.A.28.

¶19

Heard Learned Counsel for the Applicant.^perused the material placed on record.

¶20

The point that arises for consideration is: -

¶21

Whether the Applicant Bank is enti ed for the claim made in the OA against the Defendants and O.A. schedule moveable and immoveable assets/ properties?

¶22

As stated supra, the Defendants remained ex-parte. The Evidence Affidavit coupled with the recitals in the documents viz., Exs.A.1 to A.28 marked on behalf of the Applicant Ban k clinches the claim of the Applicant Ba nk alainst the Defendants. (ft;u

¶23

oA.NO.246/2026

¶24

Hence, I hold that the Defendants are liable to^pay the OA claim to the Applicant Bank with future interest and costs.

¶25

In the result, the present Original Application No.24612026 is allowed as under: -

¶26

i) The Defendants 1 & 2 are^jointly and severally liable to pay to the Applicant Bank a sum Rs. 1,32,69,879.42 ps with future interest @ 8.40olo p.a. simple from the date of application till the date of realization;

¶27

ii) the OA claim is secured by way of hypothecation of Schedule-A assets and mortgage of Schedule-B properties, as described in the schedules annexed to the OA and applicant bank is entitled to^proceed against the same for realisation of dues;

¶28

iii) the applicant bank is also entitled to^proceed against the person and^properties of defendants for realization of its dues;

¶29

iv) the applicant bank is entitled for the costs.

¶30

B. The Applicant Bank is directed to file Cost Memo within 2 weeks from the date of receipt of this Order.

¶31

Issue Recovery Certificate accordingly.

¶32

Communicate a copy of this order to the parties concerned. (Dictated to the steno, corrected, signed and pronounced by me !;ghe open court on thisthe lsth Dayof June,2026). frWOUtt tndlidsnwAi^rorne) PRESIDING OFFICER

Indian Overseas Bank v. M/s. AKS-2 Traders

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. M/s. AKS-2 Traders

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

State Bank of India versus Doraswamy Mohan Rohit Das

Yes Bank Limited versus Mrs. Voodi Sravani

M/S. Yes Bank Ltd., versus M/s. Fast Dot

Bank of Baroda versus Raj Trading

M/S. Yes Bank Ltd. versus Mr. Malgi Reddy Govardhan Reddy

Hdfc Bank Ltd. versus Vijeka Logistics Pvt. Ltd.