Allowed

State Bank of India v. M/S. Royal Industries

DRT9 Jul 2026OA/257/2026

Case brief

AI extract

What is this about?

This Debt Recovery Tribunal order allowed an Original Application filed by State Bank of India for recovery of a defaulted term loan. The defendant was absent. The Tribunal held the bank proved its claim and directed the defendant to pay the dues with future interest and costs.

What did the court decide?

The defendant is liable to pay the applicant bank Rs.49,73,653/ with future interest; the applicant is entitled to proceed against defendant's properties and recover costs.

State Bank of India versus M/S. Royal Industries — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL. I AT HYDERABAD DATED THIS THE Ogth DAY OF JULY, 2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA. No. 257 OF 2026

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Between :

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State Bank of lndia, PV Colony Branch^(21816), S No. 5 & 6, Super^{Bazar Shopping Complex,} PV Colony, Manuguru, Bhadradri Kothagudem - 507126 Represented by^{its Authorized Officer}

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Applicant

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VERSUS

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M/s. Royal lndustries Rep. by its^ProP. Mr. Banothu Ramesh H. No: 2-12-61,^{AnnaPurna ColonY,} Beerappaguda,^UPPal, Hyderabad^{- 500039}

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Defendant

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Counsel for^the Parties^:

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M.P. SanjaY For The ApPlicant For the Defendant - Exparte 08.07.2026 Reserved 09.07.2026 Pronou 09.07.2026 Upload ilJ \ rd^osJrm }; ii '.h"-.."r{ty^-75 - -r^s

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(OA. No. 2s7l2026)

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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.49,73,653/-^(Rupees Forty^Nine Lakhs Seventy Three Thousand Six Hundred^{and Fifty Three} Only) with future rate of interest @12.40Yo^{p.a with monthly} rests from 14.02.2026 till^{the date of realization.}

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As per the averments^{in the application, the Applicant Bank} states that Defendant availed^{Term loan of Rs'40,00,000/-} repayable in 84^{monthly installmentsof Rs'80,4611 p'm with} interest @12.40%^{p.a and executed Agreement of Loan cum} Hypothecation dated^{26.02'2024 in favor of the Applicant} Bank. After^{availing the loan facility,the defendantfailed to} comply the terms^{of sanction, hence the applicant bank classified} theaccountasNPAonl4.l2'2O24andissuedLegalNotice daledlT,Ol.2026tothedefendant.lnspiteofseveralrequests and demands,^{the defendant did not clear the outstanding'Hence} this OA.

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led absent and^{set exparte on 08.07.2026'}

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(oA. No. 2s7l2026)

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Sri. B. Vasanth Roy, Chief Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.10.

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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 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'A.1 to} A.10. ln view of the^{above,I hold that the Applicant Bankhas} 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^{interestand costs.}

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ln the result, the^{presentOA is allowed with costs, as under:}

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The Defendant^is liable to^pay to the^{ApplicantBanka total sum} of Rs.49,73,653/' (Rupees Forty Nine Lakhs^{Seventy Three} Thousand red and Fifty Tbree^{Only) with futurerate} of int from 14.02.2026 till^{the date of} dt reali

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(OA. No.2s712026l

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g. The Applicant Bank is entitled to^{proceed against the properties} of Defendant 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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The Appticant shall file a^{cost memo withintwo weeks from the} date of receipt of order.

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lssue Recovery^{Certificate accordingly.}

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13 Communicate^{a copy of the order to the partiesconcerned'}

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(Dictated to the P.A.,^{transcribed by her, corrected, signed and pronounced by me in the open courton} this the 09th daY^{of Jul, 2026)}

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sd/(G. GOPICHAND) PRESIDING^OFFICER

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'4q
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State Bank of India v. M/S. Royal Industries

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Royal Industries

Case brief

What is this about?

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