Allowed

Union Bank of India v. M/S. Manda Sarangapani Civil and Painting Contractor

DRT3 Jun 2026OA/262/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal-IAT Hyderabad allowed an Original Application filed by Union Bank of India for recovery of Rs. 40.99 lakhs plus future interest. The court held that the bank established its claim and directed the defendants to pay the amount.

What did the court decide?

The Defendants are jointly and severally liable to pay Rs.40,99,214.00 plus future interest at 12.05% p.a.; Applicant to proceed against hypothecated movables and other properties; Recovery Certificat

Union Bank of India versus M/S. Manda Sarangapani Civil and… — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS REGOVERY^TRIBUNAL -^{IAT HYDERABAD} DATED THIS THE O3Td^{DAY OF JUNE,2026}

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PRESENT: SRI GUMMADI^{GOPICHAND, PRESIDING OFFICER}

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OA. No. 262OF 2026

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Between^:

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Union Bankoflndia, UMFB Branch, Warangal, TelanganaState. RepresentedbYits^{Branch Manager}	Applicant
VERSUS
1.M/s. MandaSarangapani^{CivilandPainting Contractor,} RepresentedbY^{its ProPrietor} Mr. Manda SarangaPani, H.No. 33-7-22, Jakkaloddi, ThimmaPur^Haveli, Warangal-506 002, TelanganaState.
2.Mr. Manda SarangaPani, H.No. 33-7-22, Jakkaloddi, ThimmaPur^Haveli, Warangal-506 002, TelanganaState.	Defendants

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(oA. No. 25212026)

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Counsel for the parties :

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For The Applicant Mr. Momin Mohammed Rafiq For the Defendant Exparte Reserved on 02.06.2026 Pronounced on 03.06.2026 Upload in website on 04.06.2026

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ORDER

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The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.40,99,214.00 Ps. (Rupees Forty Lakhs Ninety Nine Thousand Two Hundred and Fourteen Only) with future rate of interest @i2.05% p.a with monthly rests along with penal interest @2oh p.a from the date of this application till the date of realization and in default for sale of Hypothecated Movables as mentioned in the Schedule of Property to OA.

¶11

As per the averments in the application, the Applicant Bank states that Defendant No.1 is a proprietorship firm represented by its Prop No. 2 availed cash credit loan of 17 Rs. lnterest @12.05% p.a and executed dated 27.09.2023 in favor of the

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(oA. No. 26212026)

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Applicant Bank. The^{Defendant hypothecated movables morefully} mentioned in Schedule of^{Property to OA and executed} Hypothecation Agreement^{dated 27.09.2023and Letter of} Undertaking not to^{Alienate HypothecatedGoodsdated} 27.09.2023 in favor^{of the Applicantbank. After availingthe loan} facility, the defendants^{failed to complythe terms of sanction,} hence the applicant^{bank classified the account as NPAand} issued Legal Notice dated^{07.03.2026to the defendants'} lnspite of several^{requests and demands,the defendantsdid not} clear the outstanding.^{Hence this OA'}

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Defendants called^{absent and set exparte on 02 06'2026'}

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4.sri.VanamVinay,ManageroftheApplicantBankexamined himselfasAW'landexhibitedrelevantdocuments'whichare marked as Ex.A.'t^{to A.11.}

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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 againstthe} Defendants as PraYed lor?

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case of the 7. Bank was as Ex.A.1^to JUfi^?firF

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(oA. No. 26212026)

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A.11. ln view of the above, I^{hold that the Applicant Bankhas} established their claim made in the OA^{against the Defendants} and hence the Applicant Bank is^{entitledto 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. I and 2^{are jointly and severallyliable to pay} to the Applicant Bank a total sum of^{Rs.40,99,214.00 Ps.} (Rupees Forty Lakhs Ninety Nine Thousand Two^Hundred and Fourteen Only) with future^{rate of interest} @12.05%^p.a from the date of this application till the^{date of realization'}

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The Applicant Bank is entitled to^{proceed against the} Hypothecated Movables as^{mentioned in the Schedule of the} Property to the OA towards realization^{of the debtdue.}

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The Applicant Bank is also entitled^{to proceed againstthe} person and properties of Defendant No. 2 and^{properties of} Defendant No. 1 Firm towards^{realization of the debt due.}

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11. That Bank is entitled to the costs of^{the OA.}

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(oA. No. 25212025)

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The Applicant shall file^{a cost memowithin 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 partiesconcerned'}

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(Dictated to the P.A., transcribed^{by her, corrected, signed and pronouncedby me in the open court on} this the 03rd day^{of Jun, 2026)}

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sd/-
(G. GOPICHAND)
PRESIDING OFFICER

¶33

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Union Bank of India v. M/S. Manda Sarangapani Civil and Painting Contractor

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/S. Manda Sarangapani Civil and Painting Contractor

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Parties & counsel

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