Allowed

Canara Bank v. M/S. Dsr Electricals

DRT3 Jun 2026OA/263/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Order Application filed by Canara Bank against M/s. DSR Electricals for recovery of a loan amount of Rs. 50,90,588.90 with interest, permitting the bank to proceed against hypothecated movables and issue a recovery certificate.

What did the court decide?

Recovery of Rs. 50,90,588.90 with future interest at 12.5% p.a. from 01.04.2026; permission to proceed against hypothecated movables and defendant's properties; issue of recovery certificate.

Canara Bank versus M/S. Dsr Electricals — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL - I AT HYDERABAD DATED THIS THE O3Td DAY OF JUNE, 2026

¶2

PRESENT: SRI GUMMADT GOptCHAND, pREStDING OFFTCER

¶3

OA. No. 263 OF 2026

¶4

Between :

¶5

Canara Bank, MSME Sulabh Warangal Branch, H.No. 24-7 -244161 1, 1st floor, Main Road, Ramakrishna Colony, Hanamkonda, Warangal - 506 001 Represented by its Manager cum Authorized Officer Applicant VERSUS M/s. DSR Electricals, Represented by its^proprietor, Mr. D Srinivas, R/o. H.No. 8-4-86, Krishna Colony, Warangal 506 002. Also at - H.no. 16-5-24/9, Perukawada, Warangal - 506 002 Defendant Counsel for the parties : For The Applicant N. Indira For the Defendant Exparte Reserved on .06.2026 .2026 .2026

(oA. No. 26312026)

ORDER

The Applicant Bank filed the present OA against Defendant for recovery of a total sum of Rs.50,90,588.90 ps. (Rupees Fifty Lakhs Ninety Thousand Five Hundred Eighty Eight and Paise Ninety Only) with future rate of interest @12.j|o/o p.a with monthly rests along with penal interest @ 2o/o p.a from 01.04.2026 till the date of realization and in default for sale of Hypothecated Movables as mentioned in the Schedule of Propefi A to OA.

¶11

As per the averments in the application, the Applicant Bank states that Defendant availed cash credit loan of Rs.50,00,000/- with interest @8.90o/o p.a and executed Common Hypothecation agreement dated 04.03.2022 in favor of the Applicant Bank. The Defendant hypothecated vehicle morefully mentioned in Schedule of Property A to OA and executed Common Hypothecation agreement dated 04.03.2022 in favor of the Applicant bank. After availing the loan facility, the defendant failed to comply the terms of sanction, hence the applicant bank classified the account as NPA on 31.03.2026 and issued Legal Notice dated^-15.04.2026 to the defendant. lnspite of several requests and demands, the defendant did not clear the ' :':... oA.

¶12

(OA. No. 263/2026)

¶13

Defendant called absent and set exparte on 02.06.2026.

¶14

Sri. Jetti Chetan Kumar, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.9.

¶15

Heard the Ld. Counsel for the Applicant Bank.

¶16

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?

¶17

¶18

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.9. ln view of the above, I hotd that the Applicant Bank has established their claim made in the oA against the Defendant and hence the Applicant Bank is entifled to recover the craim made in the OA with future interest and costs.

¶19

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

¶20

The Defendant is liable to pay to the Applicant Bank a total sum of Rs.50,90,588.90 ps. (Rupees Fifty Lakhs Ninety Eighty Eight and paise Ninety @1215%^p.a from 01.04.2026 till the date of realization.

¶21

(oA. No.26312026].

¶22

The Applicant Bank is entitled to^{proceedagainst the} Hypothecated Movables as^{mentionedin the Scheduleof the} Property A to the OA towards^{realization of the debt due.}

¶23

The Applicant Bank is also^{entitled to proceed againstthe} person and properties of Defendant^{towards realization of the} debt due.

¶24

That Applicant Bank^{is entitled to the costs of the OA'}

¶25

The Applicant shall^{file a cost memo within two weeks from the} date of receiPt of^order.

¶26

lssue Recovery^{Certificate accordingly.}

¶27

Communicate^{a copy of the order to the parties concerned'} (Dictated to the P.A.,^{transcribed by her, corrected, signedand pronouncedby me in the open court on} this the 03rd daY^{of Jun, 2026)}

¶28

sd/(G. GOPICHAND) PRESIDING OFFICER

¶29

r rsulE
fu.*:
Asst"
n.qr./, ttYfrE!:tA#AD

¶30

Canara Bank v. M/S. Dsr Electricals

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Dsr Electricals

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

Similar cases

Idbi Bank Ltd. versus Sri. Tekam Rajendra Yadao

Mr Venkataswamy Chintakunta versus Hinduja Housing Finance Limited

Mr Kollan Raja Ram Reddy versus Union Bank of India

M/s. Kanuganti Electrical Pvt. Ltd. versus Bank of Baroda

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

Union Bank of India versus Mohammed Ali