Allowed

Indian Bank v. Sambashiva Cotton Industries

DRT8 Sept 2026OA/267/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Indian Bank against borrowers and guarantors for payment of a specific debt amount. After establishing the loan agreement, guarantee, and mortgage, the Tribunal held the defendants liable despite their absence and ordered recovery of the principal sum along with future interest and costs.

What did the court decide?

Defendants jointly and severally ordered to pay Rs. 39,28,627.00 with future interest at 9.20% p.a.; recovery certificate issued.

Indian Bank versus Sambashiva Cotton Industries — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL - IAT HYDERABAD

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DATED THIS THE OTth DAY OF SEPTEMBER,2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA. No.267 OF 2026

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Between :

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lndian Bank, Karimnagar Branch, H. No.3-5-335, Gandhi Road, Karimnagar Post & Mandal, Karimnagar District, Telangana - 505001

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Represented by its Branch Manager

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Applicant

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VERSUS

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M/S. Sambashiva Cotton lndustries, (Borrower & Mortgagor) A Partnership firm

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represented by its Present Partners namely 1.Sri. B. Maruthi

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son of K. Malliah,

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2.Smt. B. Sharadada (Present Partner), WO. B. Maruthi,

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Having Registered Office Address:

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H.NO. 118 and 119,

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Sy. No 302, 1201G, 1201D,

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12OlE,12OlF and 302/A,

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Venkateshwara Palle-Village, Jammikunta Mandal, Karimnagar- District, PIN: 5051 22. 00Sipmffi

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(OA. No. 26712026)

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Mr. Sri. B. Maruthi (Present Partner) S/o. Mallaiah, H.NO. 8-1-401/1 , Kattarampur, Karimnagar-505001.

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Smt. B. Sharadada (Present Partner) W/O. B. Maruthi, H.NO. 8-1 -40111, Kattarampur, Karimnagar-505001.

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Sri. Mukka Srinivasa Rao son of Chandramouli.

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(Erstwhile Partner & Guarantor), H.NO. 6-1 -3/3, Padmashali Street, Jammikunta,

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Karim Nagar District, Pin Code: 505122.

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Smt. Mukka Srilaxmi wife of Mukka Srinivasa Rao. (Erstwhile Partner & Guarantor), H.NO.6-1-3/3, Padmashali Street, Jammikunta, Karim Nagar District. Pin Code: 505122.

¶26

Smt. Lingampalli Manjula
wife of L. Linga Rao
(Erstwhile Partner & Guarantor), , .n it,.ili,.*..
H.NO. 4-2-9612, Near Shivalayam, ,"
n.i ' ,",i. {r
Jammikunta, ., -.-q ' 11
Karim Nagar District.
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Pin Code: 505122 t: j.,' -r,"
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".,, 'i,-
-t.. t?, ' I t,^rr.,;.'. .,.i;t''j:--.-- ? L-rl ,L
+--.... :.,-" -._

¶27

(oA. No.267/2026)

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Smt. G. Padma wife of Veera Reddy, (Erstwhile Partner & Guarantor), H.NO. 6-1-31211, Padmashali Street, Jammikunta, Karim Nagar District. Pin Code. 505122.

¶29

Mr. Kallem Satyanarayana Reddy, son of K. Malla Reddy (Guarantor), H.NO. 6-1-31211, Padmashali Street, Jammikunta, Karim Nagar District. Pin Code: 505122.

¶30

Lingampalli Linga Rao (Guarantor), H.NO. 4-2-9612, Near Shivalayam, Jammikunta, Karim Nagar District.

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Defendants

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Counsel for the parties : For The Applicant B. Sivakumar For the Defendants no. 1 to 3 and 6 to 9 Exparte For the Defendants no. 4 and 5 B. Sreenivasa Reddy Reserved on 01 .09.2026 Pronounced on 07 .09.2026 ,..;:i.s... ..^.,* Upload in website ori :1i 08.09.2026 .{. {l ..:;^-. * : 085[pIil h.i I fuw

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lOA.^{No . 267} /2026r.

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ORDER

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The Applicant Bank^{filed the presentOA against Defendants for} recovery of a total sum^{of Rs.39,28,627'00. Ps (Rupees Thirty} Nine Lakhs Twenty^{Eight Thousand SixHundredand} Twenty Seven Only)^{withfuturerate of interest} @9.2OYo^{p a with} monthly rests from^{14.02.2026 till the date of realization and in} default for sale of^{MortgagedProperty as mentioned in the} Schedule of ProPertY^{to OA.}

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As per the averments^{in the application,the Applicant Bank states} that Defendant No.1^{is a Partnershipfirm represented by its partners} availed credit^{facility with interestand executed TermLoan} Agreement daled^{25.12.2021in favor of the ApplicantBank' The} Defendants stood as a Guarantor^{in the loan facilitiesavailed} by the Defendants and^{executedAgreement of Guarantee} dated 29.04.2023^{in favor of the ApplicantBank.The Defendants} created Equitable Mortgage^{morefully mentioned in Schedule} of^property to OA and^{executed Memorandum of Deposit of} TitleDeedsdated2l.o2.2022anddepositedoriginalTitleDeed Applicant Bank. After^{availing the loan facility,} to comply the terms of^{sanction, hence} the account as NPA on^13.02.2026

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{OA.^No.267 /20261

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and issued Legal Notice dated^'10.01.2026 and Demand Notice dated 20.02.2026 under section 13(2) of the SARFAEST Act, 2002 to the defendants. lnspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

¶39

¶40

Sri. B. Sreenivasa Reddy filed Vakalat on behalf of Defendants no. 4 and 5. Even after the lapse of 45 Days WS of Defendants no. 4 and 5 not filed and hence the right of filing of WS of Defendants no. 4 and 5 was forfeited on 01 .09.2026. Defendants No. 1, 2, 3, 6 to 9 called absent and set exparte on 14.07.2026.

¶41

Mrs. D.N. Sabitha, Chief Manager of the Applicant Bank examined herself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.25.

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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 Defendants as prayed for?

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Defendants no. 4 and 5 did not file their WS even after availing sufficient time and hence the right of filing of WS of Defendants No. 1,2,3,61o9 of the Applicant Bank, licant Bank was examined and she 5

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(oA. No. 26712026)

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exhibited relevant documents as Ex.A.1 to^{A.25.ln view of the} above, I hold that the Applicant^{Bank has establishedtheir claim} made in the OA against the Defendants^{and hence the Applicant} Bank is entitled to recover the claim madeⁱⁿ 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 9 are^jointly and severally^{liable to pay} to the Applicant Bank a total sum of Rs.39,28,627'00.^Ps (Rupees Thirty Nine Lakhs Twenty Eight Thousand Six Hundred and Twenty Seven Only) with^{future rate} of^interest @9.20Yo^{p.a from 14.02.2026till the date of realization.}

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The Applicant Bank is entitled to^{proceed againstthe Mortgaged} Property as mentioned in the schedule of Property to^{the OA} towards realization of the debt due.

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The Applicant Bank is entitled to^proceed against^{the person and} properties of Defendants No. 2 to 9 and properties of Defendant no. 1 firm towards realization of the debt due.

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That Applicant the costs of the OA.

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(oA. No. 267 /2026)

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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, signed and pronounced by me in the open court on this the 07th day of Sep , 2026)

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sd/-

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(G. coPtcHAND) PRESIDING OFFICER

¶60

TRUq9OPY
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Indian Bank v. Sambashiva Cotton Industries

Case brief

What is this about?

What did the court decide?

Indian Bank v. Sambashiva Cotton Industries

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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