Allowed

Indian Overseas Bank v. Ind Cotton Garments LLP

DRT1 Sept 2026OA/284/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal adjudicated an Original Application filed by Indian Overseas Bank against a partnership firm and its individual guarantors. The court examined the loan documents, notice, and default status. Finding the bank's claim substantiated, the tribunal allowed the application and directed recovery of the outstanding principal, interest, and costs.

What did the court decide?

Directed Defendants to jointly and severally pay Rs. 48,98,530.88 with future interest at 12.75% p.a. Issued Recovery Certificate. Authorized Bank to proceed against Defendants' properties.

Indian Overseas Bank versus Ind Cotton Garments LLP — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL - IAT HYDERABAD DATED THIS THE OlSt DAY OF SEPTEMBER,2026

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PRESENT: SRt cUMMAD| GOP|CHAND, pREStDtNG OFFTCER

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OA. No. 284OF 2026

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Between:

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lndian Overseas Bank, Maredpally Branch, Secunderabad - 500 026, Telangana Represented by its Chief Manger

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Applicant

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VERSUS

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M/s. lnd Cotton Garments, LLp, Regd. Office: at Flat No.401, Block 'F', Nagarjuna Residency, Gachibowli, Serilingampally, Hyderabad-S00 032,T.S.

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Also at:-

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2nd floor, Building No.5-9-266, RG Nagar lndustrrial Estate, Prasanth Nagar, Kukatpally, Medchal-Malkajgiri Dist., Hyderabad - 500072, T.S.

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Sri Sreedhan Namburi s/o Sri Namburi Subba Naidu, Flat No.401, F Block, NCC Urban, Nagarjuna Residency, Opp: NASR School, Gachibowli, K.V. Rangareddy, T.S. - S00 032.

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lOA.^No.2Ba/2026)

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3. Sri Mahonar Kunchala s/o SriKunchala pichaiah, Mlc886, Road No.3, KPHBColony, Near-TempleBusStop, Kukatpally,
Hyderabad, T.S.SOO072.	Defendants
Counsel forthe parties:
For TheApplicant Forthe Defendantsno.1and2	Mr.V. SethuMadhavaRao* Exparte
Forthe Defendantsno.3 Reservedon	Sri.ArunnMarripeddi 24.08.2026
Pronouncedon	01.09.2026
Uploadinwebsiteon	01.09.2026

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*(Ld. Counselfor the Applicant may read as Mr Gampa Rangaiah)

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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.4g,9g,530.gg ps. (Rupees Forty Eight Lakhs Ninety Eight Thousand Five Hundred and Thirty Only) with future rate of interest @12.75% p.a with

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of this apptication tilt the date of sale of Hypothecated Movables as in Property to OA. - 0t stP flI2fi

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(OA. No. 28412026)

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As per the averments in the application, the Applicant Bank states that Defendant no. 1 is a^partnership firm represented by its partners Defendants no. 2 and 3 availed cash credit loan facility of Rs.50,00,000/- with interest and executed necessary loan documents such as Letter of Hypothecation dated 03.12.2024 in favor of the Applicant Bank. The Defendants^no. 2 and 3 stood as a Guarantor in the loan facilities availed by the Defendant no. 1 and executed Letter of Guarantee dated 03.12.2018 in favor of the Applicant Bank. After availing the^loan facility, the defendants failed to comply the terms of^sanction, hence the applicant bank classified the account as NPA^and issued Legal Notice dated 14.02.2026 to the defendants.^lnspite of several requests and demands, the defendants did^{not clear the} outstanding. Hence this OA.

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Sri. Arunn Marripeddi filed Vakalat on^{behalf of Defendant No. 3.} No representation from Defendant No. 3 side and^{WS of} Defendant No. 3 not filed and hence Defendant No. 3^called absent and set exparte on 24.08.2026.^{DefendantsNo. 1 and 2} called absent and set exparte on 29.06.2026.

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Sri Manager of the Applicant Bank and exhibited relevant documents, to A.10.

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Applicant Bank.

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BiSEP

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(oA. No. 284/2026)

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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 remained exparte. To substantiate the case of the Applicant Bank, AW.'l , 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 Bank has established their claim made in the OA against the Defendants and hence the Applicant Bank is entitled to 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. 1 to 3 are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.48,98,S30.88 Ps. (Rupees Forty Eight Lakhs Ninety Eight Thousand Five Hundred and Thifi Only) with future rate of interest @12.75%^{p.a from the date of this application} titt the date of realizatlon.

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to proceed against the in the Schedule of Property debt due.

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(OA. No. 28412025)

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The Applicant Bank is entitled to proceed against the^person and properties of Defendants no. 2 and 3 and properties of Defendant No. 1 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 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^pronounc€d by me in the open court on this the 01si day of Sep, 2026)

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¶39

sd/(G. GOPTCHAND) PRES!DING OFFICER

¶40

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Indian Overseas Bank v. Ind Cotton Garments LLP

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Ind Cotton Garments LLP

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Statutes considered

Parties & counsel

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Case details

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