Allowed

Canara Bank v. M/S. Bhagyalaxmi Powerlooms Industry

DRT16 Jul 2026OA/300/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of loan dues of approx. Rs. 1.8 Crore with interest. It held the respondents jointly and severally liable, entitled the bank to auction secured assets and proceed against personal properties, and ordered issuance of a recovery certificate.

What did the court decide?

Respondents jointly and severally liable to pay Rs. 1,80,04,874.19 with interest; bank entitled to realize debt via auction of security and personal assets; recovery certificate issued.

Canara Bank versus M/S. Bhagyalaxmi Powerlooms… — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERYTRIBUNAL.I AT HYDERABAD

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DATED THIS THE 16rH DAY OF JULY, 2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.3OO of 2025

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Between:

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M/s. Canara Bank, Hanumakonda II branch, H.No.2-5-39, Water Tank road, Near Naveena Children Hospital, Nakkalgutta, Hanumakonda, Warangal district, Telangana State-506 001. Represented by its Authorised officer

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Applicant

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VERSUS

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M/s. Bhagyalaxmi Powerlooms Industry, Plot no.34B, Sy.No. 1791/1, Kakatiya Textile park, Madikonda Village, Kazipet, Warangal (urban) Telangana - 506 142.

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Sri Kummarikuntla Rajanna, s/o Kummarikuntla Chinnaveeraswamy, H.no.2-101, Machapur, Warangal, Telangana - 506 344. Defendants

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Counsel for the Parties:

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For the Applicant Sri P. Sai Chandrasekhar Defendants Sri V. Ravinder Orders reserved on t4.07.2026 ..Pronounced on .07.2026 : ffiI\ Uploaded in website on 7.2026 rut. xlzr *x *,qt$-]i

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(oA. No.300/202s)

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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.1,8O,O4,874.Lgps^(RupeesOne Crore Eighty Lakhs Four Thousand Eight Hundred Seventy^Four and paise Nineteen only)^(term loan+ OD/ OCC +^{GECL and} GCL 1.O loan accounts) with future interest @^{11olo p.a with} monthly rests from 22.06.2025 till the date of realization andⁱⁿ default for sale of hypothecated movables and^{mortgaged propertyas} mentioned in the schedule to OA.

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As per the averments in the application, the Applicant Bank states that the defendant No.1 which is a^{proprietorshipfirm} represented by its proprietor/ defendant no.2 availed term loan^facility for a sum of Rs.98,31,000/- on 05.12.2019, OD/OCC facility of Rs.15.00 lakhs, GECL limit of Rs.3.00 lakhs and GECL 1.0 limit of Rs.2.00 lakhs and agreed to repay along with interest.^The defendants hypothecated the machinery as mentioned in^{schedule to} OA and executed supplementary hypothecation and^personal guarantee in favour of Applicant bank. The defendants mortgaged the schedule property and executed necessary documents in favour of applicant It is submitted by the Applicant bank that the Defenda p loan facilities and failed to keep up the re payment the account was classified as NPA on 2s.huzoz1.Erffiitffir oeil*m nds made by Applicant the defendants i.^{. -,.} 'i . ''r. -'', r} 2

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(oA. No.300/202s)

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have not regularized the account, so the Applicant bank issued demand notice dated 06.L1.2023, but the defendants did not come forward to repay the same. The total claim of Applicant against defendants is of Rs.1,8O,O4,874.L9ps (Rupees One Crore Eighty Lakhs Four Thousand Eight Hundred Seventy Four and paise Nineteen only) with future interest @ 11olo p.a with monthly rests from 22.06.2025 till the date of realization. Hence the OA.

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The Defendants filed written statement admitting that they availed various loan facilities from the Applicant bank. The contention of the defendants is that at the time of sanction of loan, the applicant bank obtained signatures of defendants on varlous blank papers and they are misused by the applicant bank. The further contention of the defendants is that even though there is no requirement of obtaining collateral security, the applicant bank obtained equitable mortgage of schedule property and that the claim of the applicant bank is barred by limitation. Hence prayed for dismissal of OA.

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I have perused the documents placed on record.

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consideration are:
3

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(oA. No.300/202s)

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i) Whether the Applicant Bank has^proved lts claim as made in OA

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against the defendants ?

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ii) To what relief ?

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Point No.i):

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Mr. D. Srinivas, Manager/^{AW.1 who was examined on behalf of the} Applicant. Exhibits A. 1 to A.12 are marked through^AW.1. Defendants have not come forward for^giving evidence.^{For reasons} best known to the defendants they shunned the^{witnessbox. So the} evidence of AW.1 stood unrebutted by the defendants.

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As per the documents filed by the Applicant Bank and also as^{per the} admissions made by the defendants in the Written statement,^{it is very} clear that the defendants have availed loan from the^{ApplicantBank,} but failed to repay the amount. All the amounts^paid by the defendants are clearly mentioned in the statement of account filed^{by Applicant} Bank. The defendants have not^placed any material documents^to show their bonafides for establishing that the Applicant bank^failed to follow the RBI guidelines as^per the norms.

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AW.1 is not cross examined by the counsel for defendants. not come forward to give evidence to than the amount mentioned in evidence of AW.1 coupled with

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(oA.No.300/202s)

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recitals Ex.A.1 to A.12 stood unchallenged and unrebutted. The Applicant bank clearly established that the defendants are liable to pay the OA amount to the Applicant bank.

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Point No.ii)

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In the result, the present Original application is allowed with costs as under:

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The Defendants are jointly and severally liable to pay to Applicant Bank a total sum of Rs.1,8O,O4,874.Lgps (Rupees One Crore Eighty Lakhs Four Thousand Eight Hundred Seventy Four and paise Nineteen only) (term loan+ ODl OCC + GECL and GCL 1.O loan accounts) with future interest @ 11% p.a from 22.06.2025 till the date of realization.

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The Applicant bank is entitled to proceed against the hypothecated movables and mortgaged property as mentioned in the schedule to OA towards realization of the debt due.

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The Applicant bank is also entitled to proceed against the person and properties of defendant No.2 and properties of defendant no.1

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Industry lization of the debt due.

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The . , to the costs of the OA. S$nk t

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(oA.No.300/202s)

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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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t2. Issue 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 mein the opencourton} this the 16th day of JulY, 2026)

sd/-

(G. GOPTCHAND)

PRESIDING OFFICER

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Canara Bank v. M/S. Bhagyalaxmi Powerlooms Industry

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Bhagyalaxmi Powerlooms Industry

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

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Case details

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