Allowed

Canara Bank v. M/S. Maharshi Generics and Surgicals

DRT7 Aug 2026OA/316/2026

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Canara Bank for recovery of a loan of Rs. 21.16 lakhs along with interest and costs from the Partnership Firm and its partners who were held jointly and severally liable.

What did the court decide?

Order allowed; Defendants jointly and severally liable to pay Rs. 21,16,000.31 with interest; Sale of hypothecated movables permitted; Recovery certificate to be issued.

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

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IN THE^{DEBTS RECOVERY TRIBUNAL_ I AT HYDERABAD} DATED^{THIS THE OTth DAY OF AUGUST' 2026} PRESENT:^{SRI GUMMADI GOPICHAND' PRESIDtNG OFFICER}

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OA. No.316^{OF 2026}

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Between:

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Canara Bank, Warangal^{Main Branch,} 8-4-4, Krishna^ColonY' Station road,^Warangal, Telangana^{- 506002'} Represented^{by its Principal Officer} Applicant and Manager VERSUS 1. M/s Maharshi^{Generics and Surgicals} rep by its Partners Mr.Gadde^{Prasad Rao and} Mrs.Gadde^Sunitha' R/o H No^12-2-178,P innavari^Street, Warangal-⁵⁰⁶⁰⁰² 2. Mr. Gadde^{Prasad Rao} Aged S0Years,^{Occ: Business'} R/o 16-4-1^{132 Shivanagar,} Warangal^{- 506002.} J. Mrs.Gadde Aged 49Years,^Sunitha,Occ: :$[ lll:) R/o 16-4-1^{132 Sh} Defendants Waranga^{l- 506002} o 7^l'e'.'t

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(oA. No. 316/2026)

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Counsel^{for the} Parties^:

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ForThe^APPlicant	N.lndira
Forthe^Defendant	Exparte
Reserved^on	03.08.2026
Pronounced^on	07.08.2026
Uploadin^websiteon	07.08.2026

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ORDER

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The Applicant^{Bank filed the present OA against Defendants} forrecoveryofatotalsumofRs'21,16,000'31Ps'(Rupees Twenty One^{Lakhs SixteenThousand and Paise Thirty One} Only) with^{future rate of interest@10'55o/op'a with monthly} rests along^{with penalinterest@2% p'a from the date of this} application^{till the date of realization and in default for sale of} Hypothecated^{Movablesas mentionedin the Scheduleof} property to OA.

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in the application,^{the Applicant Bank}

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states that no. 1 is a^{Partnership Firm representedby} ants No. 2^{and 3availed overdraftLoan}

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0,00,000/-^{with interest} @10.75%^{p'a with monthly}

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(oA. No. 316/2026)

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rests and^{executed necessary loan documents such as Cash} CreditAgreementdatedl6.os,2022infavoroftheApplicant Bank. The^{Defendantsno. 2 and 3 stood as a Guarantor and} executed^{Guarantee Agreementdated 16'08 2022 in favor of the} Applicant^{Bank. The renewed the above mentioned loan facility} from time^{to timeand executed necessary documentsin favor of} the Applicant^{Bank. After availing the loan facility'the} defendants^{failed to comply the terms of sanction' hence the} applicant^{bankclassifiedthe account as NPA and issue Legal} Notice dated^{20.04.2026 to the defendants. lnspite of several} requests and^{demands, the defendants did not clearthe} outstanding.^{Hence this OA.}

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Defendants^{called absent and set exparte on 28'07'2026'}

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Ms. Vankudothu Anusha, Manager^{of the Applicant Bank} examined^herself as AW.1 and^{exhibited relevant documents'} which are^marked as Ex.A.1 to^A.10.

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Heard the^{Ld. Counsel for the ApplicantBank'}

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is whether the^APPlicant

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1. l The^{point that arise for consideration} in the OA against^the

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..;r' ':'ib"n* is entitled^{for the claim made}

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!! "

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, Defendants^as PraYed^for?

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.,"^{,, I} .- .r1 ,.iu

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, Jll q lglrl

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' ;'f-tl .€ *'ll

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.11' ..r-.,// t:,f ,// a5 :.i"

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(oA. No. 316/2026)

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Defendants^{remained exparte'To substantiatethe case of the} Applicant^{Bank, AW.1, official of the Applicant Bankwas} examined^{and she exhibitedrelevant documentsas Ex'A'1 to} A.l0.lnviewoftheabove,lholdthattheApplicantBankhas 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 interestand costs'}

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ln the result,^{the presentOA is allowedwith costs'as under:}

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The Defendants^{no. 1 to 3 are jointly and severallyliable to pay} to the Applicant^{Bank a total sum of Rs'21'16'000'31Ps'} (Rupees Twenty^{One Lakhs SixteenThousandand Paise} Thirty One^{Only) with future rate of interest@10'55%p'a} from the^{date of this applicationtill the date of realization'}

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entitled to Proceed^againstthe

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1. The APPlicant^Bankis as mentioned^{in the Scheduleof}

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HYPothecated^movables realization^{of the debt due.}

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ProPertY^{to the OA towards}

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is entitled^{to proceed againstthe person}

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1. The ApPlicant^Bank Defendants^{no. 2 and 3 and propertiesof}

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and^{proPerties of} towards^{realizationof the debt due'}

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Defendant^{no. 1 firm}

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(oA. No.3L6l2026l

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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 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 parties concerned'}

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(Dictated to the^{P.A., transcribed by her, corrected, signedand pronouncedby me in the open court on} this the 07th^{daYof Aug, 2026)}

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sd/-
(G. GOPIGHAND)
PRESIDING OFFICER
:tj-l^%

Canara Bank v. M/S. Maharshi Generics and Surgicals

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Maharshi Generics and Surgicals

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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Case details

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