Allowed

Indian Overseas Bank v. Gajarla Swarupa

DRT14 Aug 2026OA/343/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an open application filed by a bank against the legal heirs of a deceased borrower. The court held that the bank successfully established the loan facility, creation of equitable mortgage and hypothecation, and default. Consequently, the bank was ordered to recover the principal amount along with interest and costs.

What did the court decide?

The open application was allowed. Defendants were directed to pay Rs.97,32,134.78 plus interest. The bank was entitled to proceed against mortgaged and hypothecated properties subject to the extent of

Indian Overseas Bank versus Gajarla Swarupa — Cheque Dishonour | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL - IAT HYDERABAD DATED THIS THE 14th DAY OF AUGUST, 2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA. No. 343 OF 2026

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Between :

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lndian Overseas Bank, Mukrampura, Karimnagar, Telangana State Represented by its Chief Manager

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Applicant

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VERSUS

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Smt.Gajarla Swarupa

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w/o late Sri Gajarla Venu Kumar,

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aged about 39 years, Occ: Housewife, R/o H.No. 10-1-195, Ramnagar,

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Karimnagar, T.S. 505 001.

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Also at:

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D.No.10-2211 l4ltu1, SS Hills, Rekurthi village, Kothapalli Mandal,

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Karimnagar Dist., T.S.- 505 001.

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Smt. Gajarla Upendramma w/o Sri Narasaiah, Major, Occ: Nil, H.No. 10-'1-195, Ramnagar, Karimnagar, T.S. 505 001.

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(oA. No. 3a3l2026)

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Also at:

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D.No.10-2211 l4ltu1, SS Hills, Rekurthi village, Kothapalli Mandal, Karimnagar Dist., T.S.- 505 001.

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Mr.Gajarla Surya Datta s/o late Sri Gajarla Venu Kumar, Major, Occ: Nil, R/o H.No.'10-1-195, Ramnagar,

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Karimnagar, T.S. 505 001.

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Also at:

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D.No. 10-2211/4/tu1, SS Hills, Rekurthi village, Kothapalli Mandal, Karimnagar Dist., T.S.- 505 001.

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Master Gajarla Sai Preetham s/o Late Sri Gajarla Venu Kumar, Minor, rep. by natural mother And Guardian Smt.Gajarla Swarupa (D-1 above)

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Also at:

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D.No.10-221 1 l4ltu1, SS Hills, Rekurthi village, Kothapalli Mandal, Karimnagar Dist., T.S.- 505 001.

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Sri Surya Sai Gastro and Liver Centre. Rep. by its Proprietor Smt. Gajarla Swarupa,

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Defendants

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(OA. No. 343/2026)

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Counsel for the parties :

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For The Applicant Sri. Gampa Rangaiah For the Defendant Exparte Reserved on 13.08.2026 Pronounced on 14.08.2026 Upload in website on 14.08.2026

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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.97,32,134.78 Ps. (Rupees Ninety Seven Lakhs Thirty Two Thousand One Hundred ThirtyFourand Paise Seventy Eight Only) i.easumof-

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(i) Rs.59,03,395.00 Ps. with future rate of interest @10.65% p.a with monthly rests from 04.05.2026 till the date of realization;

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( ii) Rs.38,28,739.78 Ps. with future rate of interest @12.10% p.a with monthly rests from 08.05.2026 till the date of rea lization;

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Movables and Schedule of

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1[A|JI2m

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h."W

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(oA. No. 343/2026)

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As per the averments in the application,^{the Applicant Bank} states that Defendant no. 1 and^{her husbandSri GajarlaVenu} Kumar availed Housing loan facility of^{Rs.72,00,0001with} interest and executed Housing^{Loan Agreementdated} 03.11.2022 in favor of the Applicant^{Bank. The Defendants} created Equitable Mortgage morefully^{mentioned in Schedule} of^property B to OA and executed^{Memorandum of Deposit of} Title Deeds dated 07.11.2022 and^{deposited Registered Deed in} favor of the Applicant Bank. The Defendants^{availed Term loan} facility of Rs.40,00,0001 with interest and^{executedTermLoan} Agreement dated 30.04 .2024 and letter of^{Hypothecationfor} securing movables assets dated 30.04.2024^{in favor of the} Applicant Bank. After availing the^{loan facility, Sri GajarlaVenu} Kumar died and Defendants no.¹ to 4^are the^{legal heirs of} Late Sri Gajarla Venu Kumar. After availing the^{loan facility, the} defendants failed to comply the terms of^{sanction, hencethe} applicant bank classified the loan account^{as NPA on 01.08.2025} and the Applicant Bank issued^{Demand Notice dated 16.09.2025} under section 13(2) of the SARFAESI^{Act, 2002 to the} defendants. lnspite of several requests and^{demands, the} defendants did not clear the outstanding.^{Hence this OA.}

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J, Defendants 13.08.2026.

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Sri. Manager of the Applicant Bank and exhibited releva nt documents,'wnicfr 4rd&ffi .1 to A.20.

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(OA. No. 343/2026)

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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 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.20. 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 5 are^jointly and severally liable to pay to the Applicant Bank a total sum of Rs.97,32,134.78 Ps. (Rupees Ninety Seven Lakhs Thirty Two Thousand One Hundred Thirty Four and Paise Seventy Eight Only) i.e a sum of -

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(i) @10.65%

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, l. . - ., ... .-:;..'. ( ii) ' n='sa, zBi,i!'J'.1';* future rate of interest @12.10%o p.a from08.05.201 the date of realization; _ ttllJca26^* ",,.-.

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(OA. No. 343/2026)

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The Applicant Bank is entitled to^proceed against^the Hypothecated Movables and Mortgaged^properties as^mentioned in the Schedule of Property A and B to the OA towards realization of the debt due.

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The Applicant Bank is entitled to^proceed against the^properties of Defendant No.5 Firm and^person and^{properties of} Defendants no. 1 to 4 towards realization of the debt due. The Applicant Bank is entitled to^proceed only to the extent of estate devolved upon the Defendants No. 1 to 4 from the deceased Late Sri Gajarla Venu Kumar.

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11 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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¶57

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Indian Overseas Bank v. Gajarla Swarupa

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Gajarla Swarupa

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

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