Allowed

Canara Bank v. M/S. Vignesh Powerloom Industry

DRT11 May 2026OA/364/2025

Case brief

AI extract

What is this about?

This OA allowed Canara Bank's application for recovery of dues totaling Rs. 2,48,41,659.60 against a borrower and proprietor. The bank established its case via witness and documents; defendants appeared ex parte. The Tribunal ordered joint and several liability with interest and authority to proceed against mortgaged and other properties.

What did the court decide?

Defendants jointly and severally liable to pay total sum of Rs. 2,48,41,659.60 with future interest; entitlement to proceed against mortgaged and other properties; issue recovery certificate.

Canara Bank versus M/S. Vignesh Powerloom Industry — Company and Corporate | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL - IAT^HYDERABAD

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DATED THIS THE 1llh DAY OF MAY,2026

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PRESENT: SRI GUMMADI GOPICHAND,^{PRESIDING OFFICER}

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OA. No. 364 OF 2025

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Between :

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Canara Bank, Hanamkonda - ll Branch, Warangal District.

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Represented by its Authorized Officer

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Applicant

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VERSUS

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M/s. Vignesh Powerloom lndustry^(Borrower),

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Rep. by its Proprietor, Ramagiri Surender

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S/o. Ramachandraiah,

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R/o. Plot No. 257, Sy No. 1791i 1,

Textile Park,

Madikonda Village,

Hanamkonda

Warangal - 506 142

Ramagiri Surender^(Prop),,

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S/o. Sarangapani,

Aged Major,

132 Defendants

(oA. No. 364l2o2sl

Counsel for the^parties.

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For The Applicant Dr. Shaik Faheemullah For the Defendant Exparte Reserved on 08.05.2026 Pronounced on 11.05.2026 Upload in website on 14.05.2026

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ORDER

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The Applicant Bank filed the^present OA^{against Defendants} for recovery of a tota! sum of Rs.2,48,41,659.60 Ps.^(Rupees Two Crores Forty Eight Lakhs Forty One Thousand^Six Hundred Fifty Nine and Paise Sixty Only)^{i.e a} sum^of -

¶27

(a) Rs.1,90,31 ,897.41. Ps. being the Term loan account with future interest @ 11.40%^p.a with monthly rests from 24.06.2025 till the date of realization.

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being the OD/OCC loan account with p.a with monthly rests from 02.05.2025

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(oA. No.3641202s)

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account with future (iii) Rs.4,10,087.14 Ps. being the GECL-I interest @9.25Yo p.a with monthly rests from 24.06.2025 tiil the date of realization.

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(iii) Rs.34,90,988.74 Ps. being the GECL-!l account with future interest @9.25% p.a with monthly rests from 24.06.2025 till the date of realization.

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and in default for sale of Mortgaged Property 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 Proprietorship Firm represented by its Proprietor Defendant No. 2 availed Term Loan facility of Rs.98,31,000/- and Cash Credit facility of Rs.15.00 Lakhs and executed Composite Hypothecation Agreement dated 25.03.2019 in favor of the Applicant Bank. The defendants availed GECL facility of Rs.5.00 Lakhs and executed Sanction Memorandum dated 23.06.2020 in favor of the Applicant Bank. The defendants availed GECL - ll facility of Rs.29,00,000/- and executed Process Note Format for Sanction of GECL - ll dated 12.11.2021 in favor of the Applicant Bank. The Defendants created Equitable Mortgage morefully mentioned in Schedule of Property to the OA and executed Agreement to Mortgage dated 25.03.2019 in favor of the Applicant . .i'ipank. After availing the loan facility, the ,' ata defendants failedito corply the terms of sanction, hence the ':... :! 3

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:; :..'; : "i -^{:', i. ,.} ::.:.-. "--,.'"...^{: l.;,'}

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(OA. No. 3641202s)

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applicant bank classified the account as NPA on 29.10.2023 and issued Demand notice dated 04.11.2023 under Section 13(2) of the SARFAESI Act, 2002 and to the defendants. lnspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants called absent and set exparte on 27.11.2025.

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Sri. Guguloth Rajesh, Authorization Officer of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.17.

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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 4.17. ln view of the above, I hold that the Applicant Bank has established their claim made in the OA against the Defendants ...and^{hencethe Applicant Bank is entitledto recover the claim} .,ii fr',ffiade in the OA with future interest and costs. '; //e l/ u, .,, , .i* \ ll^Nr :i::;u \1, ,r ,,+r,i^^*r, 1t tl .: .. 1 {^t.'11,i r"i;^.,,,i,t i tr; 4

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(OA. No.36al2025)

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

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The Defendants No. 1 and 2 are .iointly and severally liable to pay to the Applicant Bank a total sum of Rs.2,48,41,659.60 Ps. (Rupees Two Grores Forty Eight Lakhs Forty One Thousand Six Hundred Fifty Nine and Paise Sixty Only) i.e a sum of -

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(i) Rs.1,90,31,897.41. Ps. being the Term loan account with future interest @ 1140% p.a frcm 24.06.2025 till the date of realization.

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(ii) Rs.19.,08,686.31 Ps. being the OD/OCC loan account with future interest @13.5o/o p.a from 02.05.2025 till the date of realization.

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(iii) Rs.4,10,087.14 Ps. being the GECL - | account with future interest @9.25% p.a frcm 24.06.2025 till the date of realization.

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(iii) Rs.34,90,988.74 Ps. being the GECL - ll account with future interest @9.25ok p.a from 24.06.2025 till the date of realization.

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The Applicant Bank is entitled to proceed against the Mortgaged Property as mentioned in the Schedule of Property to the OA towards realization of the debt due.

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(OA. No. 364/202s)

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The Applicant Bank is also entitled to^{proceed againstthe} person and properties of Defendants No. 2 and^{properties of} Defendant No. 1 firm towards realization^{of the debtdue.}

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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, slgned and^{pronounced by mein the open court on} 11'h day of May, 2026) '

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u * 1ifi/,ymr *
l"r1

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sd/(G. GOPTCHAND) IDING OFFICER

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Canara Bank v. M/S. Vignesh Powerloom Industry

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Vignesh Powerloom Industry

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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Case details

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