Allowed

Union Bank of India v. Sri. Masani Srinivas Reddy

DRT1 Apr 2026OA/381/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Originating Application filed by Union Bank of India for recovery of a loan debt totaling Rs. 27.33 lakhs. The court found the bank had established its claim as defendants were absent. The bank was granted specific details, interest, and the right to proceed against mortgaged properties and the legal heir's estate.

What did the court decide?

Defendants No. 1, 2 and 4 are jointly and severally liable to pay Rs. 27,33,497.04ps with future interest; Applicant Bank entitled to proceed against mortgaged properties and the legal heir's estate.

Union Bank of India versus Sri. Masani Srinivas… — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS^{RECOVERYTRIBUNAL-I AT HYDERABAD}

¶2

DATED THIS^{THE 1ST DAY OF APRIL, 2026}

¶3

PRESENT: SRI^{GUMMADI GOPICHAND,PRESIDING OFFICER}

OA.No.381 ot 2025

Between:

Union Bank of^India,

Banswada branch,

Nizamabad,^Telangana Represented by^{it; GPA holder}

¶9

Applicant

¶10

VERSUS

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1, Sri Masani^{SrinivasReddy,}

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S/o Sri Ram^ReddY,

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Aged 32 Years,^{occ:business,} R/o H.No.4-3-2,^chamangallY,

¶14

Banswada - 503^187.

¶15

Sri Masani^{Ram Reddy,}

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s/o Sri Agam^{Reddy, aged 60} Years, occ: business,^{R/o H.No.4-3-2,} ChamangallY,^Banswada -^{503 187'}

¶17

Sri Masani^{Sanga Reddy,(Expired)} s/o Sri Agam^Reddy, aged major,^H.no.4-3-2, chamangally,^Banswada -^{503 187'}

¶18

Sri Masani^{Krishna ReddY (LR)} s/o Late Masani^SangaReddY, aged major,^H.No.4-3-2, ChamangallY,^Banswada -^{503 187'}

¶19

Defendants

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Counsel for the^Parties:

¶21

Ms. Sangeetha^Jaiswal Defendants Reserved on .04.2026 Pronounced 0L.04.2026 Uploaded in

Defendants

(oA.No.381/202s)

ORDER

The^{Applicant Bank filed the present OA against Defendants for} recovery^{of a total sum ofRs'27'33'497'O4ps(Rupees TwenW} Seven^{Lakhs Thilty Three Thousand Four Hundred NinetySeven} and Paise^{four onlY) i'e"}

¶26

a) A sum^{of Rs'19,03,350'52pswith future interest @ 13'55o/o p'a} inclusive^{of penal interest@ 2olo from 20'06'2025till the date of} realization;

¶27

b) A sum^{of Rs'4,77'090'40ps with futureinterest@ 8'80% p'a} inclusive^{of penal interest@ 2olo from 2O't2'2O25till the date of} realization;

¶28

c) A sum^{of Rs'2,11'480'14ps with future interest @ 13'55o/o p'a} inclusive^{of penal interest@ 2Yo from 2O't2'2025till the date of} realization;

¶29

d) A sum^{of Rs'1,41'575'98ps with future interest @ 11'55o/op'a} inclusive^{of penal interest@ 2olo from 2O't2'2025till the date of} realization;

¶30

and in default^{for sale of mortgaged propertiesas mentioned in the} schedule^{to OA'}

¶31

in the^{application,the Applicant Bank states that}

¶32

1. loan facility^{of Rs'19,25,000/-vide letter} Defendants^{no.2 and 3 stood as co-}

¶33

:'^{"f't'"[bpt",h;f}

¶34

(oA.No.38U202s)

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obligantstotheloantransaction,Thedefendantsexecutedcomposite agreement^{dated 23.06.2016and depositedthe title deeds of schedule} property. Subsequently^{the defendants availed additional housing} loan of^{Rs.4,80,000/-and executed composite agreement for} agriculture^{dated 28.07'2016'Later the defendants1 and 2 availed} cash credit^{facility of Rs'40,000/- and executeddocuments'} Defendant^{no.3 expired and subsequently defendant no'4 was} impleaded^{as legal heir of deceaseddefendant no'3' After availing the} loan facilities,^{the defendants failed to comply the terms of sanction'} hence the^{applicant bank classifiedthe accountas NPA and issued} legal notice^{dated 25'09'2024'Inspite of several requestsand} demands,^{the defendantsdid not clear the outstanding'Hence this} oA.

¶36

Defendants^{1 and 2 called absent and set exparteon} 30.10,2025. Defendant^{no'3 expired and defendant no'4 was set} exparte^on 24.03.2026.

¶37

Sri^{Kamaljit H. Raval,Authorisedofficer of the Applicant Bank} examined^{himselfas AW'1 and exhibited relevantdocuments'which} are marked^{as Ex'A'1 to A'33'}

¶38

.di Counsel^{for..the Applicant Bank'}

¶39

1. Heard

¶40

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¶41

(oA. No.381/202s)

¶42

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?

¶43

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.A1 to A.33. In 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.

¶44

B. In the result, the present OA is allowed with costs, as under: The Defendants No.1,2 and 4 are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.27,33,497.O4ps (Rupees Twenty Seven Lakhs Thirty Three Thousand Four Hundred

¶45

Ninety Seven and paise four only) i.e.,

¶46

a) A sum of Rs.19,03,350.52ps with future interest @ 13.55% p.a inclusive of penal interest @ 2olo from 20.06.2025 till the date of

¶47

.40ps with future interest @ B.B0o/o p.a @^2olo from 20.L2.2025 till the date of

¶48

(oA.No.381l2o2sl

¶49

c) A sum of Rs.2,11,480.14ps with future interest @ 13.55o/o p.a inclusive of penal interest @ 2o/o from 20.L2.2025 till the date of realization;

¶50

d) A sum of Rs.1,41,575.98ps with future interest @ 11.55% p.a inclusive of penal interest @ 2o/o from 20.12.2025 till the date of realization;

¶51

The Applicant Bank is entitled to proceed against the mortgaged properties as mentioned in the schedule to OA towards realisation of the debt due.

¶52

The Applicant Bank is also entitled to proceed against the person and properties of defendants towards realization of the debt due. However the Applicant bank is entitled to proceed only to the extent of estate devolved upon defendant no.4 from the deceased defendant no.3.

¶53

The Applicant Bank is entitled to the costs of the OA.

¶54

t2. The Applicant shall file a cost memo within two weeks from the date of receipt of order.

¶55

Issue Recovery ceftificate accordingly.

¶56

t4. Qp-mrm:ffiicate:a.copy of the order to the parties concerned.

¶57

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¶58

'DRT"-^''

Union Bank of India v. Sri. Masani Srinivas Reddy

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sri. Masani Srinivas Reddy

Case brief

What is this about?

What did the court decide?

What the court decided

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