Allowed

Central Bank of India v. Sri Srinivasa Vastralayam

DRT13 Aug 2026OA/389/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application filed by a bank for recovery of Rs. 54.24 lakhs with interest and for enforcement of hypothecated movables against absent defendants representing a proprietorship firm and its guarantor.

What did the court decide?

The defendants were ordered to pay Rs. 54,24,342/- with interest, and the bank was allowed to proceed against hypothecated movables and properties for realization.

Central Bank of India versus Sri Srinivasa Vastralayam — Insolvency and Bankruptcy | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL^_ IAT HYDERABAD DATED THIS THE 13th DAY OF AUGUST,2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA. No.389 OF 2026

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Between :

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Central Bank of lndia, Marriguda Branch, Marriguda Village and mandal, Nalgonda District Represented by its Senior Manager

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Applicant

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VERSUS

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Sri Srinivasa Vastralayam, Prop: Sangepu Srinivas, MallVillage, Chinthapally Mandal,

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Nalgonda District, Pincode: 508 245.

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Sangepu Srinivas,

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Padmashali Bazar,

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Marriguda Village and mandal, Nalgonda District,

Pincode: 508245,

Phone No. 9492363657

Defendants

1 3 al,8 uilm *
6..^

(OA. No. 389/2026)

Counsel for the parties :

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For The Applicant Mr. Ch. Raghu Rama Rao For the Defendant Exparte Reserved on 12.08.2026 Pronounced on 13.08.2026 Upload in website on 13.08.2026

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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. 54,24,342/- (Rupees Fifty Four Lakhs Twenty four Thousand Three Hundred and Forty Two Only) with future rate of interest @8.550/" p.a with monthly rests from 20.06.2026 till the date of realization and in default for sale of Hypothecated Movables as mentioned in the Schedule of Property to OA.

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As per the'':glvermentS-.the application, the Applicant Bank states-thal. nt a Proprietorship firm represented ):^ri. i --. /t- '

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by its Frbprietor'--Defendan[ no. 2 availed Loan facility of o otr-},,Ai$ i rflSFest 55o/op.a and executed necessary

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n s. s !,.$, of Loan cum hypothecation

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,"r" _--s;::H# \S* ),

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(OA. No. 389/2026)

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dated 19.12.2022 in favor of the Applicant Bank. The Defendant no.2 stood as a Guarantor in the loan facility availed by the Defendant No. I and executed Guarantee Agreement daled 19J22022 in favor of the Applicant Bank. After availing the loan facility, the defendants failed to comply the terms of sanction, hence the applicant bank classified the account as NPA on 30.11.2025 and issued Legal Notice daled 03.02.2026 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 12.08.2026.

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Sri. Botla Veeranjaneyulu, Senior Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.15.

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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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case of the Bank was Ex.A.1 to Bank has

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(oA. No. 389/2025)

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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 and 2 are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.54,24,342l- (Rupees Fifty Four Lakhs Twenty four Thousand Three Hundred and Forty Two Only) with future rate of interest @8.55% p.a from 20.06.2026 till the date of realization.

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

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The Applicant Bank is entitled to proceed against the person and properties of Defendant no. 2 and Propertles of Defendant no. 1 Firm towards realization of the debt due.

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

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/{fetry$;Jf'*9i1,^{rite a costmemowithin two weeks rrom the}

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I i* a*" df.?eceipt ofok"r. | 'lr tl l* 13fiucztz[

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(OA. No. 389/2025)

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13. lssue Recovery Certificate accordingly.

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14. Communicate a copy of the order to the^parties concerned.

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(Drctated to the P A, transcribed by her corrected signed and pronounced by me in the open court on this the 13th day ofAug, 2026)

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sd/-

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(G. GOPTCHAND) PRESIDING OFFICER

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ffi&

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-s6t RelrtBfar

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.qT.!, HYOERABlIO.

Central Bank of India v. Sri Srinivasa Vastralayam

Case brief

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Central Bank of India v. Sri Srinivasa Vastralayam

Case brief

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