Allowed

Canara Bank v. M/S. Vijayalaxmi Textiles

DRT10 Aug 2026OA/399/2025

Case brief

AI extract

What is this about?

In an Original Application filed by Canara Bank for recovery of dues from M/s. Vijayalaxmi Textiles, the Tribunal allowed the application. The court examined loan documents and witness deposition, finding the respondent liable for the outstanding amount including principal, interest, and penal interest.

What did the court decide?

Recovery of total sum Rs.1,93,12,820.48 with interest; Applicant entitled to proceed against hypothecated property; Recovery certificate issued.

Canara Bank versus M/S. Vijayalaxmi Textiles — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERYTRIBUNAL-I AT HYDERABAD

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DATED THrS THE lOrH DAy OF AUGUST,2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING oFFICER

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OA.No.399 ot 2025

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Between:

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Canara Bank, Warangal Main branch, B-4-4, Krishna colony, Station road, Warangal, Telangana - 506 002. Represented by its Principal officer And chief Manager

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Applicant

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VERSUS

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M/s, Vijayalaxmi Textiles, Represented by its Proprietor Mr, Samala Srujan Kumar, Plot no.2, Textile park, Madikonda, S.No. 1791, kazipet, Warangal, Telangana - 506 L42.

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Also at:

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H.No.4-122/L, Opp Post office, Kesamudram, Warangal - 506 112.

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Defendant

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Counsel for the Parties:

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For the Applicantthe ApplicantApplicant

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For the Applicantthe ApplicantApplicant Smt N. Indira Defendant Sri V. Ravinder Orders rese 07.08.2026 r;#;t Pronounced .1 0^{AUC ?fl2fi i} 10.08.2026 Uploaded i rte on ? lt.o8.2026 -F-A'l S..b,"*.S9

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(oA. No.399/202s)

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ORDER

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1, The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.1,93,12,82o.48ps (Rupees One Crore Ninety three Lakhs Twelve thousand Eight Hundred Twenty and paise forty eight only) i.e.,

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a)A sum of Rs.1,49,85,475.26ps with interest @ 10o/o^{p.a with} monthly rests along with penal interest @ 2o/o p.a from 01.07.2025 till the date of realization;

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b) A sum of Rs.6,54,920.79ps with interest @ B.85%^{p.a with monthly} rests along with penal interest @ 2o/o p.a from 01.07.2025 till the date of realization;

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c) A sum of Rs.24,44,226.30ps with interest @ 8.85o/o^{p,a with} monthly rests along with^penal interest @^{2o/o p.a from} 01.07.2025 till the date of realization;

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d)A sum of Rs.2,28,198.13ps with interest @^{10.35olo p.a with} monthly rests along with^penal interest @^2o/o P.a^{from 01'07'2025} till the date of realization;

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and in default for sale of hypothecated^{movables and mortgaged} property as described in the schedule to OA.

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,.,,4!^{P9..f. the averments in the application,the ApplicantBank} no.1 is a Proprietorship firm represented^by loan of Rs.92.50 lakhs, working capital of of Rs,B.50 lakhs and credit facility^of

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, eo.^z. !h^{0raldtB, l,mcL} j ,<F- ." J' t,'"irt <r."t-'., -g,,lp;;+;i^,. "-!.y/

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(oA. No.399/202s)

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Rs.20.00 lakhs and executed demand promissory note, acceptance letter, letter of continuity, letter of undertaking etc. The defendants hypothecated the movables and mortgaged the schedule property in favour of Applicant bank. It is submitted by the Applicant bank that the Defendants avaired the said roan facirities and faired to keep up the repayment schedure, as such the account was crassified as NpA. Inspite of demands made by Applicant the defendants have not regularized the account, and the Appricant bank issued regar notice dated t4.07.2025, but the defendants did not come forward to repay the same. The total claim of Applicant against defendants is of Rs.1,93,12,82o.48ps (Rupees One Crore Ninety three Lakhs Twelve thousand Eight Hundred Twenty and paise forty eight only) with interest @ 10o/o p.a, @8.85% p.a and @10.35% p.a respectivery from 01.07.2025 tiil the date of rearization. Hence the oA.

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The Defendant fired written statement admitting that they avaired various loan facirities from the Appricant bank. It is contended that the applicant bank crassified the roan account as NpA without foflowing the guidelines of RBI. It is further contended that the bank has no cause ot f actiopirclr.d tQ9,O4,is barred by limitation. Hence prayed for .. .;. ","f i 'i-0.'.. dismissa ss6l.of OA. j i lrt i .a.,,4 3, I on record.

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(oA. No.3ee/202s)

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Heard the arguments.

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Now, the points that arise for consideration are:

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i) Whether the Applicant Bank has proved its claim as made in OA against the defendant ?

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ii) To what relief ?

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Point No.i):

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Mr. V. Anusha, Branch Manager/ AW.1 who was examined on behalf of the Applicant clearly deposed about the liability of the defendant. Exhibits A.1 to A.22 are marked through AW.1.

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As per the documents filed by the Applicant Bank and also as per the admissions made by the defendant in the Written statement, it is very clear that the defendant has availed loan from the Applicant Bank, but failed to repay the amount. All the amounts paid by the defendant are clearly mentioned in the statement of account filed by Applicant Bank. The defendant has not placed any material documents to show their bonafides for establishing that the Applicant bank failed to follow the RBI guidelines as per the norms.

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AW.1 is not cross examined by the counsel for defendant.

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co0 m e forwarr d to give evidence to subrbstainlttiatrte th:harntheianmoL)urnt mentioned,inr t heOOA Urlndeer

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.1, such circumstar EVtvidrlence ro f A\W. 1 coupled w ith r <ecitalals Ext (.A...1

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i,-1^'t t, liiju l[Jzb -,^10riljc2026

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\ :::.to A.22 stood u no(gedI and u n r (etbutted. The3Ap\oolica:ant banlrk 4

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t t..,**..s r ",.

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(oA.No.399/202s)

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clearly established that the defendant is liable to pay the OA amount to the Applicant bank.

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Point No.ii)

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

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The Defendant is liable to pay to Applicant Bank a total sum of Rs.1,93r12,82o.48ps (Rupees One Crore Ninety three Lakhs Twelve thousand Eight Hundred Twenty and paise forty eight only) i.e.,

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a) A sum of Rs.1,49,85,475.26ps with interest @ 10olo p.a from 01-07.2025 till the date of realization;

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b) A sum of Rs.6,54,920.79ps with interest @ 8.85o/o p.a from 01.07.2025 till the date of realization;

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c) A sum of Rs.24,44,226.30ps with interest @ 8.85o/o p,a from 0L.07.2025 till the date of realization;

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d) A sum of Rs.2,28,198.13ps with interest @ 10.35o/o p,a from 0t.07.2025 till the date of realization;

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The applicant bank is entitled to proceed against the hypothecated

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aged property as mentioned in the schedule to OA e debt due.

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:'. '^{1 r ."i 'i':{} r- ' '- :'1ii:--:ig

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(oA.No.399/202s)

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' 10. The Applicant bank is arso entitred to proceed against the person and properties of defendant towards realization of the debt due.

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The Applicant Bank is entifled 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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Issue 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, signed and pronounced by me in the open court on this the 106 day of August, 2026)

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sdl-

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(G. GOPTCHAND) PRESIDING OFFICER

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'r-RUAGOP'l]U -z
fi s!ffi
Asst.8trg/ls'r,aY
DRT.I, HYDERI|BND.

Canara Bank v. M/S. Vijayalaxmi Textiles

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Vijayalaxmi Textiles

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

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