Allowed

State Bank of India v. M/S. Sri Vani Educational Society

DRT7 Aug 2026OA/40/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by the State Bank of India against an educational society and its guarantors. The court held the defendants jointly and severally liable to pay the outstanding debt with interest and directed the issuance of a recovery certificate.

What did the court decide?

Defendants liable to pay Rs. 39,34,831/- with future interest at 12.75% p.a. Recovery certificate to be issued.

State Bank of India versus M/S. Sri Vani… — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS^{RECOVERYTRIBUNAL-I AT HYDERABAD} DATED THIS^{THE 7TH DAYOF AUGUST'2026}

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PRESENT: SRI^{GUMMADIGOPICHAND,PRESIDING OFFICER}

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OA.No.4O^{OF 2025}

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Between:

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State Bank^{of India,} Stressed^{Assets Recovery Branch-2,} D.No.1-8-563/1,^{RTC "X" roads,} Opp: SandhYa^{theatre, 1st floor,} chiffaapally,^{HYderabad - 500 020'} Represented^{by its Authorised officer}

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Applicant

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VERSUS

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M/s. Sri Vani^{Educational Society'} RePresented^{bY its SecretarY,}

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Sri B. Suman^Kumar,

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D.No.3-4-Bo9ltlA,

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Street^{no. 1, BarkatPura,}

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HYderabad -^{500 027'}

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Sri B. Suman^Kumar, s/o Shiva^{Lingam (SecretarY)'} aged major,^{n/o O'No'1,7- L-39L15/482'} singareni^{colonY, Saidabad,} HYderabad -^{500 059'}

¶14

Sri B. Naveen Kumar,
i/o Sniru Lingam (Joint SeclelarY),
i'geO major, n'/o O.No.17- r-39USl4B2'
Slngareni colony, Saidabad, -yriff-rt+..
Hyd'erabad - 5oo 059. i".*YJ. oQr:..
,:'.'u"**tt$'#t}.,
4. Sri B. Shiva Lingam, $Ii{} tn'i
'i,' .*
s/o Laxmaiah (Treasurer), flg."d . \t
,.i"i, R/o D.No.17-1-3.9L(?14W,7 trlit rn:q " l,
singui"ni colonY, Saidabad)',,
Hyderabad - 500 059' ', , '.1,

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(OA.No.40/2025)

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5.	SmtB.Vani, Wo^{B.Suman Kumar(Executive} Member), aged^major, D,No.17-1-39^rlsl4B2, Singareni^{colonY, Saidabad,} Hyderabad-^500059,
6.	SmtM.Chandramohan, s/oM. Bansilal^{(Vice-President)} agedmajor,^{Rlo D.No.7-l-7tl2,} Dharamkaram^{Road,BesideChalla} Narsing Home,^AmeerPet, Hyderabad-^500016.
7.	SmtB. Rajitha, w/oVijaYendra^(President) agedmajor,^{R/od.No,14-3-86,} Goshamahal,^NamPallY, Hyderabad-^500012.
B.	SriKanta^VijaYendra, Agedmajor,^{R/o D.No.14-3-86,} Aiyasamaj,^Goshamahal, Nampally,^HYderabad-^{500 012'}
Cou	nsel^{fortheParties:}
For	theAPP
For	defendants^No'1to5
Def	endants^no.6toB

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Sri K. SundeeP For the APP|icant Sri D. Rajasekhar For defendants^{No'1 to 5} Exparte Defendants^{no.6 to B} 03.08.2026 Reserved^on

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Defendants

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07.08.2026 07.08.2026

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.r I :ci
{"t '
ORDER
Alr0
led the present OA against Defendants for
sum of Rs.39,34,831/- (Rupees Thirty Nine

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(oA.No.a0l202s)

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Lakhs Thirty^{Four Thousand Eight Hundred and Thirty one only)} with future interest^{@t2.75o/o p.a from date of applicationtill the} date of realization^{and in default for sale of mortgaged propertyas} mentioned in the^{scheduleto OA'}

¶23

As^per the^{avermentsin the application, the Applicant Bank states that} the defendant^{No.1 is an Educationalsocietyrepresentedby its} secretarySriB.SumanKumaranddefendantsno.2toBstoodas guarantorstotheloanavailedbydefendantno.l.Thedefendantno.l availed^{cash credit loan of Rs'45'00 lakhs and OD loan amount of} Rs.16.00^{lakhs totaling to a sum of Rs'61'00 lakhsand executed} agreement^{of hypothecation dated t2'08'2021'Defendantsno' 2 to} 8 executed^{guarantee agreement extending their personal guarantees} securing due^{repayment of loan'Defendantno'1 extended the} mortgage^{of schedulepropertymore fully describedin schedule to OA} and deposited^{the title deeds in favour of applicantbank' It is} submitted^{by the Applicant bank that the Defendants havingavailed} the said loan^{facilities failed to keep up the repayment schedule'as} such the^{account was classifiedas NPA on 31'03'2024 and issued} uernino^{notice dated02.04.2024and legal Notice dated 13.01.2025'}

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'Inspite of demands made by Applicant the defendants have not :,

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.rggulafizedth'eiccount,anddidnotcomeforwardtorepaythesame'

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) ir "^'Th" total claim of Applicant against defendants is Rs'39'34'8311' {n$nF!F , rt Thiity ..^{Nine Lakhs Thirty Four Thousand Eight Hundred}

..tLB2'"

(oA.No.a0l202s)

and Thirty One only) with^{future interest} @L2.75o/o^{p'a till the date} of realization. Hence the OA.

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Defendants No.1 to 5 filed Written statement^{and denied the} averments made in the OA. It^{is admittedthat the defendantsavailed} the loan and mortgaged the immovable^{propertyin favour of applicant} bank. It is submitted that^{the defendants paid substantial amount of} Rs.15.00 lakhs on 02.07.2024 and also a sum of^{Rs.5.00 lakhs on} 05.07.2024 and the same^{amounts were not reflectedin the statement} of accounts. It is further^{contendedthat the Applicant bank classified} the loan account as^{NPA without following the guidelines of RBI'} Hence prayed for dismissal of OA,

¶32

During the course^{of trial on behalf of Applicant Bank, Sri sarojMishra} Manager is examined as^{AW.1 and through him marked19 documents} as Ex.A.1 to A.19.^{Defendant no.2 examined himself as DW'1 and} not filed any documents'

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I have^perused the^{documents placed on record.}

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Heard the arguments.

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are:

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(oA.No.aol202s)

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i) Whether the Applicant^{Bank has provedits claim as made in OA}

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against the defendants^?

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ii) To what relief^?

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Point No.i):

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The Defendants are not^{disputing the fact that they availedthe} loan from the Applicant^{bank and executed necessary documents'} There is also no dispute^{regardingthe fact that the defendants} created mortgage^{in respect of the schedulementionedproperty'} On behalf of Applicant,^{AW.1is examinedand he reiteratedthe} version of applicant bank'^{The material documents are markedas} Ex.A,1 to A.19.^{Even though AW.1 is cross examined by counsel} for Defendants,^{nothing is elicited to disprovethe contention of} the Applicant.^{Various documents exhibited by the AW'1 clearly} indicates that defendants^{contention that ApplicantBank} classified the account^{as NPA without followingRBI guidelines is} not tenable.

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The defendants are^{not disputingthe executionof the loan} documents.Soasperthedocumentsfiledbytheapplicants,itiS very clear that the^{defendants are liable to pay the OA} Etl ding, as claimed^{by the Applicant bank. As per the} *'''$.:.$ ;il-i\ ,"liha".rments^{filedbv the Applicant bank, it is clear that the} 3rrut] UUn""r!,ll^{of loan cum hvpothecation was signed bv the} no.1. Similarly the^{Memorandum of deposit of title}

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(oA.No.aol202s)

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deeds,^{guarantee agreement,letter of arrangementwere also} signed by^{the defendants.So consideringall the circumstancesof} the case, I^{hold that the Applicant bankis entitled to claimthe} OA amount^{from defendants'Therefore, the OA claim deserves to} be allowed^{against the defendants No'1 to 3'}

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Point No.ii)

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In the result,^{the present Originalapplication is allowedwith costsas} 9, under:

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The Defendants^{No.1 to B are jointlyand severallyliable to pay the} Applicant Bank a^{total sum Rs'39,34,831/- (RupeesThirty Nine} Lakhs Thirty^{Four Thousand Eight Hundred and Thirty One only)} with future interest @12.75o/o^{p.a from date of applicationtill the} date of realization^{till the date of realization;}

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the Applicant^{Bank isentitled to proceedagainst the mortgaged} property as mentioned^{in the schedule to oA towards realizationof the} debt due.

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-4,f=lxEaeplicant^{bankis also entitled to proceedagainst the personand} ,a,(.ojffry^##., de tf en od ants No .2 'z to oB dlruand properries of defendants^No.1 ,.:' F.ppefftS$Pi 'iii, towifr\rearization of the debt due' ii::^0tri,i;;;-. ^

¶50

nt Bank is entitled to^{the costs of the OA.} I?Y "iu

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(oA.No.aol202s)

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13'TheApplicantshallfileacostmemowithintwoweeksfromthedate

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of receiPt of^order'

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Issue Recovery^{certiflcateaccordingly'}

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Communicate^{a copy of the order to the parties concerned'}

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in the open

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sdl_
(G. GOPICHAND)
PRESIDING OFFICER
01 luc 2026

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State Bank of India v. M/S. Sri Vani Educational Society

Case brief

What is this about?

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State Bank of India v. M/S. Sri Vani Educational Society

Case brief

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