Allowed

Canara Bank v. M/S. Rama Textiles

DRT2 Jan 2026OA/417/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Canara Bank's Original Application for recovery of a loan of Rs.1.76 Crores along with interest and costs frominama Textiles and proprietor Smt. Anumandla Madhavi, directing sale of hypothecated property and issue of recovery certificate.

What did the court decide?

Jointly and severally liable to pay Rs.1,76,84,526.88 plus interest; proceed against hypothecated/mortgaged properties and personal properties; successsept./s; issue Recovery Certificate.

Canara Bank versus M/S. Rama Textiles — Company and Corporate | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL - I AT HYDERABAD DATED THIS THE 2Nd DAY OF JANUARY,2O26

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PRESENT: SRI cUMMADI cOPtCHAND, pREStDING OFFTCER

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OA. No. 417 OF 2025

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Between :

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Canara Bank, (esyndicate Bank), Hanamkonda -ll Branch, 2-5-36, Water Tank Road, Near Naveena Children Hospital, Nakkalagutta, Hanamkonda, Warangal District - 506 001, T.S. Represented by its Chief Manager Applicant

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VERSUS 1. M/s.Rama Textiles, Rep. by its Proprietor, Smt. Anumandla Madhavi, Aged About 47 years, Plot No. 213, Sy No. 1791 , Madikonda, Madikonda Textile Park, Kazipet, Warangal, Telangana State - 506 143. 2. Smt. Anumandla Madhavi, Wo. Anumandla Elllaiah, Aged About 47 years, R/o. H.No. 3-91, Sangem Mandal, Waranga l- 506 310, T Defendants Counsel for the *i

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(oA . No. 41712025)

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For The Applicant Sri. Gampa Rangaiah For the Defendant Exparte Reserved on 23.12.2025 Pronounced on 02.01.2026 Upload in website on 05.01.2026

¶9

Sri. Gampa Rangaiah

¶10

ORDER

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The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.1,76,84,526.88 Ps. (Rupees One Crores Seventy Six Lakhs Eighty Four Thousand Five Hundred Twenty Six and Paise Eighty Eight Onty) i.e a sum of -

¶12

(i) Rs.1,42,62,798.04 Ps. (Rupees One Crores Forty Two Lakhs Sixty Two Thousand Seven Hundred Ninety Eight and Paise Four Only) with future interesl @ 12.50yo p.a with monthly rests from 25.06.2025 till the date of realization.

¶13

(ii) Rs.l8,92,485.64 Ps. (Rupees Eighteen Lakhs Ninety Two Thousand Four Hundred Eighty Five and Paise Sixty Four Only) with future interest @ 13.50% p.a with monthly rests from 25.06.2025 tillthe date of realization.

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(iii) Rs.3,24,460.73 Ps. (Rupees Three Lakhs Twenty Four Thousand Four Hundred Sixty and Paise Seventy Three Only) with future interest @ 13.65% p.a with monthly rests from 25. of realization.

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&
0 2 ,tAtl

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(oA. No. 477120251

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(iv) Rs.12,04,782.47 Ps. (Rupees Twelve Lakhs Four Thousand seven Hundred Eighty Two and paise Forty seven only) with future interest @ 13.s0% p.a with monthly rests from 25.06.2025 till the date of realization.

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and in default for sale of Hypothecated Movables and Mortgaged Property as mentioned in the schedules property I and ll to OA.

¶19

¶20

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 rerm Loan facility of Rs.98,31,000/- with interest @10.40% p.a with monthly rests repayable in 120 equated monthly instaltments of Rs.1,61,s61/and working capital facility of Rs.10.00 Lakhs together with interest @10.40% p.a with monthry rests and executed composite Hypothecation Agreement dated 27.06.2019 in favor of the Applicant Bank. The defendant no. 2 created Equitable Mortgage morefully mentioned in schedule ll to the oA and executed Agreement to Mortgage dated zr.06.2019 in favor of the Applicant Bank. The Defendants availed GECL facility of Rs.4.00 Lakhs and executed common Hypothecation Agreement dated 08.07.2020 in favor of the Applicant Bank. The Defendants availed GECL 1.0 extension loan facility of Rs.10.00 Lakhs and executed necessary loan documents dated 23.11.2021 in favor of the Applicant Bank. Defendants ienewed the said facilities from time to time and necessary loan documents in favor of the Applicant availing the loan facility, the defendants failed to 3

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(oA . No. 417l202s)

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comply the terms of sanction, hence the applicant bank classified the account as NPA on 21 .10.2023 and issued Demand notice dated 04.1 1 .2023 under Section 1 3(2) of the SARFAESI Act, 2002 to the defendants. lnspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

¶23

Defendants called absent and set exparte on 23.12.2025.

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Sri. B. Madhava Reddy , Chief Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.22.

¶25

Heard the Ld. Counsel for the Applicant Bank.

¶26

¶27

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?

¶28

Defendants and 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 4.22. ln 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.

¶29

OA is allowed with costs, as under:

¶30

¶31

(OA . No. 4r7 /zO2Sl

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The Defendants No. 1 and 2 are joinfly and severally liable to pay to the Applicant Bank a total sum of Rs.1,76,g4,526.gg ps. (Rupees One Crores Seventy Six Lakhs Eighty Four Thousand Five Hundred Twenty Six and paise Eighty Eight Onty) i.e a sum of _

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(i) Rs.1,42,62,29g.04 ps. (Rupees one crores Forty Two Lakhs Sixty Two Thousand Seven Hundred Ninety Eight and Paise Four Only) with future interest @ 12.SOyo p.a from 25.06.2025 tiil the date of reatization.

¶34

(ii) Rs.18,92,485.64 ps. (Rupees Eighteen Lakhs Ninety Two Thousand Four Hundred Eighty Five and paise Sixty Four onry) with future interest @ 13.50% p.a from 25.06.2025 ti, the date of realization.

¶35

(iii) Rs.3,24,460.73 ps. (Rupees Three Lakhs Twenty Four Thousand Four Hundred Sixty and paise Seventy Three Only) with future interest @ 13.650/0 p.a from 25.06.2025 till the date of realization.

¶36

(iv) Rs.12,04,782.47 ps. (Rupees Twelve Lakhs Four Thousand Seven Hundred Eighty Two and Paise Forty ly) with future interest @ 13.50% p.a from 25.06.2025 ization. ,{* 'i'rfu [ 2 JAl\l 2026 W.*.*E,

¶37

(OA . No. 417l202s)

¶38

The Applicant Bank is entitled to proceed against the Hypothecated Movables and Mortgaged Property AS mentioned in the Schedules of Property I and ll to the OA towards realization of the debt due.

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The Applicant Bank is also entitled to proceed against the person and properties of defendants No. 2 and properties of Defendant No. 1 firm towards realization of the debt due.

¶40

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

¶41

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

¶42

lssue Recovery Certificate accordingly.

¶43

Communicate a copy of the order to the parties concerned.

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(Dictated to the P.4., transcribed by her, corrected, signed and pronounced by me in the open court on this the 2nd day of Jan, 2026)

¶45

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Canara Bank v. M/S. Rama Textiles

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Rama Textiles

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

All orders in this case

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