Allowed

Canara Bank v. M/S. Sri Venkateshwara Textiles

DRT12 Jan 2026OA/460/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Open Application filed by Canara Bank for recovery of Rs. 1,72,19,601.00 plus interest against the proprietorship firm and its proprietor. The bank was granted costs and a Recovery Certificate, with authority to realize dues from the secured properties and defendant assets.

What did the court decide?

Defendants directed to pay ₹1,72,19,601 plus future interest; Recovery Certificate issued.

Canara Bank versus M/S. Sri Venkateshwara Textiles — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL - ! AT HYDERABAD DATED THIS THE 12th DAY OF JANUARY,2O26

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PRESENT: SRI cUMMADI GOPICHAND, PRES|DtNG OFFICER

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OA. No.460 OF 2025

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Between :

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Canara Bank, Hanamkonda Branch -ll, Hanamkonda District Telangana State.

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Represented by its Chief Manager

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Applicant

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VERSUS

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M/s.Sri Venkateswara Textiles, Rep. by its Proprietor, R/o. Plot No.37, Sy No. 1791/1, Textile Park

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Madikonda Village, Kazipet Mandal,

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Warangal Urban,

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Telangana State - 506 142.

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Boorla Vijaya,

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Wo. Sri Sammaiah,

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Aged Major, Occ. Business, R/o. H.No. 19.125, Huzurabad, Behind Government Junior

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Karim Nagar - 500 468, Defendants
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^. ll

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(OA. No. a50l2025)

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Counsel for the parties :

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For The Applicant T. Nagender For the Defendant Exparte Reserved on 09.01.2026 Pronounced on 12.01.2026 Upload in website on 12.01.2026

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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.1,72,19,601.00 ps. (Rupees One Grores Seventy Two Lakhs Nineteen Thousand Six Hundred and One Only) i.e a sum of -

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(i) Rs. 1,44,87,522.00 Ps. with future interest @ 13.65% p.a with monthly rests from 01.07.2025 till the date of realization.

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(ii) Rs.18,49,290.00 Ps. with future interest @ 12.50%o p.a with monthly rests from 01.07 -2025 till the date of realization.

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(iii) Rs.70,554 Ps. with p.a with monthly till the date of realization. 2;ntl?mr

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(oA. No. 460/202s)

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(iv) Rs. 8,12,235.00 Ps. with future interest @ 11.25Yo p.a with monthly rests from 01.07 .2025 till the date of realization.

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and in default for sale of Hypothecated Movables and Mortgaged Properties as mentioned in the Schedules Property A and B to OA.

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As per the averments in the application, the Applicant^{Bank states} that Defendant No. 1 is a Proprietorship Firm^{representedby its} Proprietor Defendant No. 2 availed Term Loan facility of Rs.98,31,0001 with interest @10.20%^p.a with monthly^rests repayable in 120 equated monthly installments of Rs.1 ,53,2721and cash credit loan facility of Rs.15.00 Lakhs together^with interest @10.20o/o p.a with monthly rests and^executed Composite Hypothecation Agreement dated 30.01.2020ⁱⁿ favor of the Applicant Bank. The Defendant no. 1 created Equitable Mortgage morefully mentioned in Schedule B to the OA and executed Agreement to Mortgage dated 30.01.2020 in favor of the Applicant Bank and Defendant no. 1 deposited Original title deeds in favor of the Applicant Bank The defendants availed GECL facility of Rs.2.00 Lakhs with interest @6.90%^{p.a with monthly rests repayable in 36 monthly} installments and executed Common Hypothecation Agreement ,..". n,^{dgted ZS.OO.ZOZ0llttnvorof the ApplicantBank. The defendants} ,^j'availed GECL 1.0Bxtflnsion loan facility of Rs.6.70 Lakhs with l: 3 : ,^{12 ,rq 2028} ;"tj ,,..,i i...'.i , * ,l: -",,i.'," _i. ,.,,, ". - , ,,

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(OA. No. 450/202s)

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interest @6.90% p.a with monthly rests repayable in 36 monthly installments and executed Supplemental Composite Hypothecation Agreement dated 07.03.2022 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 and issued Demand notice dated 04.11.2023 under section 13(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.

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Defendants called absent and set exparte on 09.01.2026.

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Sri. Srinivas Devasoth, Senior Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.33.

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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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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.A.1 to A.33. tn view of tlie ahove, I hotd that the Appticant Bank has 1I,iat?[$ .'. 9 4 I

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(oA. No. 460/2025)

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established their craim made in the oA against the Defendants and hence the Applicant Bank is entifled 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 joinfly and severally liable to pay to the Applicant Bank a total sum of Rs.l,72,i9,60i.00 ps. (Rupees One Crores Seventy Two Lakhs Nineteen Thousand Six Hundred and One Only) i.e a sum of _

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(i) Rs. 1,44,87,522.00 ps. with future interest @ 13.65% p.a from 01.07.2025 till the date of realization.

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(ii) Rs.18,49,290.00 ps. with future interest @ 12.50% p.a from 01.07.2025 till the date of reatization.

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(iii) Rs.70,554 Ps. with future interest @^11.25Yop.a from 01.07.2025 titt the date of realization.

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(iv) Rs. 8,12,235.00 ps. with future interest @ 11.25o/o p.a till the date of realization.

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tl
Jnfi2m
I

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(oA. No. 450/202s)

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The Applicant Bank is entifled to proceed against the Hypothecated Movables and Mortgaged properties AS mentioned in the Schedules of property A and B to the OA towards realization of the debt due.

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

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That 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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lssue 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 12rh day ofJan, 2026)

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(G. GOPTCHAND)
PRESIDING OFFICER
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Canara Bank v. M/S. Sri Venkateshwara Textiles

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Sri Venkateshwara 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

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