Allowed

State Bank of India v. M/S Sri Ganga Beverages

DRT25 Mar 2026OA/465/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the State Bank of India's office application for recovery of Rs. 1,11,49,089 from M/s. Sri Ganga Beverages and Sri Erukula Sathish, rejecting their denials as they failed to substantiate their claims with evidence against the bank's unchallenged documentation.

What did the court decide?

Defendants ordered to pay Rs. 1,11,49,089 with interest; bank granted recovery certificate and rights to proceed against mortgaged and hypothecated properties.

State Bank of India versus M/S Sri Ganga Beverages — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL.I AT HYDERABAD DATED THIS THE 25rH DAy OF MARCH, 2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER OA.No.465 ot 2O2S

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Between:

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State Bank of India, Stressed Assets Recovery Branch, 2'd floor, TSRTC Commuter Amenity Centre, Bus Terminal complex, Koti, Hyderabad - 500 095. Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Sri Ganga Beverages, Represented by its^proprietor, Plot no.s6/ 2,7,8,9,L0/2,6/ !,lO / !, Sy.No.545/46, H.No.2-13 6/ L/ IA, Mudhiraj colony,^palakurthy Village and mandal, Jangaon District - 506 252.

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2, Sri Erukula Sathish, s/o Soma Ramulu, aged 44 years, male, H.No. 1-63, Dharmapuram, Devuruppala mandal, Jangaon district - 506 302.

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Defendants

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Counsel for the Parties:
For the Applicant Sri C. Prabhakar
Defendants
M. Vijayakanth
3.2026
Orders reserved on ..{. *
T 3.2026
Uploaded in 03.2026

¶11

(oA.No.46s/202s)

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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.1,11,49,089/- (Rupees One Crore Eleven Lakhs Forty Nine Thousand and Eighty Nine only) i.e.,

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a) A sum of Rs.93,45,179l- with interest @ 16.250lo p.a with monthly rests from date of filing of OA till the date of realization;

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b) A sum of Rs.18,03,910/- with interest @ 16.250lo p.a with monthly rests from date of filing of OA till the date of realization; and in default for sale of mortgaged properties and hypothecated movables as mentioned in the schedule to OA.

¶16

As per the averments in the application, the Applicant Bank states that the defendant No.1 is a Proprietory concern represented by defendant no.2 as its proprietor availed cash credit of Rs.0.15 Crores and term loan of Rs.1.10 Crores totaling a sum of Rs.1.25 Cores vide letter of arrangement dated 24.02.2023. Defendant no.2 executed guarantee agreement dated 24.02.2023. The defendants mortgaged the schedule properties and hypothecated the movables as mentioned in the schedule to OA in favour of Applicant bank. It is submitted by the Applicant bank that the Defendants availed the said loan facilities and failed to keep up the repayment schedule, as such the account was classified

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defendants account, and the Applicant bank issued Er" not2esdntrfrodB but the defendants did not total claim of Applicant against &mq$

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(oA. No.a6sl202s)

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defendants is of of Rs.1,11,49,089/-^{(RupeesOne CroreEleven} Lakhs Forty Nine Thousand and Eighty Nine only)^{with interest} @^{16.25%p.a with monthly rests from date of filing of OA till the date} of realization. Hence the OA.

¶20

The Defendants filed written statement and denied the^averments made in OA. It is admitted by the defendants that they availed cash credit of Rs.0.15 Crores and term loan of Rs.1.10 Crores totaling a sum of Rs.1.25 Crores from Applicant bank, It is submitted that incurred huge losses in business and there was no willful intention to avoid any payments. It is further submitted that the applicant bank charged exorbitant interest and failed to follow the terms of sanction. It is contended that the applicant bank undervalued the schedule properties only to cause loss to defendants. Hence prayed for dismissal of OA.

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I have^perused the documents^placed on record.

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Heard the arguments.

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Now, the^po for consideration a re :

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Bank has proved its claim as made in OA ag4inst the iil^lo *1.t5.i1ffi^am : (hr"***9 \Ytffi"ry

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(oA.No.465 /z02sl

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Point No.i):

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6' Mr. R. Loganathan, Manager/ AW.1 who was examined on beharf of the Applicant clearly deposed about the liability of the defendants. Exhibits A.1 to A.t4 are marked through AW.1.

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7 ' As per the documents filed by the Applicant Bank and also as per the admissions made by the defendants in the written statement, it is very clear that the defendants have availed loan from the Applicant Bank, but failed to repay the amount. All the amounts paid by the defendants are clearly mentioned in the statement of account filed by Applicant Bank' The defendants have not placed any materiat 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 defendants. The defendants have not come forward to give evidence to substantiate that their liability is less than the amount mentioned in the oA Under such circumstances, the evidence of AW.1 coupled with recitals Ex.A.1 to A.L4 stood unchallenged and unrebutted. The Applicant bank clearly established that the defendants are liable to pay the OA amount to the Applicant bank.

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application is allowed with costs as

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(oA.No.a65/202s)

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The Defendants are jointly and severally liable to pay to Applicant Bank a total sum of Rs.1,11,49,O891- (Rupees One Crore Eleven Lakhs Forty Nine Thousand and Eighty Nine only) i.e.,

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a) A sum of Rs.93,45,179l- with interest @ 16.25olo p.a from date of flling of OA till the date of realization;

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b) A sum of Rs.18,03,910/- with interest @ 16.25% p.a from date of filing of OA till the date of realization;

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The Applicant bank is entitled to proceed against the mortgaged properties and hypothecated movables as mentioned in the OA towards realisation of the debt due;

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

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11, The Applicant Bank is entitled 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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(Dictatedjqtid P.AiJraf3ciilqd by her, corrected, signed and pronounced by me in the open court on this

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* (G. GOPTCHAND)
2 5 fiAR m?6
PRESIDING OFFICER
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NRT.I, HYDEIIA

State Bank of India v. M/S Sri Ganga Beverages

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Sri Ganga Beverages

Case brief

What is this about?

What did the court decide?

What the court decided

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