Allowed

State Bank of India v. M/S. a K Metal Mart

DRT9 Mar 2026OA/505/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of a loan of Rs. 1.95 Crores. The bank established its claim via evidence, and the Tribunal ordered joint and several liability on defendants along with realization from hypothecated assets.

What did the court decide?

Allowed OA; Defendants ordered to pay Rs. 1.95 Cr with interest and costs; Bank permitted to realize debt from hypothecated movables and defendants' properties; Recovery certificate issued.

State Bank of India versus M/S. a K Metal Mart — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL.I AT HYDERABAD DATED THrS THE^grH DAY OF MARCH, 2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.505 of 2OZs

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Between:

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State Bank of India, SME Parishrama Bhavan branch TSIIC building, Basheerbagh, Hyderabad, TS.

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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. AK Metal Mart, A partnership firm Represented by its partners The defendants 2 to 4 herein H.NO. 23-t-919, kalyani nagar, Devdi Moghalpura, Hyderabad - 500 002.

¶10

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H. No.6-4-57, sy.No.45, Mohan reddy nagar, Kattedan Village, Hyderabad - 500 OS2.

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Sri Mohammed Dastgeer Ashraf, s/o Sri Md Tajamul Ashraf, aged about 50 years, male, occ: business & partner of defendant no.1 firm

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H. No.2 t-3-402/1/A, Mehboobki Mehendi, Subhani chila, SBH Bank, Hussaini Alam, Charminar, Hyderabad - 500 OO2.

¶14

(oA.No.s0s/202s)

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Smt Rangannagari Jayasree, W/o Sri Rangannagari Raghu Sharma, aged about 55 years, female, Occ: business and partner of Defendant no.1 firm Flat no.205, Mythri apartments, Tirumalagiri X road, Secunderabad - 500 015.

¶16

Sri Rangannagari Tarun Sharma, s/o Sri Rangannagari Raghu sharma, aged about 25 years, male, occ: business and partner of defendant no.1 firm Flat no.205, Mythri apartments, Tirumalagiri X road, Secunderabad - 500 015.

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Defendants

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Counsel for the^parties:

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For the Applicant Sri G. Prabhakar Sarma For the Defendants Exparte Reserved on 04.03.2026 Pronounced on 09.03.2026 Uploaded in website on 09.03.2026

¶20

ORDER

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The Applicant Bank filed the present oA against Defendants for recovery of a total sum of Rs.1,95,SO,447/- (Rupees One Crore Ninety Five Lakhs Fifty Thousand Four Hundred and Forty Seven only) with interest @ l2.4eo/o p.a with monthly rests from date of application realization and in default for sale of

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hypothecated ;ib*; in the schedule to OA.

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0^g t,tnn ruZn '.rrrrcd$

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(oA.No.S05 /2o2sl

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2' As per the averments in the application, the Applicant Bank states that defendant No.1 is a partnership firm represented by its partners Defendants no.2 to 4 availed cash credit facility of Rs.1.00 crore vide letter dated zg.o9.2o2L. To secure due repayment of cash credit, the defendants executed Agreement of roan cum hypothecation. Thereafter defendants no.2 to 4 guaranteed the due repayment and executed guarantee agreement. Subsequenily the cash credit loan of Rs.1.00 crore to Rs.1.70 crore vide retter of arrangement dated L3'L2'2023' The defendants hypothecated all the movables in favour of applicant bank. After availing the loan facilities, the defendants failed to compry the terms of sanction, hence the appricant bank classified the account as NPA on 20.04.2025 and issued legal notice dated 24.06.202s. Inspite of severar requests and demands, the defendants did not crear the outstanding. Hence this oA.

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Defendants called absent and set exparte on 04.03 .2026.

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4' Sri B' Veerendranath, chief Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.17.

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Heard the

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,1S.,
'11'r ' r'PI

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(oA. No.s0s/202s)

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The point that arise for consideration is whether the Applicant Bank is

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entitled for the claim made in the OA against the Defendants as

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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.A1 to A.17. In view of the above, I hold that the Applicant Bank has established their claim macte in the OA against the Defendants and hence the Applicant Bank is entitled to recover the craim made in the oA with future interest and costs.

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B. In the result, the present OA is allowed with costs, as under: The Defendants are joinfly and severally liable to pay to the Applicant Bank a total sum of Rs.1,95,50,447 /_ (Rupees One Crore Ninety Five Lakhs Fifty Thousand Four Hundred and Forty Seven only) with interest @ L2.4Oo/o p.a from date of application till the date of realization;

¶36

The Applicant Bank is entifled to proceed against the hypothecated
movables
ule to OA towards realisation of
't'i
the debt dueF' &
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oe ilnn az'
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": ..ir'4
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¶37

(oA.No.s0s/202s)

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10' The Applicant Bank is arso entiued to proceed against the person and properties of defendants 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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12' The Appricant sha, fire a cost memo within two weeks from the date of receipt of order.

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Issue Recovery certiflcate accordingly.

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Communicate a copy of the order to the parties concerned.

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{f,fi?t;'i^l"jii l;i;;::i:Ti;j: bv her, corrected, sisned and pronounced by me in the open court on

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sd/(G. GOP]CHAND)

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PRESIDING OFFICER

¶46

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¶47

State Bank of India v. M/S. a K Metal Mart

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. a K Metal Mart

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

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