Allowed

Canara Bank v. M/S. Siddi Vinayaka Textiles

DRT9 Feb 2026OA/507/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Canara Bank for recovery of a total sum of Rs. 2,01,88,103.66 from the respondents, comprising term loans, GECL accounts, and overdrafts, along with future interest and costs, directing issuance of a Recovery Certificate.

What did the court decide?

Defendants jointly and severally ordered to pay Rs.2,01,88,103.66 with future interest and costs; Recovery Certificate to be issued.

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

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IN THE DEBTS RECOVERY TRIBUNAL - I AT HYDERABAD DATED THIS THE Ogth DAY OF FEBRUARY,2026

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PRESENT: SR! GUMMADI GOPICHAND, PRESIDING oFFIcER

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OA. No. 507 OF 2025

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Between :

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Canara Bank, H.No. 8-4-4, Krishna Colony, Station Road, Warangal- 506 002, Telangana Represented by its Manager Applicant VERSUS 1. M/s.Siddi Vinayaka Textiles, Rep. by its Proprietor, Smt. Samala Shoba, Wo. Sri Samala Srinivas R/o. Plot No. 78, Sy No. 1791t1, Textiles Park Madikonda, Kazhipet, Warangal - 506 142. 2. Smt. Samala Shoba, Wo. Sri Samala Srinivas, Aged 37 years, Occ. Business, R/o. H.No. D-40/80, DumbhaiTenagrenl Nan D-5, Udhna SuratCity,, ,ii y;N Gujarat - 394 210 _.: it .- --l\ ::-.' ttf ''' i':.'t:i*-' Defendants i, * 0 3 rES 2LI2[

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(oA. No. s07l202s)

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Counsel for the parties :

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For The Applicant Sri. D. Srinivasulu For the Defendant Exparte Reserved on 03.02.2026 Pronounced on 09.02.2026 Upload in website on 09.02.2026

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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.2,01,88,103.65.00 Ps. (Rupees Two Crores One Lakhs Eighty Eight Thousand One Hundred Three and Paise Sixty Six Only) i.e a sum of -

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(i) Rs. 1,60,56,250.13 Ps. being the Term loan Account with future interesl @ 11.00% p.a with monthly rests from 11.09.2025 till the date of realization.

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(ii) Ps. being the GECL Account with future with monthly rests from 11.09.2025 till the

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B g rlB ulffi

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(oA. No. 507/202s)

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(iii) Rs. 24,48,628.18 ps. being the cECL 1.0 (Extn) Account with future interest @9.25% p.a with monthly rests from 11.09.2025 till the date of realization.

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(iv) Rs. 10,53,887.6G ps. being the Overdraft Account with future interest @10.35% p.a with monthly rests from 11.09.2025 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 apprication, the Appricant Bank states that Defendant No. 1 is a proprietorship Firm represented by its Proprietor Defendant No. 2 availed Loan facility of Rs.1,28,50,0001 with and executed Hypothecation Agreement in favor of the Appricant Bank. The Defendant no. 1 created Equitable Mortgage morefuily mentioned in schedule B to the OA and executed Memorandum of Deposit of Tifle deeds in favor of the Applicant Bank and Defendant no. 1 deposited original tifle deeds in favor of the Applicant Bank. After avairing the loan. facility, the defendants failed to comply the terms of ,",!.!;1h9nce^{tne applicant bank ctassifiedthe} account as NpA dated 06.1 1.2023 under section 13(2) e sniFRrsrAct.-Bi 0^g rtB^ry|' -,, to the defendants. lnspite of several

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(oA. No. s07l2o2sl

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requests and demands, the defendants did not ctear the outstanding. Hence this OA.

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Defendants called absent and set exparte on 03.02.2026.

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smt. Vankudothu Anusha, Manager of the Applicant Bank examined herself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.20.

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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 she exhibited relevant documents as Ex.A.1 to 4.20. 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 inlerest and costs.

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(oA. No. 5072025)

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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 jolnfly and severally liable to pay to the Appricant Bank a totar sum of Rs.2,01,gg,103.66.00 ps. (Rupees Two Crores One Lakhs Eighty Eight Thousand One Hundred Three and paise Sixty Six Only) i.e a sum of _

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(i) Rs. 1,60,56,250.13 ps. being the Term loan Account with future interest @ 11.OOo/o p.a from 11.O1.ZO2S till the date of realization.

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(ii) Rs. 6,29,337.69 ps. being the GECL Account with future interest @9.25Yo p.a from 11.09.2025 till the date of realization.

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(iii) Rs. 24,48,628.18 ps. being the GECL 1.0 (Extn) Account with future interest @9.25o/o p.a from 11.09.2025 tiil the date of realization.

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(iv) Rs. 10,53,887.6G ps. being the Overdraft Account with future interest @10.35% p.a from 11.09.2025 tiil the date of realization.

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The Applicant Bank is entifled to proceed against the yables and Mortgaged properties AS the OA ,PStiOne*^{thBpc.hsdutesof property A and Bto} /,tcirards r&Dzation #tnft-oeut oue. ij oerttlrzd^"i s

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(oA. No. s07l202s)

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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 Appricant shail fire 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 09'h day of Feb, 2026)

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sd/-

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(c. coPtcHAND)

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PRESIDING OFFICER

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0I rrB 202t :

Canara Bank v. M/S. Siddi Vinayaka Textiles

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Siddi Vinayaka 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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