Allowed

Canara Bank v. M/S. Nandini Powerloom Industry

DRT2 Jul 2026OA/513/2025

Case brief

AI extract

What is this about?

Anticipatory application filed by Canara Bank for recovery of dues from M/s Nandini Powerloom Industry. Bank established claim via affidavit evidence. Defendants did not intervene within 45 days. Tribunal allowed OA.

What did the court decide?

Defendants directed to pay Rs. 2.05 Crores plus future interest; recovery certificate issued; bank entitled to proceed against mortgaged properties.

Canara Bank versus M/S. Nandini Powerloom Industry — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL - IAT HYDERABAD DATED THIS THE O2Nd DAY OF JULY, 2026

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PRESENT: SRI GUMMADI cOPICHAND, PRESIDING OFFICER

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OA. No. 513 OF 2025

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Between :

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Canara Bank, Hanamkonda-ll, Hno.2-5-39, Water Tank Road, Nakkalgutta, Hanamakonda, Warangal -506001. TS. Represented by its Senior Manager Applicant VERSUS 1. M/S Nandini Powerloom lndustry, Prop. Sri. Mokide Prabhakar, Aged 45^years, Occ: business At plot no. 139, Sy no.179111 Textile Park, Kakatiya^{TextilePark,,} Madikonda (v), Khazipet(M), Warangal Urban District.TS.5061^42. 2. Sri. Mokide Prabhakar S/o Sri. Deva Rao Aged 45 years, Occ:business R/o No.1-10 Defendants Warang ,d\ ffi :l $:.s ; ir.-.^{02Jr'{m :}

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(OA. No. s13/202s)

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Counsel for the parties :

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For The Applicant Sri. K.V. Nageswara Rao For the Defendant Exparte Reserved on 30.06.2026 Pronounced on 02.07.2026 Upload in website on 02.07.2026

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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.2,05,44,883.00 PS. (Two Crores Five Lakhs Forty Four Thousand Eight Hundred Eighty Three Only) i.e a sum of -

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(i) Rs.1,63,24,658.00 Ps. under Term Loan account with future interest @10.65Yo p.a with monthly rests from the date of this application till the date of realization;

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(ii) Rs.20,41,624.00 Ps. under OD Loan account with future interest @11.450 p.a with monthly rests from the date of this application till the date of realization;

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( iii) under the GECL Term loan account with .a with monthly rests from the date of I the realization;

¶14

(oA. No. s13/202s)

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(iv) Rs.17,51 ,421.00 ps. under the GECL _ 1 Term Loan account with future interest @13.65oh p.a with monthly rests from the date of this application till the date of realization;

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and in default for sale of Hypothecated Movables and Mortgaged Property as mentioned in the Schedule of^property A and B to OA.

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As per the averments in the application, the Applicant Bank states that Defendant No. 'l is a proprietorship Firm represented by its Proprietor Defendant no. 2 availed Term Loan facility of Rs.98.31 Lakhs with interest and working capital facility of Rs.15.00 Lakhs together with interest and executed Common Hypothecation Agreement dated 2T.og.2o1g in favor of the Applicant Bank. The defendants availed GECL Term loan facility of Rs.5.00 Lakhs with interest and executed Supplemental Common Hypothecation Agreementdated 03.07.2020 in favor of the Applicant Bank. The defendants availed GECL _ 1 Term loan facility of Rs.14.00 Lakhs with interest and executed Supplemental Common Hypothecation Agreement dated 11.11.2021 in favor of the Applicant Bank. The Defendant no. 2 being the Proprietor of Defendant No. 1 created Equitable Mortgage morefully mentioned in Schedule of property to OA and executed Memorandum of^. Deposit of Tiile Deeds dated 23. Appticant Bank and deposited Sate /Xr.j.aWI lfave,^,g\tl " E;*lavor^{6fi'tf'" n'pp.\c.anteant. After} availing the loan y^. -thIn e de tendfent ants fail'ed\itfailfa\itn nnmntrr rha rarr-o ^r ^^^^.i^c,^a2iltim 1'l rd. 'f

¶19

(oA. No. s13/202s)

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hence the applicant bank classified the account as NpA and issued Demand notice dated 06.11.2023 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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Sri. l. Nagaraju filed Vakalat on behalf of Defendant No. 1 and 2. Even after the lapse of 45 Days WS of Defendant No. 1 and 2 .l not filed and hence the right of filing of WS of Defendant No. and 2 was forfeited on 09.04.2026.

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Mr. 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.29.

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¶26

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?

¶29

Defendant no. 1 and 2 did not file his WS even after availing sufficient time and hence the right of filing of WS of Defendant No. 1 and 2 was forfeited. To substantiate the case of the Applicant Bank, AW.1 , official of the Applicant Bank was examifieg[,"anO^{.fig.le]niUited} relevant documents as Ex.A.1 to . 11, "c--'" ***** ' +. 'ji.:... A.29u,ln view"of the^ta,Q.d,ye, I hold that the Applicant Bank has

¶30

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¶31

(oA. No. s13/202s)

¶32

established their claim made in the oA against the Defendants and hence the Appricant Bank is entifled to recover the craim 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 severaily riabre to pay to the Applicant Bank a total sum of Rs.2,05,44,gg3.00 pS. (Two Crores Five Lakhs Fofi Four Thousand Eight Hundred Eighty Three Only) i.e a sum of _

¶35

(i) Rs.l,63,24,658.00 Ps. under Term Loan account with future interest @10.65% p.a from the date of this application till the date of realization;

¶36

(ii) Rs.20,41,624.00 Ps. under OD Loan account with future interest @11.45yo p.a from the date of this apptication till the date of realization;

¶37

(iii) Rs.4,27,180.00 Ps. under the GECL Term loan account with future interest @13.65% p.a from the date of this application till the date of realization;

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1.00 Ps. under the GECL - 'l Term Loan account @13.65%^{p.a from the} date of this application

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(oA. No. s13/202s)

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The Applicant Bank is entiiled to proceed against the Hypothecated Movables and Mortgaged Property as mentioned in the Schedule 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 properties of Defendant No. 1 firm and person and properties of Defendant no. 2 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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'13. 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 02nd day of Jul, 2026)

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,Jt

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sd/-
(G. GOPTCHAND)
PRESIDING OFFICER
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Canara Bank v. M/S. Nandini Powerloom Industry

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Nandini Powerloom Industry

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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