Allowed

Canara Bank v. M/S. New Mahalakshmi Enterprises

DRT27 Jan 2026OA/523/2025

Case brief

AI extract

What is this about?

The Debris Recovery Tribunal allowed the Original Application filed by Canara Bank for recovery of Rs.31,26,662.62 plus interest and costs against the absent Defendant. The Tribunal found the bank's claim established and ordered recovery proceedings against hypothecated movables and defendant's properties.

What did the court decide?

Defendant liable to pay Rs.31,26,662.62 with interest at 11.15% p.a. from 27.09.2025. Entitlement to cost memo. Recovery Certificate issued against movables and properties.

Canara Bank versus M/S. New Mahalakshmi Enterprises — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL - I AT HYDERABAD DATED THIS THE 27th DAY OF JANUARY,2O26

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA. No. 523 OF 2025

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Between :

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Canara Bank, Warangal branch at MSME Sulabh Warangal- l, Regional Office 1 Warangal Telangana - 508 207 Represented by its Authorized Person Applicant

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VERSUS

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M/s. New Mahalakshmi Enterprises, Rep by its Proprietor, Smt. DiddiVanitha Wo. Sri. Purender, Aged about 43 years, Occ: Business, H.No. 3-1-333/0, Kakatiya Colony, Near Alankar Center, Hanamkonda, Warangal - 506 001 Defendant

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Counsel for the parties :

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For The Applicant Sangeeta Jaiswal For the Defendant Exparte r ,'. .'1 :':! Keserveo on ' ,^*. - 21.01.2026 'j! Pronounced on;,' irl1. 27.01.2026 Uoload in web i ite on , 28.01.2026 -r.---^{..--- .-} z./ Jiil,l ,!29

-,,

(oA. No. s23l202s)

ORDER

The Applicant Bank filed the present OA against Defendant for recovery of a total sum of Rs.31,26,662.62 Ps. (Rupees Thirty One Lakhs Twenty Six Thousand Six Hundred Sixty Two and Paise Sixty Two Only) with future interest @13.15Yo^{p.a with monthlyrests inclusiveof Penalinterest} @2%p.a^{from 27.09.2025 till the date of realization and in} default for sale of Hypothecation Movables as mentioned in the Schedule Property to OA.

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As per the averments in the application, the Applicant Bank states that Defendant is a Proprietorship Firm represented by its Proprietor Smt. Diddi Vanitha availed Cash Credit Loan facility of Rs.30.00 Lakhs with interest @9.80%^p.a with monthly rests and executed Cash Credit Agreement dated 01.08.2022 in favor of the Applicant Bank. The Defendant renewed the above mention cash credit facilities from time to time and executed necessary documents in favor of the Applicant Bank. After availing the loan facility, the defendant failed to comply the terms of sanction, hence the applicant bank classified the accountas NPA on28.07.2025 and issued Legal Notice dated defendant. lnspite of several requests and nt did not clear the outstanding. Hence

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(oA. No. s23l202s)

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Defendant called absent and set exparte on 21.01.2026.

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Sri. B. Vasudev, 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 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 Defendant as prayed for?

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Defendant remained exparte. To substantiate the case of the Applicant Bank, AW.1, official of the Appticant Bank was examined and he exhibited relevant documents as Ex.A.1 to A.17. ln view of the above, I hold that the Applicant Bank has established their claim made in the OA against the Defendant and hence the Applicant Bank is entitled 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 Defendant is liable to pay to the Applicant Bank a total sum of Rs.3 62 Ps. (Rupees Thirty One Lakhs Twenty Hundred Sixty Two and Paise Sixty Tw-o On interest @11.15% p.a from 27.09.2025 till thqdate of real : ll.l,lll ?r'l[

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..|

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(oA. No. s23l202s)

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The Applicant Bank is entitled to^proceed against the Hypothecated Movables as me+ntioned in the Schedule of Property to the OA towards realization of the debt due.

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The Applicant Bank is also entitled to^proceed against the^person and properties of Defendant Firm towards realization of the debt due.

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That 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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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 openmurton} this the 27ih day of Jan, 2026)

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sd/-
(G. GOPTCHAND)
PRESIDING OFFICER
TRUE dopv
(1,9X.-4f
a*. a61n,**"
DRr-r, ,r'i?ER/rS.4t,

Canara Bank v. M/S. New Mahalakshmi Enterprises

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. New Mahalakshmi Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

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