Allowed

Canara Bank v. Sajwarshka Powerlooms Industry

DRT6 Feb 2026OA/556/2025

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an Originating Application filed by Canara Bank against Sajwarshka Powerlooms Industry for recovery of outstanding dues along with interest and proceedings against mortgaged properties.

What did the court decide?

Defendant to pay sum of Rs.2,30,94,654.91 comprising Term loan, OD, and GECL accounts with future interest; Bank entitled to proceed against mortgaged and other properties; Recovery Certificate issued

Canara Bank versus Sajwarshka Powerlooms Industry — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS REGOVERY TRIBUNAL -^{! AT HYDERABAD} DATED THIS THE O6th DAY OF^{FEBRUARY,2026} PRESENT: SRI GUMMADI GOPICHAND,^{PRESIDING OFFIGER}

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OA. No.556 OF 2025

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Between :

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Canara Bank, Hanamkonda - ll Branch, Warangal - 506 001. Represented by its Chief Manager

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Applicant

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VERSUS

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Sajwarshka Powerlooms lndustry, Plot No. 69, Survey No. 1791/1, Kakatiya Textile Park, Madikonda, Kazipet, Warangal Urban, Telangana - 506 142. Rep. by its Proprietor, Sri Kummarikuntla RamaswamY, S/o. Veeramallu, Aged about 60^years

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R/o. H.No. 2-109, Machapur Village and Govindraopet Mandal, Mulugu District - 506 344

Defendant

.,.1:,

e*r#

(oA. No. ss5/202s)

Counsel for the^parties:

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For The Applicant Sri. B. N Swam'tji For the Defendant Exparte Reserved on 02.o2.2026 Pronounced on 06.02.2026 Upload in website on 06.02.2026

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ORDER

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The Applicant Bank filed the^{presentOA against Defendant for} recovery of a total sum of Rs.2,30,94,654'91 Ps'^(Rupees Two Grores Thirty Lakhs Ninety Four^ThousandSix Hundred Fifty Four and Paise^{NinetyOne Only) i.e a sum of} -

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(i) Rs.1,79,27,271.88 Ps. being the Term loan^accountwith future interest @ 11.40Yo^p.a with^{monthly rests and Penal interest} @2o/op.a^{in total 13.40%p.a from 07.09.2025 till the date of} realization.

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(ii) Rs.19,81,099.11 Ps. being the OD/ OCC^{account with} future interest @ 10.40%^p.a with^{monthly rests and Penal} interest @2o/op.a in total 12.40o/o^p.a from^{07.09.2025till the}

AF:

06 Ft8 2ll2$

(oA. No. ss6/202s)

(iii) Rs.4,31,083.55 Ps. being the GECL account with future interest @ 8.85o/o p.a with monthly rests and penal interest @2o/op.a^{in total 10.85o/o p.a} from 07.09.2025 till the date of realization.

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(iv) Rs.27,55,200.37 Ps. being the GECL - I account with future interest @ 8.85% p.a with monthly rests and penal interest @2%p.a^{in total 10.85% p.a} from 07.09.2025 tiil the date of realization.

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and in default for sale of Mortgaged property 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 Sri Kummarikuntla Ramaswamy availed Term Loan facility of Rs.98,31,000/- repayabte in equated monthty installments of Rs.1,61,653/- with interest @1O.4oo/o p.a compounded monthly and working capital facility of Rs.15.00 Lakhs with interest @11.40% p.a compounded monthly and executed Composite Hypothecation Agreement dated 2g.03.2019 in favor of the Applicant Bank. The Defendant created Equitable Mortgage morefully mentioned in Schedule of property to the OA and deeds and executed Memorandum of Deposit of deed 25.11.2022 in favor of the Appticant Bank. The 3

o6rEB2o26 I

(oA. No. 5s5/202s)

defendant availed GECL facility of Rs.S.00 Lakhs and executed Common Hypothecation Agreement dated 03.07.2020 in favor of the Applicant Bank. The defendants availed GECL 1.0 extension loan facility of Rs.22.50 Lakhs and executed Supplemental Common Hypothecation Agreement dahed07.12.2021 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 account as NPA on 29.10.2023 and issued Demand Notice dated 07.11.2023 and under Section 13(2) of the SARFAESI Act, 2002 to the defendant. lnspite of several requests and demands, the defendant did not clear the outstanding. Hence this OA.

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Defendant called absent and set exparte on 02.02.2026.

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Sri. 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.25.

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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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exparte. To substantiate the case of the
1, official of the Applicant Bank was
k
*i;
'1 [ 6 FEB 2ri26 It
.1
"ti

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(oA. No. ss5l202s)

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examined and he exhibited relevant documents as^Ex.A.1to A.25. ln view of the above, I hold that the^{Applicant Bankhas} established their claim made in the OA^{againstthe Defendantand} 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^{ApplicantBanka total sum} of Rs.2,30,94,654.91 Ps.^(Rupees Two Grores Thifi^Lakhs Ninety Four Thousand Six Hundred Fifty Four^{and Paise} Ninety One Only) i.e a sum of -

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(i) Rs.1,79,27,271.88 Ps. being the Term loan account^with future interest @ 11.40Yo^p.a from 07.09.2025^{till the date of} realization.

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(ii) Rs.19,81,099.11 Ps. being the OD/ OCC account^with future interesl @ 10.40o/o^p.a from 07.09.2025^{till the date of} realization.

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(iii) Rs.4,31,083.55 Ps. being the GECL account with future interest @ 8.85%^p.a from 07.09.2025^{till the date of realization.}

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,55,200.37^Ps. being the GECL - I account^with from 07.09.2025 till the date of @^{8.85% p.a} re3f,zatior ;' '' IstfB2S26 '1

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(oA. No. ss6l202sl

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The Applicant Bank is entitled to proceed against the Mortgaged Property as mentioned in the Schedule of Property to the OA towards realization of the debt due.

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The Applicant Bank is also entifled 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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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 06th day of Feb, 2026)

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sd/(G. coPtcHAND) PRESIDING OFFICER

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Canara Bank v. Sajwarshka Powerlooms Industry

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sajwarshka Powerlooms 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

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Case details

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