Allowed

Canara Bank v. Megana Powerlooms Industry

DRT6 Feb 2026OA/558/2025

Case brief

AI extract

What is this about?

In an original application for debt recovery, the Debts Recovery Tribunal allowed the Bank's claim against a proprietorship firm for overdue term, OD, and GECL accounts totaling 1.88 crore. The Bank was granted a recovery certificate and permitted to proceed against mortgaged and other properties.

What did the court decide?

Order allowed; Defendant to pay 1.88 crore plus interest; recovery certificate issued; proceedings against mortgaged and all other properties permitted.

Canara Bank versus Megana Powerlooms Industry — Banking and Recovery | DRT (2026)

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

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OA. No.558 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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Megana Powerlooms^lndustry, Plot No. 70, SurveY^{No. 1791/1,} Kakatiya Textile^Park, Madikonda, KaziPet, Warangal Urban, Telangana -506142. Rep. by its ProPrietor, Sri Kummarikuntla^Mahender, S/o. Veeramallu, Aged about 49 Years

Defendant [6FEB

(oA. No. ss8/202s)

Counsel for the parties :

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For The Applicant Sri. B. N Swamiji For the Defendant Exparte Reserved on 02.02.2026 Pronounced on 06.02.2026 Upload in website on 06.02.2026

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ORDER

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The Applicant Bank fited the present OA against Defendant for recovery of a total sum of Rs.1,88,87,184.30 Ps. (Rupees One Crores Eighty Eight Lakhs Eighty Seven Thousand One Hundred Eighty Four and Paise Thirty Onty) i.e a sum of-

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(i) Rs.1,58,90,382.91 Ps. being the Term loan account with future interest @ 10.20Yo p.a with monthly rests and penal interest @2o/op.a^{in total 12.20o/o p.a} from O7.O1.2O2S till the date of realization.

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(ii) Rs.19,59,769.07 Ps. being the OD/ OCC account with future interest @ 10.19% p.a with monthly rests and penal .a in total 12.19% p.a from 07.09.2025 tiil the

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(oA. No. 5s8/202s)

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(iii) Rs.l,80,853.32 Ps. being the GECL account with future interest @ 8.85Yo p.a with monthly rests and penal interest @2o/op.a^{in total 10.85%p.a} from 07.09.2025 tiil the date of realization.

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(iv) Rs.8,56,179.04 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 tilt 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 apprication, the Appricant Bank states that Defendant is a^{proprietorship} Firm represented by its Proprietor Sri Kummarikunfla Mahender availed Term Loan facility of Rs.98,31,000t repayable in equated monthty installments of Rs.1,53,350/- with interest @10.19yo p.a compounded monthly and working capital facility of Rs.1S.00 Lakhs with interest @10.19o/o p.a compounded monthly and executed Composite Hypothecation Agreement dated 16.1 1.2019 in favor of the Appricant Bank. The Defendant created Equitabre Mortgage morefully mentioned in Schedule of property to the OA $greement^{to Mortgagedated16.1 1.2019in favor} nk. The defendant availed GECL facility of executed Common Hypothecation Agreement

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(oA. No. ssslzo2sl

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dated 08.07 .2020 in favor of the Applicant Bank. The defendants availed GECL 1.0 extension loan facility of Rs.7.00 Lakhs and executed Supplemental Common Hypothecation Agreement dated 15.12.2021 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 04.11.2023 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 4.26.

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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 .:,,. Applieant AW.1 , official of the Applicant Bank was examined exhibited relevant documents as Ex.A.1 to -.i4' B 6 rE8 ztrS i,-o.l '. -<'' , '1.: ";'r^{-.': " ,:} ..:'^-._,,:.i -' .-

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(oA. No. 558/2025)

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A.26. 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.l,88,87,184.30 Ps. (Rupees One Crores Eighty Eight Lakhs Eighty Seven Thousand One Hundred Eighty Four and Paise Thirty Only) i.e a sum of -

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(i) Rs.l,58,90,382.91 Ps. being the Term loan account with future interest @ 10.20% p.a from 07.O9.2O25 till the date of realization.

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(ii) Rs.19,59,769.07 Ps. being the OD/ OCC account with future interest @ 10.19Yo p.a from 07.09.2025 till the date of realization.

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(iii) Rs.l,80,853.32 Ps. being the GECL account with future interest @ 8.85o/o pp.a from 07 .09.2025 till the date of realization.

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(iv) 179.04 Ps. being the GECL - I account with future p.a from 07.09.2025 till the date of f'r+eariiation fi,v i ., * * osrrgmn ?- tr.ll'a r., (l .':.i,f... 6"9 '' ,, ^,rrCr* I -1t l

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(OA. No. ss8/2025)

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L 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 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 mein the open court on} this the 06rh day of^{Feb, 2026)}

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sdr(G. GOPICHAND) PRESIDING OFFICER

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TRUE^COPY

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-tP',,$#{B'o,

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Canara Bank v. Megana Powerlooms Industry

Case brief

What is this about?

What did the court decide?

Canara Bank v. Megana 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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