Allowed

Canara Bank v. M/S. Venkateshwara Power Looms Industry

DRT23 Mar 2026OA/562/2025

Case brief

AI extract

What is this about?

This order allowed an objection application filed by Canara Bank for recovery of a defaulted loan amount of approximately Rs. 2.27 crores from two defendants representing a loan firm and an individual proprietor, directing recovery via hypothecated and mortgaged properties.

What did the court decide?

Defendants directed to jointly and severally pay Rs. 2,26,99,904.42 plus future interest; recovery proceedings against hypothecated/mortgaged properties and personal properties permitted; recovery cer

Canara Bank versus M/S. Venkateshwara Power Looms Industry — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERYTRIBUNAL-I AT HYDERABAD DATED THrS THE 23RD DAy OF MARCH, 2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.562 of 2025

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Between:

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Canara Bank, (E-Syndicate Bank) Hanamkonda-II branch, 2-5-39, water tank roil, Near Naveena Children Hospital, Nakkalagutta, Hanamkonda, Warangal district - 506 001, TS Represented by its Chief Manager

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Appllcant

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VERSUS

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M/s. Venkateshwara power Looms Ind ustry,

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Plot no. 111, Sy.No. 1791l1, Kakatiya Textile park, Madikonda, Warangal - 506 142, TS. Represented by its proprietor Sri Amudala Venkateshwarlu

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Sri Amudala Venkateshwarlu, S/o Bhhavanarushi, aged major, Male, H.No.5-554/ t, Mangapet, Kamalapur, Bhupalpally (Jayashankar ) Dist - 506 I72. Defendants

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Counsel for the^parties;

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For the Applicant
Sri Gampa Rangaia h
For the Defendants -ffi
parte
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Uploaded in websltr .2026

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(oA.No.s621202s)

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ORDER

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The Applicant Bank fired the present oA against Defendants for recovery of a total sum of Rs.2,26,9g,g04.42ps (Rupees Two Crores Twenty Six Lakhs Ninety Eight Thousand Eight Hundred Four and paise Fofi two only) a.e.,

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a) A sum of Rs.1,78,07,768/- under term loan with future interest @ 10.650lo p.a with monthly rests from 01.09.2025 till the date of realization;

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b) A sum of Rs.20,98,149.90ps under OD/OCC loan account with future interest @ 11.45% p.a with monthly rests from 01.09.2025 till the date of realization;

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c) A sum of Rs.4,45,275/- under GECL loan account with future interest @ 13.75o/o p.a with monthry rests from 01.09.2025 tiil the date of realization;

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d) A sum of Rs.23,47,611.52ps under GECL Ext.1.0 account with future interest @ 13.75olo p.a with monthry rests from or.og.2025 till the date of realization;

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and in default for sare of hypothecated movabres and mortgaged property as mentioned in the schedule to OA.

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pplication, the Applicant Bank states that concern represented by its proprietor/

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.,Z,"lrHABtofrEo ,J loan of Rs.98.31 lakhs and OD/OCC 2

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(oA.No.s62l202s)

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working capital of Rs.15.00 lakhs on 27.06.20t9. The defendants executed necessary documents in favour ofApplicant bank. Defendant no.1 availed GECL loan of Rs.5.00 lakhs on 20.06.2020. Defendants hypothecated the movables and mortgaged the schedule property in favour of Applicant and deposited the tiile deeds. After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the applicant bank classified the account as NpA on 29.L0.2023 and issued demand notice dated 06.11.2023. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants called absent and set exparte on 16.03.2026.

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sri D. srinivas, senior Manager of the Appricant Bank examined himself as AW.1 and exhibited rerevant 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 Defendants as

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prayed for?

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To substantiate the case of the 1F Applicqnt Bank, the Applicant Bank was examined and he exdibitea l"ri6{r%rffiEo.r,{\ as Ex.A1 to A.25. In view of the

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(oA.No.s62l202s)

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above, I hold that the Applicant Bank has established their claim made in the OA against the Defendants and hence the Applicant Bank is entitred to recover the craim made in the oA with future interest and costs.

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B. In the result, the present OA is allowed with costs, as under: The Defendants are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.2,26,9g,g04.42ps (Rupees Two Crores Twenty Six Lakhs Ninety Eight Thousand Eight Hundred Four and paise Forty two only) i.e.,

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a) A sum of Rs.1,78,07,768/- under term loan with future interest @ 10.650lo p.a from 01.09.2025 till the date of realization;

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b) A sum of Rs.20,98,149.90ps under OD/OCC loan account with future interest @ 11.450lo p.a from 01.09.2025 till the date of realization;

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c) A sum of Rs.4,45,275l- under GECL loan account with future interest @ 13.75% p.a from 01.09.2025 tiil the date of realization;

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d) A sum of Rs.23,47,611,52ps under GECL Ext.1.0 account with future interest @ 13.75olo p.a from 01.09.2025 tiil the date of

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da
4

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(oA.No.562 /202s)

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9' The Applicant bank is entitled to proceed against the hypothecated movables and mortgaged property as mentioned in the schedule to OA towards realization of the debt due.

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The Applicant Bank is arso entiued to proceed against the person and properties of defendant No.2 and properties of defendant no.1 firm towards realization of the debt due.

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The Applicant Bank is entifled to the costs of the oA.

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12' The Applicant shall file a cost memo within two weeks from the date of receipt of order.

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Issue Recovery certificate accordingly.

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L4. communicate a copy of the order to the parties concerned.

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(Dictated to the P'A', tra.nscribed by her, corrected, signed and pronounced by me in the open court on this the 11th day of March, 2026)

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sdl(G. GOPTCHAND) PRESIDING OFFICER

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TITI.JE COPY

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Acst RagJsfa, Lll9 3.?I-1, HYNEFIABAD. /

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Canara Bank v. M/S. Venkateshwara Power Looms Industry

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Venkateshwara Power Looms Industry

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

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Case details

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