Allowed

Canara Bank v. M/S. Laxmi Devi Textiles

DRT10 Feb 2026OA/568/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's original application for recovery of a loan amounting to Rs.1,94,53,075.42 together with future interest and costs against defendants, directing the issuance of a Recovery Certificate.

What did the court decide?

Allowed the OA directing defendants to pay the outstanding sum with future interest and costs, and directed issue of Recovery Certificate.

Canara Bank versus M/S. Laxmi Devi Textiles — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS^{RECOVERYTRIBUNAL} -^{I AT HYDERABAD} DATED THIS THE loth^{DAYOF FEBRUARY'2026}

¶2

PRESENT: SRI^{GUMMADI GOPIGHAND, PRESIDING OFFICER}

¶3

OA. No' 568 OF²⁰²⁵

¶4

Between :

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Canara Bank, H.No. 8-44, Krishna^ColonY, Station Road. Warangal - 506 002, Telangana Applicant Represented bY its^Manager VERSUS 1. M/s.Laxmi Devi^Textiles, Rep. by its ProPrietor, Sri Pagadala Laxminarayana, S/o. Muttaiah R/o. Plot No.289,^{SY No. 1791/1'} Textiles Park Madikonda, KazhiPet, Warangal - 506 142. 2. Sri Pagadala^{Laxminarayana,} S/o. Muttaiah Aged 59^years, Occ.^Business, R/o. H.No. 9-345, Laxmidevipalli, Kothagudem, Khammam District, Telangana State -^{507 10'l} Defendants

¶6

(oA. No. 558/2025)

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Counsel for the Parties^:

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For The Applicant Sri. Daram. Srinivasulu For the Defendant Exparte Reserved on 03.02.2026 Pronounced on 10.02.2026 Upload in website^on 10.02.2026

¶9

ORDER

¶10

The Applicant Bank filed^{the present OA against Defendants} for recovery of a total^sum of^{Rs.1,94,53,075.42Ps.(Rupees} One Grores Ninety Four^{Lakhs Fifty Three Thousand} Seventy Five and^{PaiseForty Two Only) i.e a sum of} -

¶11

(i) Rs. 1,54,76,827.90 Ps.^{being the Term loan Account with} future interesl @^{11.00%p.a with monthlyrests from 11'09'2025} till the date of realization.

¶12

(ii) Rs. 10,03,378.97 Ps. being^{the OverdraftAccountwith} future interest @10.35%^{p.a with monthly rests from 11.09.2025} till the date of^realization.

¶13

1,914.59 Ps. being^{the GECL} Account with future p.a with monthly rests from 11.09.2025 tillthe

¶14

1 0 tEB^,fl2fi

¶15

(oA. No. s58/202s)

¶16

(iv) Rs. 24,10,953.96 Ps.^{being the GECL 1.0 (Extn) Account} with future interest @9.25%^{p.a with monthly rests from} 23.08.2025 till the^{date of realization'}

¶17

and in default for^{sale of Hypothecated Movablesand} Mortgaged Properties^{as mentioned in the SchedulesProperty A} and B to OA.

¶18

As per the averments^{in the application, the ApplicantBank states} that Defendant No.^{1 is a Proprietorship Firm representedby its} Proprietor Defendant^No. 2^{availed Loan facility of} Rs.1,28,50,000/- with^{and executed Hypothecation Agreement} in favor of the Applicant^{Bank. The Defendant no. 1 created} Equitable Mortgage^{morefullymentioned in Schedule B to the} OA and executed^{Memorandumof Deposit of Title deeds in} favor of the Applicant^{Bank and Defendantno. 1 deposited} Original title deeds^{in favor of the Applicant Bank. After availing} the loan facility, the^{defendants failed to comply the termsof} sanction, hence the^{applicant bank classified the account as NPA} and issued Demand^{notice dated 06.11 .2023 undersection13(2)} of the SARFAES! Act,^{2OO2 to the defendants. lnspite of several} requests and demands, the^{defendants did not clearthe} outstanding. Hence this^OA.

¶19

Jled absent and^{set exparte on 03.02.2026.} k 1o rEB tr2t 3

¶20

(oA. No. s58/202s)

¶21

Smt. Vankudothu Anusha, Manager of the Applicant Bank examined herself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 lo 4.22.

¶22

Heard the Ld. Counsel for the Applicant Bank.

¶23

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?

¶24

Defendants remained exparte. To substantiate the case of the Applicant Bank, AW.1, official of the Applicant Bank was examined and she exhibited relevant documents as Ex.A.1 to A.22. ln view of the above, I hold that the Applicant Bank has established their claim made in the OA against the Defendants and hence the Applicant Bank is entitled to recover the claim made in the OA with future interest and costs.

¶25

ln the result, the present OA is allowed with costs, as under :

¶26

The Defendants No. 1 and 2 are^jointly and severally liable to pay to the Applicant Bank a total sum of Rs.l,94,53,075.42 Ps. One Crores Ninety Four Lakhs Fifty Three nty Five and Paise Forty Two Only) i.e a 1r FrE m ;n ,-i !r' "€":v/

¶27

*i;r:ffW

¶28

(oA. No. s68/2o2sl

¶29

(i) Rs. 1 ,54,76,827.90 Ps.^being the Term loan Account^with future interest @^{11.00o/o p.a from} 11.09.2025 till the^{date of} realization.

¶30

(ii) Rs. 10,03,378.97 Ps.^being the Overdraft Account with future interest @1035% P.a^from 11 .09.2025 till the date of realization.

¶31

(iii) Rs. 5,61,9{4.59 Ps.^{being the GECLAccount with future} interest @9.25%^{p.a from 11.09.2025till the date of realization.}

¶32

(iv) Rs. 24,10,953.96 Ps.^{being the GECL 1.0 (Extn) Account} with future interest @9.25%^{p.a from 23.08.2025 till the date of} realization.

¶33

¶34

the The Applicant Bank is^{entitled to proceed against} AS Hypothecated Movables and^{MortgagedProperties} OA mentioned in the^{schedules of PropertyA and Bto the} towards realization^{of the debtdue.}

¶35

The Applicant Bank is^{also entitledto proceed againstthe person} and ies of defendants^No. 2^{and properties of Defendant} realization of the^{debt due.}

¶36

(oA. No. s68/202s)

¶37

That Applicant Bank^{is entitledto the costs of the OA.}

¶38

The Applicant shall^{file a costmemo within two weeks from the} date of receipt^{of order.}

¶39

lssue Recovery Certificate^accordingly'

¶40

Communicate a copy^{of the order to the parties concerned'} (DictatedtotheP.A.,transcribedbyher,corrected'signedandpronouncedbymeintheopencourton this the 1oth day^{of Feb, 2026)}

¶41

sd/(G. GOPICHAND)

¶42

PRESIDING OFFICER

¶43

1g TEl Mfr
,9.
Assf'
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¶44

Canara Bank v. M/S. Laxmi Devi Textiles

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Laxmi Devi Textiles

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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