Allowed

Canara Bank v. M/S. Sri Sai Balaji Textiles

DRT4 Aug 2026OA/589/2025

Case brief

AI extract

What is this about?

In an originating application for recovery of loan dues, the Debt Recovery Tribunal, Hyderabad Ibated the applicant bank after holding that the defendant failed to discharge liability despite admitting the loan. The court decreed the claim based on unchallenged documentary evidence and witnesses accounts.

What did the court decide?

The respondent is ordered to pay the claimant Rs. 2,13,74,784.49 with interest and costs, and the court issued a recovery certificate.

Canara Bank versus M/S. Sri Sai Balaji Textiles — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERYTRIBUNAL-I AT HYDERABAD

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DATED THIS THE 4TH DAY OF AUGUST,2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.589 ot 2025

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Between:

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Canara Bank, Warangal Main branch, B-4-4, Krishna colony, Station road, Warangal, Telangana - 506 002. Represented by its Principal officer And Manager

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Applicant

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VERSUS

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M/s. Sri Sai Balaji Textiles, Represented by its Proprietor Mrs. Ambati Padma, Plot no.B8, Textile park, Madikonda, S.No. 1791, Kazipet, Warangal, TS -506 142.

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Also at :

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H.No.4-6, Hanuman Street, Kesamudram, Warangal - 506 112.

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Defendant

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Counsel for the Parties:

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Smt. N. Indira

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Sri R. Shravan Kumar 27.07.2026 04.08.2026 05.08.2026

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(oA. No.s89/202s)

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ORDER

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The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.213,74,784.49ps (Rupees Two Crores Tharteen Lakhs Seventy Four Thousand Seven Hundred Eighty Four and paise Forty Nine only)i.e.,

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a) A sum of Rs.1,54,76,862.46ps with interest @ 10olo p.a in A/c.no.0621773003848 with monthly rests along with penal interest @ 2o/o p.a from 30.10.2025 till the date of realization;

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b) A sum of Rs.6,36,787.45ps with interest @ 8.85o/o p.a with monthly rests along with penal interest @ 2o/o p.a from 03.11.2025 till the date of realization;

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c) A sum of Rs.24,92,599/- with interest @ 8.85% p.a with monthly rests along with penal interest @ @2olo p.a from 31.10.2025 till the date of realization;

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d) A sum of Rs.27,68,535.58ps with interest @ 10.75olo p.a along with penal interest @ 2olo p.a from 31.10.2025 till the date of realization; As per the averments in the application, the Applicant Bank

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states that the defendant is a proprietary firm represented by its

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n -.,^{'.. prgp!:lejor doing textile manufacturing businessavailedterm loan of} Rs.92.50 lakhs, working capital limit of Rs.7.50 lakhs, GECL limit of Rs.8.50 lakhs GECL extension of Rs.20.00 lakhs and executed h

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.⁾ l:

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necessary documents. The defendant mortgaged the schedule

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(oA. No.s89/2025)

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property and hypothecated the movables in favour of Applicant bank. It is submitted by the Applicant bank that the Defendant availed the said loan facilities and failed to keep up the repayment schedule, as such the account was classified as NPA. Inspite of demands made by Applicant the defendants have not regularized the account, and^the Applicant bank issued legal notice dated 07.1L.2025, but^the defendants did not come forward to^{repay the} same.^{The total claim} of Applicant against defendants^{is of Rs.2,13,74'784.49ps(Rupees} Two Crores Thirteen Lakhs Seventy^{Four ThousandSeven} Hundred Eighty Four and^paise Forty^{Nine only) with interest @} 10%^p.a @ 8.85o/o^p.a and @10.75olo^{p.a respectivelywith monthly} rests from 31.10.2025 till the^date of^{realization.Hencethe OA'}

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The Defendant filed^{written statement admitting that they availed} various loan facilities^{from the Applicantbank. The contention of the} defendant is that at the^{time of sanctionof loan,the applicant bank} obtained signatures^{of defendanton various blank papers and they are} misusedbytheapplicantbank.Thefurthercontentionofthe defendants is that^{even though there is no requirement of obtaining} collateral,$eeuritY, the applicant^{bank obtained equitable mortgageof} -i; :i.-,j .l 'scneo-ulgj property a'no that the claim of the applicant bank is barred .\ ,i^{tlby limitation.."5tence} ryayed^{for dismissalof OA.} ir^t' .:;j,iJ d3,. !";lli : \tn-ive^{pe rurea' t'be;} al.u^{me nts placedo n record'} \i*-._...::".',^i.!'., \i::^-.,, 1,.

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(oA. No.s89/202s)

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4. Heard the arguments.

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Now, the points that arise for consideration are:

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i) Whether the Applicant Bank has proved its claim as made in OA against the defendant ?

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ii) To what relief ?

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Point No.i):

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Ms. V. Anusha, Manager/ AW.1 who was examined on behalf of the Applicant clearly deposed about the liability of the defendant. Exhibits A.1 to A.26 are marked through AW.1.

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As per the documents filed by the Applicant Bank and also as per the admissions made by the defendant in the Written statement, it is very clear that the defendant has availed loan from the Applicant Bank, but failed to repay the amount. All the amounts paid by the defendant are clearly mentioned in the statement of account filed by Applicant Bank. The defendant has not placed any material documents to show their bonafides for establishing that the Applicant bank failed to follow the RBI guidelines as per the norms.

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..-,-,.A.W.1^{is not cross examinedby the counsel for defendant.} The. defendant has not come forward to give evidence to substantiate ti. that their liabijity is"lt-s than the amount mentioned in the oA under ,..' i: such -ci^{trcOrtr\ta nceS} evidence of AW. 1 cou pled with recita ls Ex.A. 1 -Eld <sup>- s,.i,r '' r, '\ .., ';' l.,!.t;,,1 ./^.' i 4 .=-..,ya t''4$.4 ,,r:0*)i/

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(oA.No.s89/202s)

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to A.26 stood unchallenged and unrebutted. The Applicant bank clearly established that the defendant is liable to pay the OA amount to the Applicant bank.

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Point No.ii)

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In the result, the present Original application is allowed with costs as under:

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The Defendant is liable to pay to Applicant Bank a total sum of Rs.2,L3,74,784.49ps (Rupees Two Crores Thirteen Lakhs Seventy Four Thousand Seven Hundred Eighty Four and^paise Forty Nine only)i.e.,

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A) A sum of Rs.1,54,76,862.46ps with interest @^{10o/o p.a in} A1c.no.062t773003848 from 30.10.2025 till^{the date of} rea lization;

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B) A sum of Rs.6,36,787.45ps with^interest @^{8.85o/o p.a from} 03.11.2025 till the date of^realization;

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C) A sum of Rs.24,92,599/-^{with interest} @^{8.85o/o p.a a from} 31.10.2025 till the date of^realization;

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D) A sum of Rs.27,68,535.58ps with^interest @^{10.75olo p.a from} 31.10.2025 till the date of^realization;

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,/.'/ ' . ,'.i^! 'i i.. iE.''^{The Applicant bank is also entitledto proceedagainst the personand} ,iL -1., r-)^{upropertiesof defendanttowards realization of the debt due.} :\ i:.:. i'.t}- A <sup>7;.'r'. ' .r;':^{:. .,} \i..'.'j-r.;-.:

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(OA. No.s89/202s)

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The Applicant Bank is entitled to the costs of the OA.

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

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Issue Recovery certificate accordingly.

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Communicate a copy of the order to the parties concerned.

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this the 4th day ofAuglst, 2026)

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by her, corrected, signed and pronounced by me in the open court on

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sdl-
(G. GOPTCHAND)
PRESIDING OFFICER
n'ffi:%
"'.l:i',,f#:"^

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Canara Bank v. M/S. Sri Sai Balaji Textiles

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Sri Sai Balaji Textiles

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

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