Allowed

Canara Bank v. M/S. Chetan Textiles

DRT18 Feb 2026OA/591/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Applicant Bank's Original Application for recovery of loan dues totaling Rs. 2.16 crores with future interest and costs against M/s. Chetan Textiles, affirming the bank's right to proceed against mortgaged and hypothecated assets.

What did the court decide?

Allowed OA with costs. Defendant ordered to pay Rs. 2,16,99,164.76 with future interest. Applicant entitled to proceed against hypothecated/mortgaged property.

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

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IN THE DEBTS RECOVERYTRIBUNAL-I AT HYDERABAD

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DATED THIS THE 18rH DAy OF FEBRUARY,2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING oFFICER

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OA.No.591 ot 2025

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Between:

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Canara Bank, Warangal Main Branch, 8-4-4, 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. Chetan Textiles, Represented by its proprietor Mr. Samala Suresh, Plot no.227 , Textile park, Madikonda, S.No. 1791, Kazipet, Warangal, TS - 506 142.

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Also at

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H.No.4-75/t, Kalwala, Kesamudram, Warangal - 506 112.

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Defendant

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Counsel for the Parties:

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Smt N. Indira Expa rte 02.2026 2026 Uploaded in 02.2026

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(oA.No.s9U202s)

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ORDER

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1' The Applicant Bank filed the present oA against Defendant for recovery of a total sum of Rs.2,16,99,164.76ps (Rupees Two Crores Sixteen Lakhs Ninety Nine Thousand One Hundred Sixty Four and paise Seventy Six only) i,e.,

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a) A sum of Rs.1,54,64,241.3gps in respect of A/c.No,0621773003853 with interest @ 10o/o p.a with monthly rests along with 2% penar interest from 31.10.2025 tiil the date of realization;

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b) A sum of Rs.5,68,303.58ps in respect of A/c.No.062L7SSOOOOLZ with interest @ 8.55% p.a with monthly rests along with 2olo penal interest from 04.L1.2025 till the date of realization;

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c) A sum of Rs.24,52,811.83ps in respect of A/c.No.170002944660 with interest @ 8.85o/o p.a with monthly rests along with 2olo penal interest from 24.L0.2025 till the date of realization;

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d) A sum of Rs.32,13,807.97ps in respect of A/c.No.12500050526g with interest @ 10.75olo p.a with monthly rests along with 2olo penal interest from 01.11.2025 till the date of realization;

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And in default for sale of hypothecated movables and mortgaged

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property as in the schedule to OA.

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As per ion, the Applicant Bank states that

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derendari! n"rtfi fig%^l&ttpr,"t" firm represented by its proprietor

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(oA.No.s91l202s)

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availed term loan of Rs.92.50 lakhs, working capital of Rs.7.50 lakhs on 27.03.2019. The defendant executed common hypothecation agreement and demand promissory note dated 29.03.2019. Further the defendant avaired credit facirity of Rs,g,50,000/- for extension of GECL Scheme. The defendant hypothecated the movables and mortgaged immovable property as mentioned in the schedule to oA in favour of Applicant bank. After availing the loan facilities, the defendants faired to compry the terms of sanction, hence the appricant bank crassified the account as NpA and regar notice was issued on 07 'LL'2025. Inspite of severar requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendant called absent and set exparte on 16.02.2025.

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Smt V, Anusha, Chief Manager of the Applicant Bank examined himself as AW.1 and exhibited rerevant documents, which are marked as Ex.A.1 to A.2.

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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

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entitled for the claim made in the OA against the Defendant as prayed

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for?

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To substantiate the case of the Applicant

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o*fs?[r''i,io"' * pplicant Bank was examined and he

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q -o.{Y

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(OA.No.s91/202s)

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exhibited rerevant documents as Ex.A1 to A.26. In view of the above, I hord that the Appricant Bank has estabrished their craim made in the oA against the Defendant and hence the Appricant 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 Defendant is liable to pay to the Applicant Bank a total sum of Rs.2,16,99,164.76ps (Rupees Two Crores Sixteen Lakhs Ninety Nine Thousand One Hundred Sixty Four and paise Seventy Six only) i.e.,

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a) A sum of Rs.!,54,64,241.3gps in respect of A/c.No,0621773003853 with interest @ l0o/o p.a from

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31.10.2025 till the date of realization;

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b) A sum of Rs.5,6g,303.5gps in respect of

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A/c.No.0621755000017 with interest @ 8.55o/o p.a from 04.tL.2025 till the date of realization;

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c) A sum of Rs.24,52,811,g3ps in respect of A/c.No.170 002944660 with interest @ 8.85o/o p,a from 24.70.2025 till the date of realization;

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d) A sum of Rs.32,13,807.97ps in respect of A/c. No. 1 ?68^{with interest} @ I0.75o/o p.a from 01. realization; u\ ''--kd,.

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(oA.No.5e1l202s)

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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 also entitled to proceed against the person and properties of defendant towards realization of the debt due.

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

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L2. 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., transcribed by her, corrected, signed and pronounced by me in the open court on this the 18th day of Feb,2026)

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sdl(G. GOPTCHAND) PRES!DING OFFICER

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19 rr8 ?ffi

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Canara Bank v. M/S. Chetan Textiles

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Chetan Textiles

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

Coram

Case details

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