Allowed

Canara Bank v. Palakurthi Nagaraju

DRT1 Jan 2026OA/62/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of loan principal and interest, rejecting the borrowers' pleas of limitation and non-adherence to RBI guidelines based on marked exhibits.

What did the court decide?

Declarations of joint and several liability of borrowers and guarantor; recovery of Rs.84,90,912.51 plus interest; issuance of recovery certificate; costs awarded.

Canara Bank versus Palakurthi Nagaraju — Company and Corporate | DRT (2026)

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IN THE^{DEBTSRECOVERYTRIBUNAL-I AT HYDERABAD} DATED THIS^{THE1ST DAYOF JANUARY' 2026}

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PRESENT: SRI^{GUMMADI GOPICHAND,PRESIDING OFFICER}

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OA.No.62 OF²⁰²²

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Between:

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Canara Bank, Kazipet branch, Warangal,^Telangana Represented^{by its Authorised Officer}

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... Applicant

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VERSUS

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Palakurthi^Nagaraju, s/o Late P.^{Rajalingam (borrower)} aged 60 Years,^{occ:business,} flat no.201,^{first floor, Sudhaam} residencY,^{H.No'8-4-27 & 8-4-26,} Sri Krishna^{ColonY, StationRoad,} Warangal -^{506 002.}

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Smt.^{Palakurthi Rama Devi (borrower)} w/o Palakurthi^Nagaraju, H.No.8-10-74,^GirmajiPet, Warangal -^{506 002.}

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Mr. Avula^Prabhakar, s/o Mallaiah,^{H.No.16-8-159,} Abbaikunta, Warangal dist-^{506 002.}

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Defendants

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Counsel for^{the Parties:}

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For the APP|l ic iant

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Defendants^N( o.1 & 2 .,.,i ":ll^'- 17^{,riorders r'ese}^rvr ved on ii il -u^"Pr$dUQFSEH 'i,$!,poaded in rwegjgE-w ;\i,-rUU '.il-*.,:':)'t,: ., , ,..,r.,, - : \F,z/ ':;:"--$r: * 1

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Dr. Shaik^Faheemullah

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M/s. Vira Legal^LLP t9.L2.2025 01.01.2026 02.0t.2026

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(oA.No.62l2022)

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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.84,9O,912'5lps(RuPees Eighty Four} Lakhs Ninety Thousand^{Nine Hundred Twelve and paise Fifty} oneonly)withinterest@12,45o/op.afromo2.o6,2o2ttillthedate of realization and^{in default for sale of mortgagedproperty as} mentioned in^{the scheduleto OA'}

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As^per the averments^{in the application,the ApplicantBank} states that the^{defendants No.1 and 2 are borrowersand defendant} no.3stoodaSguarantortotheloanfacilityofRs.g8lakhsdated 21,L2.20:5.Tosecuretheloan,thedefendantno.ldepositedthesale deed docu.no.3350/2010^{dated28.04.2010.Defendantno'3 executed} guarantee agreement dated^{22'12'2015'It is submittedby the} Applicant bank that^{the Defendants availedthe said loan facilitiesand} failed to keep^{up the repayment schedule, as such the account was} classified as NPA on^{30.12.2019.Inspite of demandsmade by} Applicantthedefendantshavenotregularizedtheaccount,andthe Applicantbankissuedrecallnoticedated0l.l0.2019,butthe defendants did^{not come forwardto repaythe same' The total claim}

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of Applicant against^{defendantsis of Rs'84,9O,912'51ps(Rupees} .. ..t' '1.,--iu -' ' t'#sfttrirgg,gr Lakhs Ninety Thousand Nine Hundred Twelve and r.,r' ,..^,?f /..:j ',.6"i"" ) flftiybne '^di '^. onty) with interest @ L2.45o/o p.a from 02.06.2021 ie^{0 t} . '.x .. 'til,i[zE.Ju" i lr^{rearization. Hence the oA.} '"'\ .,f,,!// z .. 'i.-.,! ;]"-", Oli", , :.;, . ='i:^/ili- . "1r*i,,./ r!l---1--;:'-'.

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(oA.No'62/2022)

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The Defendant^{No'1 and 2 filed written statement and denied the} averments made^{in OA. It is submitted by the defendants thatthe} oAisbarredbylimitationandalsocontendedthatthedefendantsno'1 and 2 have^{not signed any documents as claimedby ApPlicant bank'} It is further submitted^{that the Applicant bankdid not adhere to the} guidelines of RBI. Hence^{prayed for dismissalof OA'}

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I have^{perusedthe documents placed on record'}

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Heard the arguments.

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Now, the^{points that arise for consideration are:}

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i)WhethertheApplicantBankhasproveditsclaimasmadeinoA against the defendants^?

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ii) To what relief^?

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Point No.i):

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Mr. D.^{Naresh,Officer} /^{AW.lwho was examined on behalf of the} Applicantclearlydeposedabouttheliabilityofthedefendants. Exhibits A.1 to A'10 are^{marked throughAW'1' DefendantsNo'1 and} 2 examined themselves^{as DW.1 and DW'2 but not filed any}

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examined by^{the defendants.Even thoughthe 1't} himself as DW.1^{and defendant no.2 examined}

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(oA.No.6212022)

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herself as DW.2 but not filed^{any documents, their evidenceis in} noway helpful to them. The^{defendants havingtaken the plea that} the applicant bank did not^{follow the RBI guidelines and that the} present OA was barred by limitation, failed to^{place any substantial} proof to that effect. Moreover, a^perusal of the documents^exhibited by the Applicant bank^{makes clear that all the relevantdocumentsare} executed by the defendantsⁱⁿ the^{normal course of transaction.The} defendants very^{vaguely contended that particulars madein the OA} are not correct. But as^{per the statementof accounts, the defendants} are liable to^pay the^OA claim.^{Considering all the circumstances, I} am of opinion that the^{defensetaken by the defendantsis not tenable.} Hence the applicant bank is^{entitledto claim the OA amount from} defendants. Therefore, the^{OA claim deserves to be allowed against} the defendants.

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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 Defendants are^jointly and severally^{liable to pay to Applicant} Bank a total sum of Rs.84,90,912.51ps^{(Rupees EightyFour} **itC'Jrh'iiiiUr$^{Thousand Nine Hundred rwelveand paise Fifty} r'tr oiEonrylt#,t\t interest @ L2.45o/op.a from 02.06'202L till the date s^{1"r"ir!;,$18,,";,i)} ; .%4" .*"#/l ti15,1i}:-';r,',W

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(OA.No.62l2022)

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entitled to^{proceed against the mortgaged}

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1. The Applicant^{bank is} in the OA^{towards realisation of the debt due;}

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property as mentioned

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The Applicant^{bankis also entitled to proceed againstthe person and} properties of defendants^{towards realization of the debt due'}

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to the costs^{of the OA.}

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1. The ApPlicant^{Bankis entitled}

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memo within^{two weeksfrom the date}

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t2. The Applicant^{shall file a cost} 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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(Dictated to the P.A.,^{transcribed by her,corrected'signedand pronouncedby mein the opencourt on} this the^{1s daY of Jan'2026)}

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sdl-

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(G. GOPTCHAND) PRESIDING^OFFICER

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ryW

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Canara Bank v. Palakurthi Nagaraju

Case brief

What is this about?

What did the court decide?

Canara Bank v. Palakurthi Nagaraju

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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