Allowed

Canara Bank v. M/s. Eco O rganics India

DRT20 Feb 2026OA/640/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application filed by Canara Bank for recovery of dues from M/s ECO Organics India and proprietor Satyanarayana Reddy, remarking the defendants liable to pay the claim amount, interest, and costs.

What did the court decide?

Defendants ordered to pay Rs. 65,61,531.34 with future interest; OA claim secured by hypothecation; bank entitled to proceed against person and properties; costs awarded.

Canara Bank versus M/s. Eco O rganics India — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-]I AT HYDERABAD

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DATED THIS THE 2OTH DAY OF FEBRUARY, 2026

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PRESENT: SH. RAIT,IESHWAR KOTHE, B.Com., L.LB. (Hons.), M.A. PRESIDING OFFICER

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ORIGINAL APPLICATION No: 640 OF 2025

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Canara Bank

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MSME Branch, Grou nd Floor, Plot No.74, Prashanti Nagar, Kukatpally, Hyderabad, Tela nga na^- 5000 7 2.

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... . .Applica nt.

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Versus

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l4ls. ECO O rganics India, Proprietary concern of Sri. Satyanarayana Reddy, Office: H. No.4-66, Plot No,9 Somashila Township, Pashanylavam, Patacheruvu, Medak District, Tela ngana- 502307.

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Also at:

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M/s. ECO Organics Ind ia Proprietary concern of Sri. Satyanarayana Reddy Sy, No. 76146, lllrd Phase, behind TSIIC, Indra Karan, Pasha nylaya m, Telanga na-530018.

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Sri. Satyanarayana Reddy, Proprietor of M/s, ECO Organics India, Office: H. No.4-66, Plot No.9, Somashila Township, Pashanylacam, Patancheruvu, 14edak District, Tela ngana- 502307.

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Also at:

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Sri. Satyanarayana Reddy, Proprietor of M/s. ECO Organics India, ')\t9-.' $ '^'' N^IL'

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oA.NO.640/202s

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Sy. No. 76/A6,IIIrd Phase, behind TSIIC, Indra Karan, Pashanylayam, Telangana-530018.

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. . . Defendants.

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Counsel for the Applicant Defendants

Mr. Dhananjay Chavan

Ex-parte

:: ORDER::

The Applicant Bank filed the present OA for the recovery a total sum of Rs.65,61,531.34Ps i.e. Rs. 1,76,638.68Ps under Term Loa n A/c. No. 24277 66000078, Rs. 27,05,266. 62Ps under Cash Credit A/c. No. 2427261005375, Rs. 19,12,987.36Ps under Term Loan A/c. No. 2427766000092 and Rs. 17,66,638.68Ps under GECL A/c. No. 170002091829 from the defendants with future interest @11.92olo, @10.25olo, @12.80o/o and @9.25olo p.a. from the date of filing till the date of realization along with costs and in default for sale of hypothecated assets.

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Summon served on both defendants. Though appeared through their counsel Mr. G. Bhanu Murthy but they did not file written statement hence they were set exparte on 08.10.2025 due to non filing of written statement.

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The Applicant Bank examined Mr. D. Ranadheer, Manager, as AW-1 and marked 28 documentsthrough him as Ex. A.1 to Ex. A.28.

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Heard the Ld. Counsel for the Applicant Bank. Perused the material placed on record. ffi"u

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oA.NO.640/202s

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The point that arises for consideration is:-

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Whether the Applicant Bank is entitled for the claim made in the OA against the Defendants and OA hypothecated assets?

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As stated supra, the Detendants remained ex-parte. The Evidence Affidavit coupled with the recitals in the documents viz., Exs. A.1 to A.28 marked on behalf of the Applicant Bank clinches the claim of the Applicant Bank agalnst the Defendants. Hence, I hold that the Defendants are liable to^pay the OA claim to the Applicant Bank wlth future interest and costs.

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In the result, the present Original Appllcation No.640/2025 is allowed as under:^-

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i) The Defendants are liable to pay to the Applicant Bank a sum of Rs. 65,61,531.34Ps with future interest @11.75olo p.a. simple from the date of application till the date of realization;

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ii) the OA claim is secured by way of hypothecation of assets described in the schedule annexed to the OA and the applicant bank is entitled to^proceed agalnst the same to realise its debt;

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iii) the applicant bank is also entitled to^proceed against the person and^properties of defendant for reatization or nt o".!1/3ru*fi\

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oA.NO.640/202s

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iv) the applicant bank is entitled for the^costs.

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The Applicant Bank is directed to^file Cost^{Memowithin2 weeks} from the date of receipt of this Order.

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q Issue Recovery Certificate accordingly.

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Communicate a copy of this order to^{the parties concerned.} (Dictated to the steno, corrected, signed and pronounced by me in the open court on thisthe2othDayof february,2026).

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O,W*f (RtrMESHWAR KOTHE) PRESIDING OFFICER

Canara Bank v. M/s. Eco O rganics India

Case brief

What is this about?

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Canara Bank v. M/s. Eco O rganics India

Case brief

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What did the court decide?

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