Allowed

Canara Bank v. M/S.Vaagdevi Educational Society

DRT15 Apr 2026OA/68/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed Canara Bank's Original Application for recovery of over Rupees 2.16 crores from the Vaagdevi Educational Society and its guarantors following default on loans and mortgage agreements.

What did the court decide?

Defendants jointly and severally liable to pay Rupees 2.1675794.90 including interest; recovery certificate to be issued; Right to proceed against mortgaged properties allowed.

Canara Bank versus M/S.Vaagdevi Educational Society — Specific Performance | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL - IAT HYDERABAD DATED THIS THE 15th DAY OF APRIL, 2026

¶2

PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA. No.68 OF 2025

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Between :

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Canara Bank, Ground floor, Plot No. A 2/1 , Balasamudram, Hanamkonda

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Telangana - 506 001. Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Vaagdevi Educational Society, Registered under

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A.P (Telangana Area) Public Societies Registration Act, 1350, Regd. No. 8327 of2001

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H.No. 5-11-48611, Road No. 3, Sri Nagar Colony, Hanamkonda,

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Telangana - 506 001

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Sri. Gopu Amarender Reddy, S/o. G. Shiva Reddy, Aged Major, Occ. Business, H.No. 5-11-48611 Srinagar Colony, Street No. 1A, Naimanagar, Waranagal, Telangana - 506 009 ,6*k\ i: l5Appntt * %-tt-eZ

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(oA. No. 68/202s)

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Sri. Vaidyula Surender Reddy,

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S/o. V. RajiReddy,

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Aged Major, Occ. Business, H.No. 5-1 1-48611 Srinagar Colony, Road Naimanagar, Hanamkonda,

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Telangana - 506 001.

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Sri. Vaidyula Saraswathi,

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S/o. Sri. Surender Reddy, Aged Major, Occ. Business, H.No. 5-1 1-48611 Srinagar Colony, Road Naimanagar, Hanamkonda,

¶21

Telangana - 506 001

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Sri. Mamidala Anandam,

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S/o. Rajaveeru, Aged Major, Occ. Business, H.no. 16-4-73, Godavarikhani, Ramagundam, Karimnagar, Telangana -505 208.

¶24

Sri. V.Raji Reddy,

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S/o. Sai Redy, Aged Major, Occ Business, Chinnapapaiah Pally, Huzurabad, Karimngar,

¶26

Telangana - 505 101 .

¶27

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¶28

(oA. No. 58/202s)

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Sri. Gopu Shobha, Wo. D. Lingaiah, H.No. 1-95, Cintapaly, Shankarapatnam, Molangur, Karimnagar,

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Telangana - 505 470.

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Sri. Dasari Thirumal Reddy,

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Wo. D. Linga Reddy, H.No. 1-95, Chintapally, Shankarapatnam, Molangur, Karimnagar, Telangana - 505 470.

¶33

Defendants

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Counsel for the parties :

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For The Applicant For the Defendants No. 1 to 4,6 For the Defendant No. 5,7,8

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Reserved on

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Pronounced on

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¶39

Sri. K.V Nageswara Rao Bharadwaj Reddy Mothe Exparte

09.04.2026

15.04.2026

15.04.2026

(oA. No. 68/202s)

ORDER

The Applicant^{Bank filed the present OA againstDefendants} for recovery^{of a total sum ofRs'2,16,75,794'90Ps' (Rupees} Two Crores^{SixteenLakhs Seventy Five ThousandSeven} Hundred Ninety^{Four and Paise Ninety Only) i'e a sum of -}

¶46

(i) Rs.l,81,28,436.00^{Ps. againstDefendants No' 1 to 8 underOD} Loanaccountwithinterest@13'5%p.aandoverduepenal interest @2o/o^{p.a compoundedmonthly from the date of the} application^{tillthe date of realization,}

¶47

(ii) Rs.19,49,062.42^{Ps. against Defendant No' 1 under GECL} account with^interest @13'5oh^{p'a and over due penal interest} @2%^{p.acompoundedmonthlyfrom the date of the application till} the date^{of realization;}

¶48

(iii) Rs.l5,98,296.48^{Ps. againstDefendantNo' 1 underWCTL} Loan account^{with interest @13'5% p'a and over due penal} interest @2%^{p.a compounded monthlyfrom the date of the} application^{till the date of realization;}

¶49

and in default for sale of Mortgaged Property as mentioned in
to OA.
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¶50

(oA. No. 68/202s)

¶51

¶52

As per the averments in the application, the Applicant Bank states that Defendant No. 1 is a Society Registered under A.P (Telangana Area) Public Societies Registration Act, 1350, represented by its President Defendant No. 3 and Secretary Defendant No. 2 availed Cash credit loan of Rs.1.50 crores with interest @13.40Yo p.a compounded half yearly or quarterly and executed Common Hypothecation Agreement dated 21.04.2017 in favor of the Applicant Bank. The Defendants no. 2 and 3 created Equitable Mortgage morefully mentioned in Schedule of Property to the OA and executed Memorandum of Deposit of Title Deeds dated 19.04.2017 and deposited Registered Release Deed in favor of the Applicant Bank. The Defendants No 2 to 8 stood as a Guarantor and executed Guarantee Agreement dated 21 .04.2017 in favor of the Applicant Bank. The Defendants renewed the above mentioned loan facilities from time to time and executed necessary documentsⁱⁿ favor of the Applicant Bank, The defendant no. I availed GECL facility of Rs.30.00 Lakhs with interest and executed Demand Promissory Note dated 18.09.2020 in favor of the Applicant Bank. The Defendant No. 1 availed WCTL extension loan facility of Rs.15.00 Lakhs with interest and executed^Demand Promissory Note dated 22.11.2021 in favor of the^Applicant Bank. The Defendant no. 1 stood as Guarantor and^executed 18.11.2021 in favor of the Applicant loan facility, the defendants failed to terms sanction, hence the applicant bank 15 ApB zozfi^* 5 16.! 6i. 44. , *o.'s-*t

¶53

(OA. No. 68/202s)

¶54

classified the account as NPA and issued Demand notice dated 1 .12.2023 under Section 13(2) of the SARFAESI Act, 2002 to the defendants. lnspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

¶55

Sri. Bharadwaj Reddy Mothe filed Vakalat on behalf of Defendants No.1 to 4 and Defendant No. 6. Even after the lapse of 45 Days WS of Defendants No.1 to 4 and Defendant No. 6 not filed and hence the right of filing of WS of Defendants No.1 to 4 and Defendant No. 6 was forfeited on 01.09.2025. Defendants No. 5, 7 and 8 called absent and set exparte on 04.08.2025.

¶56

Sri. Uppaladhadium Sai Srinivas, Senior Manager of^the Applicant Bank examined himself as^{AW.1 and exhibitedrelevant} documents, which are marked as^{Ex.A.1 to A.102.}

¶57

Heard the Ld. Counsel for the Applicant^Bank.

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The point that arise for consideration is whether^{the Applicant} bank is entitled for the claim made in^{the OA againstthe} Defendants as^prayed for?

¶59

Defendants no. No.1 to 4 and^{DefendantNo.6didnot file their} iling sufficient time and hence the right^{of filing} 4t ts No. 1 to 5 was forfeited. Defendants h I ; .,L 15ApBlffi^* \6. ?

¶60

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¶61

(oA. No. 68/202s)

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No. No. 5, 7 and 8 called absent and set exparte. To substantiate the case of the Applicant Bank, AW.1, official of the Applicant Bank was examined and he exhibited relevant documents as Ex.A.1 to A.102. 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.

¶63

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

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The Defendants are^jointly and severally liable to pay to the Applicant Bank a total sum of Rs.2,16,75,794.90 Ps. (Rupees Two Crores Sixteen Lakhs Seventy Five Thousand Seven Hundred Ninety Four and Paise Ninety Only) i.e a sum of -

¶65

(i) Rs.l,81,28,436.00 Ps. against Defendants No. 1 to 8 under OD Loan account with interest @13.5% p.a from the date of the application till the date of realization;

¶66

(ii) Rs.19,49,062.42 Ps. against Defendant No. 1 under GECL account with interest @13.5% p.a from the date of the application till the date of realization;

¶67

I under WCTL Ps. against Defendant No. h ""ffint @13.5%^{p.a from} the date of the l, appli-catiotiill^{15 APB} 2026^{the dSie} realization. €.?

¶68

W**9

¶69

(oA. No. 68/202s)

¶70

The Applicant Bank is entitled to proceed against the and Mortgaged Property as mentioned in the Schedule of property to the 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 Defendants No. 2 to 8 and properties of Defendant No. 1 society towards realization of the debt due.

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

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

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lssue Recovery Certificate accordingly.

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Communicate a copy of the order to the parties concerned.

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(Oictated to the P.A., transcribed by her, conected, signed and pronounced by me in the open murt on this the 15th day of Apr, 2026)

¶77

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¶78

sd/-
(G. GOPTCHAND)
PRESIDING OFFICER
TRUE COPY
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Canara Bank v. M/S.Vaagdevi Educational Society

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S.Vaagdevi Educational Society

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Parties & counsel

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