Allowed

Canara Bank v. M/S. Kanaka Maha Laxmi Powerlooms Industry

DRT13 Jul 2026OA/68/2026

Case brief

AI extract

What is this about?

The DRT allowed the bank's Origin Application for recovery of Rs. 2.16 Crores from a powerloom firm. The bank proved its claim via a branch manager and documents, leading to an entitlement to recover the sum with interest, costs, and proceed against secured properties.

What did the court decide?

Defendant to pay Rs. 2,16,61,763.00 with future interest at specified rates and costs; issuance of Recovery Certificate; authorization to proceed against secured properties.

Canara Bank versus M/S. Kanaka Maha Laxmi… — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL - IAT HYDERABAD DATED THIS THE 13th DAY OF JULY,2026 PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA. No.68 OF 2026

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Between :

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Canara Bank, Hanumakonda - ll Branch, H.No. 2-5-39, Water Tank Road, Near Naveena Childrens Hospital, Nakkalgutta, Hanumakonda, Warangal District - 506 001, Telangana State Represented by its Authorized Officer Applicant VERSUS M/s. Kanaka Maha Laxmi Powerlooms lndustry, Plot No. 127, Survey No. 1791/1, Madikonda, Kazipet, Warangal - 506 342 Rep. by its Proprietor, Smt. Chennuri Lalitha Wo. Ch. Naresh, Rio. H.No. 2-68, Gudur Mandal, Ponugodu - 506 134 Warangal. Defendant

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Defendant

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(OA. No. 68/2026)

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Counsel for the^parties:

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For The Applicant Sri. D.L. Kiran Prakash For the Defendant ShriA. Sunil Reserved on 10.07.2026 Pronounced on 13.07.2026 Upload in website on 13.07.2026

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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.2,16,61,763.00ps., (Rupees} Two Crores Sixteen Lakhs Sixty^{One Thousand Seven} Hundred and Sixty Three Only)i.easumof-

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(i) Rs.1,52,05,444.00 Ps. under Term^{Loan accountwith future} interest @10.65%^p.a with^{monthly rests overdue penal interest} @2o/o^{p.afrom the date of this application till the date of} realizatio n;

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(ii) Rs.19,35,366.00 Ps. under OD Loan account^{with future} interest @11.45%^p.a with monthly rests^{overduepenal interest} @2%^{p.ryltmtRdateof this application till the date of}

¶13

6ru-'?,,t
; 13JUt.?ut
'1
'&N-:ii:2

¶14

(oA. No. 68/2026)

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(iii) Rs.4,29,581.00 Ps. under the GECL - | account with future interest @13.65Yo p.a with monthly rests overdue penal interest @2ok^{p.afrom the date of this application} till the date of realization;

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(iv) Rs.30,90,372.00 Ps. under the GECL - 2 account with future interest @13.650/0 p.a with monthly rests overdue penal interest @2o/o^{p.afrom the date of this application till the date of} realization;

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and in default for sale of Hypothecated Movables and Mortgaged Property as mentioned in the Schedule of Property A and B to OA.

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As per the averments in the application, the Applicant Bank states that Defendant No. 1 is a Proprietorship Firm represented by its Proprietor Smt. Chennuri Lalitha availed Term Loan facility of Rs.98,31,0001 repayable in equated monthly installments of Rs.1,61,6074 p.m with interest @11.40%o p.a and working capital facility of Rs.15.00 Lakhs together with interest @10.40%o^{p.a and executedCommon Hypothecation} Agreement dated 27.06.2019 in favor of the Applicant Bank. The defendant availed GECL -1 loan facility of Rs.5.00 Lakhs with interest @9.25o/" p.a and executed Common Hypothecation Agreement - date.g ,?2iQ.6i?Q30 ,,:: "^.1.:, .^i: in favor of the Applicant Bank. The defendant^- i?yailed.:-.GFCl -^{2 loan facility of Rs.25.00} Lakhs,with intereUt'"60.26$'$.a and executed Supplemental :. ,,r,^ir 13JUIZ0l$ r

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(oA. No. 68/2026)

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Common Hypothecation^{Agreementdated 12.11.2021in} favor of the Applicant^{Bank.The Defendant createdEquitable} Mortgage morefully mentioned^{in Schedule of property to OA} and executed Memorandum of^{Deposit of Title Deedsdated} 22.02.2023 in favor^{of the ApplicantBank and deposited sale} deeds dated 29.12.2023^{in favor of the Applicant Bank.After} availing the loan facility,^{the defendant failed to complythe} terms of sanction, hence the^{applicant bank classified the} account as NPA on 29.10.2023^{and issued Demand notice} dated 06.1 1.2023 under Section^{13(2) of the SARFAESI Act' 2002} to the defendant.^lnspite of^{several requests and demands, the} defendant did not clear the^{outstanding. Hence this OA.}

¶21

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Sri. A. Sunil filed Vakalat on behalf^{of the Defendant. WS of} Defendant not filed. Hence, Defendant^{called absent and set} exparte on 10.07.2026.

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Mr. B. Madhava Reddy, Chief^{Managerof the Applicant Bank} examined himself as AW.1 and exhibited^{relevantdocuments,} which are marked as Ex.A.1 to 4.24.

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Heard the Ld. Counsel for the Applicant^Bank.

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b. The point for consideration is whether the Applicant e claim made in the OA against the

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(OA. No. 68/2026)

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Defendant remained 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.24. ln view of the above, I hold that the Applicant Bank has established their claim made in the OA against the^Defendant and hence the Applicant Bank is entitled to^recover the^claim made in the OA with future interest and costs.

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

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The Defendant is liable to^pay to the Applicant^{Banka total sum} of Rs.2,16,61,763.00^{ps., (Rupees Two} Crores^SixteenLakhs Sixty One Thousand Seven Hundred and Sixty^Three Only) i.e a sum of -

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(i) Rs.1,52,06,444.00 Ps. under Term Loan account with^future interest @10.65ok p.a from the date of this application^{till the} date of realization;

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(ii) Rs.l9,35,366.00 Ps. under OD Loan account with^future interest @11.45Yo^p.a from the date of this application^{till the} date of realization;

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iii) Rs.4,29,581.00 Ps. under the GECL - I account with future
intere6+E,{N.e trom the date of this application till the
adrT."itlff";;<br>I'i i,i , I IUr xpe F:
i'.1 t rlr
..t'',-,,,ro$97
'.,.. ;' 1f !-\v'.:.''

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(OA. No. 58/2026)

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(iv) Rs.30,90,372.00 Ps. under the GECL - 2 account with future interest @13.650/" p.a from the date of this application till the date of realization;

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The Applicant Bank is entitled to proceed against the Hypothecated Movables and Mortgaged Property as mentioned in the Schedule of Property A and B to the OA towards realization of the debt due.

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The Applicant Bank is also entitled to proceed against the properties of Defendant firm towards realization of the debt due.

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11 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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14. Communicate a copy of the order to the parties concerned.

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(Oictated to the P.A., transcribed by her corrected, signed and pronounced by me in the open cou( on this the 13th day of Jul, 2026)

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Canara Bank v. M/S. Kanaka Maha Laxmi Powerlooms Industry

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Kanaka Maha Laxmi Powerlooms Industry

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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