Allowed

Union Bank of India v. M/S. Bharath Furnitures

DRT15 Apr 2026OA/82/2026

Case brief

AI extract

What is this about?

DT-I Hyderabad allowed OA 82/2026 filed by Union Bank of India against defendant firm/borrower for recovery of Rs. 21,07,914 including principal, interest, and proceeds from hypothecated movables in default of NPA classification.

What did the court decide?

Defendants directed to pay Rs. 21,07,914 plus future interest; bank entitled to proceed against hypothecated movables and properties; Recovery Certificate issued.

Union Bank of India versus M/S. Bharath Furnitures — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL - I AT HYDERABAD DATED THIS THE 15'h DAY OF APRIL, 2026

¶2

PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

¶3

OA. No.82OF 2026

¶4

Between:

¶5

Union Bank of lndia, Godown Road Branch, PB No.315, Nizamabad, Nizamabad District, AP. 503 003 Represented by its Chief Manager

¶6

Applicant

¶7

VERSUS

¶8

M/s. Bharath Furnitures, Rep. by its Proprietor, Mr. Guddeti Bharat,

¶9

Regd. Office at -

¶10

D.No. 2-11,

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Dharmaram Main Road, Nizamabad, Nizamabad District - 505 230, Telangana.

¶12

Mr. Guddeti Bharat, S/o. Mr. G. srinivas,, Age : Major, Occ. Business, R/o. 1-15, Kolipyak Village of Jakranpally Nizamabad, Nizamabad District - 50322 e\ Telangana. Defendants j 1sApBzozr : W-r$ry

¶13

(OA. No. 8212026)

¶14

Counsel for the parties :

¶15

For TheApplicant	V.Raghu
FortheDefendant	Exparte
Reservedon	13.04.2026
Pronouncedon	15.04.2026
Uploadinwebsiteon	15.04.2026

¶16

ORDER

¶17

The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.21,07,914.00 ps. (Rupees Twenty One Lakhs Seven Thousand Nine Hundred and Fourteen Only) i.e a sum of - Rs.1 1 ,08,271.71 ps. under Cash credit loan account and Rs.9,99,642.12 ps. under Term Loan account with subsequent interest @11.55% p.a with monthly rests from 31.12.2025 tillthe date of realization and in default for sale of Hypothecated Movables as mentioned in the Schedule of Property to OA.

¶18

ents in the application, the Applicant Bank states
is a Proprietorship Firm represented by its
ant No. 2 availed Government sponsors
h{F;o;iffi'.
* scheme of PM of Rs.13.75 Lakhs under Term Loan
9 -, 15APH2026 ' ., hrn {u(0
$1 ? 2
Q,t*tE#

¶19

(oA. No. 82/2026)

¶20

repayable in 57 monthly installments of Rs.24,122.8'l Ps. and cash credit general of Rs.10.00 Lakhs together with interest @13.80%^{p.a with monthly rests and executed Hypothecation} (Goods and debts) Agreement dated 30.09.20223 and Term Loan Agreement dated 30.09.2023 in favor of the Applicant Bank. After availing the loan facility, the defendants failed to comply the terms of sanction, hence the applicant bank classified the account as NPA and issued Legal notice dated 18.07.2025 to the defendants. lnspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

¶21

Defendants called absent and set exparte on 13.04.2026.

¶22

Sri. Shiv Prakash Singh, Chief Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.19.

¶23

Heard the Ld. Counsel for the Applicant Bank.

¶24

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

¶25

¶26

exparte. To substantlate the case of the ,^{official of the ApplicantBank was} J^{1sApnrm *} rt^: d,-, .j W,od$.i :t#fit9

¶27

(OA. No. 8212025)

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examined and he exhibited relevant^documents as^Ex.A.1to A.19. ln view of the above, I hold that the^{Applicant Bankhas} 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.

¶29

¶30

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

¶31

The Defendants No. 1 and 2 are^jointly and severally^{liable to} pay to the Applicant Bank a total sum of Rs.21,07,914.00 Ps. (Rupees Twenty One Lakhs Seven Thousand Nine Hundred and Fourteen Only) i.e a sum of - Rs.1^{1,08,271.77Ps. under} Cash credit loan account and Rs.9,99,642.12 Ps.^{under Term} Loan account with subsequent interest @11.55o/o^{p.a from} 31.12.2025 till the date of realization.

¶32

The Applicant Bank is entitled to^proceed against^the Hypothecated Movables as mentioned in the Schedule^of Property to the OA towards realization^{of the debt due.}

¶33

The Applicant Bank is also entitled to proceed against the person
and properties of Defendants No.2 and propertiesof Defendant
towards realization of the debt due.
rs%<br>1s ApH 7oz5 I
;
Q&.,".*si
td;ffi19

¶34

(oA. No. 8212026)

¶35

That Applicant Bank^{is entitled to the costs of the OA.}

¶36

The Applicant shall file a^{costmemo within two weeks from the} date of receiPt of^order.

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lssue Recovery Certificate^accordingly.

¶38

Communicate a^{copy of the order to the parties concerned.}

¶39

(Dictated to the P.A., transcribed^{by her, corrected' signed and pronounced by mein the open court on} this the 15'h day^{of APr,2026)}

¶40

sd/(G. GOPICHAND)

¶41

PRESIDING OFFICER

¶42

1s ApR 2026 l
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(&,,*"o$,
SorEiw "t

¶43

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Union Bank of India v. M/S. Bharath Furnitures

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/S. Bharath Furnitures

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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