Bangalore District Court
Halegouda Mallikarjuna Gouda vs K. Chetana on 3 May, 2025
KABC020187312021
BEFORE THE COURT OF 10th ADDITIONAL SMALL
CAUSES, AT: BENGALURU
(SCCH-16)
Present: Sri. Mohammed Yunus Athani
B.A.,LL.B.,
X Addl. Judge, Court of Small Causes,
Bengaluru.
S.C. No.487/2021
Dated this 3rd day of May, 2025
Plaintiff: Halegouda Mallikarjuna Gouda S/o
Halegouda Ramalingana Gouda,
Aged 56 years,
R/at No.43, 9th Main, 6th Cross,
Chandrappa Badawane,
Sharadamba Nagara, Jalahalli Village,
Bengaluru - 560 013.
(Sri S.K. Prabhakara Shetty, Advocate)
V/s
Defendant: K. Chetana W/o K. Ramakrishna Rao,
Aged about 43 years,
R/at No.002, 1st Floor,
Garuda Royal Apartment,
Soumyashree Layout,
Sharadamba Nagara,
Jalahalli Village, Bengaluru - 560 013,
2
S.C.No. 487/2021
#39, 1st Main Road, Shardhamba Temple
Road, Shardhamba Nagar,
Jalahalli Village, Bengaluru - 560 013.
(Ex-parte)
Date of Institution of suit : 15-07-2021
Nature of the suit : Recovery of money
Date of commencement of : 10-03-2025
recording of the evidence
The date of pronouncement : 03-05-2025
of Judgment
Total duration : Year/s Month/s Day/s
03 09 18
********
JUDGMENT
This is suit filed by the plaintiff against the defendant, seeking relief of recovery of money of Rs.1,57,000/- with interest at the rate of 12% per annum from the date of suit till realization of the amount.
2. The brief facts of the case are as follows:
The defendant approached the plaintiff for a hand loan of Rs.1,00,000/- for the purpose of doing business, to arrange the finance for running of the hotel business 3 S.C.No. 487/2021 and for the education of his sons by name Abhishek Kadari and Akshith Kadari. The plaintiff agreed to lend the said amount to the defendant and accordingly a loan agreement dated 26-08-2018 was entered into between them. The defendant received the loan amount of Rs.1,00,000/- through online transfer from SB Account No.20187720695, of State Bank of India, HMT Area, Jalahalli, to her account held at State Bank of India, bearing SB account No.20162523765, on 26-08-2018. As a security for repayment of said hand loan amount, the defendant has handed over one undated cheque bearing No.816096, pertaining to her above SB account, held at State Bank of India, to the plaintiff. The defendant failed to repay the said hand loan amount to the plaintiff with interest within the stipulated period of one year, as per the terms of loan agreement. The defendant is due to pay an amount of Rs.1,57,000/-, as on the date of filing of 4 S.C.No. 487/2021 this suit. The defendant is liable to pay the said amount with future interest at the rate of 12% per annum, from the date of suit till realization. Hence, the plaintiff is constrained to file this suit for recovery of said amount with interest.
3. On service of summons to the defendant, the defendant remained absent. Hence, placed as ex-parte.
4. In order to prove his case, the plaintiff has examined himself as P.W.1 and got marked total 5 documents as Ex.P.1 to 5.
5. I have heard the arguments of learned counsel for the plaintiff and perused the entire material available on record.
6. The following points arise for my consideration: 5
S.C.No. 487/2021 POINTS
1) Whether the plaintiff proves that, the defendant has borrowed hand loan of Rs.1,00,000/- from him on 26-08-2018 and has executed loan agreement, dated 26-08-2018 in his favour ?
2) Whether the plaintiff proves that, the defendant is liable to pay an amount of Rs.1,57,000/- to him, as on the date of filing of this suit ?
3) Whether the plaintiff is entitled to recover the amount of Rs.1,57,000/-
with interest at the rate of 12% per annum from the defendant ?
4) What order or decree ?
7. My findings on the points are as under:
Point No.1: Affirmative Point No.2: Partly Affirmative Point No.3: Partly Affirmative 6 S.C.No. 487/2021 Point No.4: As per final order for the following:
REASONS
8. Points No.1 to 3: As all these points for consideration are inter-connected to each other, in order to avoid repetition of facts and circumstances of the case and for better appreciation of evidence on record, I take all the points together for common discussion.
9. It is specific case of the plaintiff that, the defendant has borrowed hand loan of Rs.1,00,000/- from the plaintiff on 26-08-2018, for the purpose of doing business, to arrange the finance for running of the hotel business and for the education of his sons and has executed a loan agreement with respect to same in favour of the plaintiff. As a security for repayment of said hand loan amount, the defendant has handed over one undated cheque bearing No.816096, pertaining to her above SB account, held at State Bank of India, to the 7 S.C.No. 487/2021 plaintiff. But, the defendant has failed to repay the said hand loan amount to the plaintiff with interest within the stipulated period of one year, as per the terms of loan agreement. The defendant is due to pay an amount of Rs.1,57,000/- to the plaintiff, as on the date of filing of this suit. Hence, prayed to pass a decree, directing the defendant to pay the said amount with future interest at the rate of 12% per annum, from the date of suit till realization.
10. In order to prove his case, the plaintiff has got examined himself as P.W.1 by filing his examination-in- affidavit, wherein he has reiterated the entire plaint averments. Further, in support of his oral evidence, the plaintiff has got marked 5 documents as Ex.P.1 to 5. Out of the said documents, Ex.P.1 is Loan Agreement, Ex.P.2 is Addendum to Agreement, Ex.P.3 is Original Cheque, 8 S.C.No. 487/2021 Ex.P.4 is Bank Account Statement and Ex.P.5 is Bank Memo.
11. The above oral and documentary evidence placed on record by the plaintiff clearly establishes that, the defendant had borrowed hand loan of Rs.1,00,000/- from the plaintiff on 26-08-2018, for the purpose of doing business, to arrange the finance for running of the hotel business and for the education of his sons and on the same day the defendant has executed the Ex.P.1 loan agreement dated 26-08-2018 and Ex.P.2 Addendum to the Agreement, dated 26-08-2018, in favour of the plaintiff. Further it reveals that, the defendant has received the loan amount of Rs.1,00,000/- through online transfer from SB Account No.20187720695, of State Bank of India, HMT Area, Jalahalli, to her account held at State Bank of India, bearing SB account No.20162523765, on 26-08-2018. As a security for repayment of said hand 9 S.C.No. 487/2021 loan amount, the defendant has handed over one undated cheque bearing No.816096, pertaining to her above SB account, held at State Bank of India, to the plaintiff. As per the terms and conditions of the Ex.P.1 loan agreement and Ex.P.2 Addendum to the Agreement, the defendant had agreed to repay the borrowed amount within one year from the date of agreement. Further it was agreed that, if the defendant fails to repay the said amount within stipulated period of one year, the plaintiff is at liberty to present the said cheque to the bank for enchasment and realise the hand loan amount. Further it reveals that, the defendant had agreed to pay interest at the rate of 30% per annum on the borrowed amount and the same shall be paid monthly on or before 5th of every month.
12. The plaintiff/P.W.1 has deposed in his evidence that, the defendant has failed to repay the borrowed 10 S.C.No. 487/2021 amount within stipulate period of one year to the plaintiff, as per the terms of agreement. Further, the Ex.P.3 cheque and the Ex.P.5 memo issued by the drawer bank, clearly speaks that, on presentation of said cheque, bearing No.816096, dated 09-04-2021, pertaining to SB Account No.20162523765, for sum of Rs.1,57,500/-, for enchasment at the State Bank of India, HMT Area, Jalahalli Branch, Bengaluru, it is dishonored by the said bank, for the reason 'funds insufficient' in the drawer's account. This clearly goes to show that, the defendant has not repaid the above hand loan amount to the plaintiff within thee stipulated period and hence, the plaintiff has presented the Ex.P.3 cheque to the bank for realisation of hand loan amount, but the same is dishonored by the bank due to insufficient funds in the drawer's account. The above oral and documentary evidence placed on record by the plaintiff clearly 11 S.C.No. 487/2021 establishes that, the defendant is defaulter in repayment of borrowed hand loan amount to the plaintiff, as per the terms and conditions of loan agreement, dated 26-08- 2018. The oral and documentary evidence placed on record by the plaintiff has remained unchallenged and unrebutted. The genuinity and admissibility of the documents produced by the plaintiff has remained undisputed, as the defendant did not choose to contest the case of the plaintiff.
13. The plaintiff is claiming that, the defendant is due to pay Rs.1,57,000/- to him. But, there are no specific pleadings with regard to how he has arrived at the said amount, what is the rate of interest he has applied on the principal amount of Rs.1,00,000/- and from which date to which date he has calculated the interest. In absence of specific pleadings and evidence with respect to same, it is not possible to adjudicate whether the claim of the 12 S.C.No. 487/2021 plaintiff that, the defendant is due to pay Rs.1,57,000/- to him, as on the date of filing of this suit, is correct or not. Therefore, for the above stated reasons, this Court is of the opinion that, the plaintiff has successfully proved that, the defendant has borrowed hand loan of Rs.1,00,000/- from the plaintiff on 26-08-2018 and failed to repay the said amount to him, within stipulate period of one year, as per the terms of loan agreement, dated 26-08-2018. As such, the defendant is liable to pay Rs.1,00,000/- to the plaintiff, as on the date of suit. But, the plaintiff has failed to prove through cogent and corroborative evidence that, the defendant is due to pay an amount Rs.1,57,000/- to him, as on the date of filing of this suit.
14. Further, with respect to future interest claimed by the plaintiff bank, the Sec.34(1) of Civil Procedure Code, empowers the Court to grant future interest i.e. interest 13 S.C.No. 487/2021 from the date of decree till realization, at the rate of not more than 6% per annum, in case of non-commercial transactions. The Section 34 of Code of Civil Procedure 1908, reads as follows: "Interest"- (1) Where and in so far as a decree is for the payment of money, the Court may, in the decree, order interest at such rate as the Court deems reasonable to be paid on the principal sum adjudged, from the date of the suit to the date of the decree, in addition to any interest adjudged on such principal sum for any period prior to the institution of the suit, with further interest at such rate not exceeding six per cent, per annum as the Court deems reasonable on such principal sum from the date of the decree to the date of payment, or to such earlier date as the Court thinks fit:
Provided that where the liability in relation to the sum so adjudged had arisen out of a commercial 14 S.C.No. 487/2021 transaction, the rate of such further interest may exceed six per cent, per annum, but shall not exceed the contractual rate of interest or where there is no contractual rate, the rate at which moneys are lent or advanced by nationalised banks in relation to commercial transactions.
15. Admittedly, the loan transaction between plaintiff and the defendant is not a commercial transaction. Therefore, in such circumstances, this Court is of the further opinion that, directing the defendant to pay the borrowed hand loan amount of Rs.1,00,000/- to the plaintiff along with simple interest at the rate of 9% per annum, from the date of execution of loan agreement, dated 26-08-2018, till the date of decree and future interest at the rate of 6% per annum, from the date of decree till realisation of entire amount, will meet the ends of justice. Accordingly, holding that, the plaintiff is 15 S.C.No. 487/2021 entitled to recover the hand loan amount of Rs.1,00,000/- from the defendant, with simple interest at the rate of 9% per annum, from 26-08-2018 till the date of decree and future interest at the rate of 6% per annum, from the date of decree till realisation of entire amount, I answer Point No.1 in Affirmative and Point No.2 & 3 in Partly Affirmative.
16. Point No.4: In view of above conclusion, I proceed to pass the following:
ORDER The suit of the plaintiff is partly decreed with costs.
The defendant is directed to pay Rs.1,00,000/- to the plaintiff, with simple interest @ 9% per annum, from 26-08-2018 till the date of decree, within one month from the date of this order.16
S.C.No. 487/2021 In default, the plaintiff is entitled to recover the said amount with simple interest @ 9% per annum, from 26-08-2018 till the date of decree and future interest @ 6% per annum, from the date of filing of this suit till its realization, against the person and property of the defendant.
Draw decree accordingly.
(Dictated to the stenographer, directly on computer, typed by him, corrected and then pronounced in the open Court this the 03 rd day of May, 2025) (Mohammed Yunus Athani) X Addl. Judge, Court of Small Causes, Bengaluru.
ANNEXURE List of witnesses examined on behalf of plaintiff:
P.W.1: Halegouda Mallikarjuna Gouda S/o Halegouda Ramalingana Gouda List of documents exhibited on behalf of plaintiff:
Ex.P.1: Loan Agreement dated 26-08-2018 Ex.P.2: Addendum to Agreement dated 26-08-
2018
17
S.C.No. 487/2021
Ex.P.3: Original Cheque dated 09-04-2021
Ex.P.3(a): Signature of Defendant
Ex.P.4: Bank Account Statement
Ex.P.5: Bank Memo
List of witnesses examined on behalf of defendant:
-Nil-
List of documents exhibited on behalf of defendant:
-Nil-
(Mohammed Yunus Athani) X Addl. Judge, Court of Small Causes, Bengaluru.