Bangalore District Court
Uco Bank vs M/S Bhasakar Enterprises on 21 February, 2022
[C.R.P. 67] Govt. of Karnataka
Form No.9 (Civil)
Title Sheet for
Judgment in Suits
(R.P.91)
IN THE COURT OF THE LXXXVI ADDL. CITY CIVIL JUDGE
AT BANGALORE [CCH.No.87]
Present:
Sri.SUNIL ANDANEPPA SHETTAR, B.Sc., LLB., (SPL)
LXXXVI ADDL. CITY CIVIL JUDGE
Dated this the 21st day of February, 2022
Com.O.S.No.528/2021
Plaintiff/s : UCO Bank,
A bank constituted under the Banking
Companies (Acquisition and Transfer
Undertakings) Act 1970, as amended by the
Banking Laws (Amended) Act, 1985, having its
office at No.10, BiplabiTrailokya Maharaj Sarani,
Kolkata - 700 001 and one of its branches at
No.15, West Park Road, 15th Cross,
Malleswaram, Bengaluru - 560 003, represented
by its Chief Manager Sri Jegadish A.P.
(By Sri.K.R.Parashuram, Advocate)
- Vs -
Defendant/s : 1. M/s Bhasakar Enterprises,
A proprietorship concern represented by
its Proprietor Mr.Bhaskar N. Rao, No.199,
1st Floor, Link Road, Seshadripuram,
Bengaluru - 560 003.
2. Mr.Bhaskar N.Rao,
S/o Narayana Rao,
Aged about 43 years,
Residing at No.377, 5th Cross,
Venkatarangapura, Palace Guttahalli,
Bengaluru - 560 003
(Defendants placed exparte)
2 Com.O.S.No.528/2021
Date of institution
of the suit : 17.08.2021
Nature of the suit
[suit on pronote, suit : Recovery of Money
for declaration and
possession, suit
for injunction]
Date of the commencement
of recording of the evidence : 18.02.2022
Date on which the
Judgment was pronounced : 21.02.2022
Year/s Month/s Day/s
Total Duration 00 06 05
(SUNIL.A.SHETTAR)
LXXXVI Addl. City Civil Judge
Bangalore.
JUDGMENT
This is the suit filed by the plaintiff-bank against the defendants for judgment and decree directing them to pay a sum of Rs.11,83,167/- (Rupees Eleven Lakh Eighty Three Thousand One Hundred and Sixty Seven only) with future interest at the rate of 8.60% p.a, with monthly rest and penal interest at 2% p.a., from the date of the suit till realization. 3 Com.O.S.No.528/2021
2. The brief facts of the plaintiffs' case are as under:
The plaintiff is a banking company registered under the Banking Regulation Act, 1949 and Banking Companies Act, 1970 having its head office in Kolkata and having its branch office at No.15, West Park Road, 15th Cross, Malleshwaram, Bengaluru.
3. The defendants had approached the plaintiff for financial assistance to meet the working capital requirements in the year 2018 under Pradhan Mantri Mudra Yojana (Tarun category). The defendant No.1 is the proprietorship concern represented by defendant No.2 as a proprietor. The defendants had availed a cash credit facility of Rs.10,00,000/- on 28.03.2018 agreeing to pay interest at 8.60% p.a., and penal interest at 2% p.a., in case of default in repayment by executing necessary loan documents such as On demand promissory note, letter of Waiver and continuing agreement, the composite Deed of hypothecation, guarantee agreement dated 28.03.2018.
4. It is the allegation of plaintiff bank that the defendants are irregular in repayment of the loan as agreed 4 Com.O.S.No.528/2021 and have committed breach of the terms and conditions of the agreement. As per the accounts maintained by the plaintiff bank during the regular course of its business, the defendants are liable to pay the amount of Rs.11,83,167/- as on 31.07.2021 with interest. Hence, on these grounds the plaintiff bank has prayed to decree the suit.
5. In spite of issuance of suit summons through court, registered post and also by way of paper publication, the defendants have failed to appear and hence, they have been placed exparte.
6. On the basis of the averments of the plaint and the materials available on record, the following points arise for my consideration:
1. Whether the plaintiff bank proves that the defendants having availed the credit facility term loan of Rs.10,00,000/- on 28.03.2018 have failed to repay the loan as agreed and committed breach of the terms and conditions of the agreement?
2. Whether the plaintiff bank further proves that the defendants are liable to pay a sum of Rs.11,83,167/- with interest at the rate of 8.60% p.a., from the date of suit till realization?
3. Whether the plaintiff is entitled to the reliefs sought for?5 Com.O.S.No.528/2021
4. What order or decree?
7. The Chief Manager of the plaintiff bank in order to substantiate the case of the plaintiff has got examined him as P.W.1 and got marked the documentary evidence, which are at Exs.P.1 to P.10.
8. Having heard the arguments of the counsel for the plaintiff and considering the oral and documentary evidence available on record I answer the above points as under:
Point No.1 : In the Affirmative Point No.2 : Partly in the Affirmative Point No.3 : In the Affirmative Point No.4 : As per final order for the following;
REASONS
9. Points No.1 to 3:- Since all these points require common discussion they will be taken up together.
It is the specific case of the plaintiff that the defendants had availed credit facility term loan of Rs.10,00,000/- on 28.03.2018 under Pradhan Mantri Mudre Yojana and have 6 Com.O.S.No.528/2021 executed the agreement for term loan and other necessary documents in favour of the plaintiff bank and agreed to repay the loan with interest and payable on demand with availability of twelve months subject to annual review. It is the allegation of the plaintiff bank that the defendants have failed to repay the loan as agreed and committed the breach of the terms and conditions of the agreement.
10. The purpose of of availing loan is for business of defendants and hence, the nature of the transaction is commercial in nature as defined U/s 2 (1) (c) of the Commercial Courts Act, 2015 and the specified value of the subject matter of the suit as defined U/s 2 (c) (I) of the said act is more than Rs.3,00,000/- (Three Lakhs Rupees Only) and hence this court has jurisdiction to entertain the suit.
11. The Manager of the plaintiff bank has been examined as Pw1 and he has got marked the documentary evidence, which are at Ex.P1 to P10. Ex.P.1 is the loan application of the defendant, wherein the purpose of the loan and other particulars of the plaintiff are mentioned. Ex.P.2 is Sanction letter dated 28.03.2018, wherein the sanction of 7 Com.O.S.No.528/2021 loan, quantum of loan and the terms of repayment are mentioned. Ex.P.3 is the Demand pro-note dated 28.03.2018 executed by the defendant No.2 as a proprietor of the defendant No.1, Ex.P.4 to Ex.P.8 are Letter of Waiver dated 28.03.2018, Continuing agreement dated 28.03.2018, Composite deed of Hypothecation agreement dated 28.03.2018, Guarantee Agreement dated 28.03.2018 and acknowledgment of debt dated 01.07.2018 executed by the defendant No.2 as a proprietor of the defendant No.1, Ex.P.9 is the statement of account maintained by the plaintiff bank during the regular course of its business accompanied by the certificate under Bankers Book of Evidence Act, Ex.P.10 is the Office copy of legal notice dated 04.02.2020. As already discussed above, the defendant has remained exparte and the evidence of PW1 on oath and the documentary evidence relied upon by the P.W.1 remains unchallenged. Hence, on going through the oral and documentary evidence available on record, the plaintiff bank has proved that the defendants had availed the credit facility loan of Rs.9,50,000/- and have failed to repay the loan as agreed. Hence, under the facts 8 Com.O.S.No.528/2021 and circumstances of the case, there are no impediments to decree the suit.
12. The plaintiff has claimed future interest at the rate of 12.75% p.a compounded on monthly basis from the date of suit till the date of payment, which appears to be exorbitant. The court is empowered to grant future interest exceeding 6% p.a. but shall not exceed the contractual rate of interest in a commercial suit. Considering the nature of the suit and the purpose of loan obtained by the defendant I am of the opinion that future interest at the rate of 9% p.a. calculated on yearly basis till realization is proper and appropriate. Hence, the defendants are jointly and severally liable to pay future interest at 9% p.a from the date of suit till realization. Hence, I answer points No.1 and 3 in the affirmative and point No.2 partly in the affirmative .
13. Point No.3:- Since I have answered points No.1 and 3 in the affirmative and point No.2 partly in the affirmative, I proceed to pass the following; 9 Com.O.S.No.528/2021
ORDER The suit of the plaintiff bank against the defendants is hereby decreed with costs.
It is ordered and decreed that the defendants are jointly and severally liable to pay to the plaintiff bank a sum of Rs.11,83,167/- (Rupees Eleven Lakh Eighty Three Thousand One Hundred and Sixty Seven only) with interest at the rate of 9% p.a. compounded on yearly basis from the date of suit till realization.
Draw the decree accordingly.
[Dictated to the stenographer online, transcribed & computerized by her corrected on computer and signed by me then pronounced in the Open Court, dated this the 21st day of February 2022] (SUNIL.A.SHETTAR) LXXXVI Addl. City Civil Judge Bangalore.
10 Com.O.S.No.528/2021ANNEXURE List of witnesses examined on behalf of the plaintiff/s:
P.W.1 : Sri.Jegadish A.P. List of documents marked on behalf of the plaintiff/s:
Ex.P.1 : Loan application Ex.P.2 : Sanction letter dated 28.03.2018 Ex.P.3 : Demand pro-note dated 28.03.2018 Ex.P.4 : Letter of Waiver dated 28.03.2018 Ex.P.5 : Continuing agreement dated 28.03.2018 Ex.P.6 : Composite deed of Hypothecation agreement dated 28.03.2018 Ex.P.7 : Guarantee Agreement dated 28.03.2018 Ex.P.8 : Acknowledgment of dead dated 01.07.2018 Ex.P.9 : Statement of account accompanied by the certificate under Bankers Book of Evidence Act Ex.P.10: Office copy of legal notice dated 04.02.2020 List of witnesses examined on behalf of the defendant/s:
-NIL-
List of documents marked on behalf of the defendant/s :
-NIL-
LXXXVI Addl. City Civil Judge Bangalore.