Bangalore District Court
R H Jayaram Reddy vs M Prasad Raju on 12 August, 2025
IN THE COURT OF LXXXIX ADDL.CITY CIVIL &
SESSIONS JUDGE, BENGALURU. (CCH-90)
Present: Sri.K.M.Rajendra Kumar, LLM, M.Phil,
LXXXIX Addl.City Civil &
Sessions Judge, Bengaluru.
DATED THIS THE 12th DAY OF AUGUST 2025
Com.O.S.No.1776/2024
PLAINTIFF : Union Bank of India,
a Body Corporate Constituted
under the Banking Companies,
(Acquisition and Transfer of
Undertaking)
Act, 1970 having its Central Office at
No.239, Vidhan Bhawan Marg,
Nariman Point,
Mumbai-400 021 and one of its
Branch Offices amongst
Other places at
R.S.Palya (e-Banasawadi) Branch,
No.19, Sai Complex,
Kammanahalli Main Road,
R.S.Palya, Bengaluru-560 033,
Represented by its
Senior Branch Manager,
Mr.Eshwar.K,
S/o Mr.T.Krishnan,
/2/
Com.O.S.1776/2024
aged about 50 Years,
(By Sri.Raghavendra Rao Manvi,
Advocate)
-Vs-
DEFENDANTS : 01. M/s.Bethania Education Services,
by its Proprietor,
Mr.Vibin.K.Varghese,
S/o Mr.K.A.Wilson,
aged about 38 Years,
No.30, 5th Floor, A1,
Koolz Pearl Hill,
10th Cross, BDA Nagar,
Narayanapura, Bengaluru-560 077,
Mobile: 97408 39337,
E-mail:[email protected]
02. Mr.Vibin.K.Varghese,
S/o Mr.K.A.Wilson,
aged about 38 Years,
Proprietor of M/s.Bethania
Education Services,
Residing at No.30, 5th Floor,
A1, Koolz Pearl Hill,
10th Cross, BDA Nagar,
Narayanapura, Bengaluru-560 077,
Mobile: 97408 39337
Email:[email protected]
(Exparte)
/3/
Com.O.S.1776/2024
Date of Institution of suit : 20.12.2024
Nature of suit : Money Suit
(suit on pronote, suit for
declaration and
possession suit for
injunction, etc.,)
Date of commencement : 10.07.2025
of recording of evidence
Date of judgment : 12.08.2025
Total duration : Year Month/s Day/s
/s
00 07 22
(K.M.RAJENDRA KUMAR)
LXXXIX ADDL.CITY CIVIL &
SESSIONS JUDGE,
BENGALURU. (CCH-90)
JUDGMENT
The plaintiff bank has filed this suit praying the Court to pass a Judgment and Decree directing the defendants jointly and severally to pay a sum of ₹.9,91,950/- (Rupees Nine Lakhs Ninety One Thousand Nine Hundred and Fifty Only) along with interest @ 13.30% p.a. with monthly rests in respect of Term Loan and Cash Credit Facilities from the date of suit till its realization and for costs and to grant /4/ Com.O.S.1776/2024 such other relief or reliefs that this Court deems fit to grant under the facts and circumstances of the case in the interest of justice and equity.
The brief facts of the plaintiff's case are as under:
02. That, the defendant No.1 is a proprietary concern represented by the defendant No.2. That, the defendant No.1 represented by the defendant No.2 had approached the plaintiff bank with a request to sanction of Term Loan facility for ₹.8,50,000/- and Cash Credit Facility for doing his business of ₹.1,50,000/-. Accordingly, the plaintiff bank had considered the request of defendant No.1 sanctioned the term loan facility of ₹.8,50,000/- on 30.12.2022 and the Cash Credit facility of ₹.1,50,000/- on 20.01.2023. That, the defendant No.1 had accepted the terms and conditions of the sanction letter dated 30.12.2022.
03. That, the defendant No.1 had availed the Term Loan Facility vide A/c No.07252644000009 of ₹.8,50,000/-
and agreed to repay the same in monthly installments of ₹.18,503/- payable with an interest @ 11.30% p.a. by executing the following documents:-
a. D.P.Note dated 30.12.2022.
/5/ Com.O.S.1776/2024 b. Letter of General Lien and Set off (AD-02A) dated 30.12.2022.
c. Letter of Continuity dated 30.12.2022. d. Hypothecation (Goods) Agreement dated 30.12.2022.
e. Interest Agreement dated 30.12.2022. f. Letter of Undertaking not to alienate Hypothected Goods dated 30.12.2022.
g. Letter of Undertaking from the borrower(s) dated 30.12.2022.
04. That, through the loan application dated 20.01.2023 the defendant has approached plaintiff for Cash Credit Facility and the plaintiff has sanctioned the loan as per sanction letter dated 20.01.2023 vide A/c No.072525140000013 of ₹.1,50,000/- and the defendant has agreed to repay the same with an interest @ 10.80% p.a. by executing the following documents:-
a. D.P.Note dated 20.01.2023. b. Letter of General Lien and Set off (AD-02A) dated 20.01.2023.
c. Letter of Continuity dated 20.01.2023. d. Hypothecation (Goods) Agreement dated 20.01.2023.
/6/ Com.O.S.1776/2024 e. Interest Agreement dated 20.01.2023. f. Letter of Undertaking not to alienate Hypothected Goods dated 20.01.2023.
g. Letter of Undertaking from the borrower(s) dated 20.01.2023.
05. That, the defendant No.1 was permitted to utilize the aforesaid Cash Credit for doing his business towards working capital to show turnover in the account with regular services as interest as and when debited to the account. That, the said facility is sanctioned subject to annual review through the Cash Credit facility. But the defendants had not regularized the said account by paying interest and thereafter defendants had failed to repay the Cash Credit loan amount borrowed from the plaintiff bank.
06. That, inspite of repeated requests, demands and personal visits made by the officers of the plaintiff bank, the defendants failed to clear off the entire dues. That, the said loans are classified as NPA on 03.11.2023. That, the defendants are the defaulters. That, therefore the demand notice came to be issued by the plaintiff bank on 23.05.2023 calling upon the defendants to pay the entire /7/ Com.O.S.1776/2024 amount dues. That, the said notice sent to the defendant No.1 and 2 were returned unserved RPAD cover with postal shara "No such person and Door locked". That, the defendants have not complied with the demand made in the said notice and nor sent any reply nor repaid the amount.
07. That, therefore the defendants are liable to pay a sum of ₹.9,91,950/- as follows:
A. Term Loan Facility A/c No.072526440000009 Amount due as per Account ₹.8,13,162/- Extract Add: Unapplied interest dues ₹.2,257/-
thereon from 01.12.2024 to
10.12.2024
Total ₹.8,15,420/-
A. Cash Credit Facility A/c No.072525140000013 Amount due as per Account ₹.1,75,972/-
Extract Add: Unapplied interest dues ₹.557/-
thereon from 01.12.2024 to
10.12.2024
Total ₹.1,76,530/-
08. That, the plaintiff has maintained the loan account in respect of two loan accounts of the defendant in the /8/ Com.O.S.1776/2024 ordinary course of its business. That, therefore as per the said statement of accounts, the defendants are the defaulters in making payment of the outstanding amount and are liable to pay an amount of ₹.9,91,950/- in total along with penal interest @ 2%.
09. That, thereafter the plaintiff has initiated the Mediation Pre-Litigation proceedings against the defendants in PIM 582/2024 before DLSA and the said case is not settled. Hence, the DLSA has issued Non Starter Report dated 06.07.2024. By contending so the plaintiff bank prays to decree the suit.
10. In spite of service of summons, the defendants remained absent and were placed exparte.
11. To substantiate the case of the plaintiff bank, Sri.Eshwar.K. the Manager of the Plaintiff bank has filed affidavit in lieu of his examination in chief and examined himself as PW1. The PW1 has got marked Ex.P1 to Ex.P28 documents and closed his side evidence.
/9/ Com.O.S.1776/2024
12. I have heard the arguments addressed by the learned Advocate for the plaintiff bank.
13. Now the points that arise for my consideration are as under:
(1). Whether the Plaintiff Bank proves that the defendants are liable to pay a sum of ₹.9,91,950/- (Rupees Nine Lakhs Ninety One Thousand Nine Hundred and Fifty Only) along with interest @ 13.30% p.a. with monthly rests in respect of Term Loan and Cash Credit Facilities from the date of suit till its realization?
(2). What Order/decree?
14. My findings on the above points are as follows:-
Point No. 1 : - In the AFFIRMATIVE Point No. 2 : - As per final orders for the following reasons.
REASONS
15. Point No.1: It is pertinent here to mention that as I have already narrated the facts of the case in detail at the inception, I will not repeat the facts once again at length, but I will confine myself to the material facts.
/10/ Com.O.S.1776/2024
16. It is the case of the plaintiff bank that the defendant No.1 is a proprietary concern represented by the defendant No.2 had approached the plaintiff bank with a request to sanction of Term Loan facility for ₹.8,50,000/- and Cash Credit Facility for doing his business of ₹.1,50,000/-. Accordingly, the plaintiff bank had considered the request of defendant No.1 sanctioned the term loan facility of ₹.8,50,000/- on 30.12.2022 and the Cash Credit facility of ₹.1,50,000/- on 20.01.2023. That, the defendant No.1 had accepted the terms and conditions of the sanction letter dated 30.12.2022.
17. The defendant No.1 had availed the Term Loan Facility vide A/c No.07252644000009 of ₹.8,50,000/- and agreed to repay the same in monthly installments of ₹.18,503/- payable with an interest @ 11.30% p.a. by executing the necessary documents. Further the defendant through loan application dated 20.01.2023 has approached plaintiff for Cash Credit Facility and the plaintiff has sanctioned the loan as per sanction letter dated 20.01.2023 vide A/c No.07252514 0000013 of ₹.1,50,000/- and the defendant has agreed to repay the same with an interest @ 10.80% p.a. by executing necessary documents.
/11/ Com.O.S.1776/2024
18. That, the defendant No.1 was permitted to utilize the aforesaid Cash Credit for doing his business towards working capital to show turnover in the account with regular services as interest as and when debited to the account. That, the said facility is sanctioned subject to annual review through the Cash Credit facility. But the defendants had not regularized the said account by paying interest and thereafter defendants had failed to repay the Cash Credit loan amount borrowed from the plaintiff bank.
19. That, inspite of repeated requests, demands and personal visits made by the officers of the plaintiff bank, the defendants failed to clear off the entire dues. That, the said loans are classified as NPA on 03.11.2023. That, the defendants are the defaulters. That, therefore the demand notice came to be issued by the plaintiff bank on 23.05.2023 calling upon the defendants to pay the entire amount dues. That, the said notice sent to the defendant No.1 and 2 were returned unserved RPAD cover with postal shara "No such person and Door locked". That, the defendants have not complied with the demand made in the said notice and nor sent any reply nor repaid the amount.
/12/ Com.O.S.1776/2024
20. That, the plaintiff has maintained the loan account in respect of two loan accounts of the defendant in the ordinary course of its business. That, therefore as per the said statement of accounts, the defendants are the defaulters in making payment of the outstanding amount and are liable to pay an amount of ₹.9,91,950/- in total along with penal interest @ 2%.
21. That, thereafter the plaintiff has initiated the Mediation Pre-Litigation proceedings against the defendants in PIM 582/2024 before DLSA and the said case is not settled. Hence, the DLSA has issued Non Starter Report dated 06.07.2024. All the effort made by the plaintiff did not yield any result. Hence, the plaintiff was constrained to file the present suit.
22. In order to support the case of the plaintiff bank the Manager of the plaintiff bank has filed affidavit in lieu of his examination in chief and examined himself as PW.1 reiterating almost all the contents of the plaint. Apart from, PW.1 has produced Letter of Authority dated 09.07.2025 which is marked at Ex.P.1.
/13/ Com.O.S.1776/2024
23. The Ex.P.2 is the Original term loan application dated 28.12.2022 wherein it appears the defendant has applied for the loan of ₹.10,00,000/- with the plaintiff bank.
24. The Ex.P.3 is the Original sanction letter dated 30.12.2022 wherein it appears the plaintiff bank has sanctioned a loan of ₹.8,50,000/- under Union Mudra Scheme to the defendants with conditions.
25. The Ex.P.4 is the Demand promissory note dated 30.12.2022. The Ex.P.5 is the Original letter of general lien and set off dated 30.12.2022. The Ex.P.6 is the Original letter of continuity dated 30.12.2022. The Ex.P.7 is the Original deed of hypothecation dated 30.12.2022.
26. The Ex.P.8 is the Original interest agreement dated 30.12.2022. The Ex.P.9 is the Original letter of undertaking dated 30.12.2022. The Ex.P.10 is the Letter of undertaking dated 30.12.2022.
27. The Ex.P.11 is the Cash credit facility Loan application dated 20.01.2023 through which the defendants applied for further loan of ₹.1,50,000/- with the plaintiff bank.
/14/ Com.O.S.1776/2024
28. The Ex.P.12 is the Original sanction letter dated 20.01.2023 wherein it appears the plaintiff bank has sanctioned ₹.1,50,000/- to the defendants on conditions.
29. The Ex.P. 13 is the Original DP note dated 20.01.2023. The Ex.P.14 is the Original letter of general lien and set off dated 20.01.2023. The Ex.P.15 is the Original letter of continuity dated 20.01.2023. The Ex.P.16 is the Original deed of hypothecation dated 20.01.2023.
30. The Ex.P.17 is the Original interest agreement dated 20.01.2023. The Ex.P.18 is the Original letter of undertaking dated 20.01.2023. The Ex.P.19 is the Letter of undertaking dated 20.01.2023.
31. The Ex.P.20 and Ex.P.20(a) are the Office copy of legal notice dated 23.05.2023 along with postal receipt wherein it appears the plaintiff bank called upon the defendants to pay a sum of ₹.9,17,045/- together with interest as on the date of notice.
32. The Ex.P.21, Ex.P.21(a), Ex.P.22 and Ex.P.22(a) are 2 Notice and Returned postal cover.
/15/ Com.O.S.1776/2024
33. The Ex.P.23 is the Certified copy of term loan account ledger extract along with certificate U/Sec. 2A(b) and 2A(c) of Bankers book evidence Act. On perusal of Ex.P.23 it is crystal clear that as on 30.11.2024 the defendants were due to an amount of ₹.9,09,875/-.
34. The Ex.P.24 is the Certificate U/Sec. 63 of BSA 2023.
35. The Ex.P.25 is the Certified copy of cash credit account ledger extract along with certificate U/Sec. 2A(b) and 2A(c) of Bankers book evidence Act. On perusal of Ex.P.25 it is crystal clear that as on 30.11.2024 the defendants were due to an amount of ₹.1,75,972/-.
36. The Ex.P.26 is the Certificate U/Sec. 63 of BSA 2023.
37. The Ex.P.27 is the Consolidated account statement dated 20.12.2024 wherein it appears the defendants were liable to pay in a sum of ₹.9,91,950/- to the plaintiff bank.
/16/ Com.O.S.1776/2024
38. The Ex.P.28 is the Certified copy of PIM report wherein it appears the in spite of giving sufficient opportunities, the defendants have failed to appear before DLSA, the DLSA has closed the matter in PIM 582/2024 by issuing Non-Starter Report. On perusal of the records in my opinion the defendant is evading to make payment to the plaintiff bank. It appears that the defendant is not interested to repay the due amount in favor of the plaintiff bank.
39. On perusal of Ex.P.27 the consolidated Account Ledger Extract admittedly the defendants are liable to pay a sum of ₹.9,91,950/- together with interest to the plaintiff bank.
40. On meticulous perusal of the documentary proofs and marshaling the evidence of PW.1 it is crystal clear that the plaintiff bank is entitled to claim ₹.9,91,950/- (Rupees Nine Lakhs Ninety One Thousand Nine Hundred and Fifty Only) along with interest @ 13.30% p.a. with monthly rests in respect of Term Loan and Cash Credit Facilities from the date of suit till its realization. Even in spite of service of summons the defendants remained absent. The evidence of /17/ Com.O.S.1776/2024 PW.1 along with documents Ex.P.1 to Ex.P.28 remained unchallenged, uncontroverted and unrebuted. Hence, the plaintiff is entitled for the reliefs as prayed for. Accordingly, I answer Point No.1 in the AFFIRMATIVE.
41. Point No.2: In view of the discussions on point No.1, I proceed to pass the following:
ORDER The suit filed by plaintiff bank is hereby decreed with costs.
The defendants are jointly and severally liable to pay to the plaintiff bank a sum of ₹.9,91,950/- (Rupees Nine Lakhs Ninety One Thousand Nine Hundred and Fifty Only) along with interest @ 13.30% p.a. with monthly rests in respect of Term Loan and Cash Credit Facilities from the date of suit till its realization.
Draw decree accordingly.
The office is hereby directed to send a copy of the judgment to the plaintiff bank /18/ Com.O.S.1776/2024 through e-mail as per Order XX Rule 1 CPC as amended by Section 16 of Commercial Courts Act, 2015.
(Dictated to the Stenographer directly on computer, corrected and then pronounced by me in the open court on this the 12th day of August 2025).
(K.M.RAJENDRA KUMAR) LXXXIX ADDL.CITY CIVIL & SESSIONS JUDGE, BENGALURU. (CCH-90) ANNEXURES List of witnesses examined for the plaintiff:
P.W.1 Sri.Eshwar.K. List of documents exhibited on behalf of the plaintiff:
Sl.No. Particulars of documents Ex.P.
1. Letter of authority dated 09.07.2025 Ex.P.1
2. Original term loan application dated Ex.P.2 28.12.2022
3. Original sanction letter dated Ex.P.3 30.12.2022
4. Demand promissory note dated Ex.P.4 30.12.2022
5. Original letter of general lien and set Ex.P.5 off dated 30.12.2022 /19/ Com.O.S.1776/2024
6. Original letter of continuity dated Ex.P.6 30.12.2022
7. Original deed of hypothecation dated Ex.P.7 30.12.2022
8. Original interest agreement dated Ex.P.8 30.12.2022
9. Original letter of undertaking dated Ex.P.9 30.12.2022
10. Letter of undertaking dated Ex.P.10 30.12.2022
11. Cash credit facility Loan application Ex.P.11 dated 20.01.2023
12. Original sanction letter dated Ex.P.12 20.01.2023
13. Original DP note dated 20.01.2023 Ex.P.13
14. Original letter of general lien and set Ex.P.14 off dated 20.01.2023
15. Original letter of continuity dated Ex.P.15 20.01.2023
16. Original deed of hypothecation dated Ex.P.16 20.01.2023
17. Original interest agreement dated Ex.P.17 20.01.2023
18. Original letter of undertaking dated Ex.P.18 20.01.2023
19. Letter of undertaking dated Ex.P.19 20.01.2023
20. Office copy of legal notice dated Ex.P.20 & 23.05.2023 along with postal receipt Ex.P.20(a) /20/ Com.O.S.1776/2024
21. 2 Returned postal cover and Notice Ex.P.21, and cover Ex.P.21(a) & Ex.P.22, Ex.P.22(a)
22. Certified copy of term loan account Ex.P.23 ledger extract along with certificate U/Sec. 2A(b) and 2A(c) of Bankers book evidence Act
23. Certificate U/Sec. 63 of BSA 2023 Ex.P.24
24. Certified copy of cash credit account Ex.P.25 ledger extract along with certificate U/Sec. 2A(b) and 2A(c) of Bankers book evidence Act
25. Certificate U/Sec. 63 of BSA 2023 Ex.P.26
26. Consolidated account statement Ex.P.27 dated 20.12.2024
27. Certified copy of PIM report dated Ex.P.28 List of witnesses examined for the defendant/s:
NIL List of documents marked for the defendant/s:
NIL (K.M.RAJENDRA KUMAR) LXXXIX ADDL.CITY CIVIL & SESSIONS JUDGE, BENGALURU. (CCH-90) ****