Bangalore District Court
M/S. Icici Bank Limited vs Sri. Narayana Swamy N on 29 June, 2022
IN THE COURT OF THE LXXIV ADDL. CITY CIVIL AND
SESSIONS JUDGE MAYOHALL UNIT, BENGALURU
(CCH-75)
Dated this 29h Day of June, 2022
PRESENT:
Sri. MOHAMMED MUJEER ULLA C.G.B.A. LL.B.,
LXXIV Addl. City Civil and Sessions Judge, Bengaluru.
ORIGINAL SUIT NO.25478/2019
PLAINTIFF : M/s. ICICI Bank Limited,
Mytree Center, # 4/10,
Next to Oxford College,
Hosur Road, Bommanahalli,
Bangalore- 560 068.
Represented by its Debt Manager and
Power of Attorney Holder,
Mr. Sandeep D.
Rep by MGC & Co., - Advocates )
V/s
DEFENDANT : Sri. Narayana Swamy N
S/o. Mrs. Muthulaxmi,
aged about 52 years,
Residing at No. 109,
APR Building, 2nd Floor,
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OS.25478/2019
1st Main Road, Shakambari Layout,
Bengaluru- 562 107.
Rep by Sri. Venkatesh G - Advocates )
Date of Institution of the suit
20-03-2019
Nature of the Suit (Suit on pro-note,
suit for declaration and possession, MONEY SUIT
suit for injunction, etc.)
Date of the commencement of recording
10-02-2021
of the Evidence.
Date of pronouncement of Judgment 29-06-2022
Year/s Month/ Day/
Total duration
s s
03 03 09
JUDGMENT
Plaintiff-Bank has filed the instant suit against defendant for recovery of a sum of Rs.2,66,079.10/- with interest at the rate of 21% per annum from the date of the suit till realization and for costs.
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OS.25478/2019
2. On 27.10.2017 defendant availed loan/cash credit facility of Rs.2,50,000/- from the plaintiff-bank agreeing to repay the same in 48 monthly equated instalment of Rs. 7,208/-with interest at the rate of 16.75% p.a. and on such other rate varied by Reserve Bank of India from time to time and other charges. After availment of loan/cash credit facility, defendant failed to repay the loan instalments regularly. Therefore the loan become overdue and NPA. Inspite of several demands and requests defendant did not repay the outstanding due. Plaintiff contends that as on the date of suit including interest and other charges, defendant was in due of Rs.2,66,079.10/- Plaintiff contends that at the time of filing the suit the prevailing rate of interest was 21% per annum. Therefore, defendant is liable to repay Rs.2,66,079.10/-with future interest at the rate of 24% per annum from the date of suit till payment. On these and other grounds stated in the plaint, plaintiff prays to decree the suit as prayed for. 4
OS.25478/2019
3. After service of suit summons, defendant appeared through counsel and filed written statement admitting the availment of loan of Rs.2,50,000/- from the plaintiff-Bank under personal loan scheme. Defendant denied that he agreed to repay the loan amount in 48 equated monthly installments of Rs. 7208 at the rate of interest 16.75% commencing from 5.12.2007,penal interest at the rate of 24% per annum in case of delayed payment, service tax, processing fee etc., Defendant also denied that as on 15.06.2018, he was in due of Rs. 2,69,782/- to the plaintiff- Bank and inspite of repeated demands and recall notice dated: 15.06.2018, he did not pay the said amount. Defendant contends that due to Covid-19 Pendamic, he lost his job therefore, he has no money to repay the loan amount. He contends that to coerce him to pay money, plaintiff has filed the instant suit. On these and other grounds stated in the written statement, defendant prays to dismiss the instant suit.
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4. On the basis of the above pleadings, on 19.04.2021, the following issues were formulated:
1. Whether the plaintiff proves that, defendant agreed to repay the suit loan with interest at the rate of 16.75% per annum, service tax, delayed/ panel interest as alleged in para No.6 of the plaint?
2. Whether the plaintiff proves that, as on the date of suit including interest and other charges, defendant was in due of Rs.2,66,079/-?
3.Whether the plaintiff proves that, the defendant is liable to pay future interest at the rate of 24% per annum?
4.Whether the plaintiff is entitled for the reliefs prayed for?
5.What order?
5. The Manager of Plaintiff-Bank examined as PW.1 and produced documents marked at Exs.P.1 to P.8. Though sufficient opportunity given, defendant neither lead oral evidence nor documentary evidence.
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6. Heard the learned counsel for the plaintiff and perused record.
7. My finding on the above issues are as under:
Issue No.1: In the Affirmative Issue No.2: Partly in the Affirmative Issue No.3: Partly in the Affirmative Issue No.4: partly in the Affirmative Issue No.5: As per final order for the following:
REASONS
8. Sri. Promodh, the Manager of the plaintiff bank who was examined as PW1 has re-iterated and re-affirmed the plaint averments. He produced Ex.P.2 loan application form, Ex.P. 3 cash credit facility application form, Ex.P. 4 Terms and conditions.
9. In the instant case, defendant filed written statement admitting availment of cash credit facility of Rs. 2,50,000/- from the plaintiff-bank has denied the rate of 7 OS.25478/2019 interest. The recitals of Ex.P. 3 credit facility application form and Ex.P. 4 key facts statement and most important information would support the testimony of PW.1 that at the time of availment of cash credit facility, defendant agreed to pay interest at the rate of 16.75% per annum and also agreed to pay penal interest in case of default in payment of loan installments. In the instant case, defendant though filed written statement neither subjected PW.1 for cross- examination nor lead evidence. When such is the case, there is no reason to disbelieve the testimony of PW.1 and the recitals of Ex.P. 3 credit facility application form and Ex.P. 4 key factgs statement and most important information which would support the case of the plaintiff that at the time of availment of cash credit facility, defendant agreed to pay interest at the rate of 16.75% per annum and penal interest, service tax and other charges. In view of the above, I hold that plaintiff proved that defendant availed cash credit facility of Rs.2,50,000/- agreeing to repay the same with 8 OS.25478/2019 interest at the rate of 16.75% per annum and also penal interest in case of default in payment of loan installments. Accordingly, I answer Issue No.1 in the Affirmative.
10. ISSUE NO.2:- PW.1 has stated that as on the date of the suit including interest and other charges, defendant was in due of Rs.2,66,079/- to the plaintiff-Bank. In support of his testimony, PW.1 has produced Ex.P. 8 account statement. In Ex.P. 8 it is stated that as on 20.12.2018 defendant was in due of Rs. 2,52,871/- to the plaintiff-Bank. A perusal of record would show that along with the suit, plaintiff has produced Foreclosure statement. In the said Foreclosure Statement, plaintiff has added Rs. 13,208/- towards prepayment charges. In the instant case, it is the case of the plaintiff that after availment of loan defendant did not pay the loan installments therefore, the loan become overdue. When such is the case, plaintiff cannot claim prepayment charges of Rs. 13,208/-. If the said sum is deducted in Rs. 2,66,079/-, it would comes to Rs. 9
OS.25478/2019 2,52,871/-( Rs.2,66,079/-- Rs. 13,208/-). In the instant case, defendant has not disputed Ex.P. 8 account statement. When such is the case, there is no reason to disbelieve the said statement which was prepared by plaintiff during the course of discharge of its official duty and having presumptive value as per Banker Book Evidence Act. In view of the above, I hold that plaintiff proved that as on the date of suit, including interest and other charges, defendant was in due of Rs.2,52,871/- to the plaintiff-bank. In view of the above, I answer Issue No.2 partly in Affirmative.
11. ISSUE NO.3:- Plaintiff has claimed future interest at the rate of 21% per annum. In Ex.P. 3 credit facility application form and Ex.P. 4 key facts statement and most important information, it is stated that in case of default, defendant has to pay interest at the rate of 24% per annum as penalty for delayed payment. Defendant has availed loan on 27.10.2017. In the plaint or PW.1 in the evidence has not given calculation regarding delayed installments 10 OS.25478/2019 and PW.1 has also not explained whether the penal interest at the rate of interest 24% per annum is in addition to agreed rate of interest or in lieu of the said interest. As per section 34 of CPC granting of pendentilite and future interest is as per discretion of the court. Taken into consideration the facts of the case, the court is of the opinion that it would be just and reasonable to grant pendentilite and future interest at the rate of 16.75% on the adjudged sum of Rs. 2,52,871/- which the defendant was in due to the plaintiff on the date of filing of the suit. In view of the above, I answer Issue No.3 partly in Affirmative.
12. ISSUE NO.4:- In view of my reasons and findings on Issues 1 to 3 plaintiff is entitled to recover sum of Rs. 2,52,871/- from the defendant with pendentilite and future interest at the rate of 16.75% per annum from the date of suit till payment. Accordingly, I answer Issue No.4 partly in the Affirmative.
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13. ISSUE NO.5:-In view of my reasons and findings on the above issues, I pass the following:
ORDER Plaintiff's suit is partly decreed with costs.
Defendant is liable to pay a sum of Rs.2,52,871/- to the plaintiff bank with pendentilite and future interest at the rate of 16.75% per annum from the date of suit till realization. (Dictated to the Judgment Writer, transcript thereof corrected and then pronounced by me in the open court on this the 29th day of June, 2022).
(Mohammed Mujeer Ulla C.G.) LXXIV Addl. City Civil & Sessions Judge, Mayohall Unit, City Civil Court, Bengaluru. (CCH - 75) ANNEXURE LIST OF WITNESS EXAMINED FOR THE PLAINTIFF:
PW1 Sri. Pramodh G LIST OF EXHIBITS MARKED FOR THE PLAINTIFF:12
OS.25478/2019 Ex.P1 Notarized copy of power of attorney . Ex.P2 Personal loan application form Ex.P3 Credit Facility application form Ex.P4 Key facts statement and most important information Exp 5 Recall notice dated: 15.06.2016 Ex.P6 Postal receipt Ex.P.7 Returned RPAD cover Ex.P.8 Account statement LIST OF WITNESS EXAMINED FOR THE DEFENDANT:
NIL LIST OF DOCUMENTS MARKED FOR THE DEFENDANT:
NIL (Mohammed Mujeer Ulla C.G.) LXXIV Addl. City Civil & Sessions Judge, Mayohall Unit, City Civil Court, Bengaluru. (CCH - 75)