Bangalore District Court
Syndicate Bank vs Sri Sudhakar D.Naidu on 2 June, 2016
IN THE COURT OF THE XIX ADDL. CITY CIVIL &
SESSIONS JUDGE AT BANGALORE CITY: (CCH.18)
Dated this the 2nd day of June, 2016.
Present
SMT.K.B.GEETHA, M.A., LL.B.,
XIX ADDL. CITY CIVIL & SESSIONS JUDGE,
BANGALORE CITY.
O.S.NO.5489/2015
PLAINTIFF: Syndicate Bank,
A Body Corporate incorporated under the
Banking Companies [Acquisition and
Transfer of Undertaking] Act, 1970, having
its Head Office at Manipal, Dakshina
Kannada, among other places and a
Branch called as:
Garden City College Branch,
Bangalore,
Represented by its Asst.Manager
Sri.B.Pavan Kumar,
Aged about 28 years.
(By Smt.M.R.Rajini, Advocate)
-VS-
DEFENDANT : Sri Sudhakar D.Naidu,
s/o Ramakrishna Naidu,
aged about 37 years,
r/at No.36, Seegahalli,
near Banashankari Temple,
Virgonagar Post, K.R.Puram,
Bangalore-560 049.
(Exparte)
2 O.S.No.5489/2015
Date of Institution of the suit : 24/6/2015
Nature of the Suit : Recovery of money
Date of commencement of recording
of evidence : 1/4/2016
Date on which the Judgment was
pronounced : 2/6/2016
Year/s Month/s Day/s
Total Duration : 00 11 08
JUDGMENT
The plaintiff has filed this suit for recovery of Rs.4,05,056/- with interest at 13.25% p.a. compounded monthly from the date of suit till the date of realization; to permit the plaintiff to sell the schedule hypothecated item; for court costs and for such other reliefs.
2) The case of plaintiff in nutshell is that the defendant approached plaintiff bank on 2/12/2011 for loan of Rs.6,90,000/- to purchase Tata 709 Truck. After considering the request of defendant, Plaintiff bank sanctioned 3 O.S.No.5489/2015 Rs.6,90,000/- to defendant in Loan Account No.04987810000038 on 9/12/2011 and defendant executed consideration receipts dtd:9/12/2011 and 20/12/2011 and also Composite Hypothecation Agreement dtd:9/12/2011. The defendant agreed to repay the said loan amount in equal monthly installments of Rs.15,537/- with interest thereon at the rate of 12% over and above the Syndicate Bank's Prime Lending Rate as per RBI directions and also has hypothecated the vehicle i.e., Tata 709 Tanker(Lights Goods Tanker) bearing Regn.No. KA.53-A.5130 as security to the plaintiff bank. Defendant has also furnished the details of Engine number and Chassis number to the plaintiff bank. After availing the loan, defendant has committed default in repaying the equal monthly installments. Defendant made the last payment on 18/9/2014. Plaintiff bank has got issued legal notice to the defendant demanding outstanding amount. Inspite of issuance of legal notice, defendant did not reply the said notice nor cleared the outstanding dues. Present rate of interest pertaining to the loan account of 4 O.S.No.5489/2015 defendant is 11.25% p.a. with monthly rests and additional 2% penal interest in case of default. As on the date of filing of the suit, defendant is due a sum of Rs.4,05,056/- along with interest at 13.25% p.a. (inclusive of 2% penal interest) compounded monthly from the date of till realization. Hence, the suit for appropriate reliefs.
3) Even after service of suit summons through paper publication, the defendant has not appeared and hence, he was placed exparte.
4) On behalf of Plaintiff Bank, the manager of plaintiff bank is examined as P.W.1, got marked Ex.P.1 to Ex.P.6 and closed its side.
5) Heard arguments of plaintiff's counsel.
6) From the above facts, the points that arise for consideration are:-
1) Whether the plaintiff bank proves that on 9/12/2011 defendant obtained loan of Rs.6,90,000/- from plaintiff bank to purchase Tata 709 Truck agreeing to repay the same with interest in equal monthly installments of Rs.15,537/- by executing consideration receipts and Composite hypothecation agreement?5 O.S.No.5489/2015
2) Whether the plaintiff bank is entitled for suit claim amount?
3) What order or decree?
7) My findings to the above points are:-
Point No.1: - In Affirmative;
Point No.2: - Partly in Affirmative; Point No.3: - As per final order for the following:-
REASONS
8) Point No.1 :- The case of plaintiff-bank is that on 9/12/2011 defendant obtained loan of Rs.6,90,000/- from plaintiff bank to purchase Tata 709 Truck agreeing to repay the same with interest in equal monthly installments of Rs.15,537/- by executing consideration receipts on 9/12/2011 & 20/12/2011 and composite hypothecation agreement on 9/12/2011. But, defendant committed default in paying the installments.
9) To substantiate the above contention of plaintiff-
bank, the Branch Manager of plaintiff-bank is examined as P.W.1 and he has produced the loan application given by 6 O.S.No.5489/2015 defendant No.1 as per Ex.P.1. He has also produced the consideration receipts dtd:9/12/2011 and 20/12/2011 as per Ex.P.2 and Ex.P.3 and composite hypothecation agreement dtd:9/12/2011 executed by defendant as per Ex.P.4. It reveals that defendant hypothecated Tata 709 Tanker(Lights Goods Tanker) bearing Regn.No. KA.53-A.5130 and agreed to repay the loan amount in equal monthly installments of Rs.15,537/- with interest thereon at the rate of 12% over and above the Syndicate Bank's Prime Lending Rate as per RBI directions. plaintiff's counsel has produced the original RC book pertaining to above said vehicle bearing Regn. No. KA.53-A.5130 and it reveals that the Chassis No.MAT453131B8N48525, & Engine No.497TC96NYY864678 as security for the loan.
10) On perusal of all the above said documents, it is crystal clear that defendant obtained loan of Rs.6,90,000/-. They further reveal that defendant agreed to repay the loan amount in equal monthly installments of Rs.15,537/- with interest thereon at the rate of 12% over and above the 7 O.S.No.5489/2015 Syndicate Bank's Prime Lending Rate as per RBI directions. But defendant failed to pay the loan amount and committed defaulter in paying the monthly installments and he is due a sum of Rs.4,05,056/- as on the date of suit. Defendant has not contested the suit and not disputed these documents. These documents clearly establish the case of plaintiff bank. Hence, plaintiff bank has proved point No.1. Accordingly, point No.1 is answered in affirmative.
11) Point No.2:- Plaintiff bank has produced the account extract as per Ex.P.5, which reveals that the amount due from defendant is Rs.4,05,055.55/- as on 17/6/2015. Hence, plaintiff bank is entitled for suit claim. The loan given to defendant was not for commercial purpose, but, to run his Tata 709 Truck and to earn his livelihood. Hence, plaintiff is entitled for current and future interest at 10% p.a. on the decretal amount and not interest of 13.25% p.a. as claimed in the plaint. Accordingly, point No.2 is answered partly in affirmative.
8 O.S.No.5489/2015
12) Point No.3:- In view of findings on point Nos.1 and 2, this court proceeds to pass the following:-
ORDER The suit is decreed with costs against defendant for a sum of Rs.4,05,056/- with current and future interest at 10% p.a. from the date of suit till the date of realization.
(Dictated to the Judgment Writer, transcribed and computerized by her, corrected by me in computer and then pronounced by me in the open Court on this the 2nd day of June, 2016).
(K.B.GEETHA) XIX ADDL.CITY CIVIL & SESSIONS JUDGE, BANGALORE CITY.
ANNEXURE I. List of witnesses examined on behalf of :
(a) Plaintiff's side :
P.W.1 - Dhanesh.K.V.
(b) Defendant's side : N I L II. List of documents exhibited on behalf of :
(a) Plaintiff's side :
Ex.P.1 Loan application
Ex.P.2 & Ex.P.3 2 consideration receipts
dtd:9/10/2011 and 20/10/2011
9 O.S.No.5489/2015
Ex.P.4 Composite Hypothecation
agreement dtd:9/10/2011
Ex.P.5 Loan account extract of
defendant
Ex.P.6 Certificate u/s 65-B of Indian
Evidence Act
(b) Defendant's side : - Nil -
XIX ADDL.CITY CIVIL & SESSIONS JUDGE, BANGALORE CITY.
GVU/-
10 O.S.No.5489/20152/6/2016 Judgment pronounced in open court vide separate detailed judgment with the following operative portion:-
ORDER The suit is decreed with costs against defendant for a sum of Rs.4,05,056/- with current and future interest at 10% p.a. from the date of suit till the date of realization.
(K.B.GEETHA) XIX ADDL.CITY CIVIL & SESSIONS JUDGE, BANGALORE CITY.