Bangalore District Court
3 Com.O.S.925/2022 vs Has Failed To Clear The Dues on 2 November, 2022
13 COM.O.S.925/2022
IN THE COURT OF LXXXII ADDL.CITY CIVIL & SESSIONS
JUDGE, AT BENGALURU (CCH.83)
THIS THE 02nd DAY OF NOVEMBER 2022
PRESENT:
SMT. SUMANGALA S BASAVANNOUR.,B.COM,L.L.M.,
LXXXII ADDL.CITY CIVIL & SESSIONS JUDGE,
BENGALURU.
Com.O.S.No.925/2022
BETWEEN:
M/s Canara Bank,
Rajajinagar IST Block
Branch, Dr. Rajkumar
Road, Bengaluru - 560
010, by its Manager
: PLAINTIFF
(Represented by Sri.
Vijayan. N -Advocate)
AND
M/s. N.R. Technologies,
Prop: Sri/ Mohamed
Rasul, no. 69, 71st Cross,
5th Block, Rajajinagar,
Bengaluru - 560 010.
13 COM.O.S.925/2022
: DEFENDANT
(Defendant is placed
exparte as 13.10.2022)
Date of Institution of the
29.06.2022
suit
Nature of the suit (suit on
pronote, suit for
Suit for recovery of money
declaration & Possession,
Suit for injunction etc.)
Date of commencement of 18.10.2022
recording of evidence
Date on which judgment 02.11.2022
was pronounced
Total Duration Year/s Month/s Day/s
00 04 04
(SUMANGALA S BASAVANNOUR),
LXXXII Addl.City Civil & Sessions Judge,
Bengaluru.
JUDGMENT
This suit is filed by the Plaintiff for recovery of Rs.8,78,620.93 with interest at the rate of 11.90% per annum compounded monthly rests from the date of suit till the realization.
13 COM.O.S.925/20222. The Brief facts of the Plaint are as follows:-
The Defendant as proprietor of M/s N.R. Technologies has availed loan of Rs. 7,25,000/- from the Plaintiff Bank for expansion of his Screw Manufacturing business on 27.06.2019 under Account No. 1145766000016 and agreeing to repay the said sum in 60 equated monthly installments of Rs. 15,854/- per month commencing from 27.06.2019 along with interest at 11.25% i.e., 2.55% above the Marginal cost of funds based on lending rate compounded monthly plus 2% Penalty interest and executed Deed of Hypothecation on 27.06.2010, letter of Undertaking regarding Loans/Advances, Annexure to circular no.
310/2018 dated 08.06.2018, Letter dated 27.06.2019 authorizing the Plaintiff Bank to deduct the monthly installments of Rs. 15,854 from his Sb No. 1145201002033. The Loan application dated 24.06.2019, the deed of hypothecation regarding machinery, letter of undertaking dated 27.06.2019, Annexure to Circular No. 310/2018 dated 08.06.2018, Letter of irrevocable Mandate for deduction of Loan installments dated 27.06.2019, Letter of Evidencing execution of documents, certificate of loan papers obtained and sanction letter dated 27.06.2019. To ensure prompt re-payment, the Defendant hs hypothecated one brand new center less grinder of 5 H.P. Valued at Rs. 9,67,960 lying at no. 69, 71st cross, 5th Block, 13 COM.O.S.925/2022 Rajajinagar, Bengaluru in favour of the Plaintiff Bank. The Defendant has filed to comply with the terms of documents executed by him at the time of availing above loan facility and he is still due in a sum of Rs. 8,78,620.93 as on 24.06.2022 as per the loan ledger which is regularly maintained in the ordinary and usual course of the business of the Plaintiff. The Defendant is liable to pay interest at 11.90% per annum compounded monthly on Rs. 8,78,620.93 from the date of suit till the realization as per the agreement and rules of the Plaintiff Bank. Inspite of repeated oral requests and demands, the Defendant has failed to clear the dues. However, an application under Rule 3 (4) and (6) is filled before the DLSA in Pim No. 183/2022 for initiation of Mediation process against the Defendant and closed. Hence, the Plaintiff has filed this suit for the above- mentioned reliefs.
3. Inspite of paper publication, the Defendant has not appeared before this court, after waiting for 30 days, i.e., the time limit for filing written statement, he was placed ex-parte on 13.10.2022.
4. The Plaintiff has examined PW-1 and got marked Ex.P.1 to Ex.P.9. I have heard the arguments of the Advocate for the Plaintiff.
13 COM.O.S.925/20225. Based on the above pleadings of the Plaintiff, the following points arise for my consideration :-
1. Whether the Plaintiff is entitled for the Suit Claim from the Defendant ?
2. What Order ?
6. My findings on the above Points are as under:
1. Point No.1 :- In the Partly Affirmative.
2. Point No.2 :- As per the final Order for the following reasons.
REASONS
7. Point No.1 :- The Plaintiff Bank substantiate of this case examined its Senior Manager Sri. G. Sreenivas as PW.1. PW.1 in his evidence reiterated averments of the Plaint, and got marked Ex.P.1 to Ex.P.9.
8. In the decision reported in A.I.R. - 2000 - Karnataka - 234 (Syed Ismail vs. Smt. Shamshia Begum), the Hon'ble High Court of Karnataka has held as follows :-
13 COM.O.S.925/2022"3. The impugned order does not disclose the nature of pleading placed by the plaintiff and whether there is prima facie material to grant a decree in his favour. A judgement in favour of the plaintiff is not automatic. The Court has to consider the case of the plaintiff and grant a decree in his favour. The learned trial Judge has not referred to the pleadings of the plaintiff and the documents produced by him to substantiate even a prima facie case for grant of a decree in his favour. Therefore, the judgement and decree in favour of the plaintiff is not automatic on failure of the opposite party to put his defence. The Court can grant a judgement in favour of the party only upon consideration of the case of the plaintiff including appreciation of pleadings and evidence."
9. The averments of the Plaint, evidence of PW.1 and Ex.P.1 to Ex.P.8 discloses that the Defendant as proprietor of M/s N.R. Technologies has availed loan of Rs. 7,25,000/- from the Plaintiff Bank for expansion of his Screw Manufacturing business on 27.06.2019 under Account No. 1145766000016 and agreeing to repay the said sum in 60 equated monthly installments of Rs. 15,854/- per month commencing from 27.06.2019 along with interest at 11.25% i.e., 2.55% above the Marginal cost of funds based on lending rate compounded monthly plus 2% Penalty interest.
13 COM.O.S.925/202210. The Defendant has executed a several documents i.e., Deed of Hypothecation on 27.06.2010 at Ex.P.3, letter of Undertaking regarding Loans/Advances at Ex.P.4, Annexure to circular no. 310/2018 dated 08.06.2018 at Ex.P.5, Letter of irrevocable Mandate for deduction of Loan installments dated 27.06.2019 at Ex.P.6.
11. The Defendant has filed to comply with the terms of documents executed by him at the time of availing above loan facility and he is still due in a sum of Rs. 8,78,620.93 as on 24.06.2022 as per the loan ledger which is regularly maintained in the ordinary and usual course of the business of the Plaintiff. The Defendant is liable to pay interest at 11.90% per annum compounded monthly on Rs. 8,78,620.93 from the date of suit till the realization as per the agreement and rules of the Plaintiff Bank. Inspite of repeated oral requests and demands, the Defendant has failed to clear the dues
12. From Ex.P.9 the account extract speaks to the effect that total amount payable includes the interest accrued and therefore, Plaintiff has successfully proved that the Defendants have availed loan and have not repaid the same and are liable to pay the suit claim amount as on the date of suit. The Plaintiff has prayed interest on the suit claim amount at 11.90% per 13 COM.O.S.925/2022 annum compounded monthly from the date of suit till realization. However by considering the interest prevailing, it is proper to award interest @ 10% per annum from the date of suit.
13. The above mentioned transactions commenced from 27.06.2019 and the suit filed on 22.06.2022 is within the limitation period.
14. In this case in spite of paper publication, the Defendant is not appeared and denied the claim of the Plaintiff Hence, it shows the Defendants admitted the case of the Plaintiff. The evidence of PW.1 and Ex.P.1 to Ex.P.9 are remained unchallenged. Therefore, the Plaintiff is entitle for recovery of the suit claim amount of Rs. 8,78,620.93 with interest @ 10% per annum from the date of suit till realization of the entire amount. Hence, I answer this Point in " Partly Affirmative".
15. Point No.2 : -Therefore, I proceed to pass the following Order.
ORDER The Suit of the Plaintiff is decreed in part with cost.
13 COM.O.S.925/2022The Defendant is hereby directed to pay Rs. 8,78,620.93 to the Plaintiff, with interest at the rate of 10% per annum compounded monthly from the date of suit till realization.
Draw Decree accordingly.
The Office is directed to send copy of this Judgment to Plaintiff and Defendant to their email ID as required under Order XX Rule 1 of the Civil Procedure Code as amended under Section 16 of the Commercial Courts Act.
( Dictated to the Stenographer, typed by her directly on computer, verified and then pronounced by me in open Court on this the 02nd day of November, 2022).
(SUMANGALA S BASAVANNOUR), LXXXII Addl.City Civil & Sessions Judge, Bengaluru.
ANNEXURE LIST OF WITNESSES EXAMINED ON BEHALF OF THE PLAINTIFF PW-1 Sri. G. Sreenivas 13 COM.O.S.925/2022 LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE PLAINTIFF Ex.P.1 Loan application.
Ex.P.2 Sanction Letter.
Ex.P.3 Composite hypothecating agreement
dated 27.06.2019.
Ex.P.4 Letter of undertaking re:loans/Advances
(NF721) of Defendant dated 27.06.2019. Ex.P.5 Annexure of Circular No. 310/2018 dated 08.06.2018.
Ex.P.6 Irrevocable Mandate for deduction of Loan installments dated 27.06.2019.
Ex.P.7 Certificate of loan papers obtained dated 27.06.2019.
Ex.P.8 Letter of evidencing execution of documents dated 27.06.2019.
Ex.P.9 Account extract of Loan Ledger of A/c No. 1145766000016 with certificate.
LIST OF WITNESSES EXAMINED ON BEHALF OF THE DEFENDANT NIL LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE DEFENDANT NIL (SUMANGALA S BASAVANNOUR), LXXXII Addl.City Civil & Sessions Judge, Bengaluru.