Bangalore District Court
Deutsche Bank A.G vs M/S.Dhanyasree Precision Pvt. Ltd on 6 November, 2021
[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 6th day of November, 2021
Com.O.S.No.26293/2018
Plaintiff/s : Deutsche Bank A.G.,
having its Office at 26-27,
Raheja Towers, M G Road,
Bangalore-560 001
Represented by Mr.Ajay Singh T.S.,
S/o. Thakur Singh,
Aged about 39 years,
Manager Debt-Management
and Power of Attorney Holder.
(By M.G.C.& Co., Advocates and Solicitors)
- Vs -
Defendant/s : 1. M/s.Dhanyasree Precision Pvt. Ltd.,
Represented by its Directors
No.C-10, SIDCO,
Hosur Industrial Estate,
Phase-I, Sipcot,
Beside GRS Ghee Factory,
Hosur-635109
2. Mrs.Bhavani N.,
D/o.Smt.Venkatalakshmma,
Aged about 40 years,
Director
M/s.Dhanyasree Precision Pvt. Ltd.,
No. C-10, SIDCO,
Hosur Industrial Estate,
Phase-I, Sipcot,
2 Com.O.S.No.26293/2018
Beside GRS Ghee Factory,
Hosur-635109
Also at
No.234, Anekal Road,
Sadhashivanagar
Attibele,
Bangalore-562107
3. Mr. Naveen Nanjundappa
S/o.Smt.Devaki
Age Major
Director
M/s.Dhanyasree Precision Pvt. Ltd.,
No. C-10, SIDCO,
Hosur Industrial Estate,
Phase-I, Sipcot,
Beside GRS Ghee Factory,
Hosur-635109
Also at
No.555, NH 7,
Near Toll Gate,
Nanjundeshwara Layout,
Attibele,
Bangalore-562107.,
4. Mr.A.Ramesh
S/o.Ashwathanarayanaiah P
Aged about 48 years,
Director
M/s.Dhanyasree Precision Pvt. Ltd.,
No. C-10, SIDCO,
Hosur Industrial Estate,
Phase-I, Sipcot,
Beside GRS Ghee Factory,
Hosur-635109
Also at
No.234, Anekal Road,
Sadhashivanagar
Attibele,
3 Com.O.S.No.26293/2018
Bangalore-562107
5. Mr. Umesha A.,
S/o.Ashwathanarayanaiah
Aged about 43 years,
Director
M/s.Dhanyasree Precision Pvt. Ltd.,
No. C-10, SIDCO,
Hosur Industrial Estate,
Phase-I, Sipcot,
Beside GRS Ghee Factory,
Hosur-635109
Also at
No.234, Anekal Road,
Sadhashivanagar
Attibele,
Bangalore-562107.
(Defendant placed exparte)
Date of institution
of the suit : 22.10.2018
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 : 30.10.2021
Date on which the
Judgment was pronounced : 06.11.2021
Year/s Month/s Day/s
Total Duration 03 00 14
(SUNIL.A.SHETTAR)
LXXXVI Addl. City Civil Judge
Bangalore.
4 Com.O.S.No.26293/2018
JUDGMENT
This is the suit filed by the plaintiff bank against the defendants for Judgment and Decree directing the defendants to jointly and severally pay an amount of Rs.16,21,365.86/- (Sixteen Lakhs Twenty One Thousand Three Hundred Sixty Five Rupees and Paisa Eighty Six Only) as on 10.10.2018 at the rate of 18% from the date of filing of the suit till realization.
2. The brief facts of the plaintiffs' case are as under:
The plaintiff is a banking company incorporated and existing under the laws of Federal Republic of Germany Deutsche Bank A.G. Taunusalage 12 and has its branch office at various places in India and one of its branch at Bangalore. The Reserve Bank of India has granted license to the plaintiff bank to carry on its business in banking in India with effect from 05.04.1998 and the plaintiff bank is engaged in the banking business and also extending medium term working capital under Womens' Business Installment Loan Scheme.5 Com.O.S.No.26293/2018
3. The defendant No.1 is a company, engaged in the business of manufacturing of press tools, stamping, fabrication and welding components. The defendants No.2 to 5 are the Directors of the defendant No.1 company. The defendants had applied for a Medium Term Working Capital under Women Business Installment Loan Scheme of a sum of Rs.40,00,000/- (Rupees Forty Lakhs Only). Accordingly, the plaintiff bank had sanctioned the loan and the defendants had agreed to repay the loan in 36 equal monthly installments of Rs.1,34,391/- (Rupees One Lakh Thirty Four Thousand Three Hundred and Ninety One Only) with the interest at the rate of 12.80% and also floating interest. The defendants No.1 is the borrower of the loan and the defendants No.2 and 3 as directors of defendant No.1 have signed the loan agreement. The defendants No.3 and 4 stood as a guarantors of the said loan.
4. It is the allegation of the plaintiff bank that the defendants are chronic defaulters in repayment of the installments. It is also the case of the plaintiff bank that 6 Com.O.S.No.26293/2018 in spite of issuance of several reminders and issuance of recall notice dated 26.06.2018 by recalling a sum of INR.20,72,969.25/-(Rupees Twenty Lakhs Seventy Two Thousand Nine Hundred and Sixty Nine and Paise Twenty Five Only) within 15 days from the date of receipt of the said notice the defendants have failed to clear the entire outstanding amount. After receipt of the notice, the defendants have paid only a sum of Rs.5,64,234/- (Rupees Five Lakhs Sixty Four Thousand Two Hundred and Thirty Four Only). Hence, on these grounds the plaintiff bank has prayed to decree the suit.
5. The cause of action for the suit is mentioned as it arose on 31.05.2016 the day when the loan was disbursed and on 09.10.2018 the day when the defendants have paid their last payment and also on 26.06.2018 the day when the recall notice was issued by the plaintiff.
6. In spite of issuance of suit summons through court, registered post and also by way of paper 7 Com.O.S.No.26293/2018 publication, the defendants have failed to appear and hence they have been placed ex-parte.
7. On the basis of the averments of the plaint and the materials available on record, the following points arises for my consideration:
1. Whether the plaintiff bank proves that the defendants have availed the loan of Rs.40,00,000/- (Rupees Forty Lakhs Only) on 31.05.2016 and the defendants No.2 and 3 as directors of defendant No.1 have executed the loan agreement and other necessary documents in favor of the plaintiff bank?
2. Whether the plaintiff bank further proves that the defendant No.4 and 5 being the directors of defendant No.1 stood as guarantors to the loan?
3. Whether the plaintiff bank further proves that the defendants have failed to repay the loan as agreed and committed breach of the terms and conditions of the agreement?
4. Whether the plaintiff-bank is entitled for the interest at the rate of 18% p.a. as claimed the plaint?
5. What order or decree?8 Com.O.S.No.26293/2018
8. The plaintiff bank in order to substantiate its case has got examined its Manager-Debt Management and Power of Attorney holder as P.W.1 and got marked the documentary evidence, which are at Ex.P.1 to 17.
9. 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 : In the Affirmative Point No.3 : In the Affirmative Point No.4 : Partly in the Affirmative Point No.5 : As per final order for the following;
REASONS
10. Points No.1 to 4:- For the sake of convenience all these points are taken together for discussion since they require common discussion.
The specific case of the plaintiff bank is that the defendants have availed financial assistance of 9 Com.O.S.No.26293/2018 Rs.40,00,000/- on 31.05.2016 for the purpose of business of defendant No.1 company and agreed to repay the loan in 36 EMIs of Rs.1,34,391/- (Rupees One Lakh Thirty Four Thousand Three Hundred and Ninety One Only) with interest at the rate of 12.80% p.a. It is allegation of the plaintiff bank that the defendants are irregular in repayment of the loan and have committed breach of the terms and conditions of the agreement.
11. The purpose of availing the loan by the defendants is for the business of defendant No.1 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.
12. The Manager-Debt Management and Power of Attorney holder of the plaintiff bank who has been examined as P.W.1 has reiterated the averments of the 10 Com.O.S.No.26293/2018 plaint in his evidence. Ex.P.1 is the loan application given by the defendants No.2 and 3, wherein the purpose of loan, quantum of loan and all the particulars of the defendants has been mentioned. Ex.P.2 is the sanction letter dated 31.05.2016 wherein the quantum of loan sanctioned and the terms and conditions of repayment is mentioned. Ex.P.3 is the loan agreement dated 31.05.2016 executed by the defendants No.2 and 3 under which they had agreed for various terms and conditions. Ex.P.4 is the guarantee agreement dated 31.05.2016 executed by the defendants No.4 and 5 who stood as guarantors to the said loan. Ex.P.5 to Ex.P.15 are the office copy of the notice dated 31.05.2016, office copy of the notice dated 26.06.2018, five postal receipts and four postal acknowledgments. Ex.P.16 is the certified copy of the power of attorney executed by the bank in favour of P.W.1. Ex.P.17 is the statement of account accompanied by the certificate under the Bankers Book of Evidence Act maintained by the plaintiff-bank during the regular course of its business, which has got evidentiary value. 11 Com.O.S.No.26293/2018
13. On going through the oral and documentary evidence available on record, the plaintiff bank has proved that the defendants have availed the loan to the extent of Rs.40,00,000/- (Forty Lakhs Rupees Only) for the purpose of business of defendant No.1. The defendants No.2 and 3 as directors of defendant No.1 have signed the loan documents and the defendant No.4 and 5 stood as guarantors to the said loan. It is the allegation of the plaintiff bank that the defendants are defaulters in repayment of the loan, but the defendants have not appeared and resisted the said contention. The evidence of P.W.1 on oath and the documentary evidence relied upon the plaintiff remains unchallenged. The plaintiff bank has established and proved that the defendants have committed default in repayment of loan and the outstanding balance amount as on the date of the suit is Rs.16,21,365.86/- (Sixteen Lakhs Twenty One Thousand Three Hundred Sixty Five Rupees and Paisa Eighty Six Only).
12 Com.O.S.No.26293/2018
14. The plaintiff has claimed future interest at the rate of 18% p.a compounded on monthly basis from the date of suit till the date of payment, which appears to be exorbitant. Considering the nature of the suit and the purpose of loan obtained by the defendants, I am of the opinion that future interest at the rate of 9% p.a. 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. Under the facts and circumstances of the case there are no impediments to decree the suit in favour of the plaintiff-bank. Hence, I answer points No.1 to 3 in the 'Affirmative' and point No.4 'Partly in the Affirmative'.
15. Point No.5:- Since I have answered points No.1, to 3 in the 'Affirmative' and point No.4 'Partly in the Affirmative', I proceed to pass the following;
ORDER The suit of the plaintiff bank against the defendants is hereby decreed with cost.
13 Com.O.S.No.26293/2018
It is ordered and decreed that the defendants are jointly and severally liable to pay to the plaintiff bank a sum of Rs.16,21,365.86/- (Sixteen Lakhs Twenty One Thousand Three Hundred Sixty Five Rupees and Paisa Eighty Six Only) as on the date of the institution of the suit with future interest @9% p.a 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 6th day of November 2021] (SUNIL.A.SHETTAR) LXXXVI Addl. City Civil Judge Bangalore.
14 Com.O.S.No.26293/2018ANNEXURE List of witnesses examined on behalf of the plaintiff/s:
P.W.1 : Ajay Singh T.S List of documents marked on behalf of the plaintiff/s:
Ex.P.1 : Loan application of the defendants. Ex.P.2 : Sanction letter dated 31.05.2016. Ex.P.3 : Loan agreement dated 31.05.2016. Ex.P.4 : Guarantee agreement dated 31.05.2016. Ex.P.5 : Office copy of the notice dated 31.05.2016. Ex.P.6 : Office copy of the notice dated 26.06.2018. Ex.P.7 to Ex.P.11 : Five postal receipts. Ex.P.12 to Ex.P.15: Four postal acknowledgments. Ex.P.16 : Certified copy of the power of attorney executed by the bank.
Ex.P.17 : Statement of account accompanied by the certificate under the Bankers Book of Evidence Act.
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.