Bangalore District Court
Canara Bank vs Sri. A. Sampath on 23 August, 2021
IN THE COURT OF SMALL CAUSES
AT BENGALURU (SCCH5)
DATED THIS THE 23RD DAY OF AUGUST, 2021
PRESENT: SRI. KUMARA. S. B.A, LLB.,
VIII ADDL. JUDGE & ACMM,
COURT OF SMALL CAUSES,
BENGALURU.
S.C No.1185/2019
PLAINTIFF : CANARA BANK
Peenya 3rd Stage,
Bengaluru.
Represented by its duly
constituted
GPA Holder & Attorney
Sri.Suresh Dhaudti
(Major),
S/o. Late.P.S. Dhaudti
(By Sri.T. Mohan Raj, Adv.,)
V/s
DEFENDANT : Sri. A. Sampath
(Major),
S/o. Sri. T. Arunachala
No.3, 8th Cross,
60 Feet Road,
J.C. Nagar,
Mahalakshmipuram Post,
Bengaluru - 560 086.
(Exparte)
Date of Institution :
of the suit 22.08.2019
Nature of the suit : Recovery of money
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Date of :
commencement 12.08.2021
recording of the
evidence
Date on which the :
judgment was 23.08.2021
pronounced
Total Duration : Years Month/s Days
02 00 01
****
(KUMARA. S. )
VIII ADDL. JUDGE & ACMM,
BENGALURU.
::JUDGMENT::
The Plaintiff Bank has filed the present suit against the Defendant for recovery of sum of Rs.1,15,534/ together with current and future interest at the rate of 9.70% p.a. plus 2% penal interest and cost of the suit.
2. The case of the Plaintiff Bank is that, the Defendant had approached the Plaintiff Bank for sanction of LHV SRTO Loan under the Pradhan Mantri 3 S.C.No.1185/2019 SCCH5 Mudra Yojana Scheme for the purpose of purchasing Atul Gem Cargo XL Pick Up Three Wheeler valued at 2,14,500/ and offered the hypothecation of Atul Gem Cargo XL Pick Up Three Wheeler to be purchased as security to the proposed loan and sought for Rs.1,80,000/ as loan and Bank authority has processed the application of the Defendant and communicated the sanction terms and conditions which was acknowledged by the Defendant agreeing to the terms and conditions of the sanction stipulated by the Plaintiff Bank and Plaintiff Bank has sanctioned Rs.1,80,000/ and Defendant had executed Deed of Hypothecation and Letter of Undertaking on 18.04.2016 for the purpose of availing the loan. The Defendant also executed Irrevocable Mandate for recovery of monthly EMI's with the Plaintiff Bank. As per the sanction terms and conditions, the Defendant was required to remit the EMI's and the entire 4 S.C.No.1185/2019 SCCH5 loan was to be repaid in 36 EMI's of Rs.5,925/ each and last installment of Rs.5,963/ and agreed rate of interest is 10.20% p.a. compounded with monthly rests and also agreed to pay overdue interest or penal interest at the rate of 2% p.a. incase of default in payment of EMI's. But the Defendant has neither repaid the EMI's/installments inspite of repeated demands and personal contacts made by the Plaintiff Bank. Hence, Plaintiff Bank has issued legal notice on 10.05.2019 through its counsel demanding payment of loan amount to the Plaintiff Bank and Defendant is due an amount of Rs.1,15,534/ to the Plaintiff Bank. Hence, pray for decree the suit of the Plaintiff Bank with interest and with costs.
3. The notice to the Defendant has been served by way of paper publication and same was duly published as per the case records. But, Defendant called out absent and hence placed exparte.
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4. The Plaintiff Bank in order to prove its case, its Senior Manager is examined as PW1 and got marked 11 documents as Ex.P.1 to Ex.P.11 and closed his side evidence.
5. I have heard arguments of learned counsel for Plaintiff Bank and perused the records.
6. The following points that would arise for my consideration are: ::POINTS FOR CONSIDERATION::
1. Whether the Plaintiff Bank proves that, the Defendant had borrowed a sum of Rs.1,80,000/ on 18.04.2016 by executing relevant documents?
2. Whether the Plaintiff Bank proves that, inspite of requests, demands and notice, Defendant has not repaid the loan amount with interest as agreed by him?
3. Whether Plaintiff Bank is entitled for the suit claim amount together with interest as sought in the suit? 6 S.C.No.1185/2019
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4. What order or decree?
7. My answer to the above points are as follows: Point No.1 : In the Affirmative &2 Point No.3 : Partly in the Affirmative Point No.4 : As per final order for the following:
::REASONS::
8. Points No.1 and 2: Inorder to avoid repetition of facts and appreciation of evidence on record, these two points are taken together for common consideration and discussion. To prove the case of the Plaintiff Bank, its Senior Manager is examined as PW1 and in his chief examination affidavit he has reiterated the plaint averments. Since the Defendant has placed exaprte, his evidence has not put into crossexamination. Whatever the oral evidence adduced by the PW1 is remained unchallenged and uncontroverted and there is no oath 7 S.C.No.1185/2019 SCCH5 against oath and there is no reason to disbelieve the evidence of PW1. Hence, his evidence is trustworthy, reliable and believable.
9. Apart from the oral evidence, the Plaintiff Bank has got marked 11 documents as Ex.P.1 to Ex.P.11. Ex.P.1 is Loan Application given by the Defendant to the Plaintiff Bank with a request for sanction of loan for purchase of vehicle. Ex.P.2 is Sanction Memorandun which shows that, the Plaintiff Bank has sanctioned a loan of Rs.1,80,000/ to the Defendant for the purchase of vehicle with agreed rate of interest at 10.20% p.a. Ex.P.3 is Deed of Hypothecation executed by the Defendant in favour of the Plaintiff Bank by obtaining loan of Rs.1,80,000/ and agreed rate of interest is 10.20% p.a. Ex.P.4 is Irrevocable Mandate for Deduction of Loan Installments executed by the Defendant in favour of the Plaintiff Bank by obtaining loan. Ex.P.5 is Letter 8 S.C.No.1185/2019 SCCH5 Evidencing Execution of Documents executed by the Defendant in favour of the Plaintiff Bank. Ex.P.6 is copy of Legal Notice dated 10.05.2019 which discloses that, the Plaintiff Bank has issued legal notice to the Defendant, calling upon him to repay the loan amount with interest as per Deed of Hypothecation and Loan Agreement. Ex.P.7 is Postal Receipt having proof of sending the said notice to the Defendant. Ex.P.8 is Postal Acknowledgment having proof of service of said notice to the Defendant. Ex.P.9 is Loan Account Statement of the Defendant which discloses that, the Defendant, after obtaining loan from the Plaintiff Bank became irregular in repayment of loan amount and had due a sum of Rs.1,15,534/ as on 20.06.2019, which had evidential value under Bankers Book of Evidence Act, which was prepared under the provisions of Banker's Book of Evidence Act and is reliable. Ex.P.10 is Letter of Revival 9 S.C.No.1185/2019 SCCH5 dated 20.08.2018 executed by the Defendant infavour of the Plaintiff Bank which discloses that, Defendant admitted his liability to the Plaintiff Bank for payment of the outstanding amount. Ex.P.11 is Authorization Letter issued infavour of Senior Manager of the Plaintiff Bank.
10. On going through the above documents produced by the Plaintiff Bank it is very much clear that, the Defendant had borrowed a sum of Rs.1,80,000/ from the Plaintiff Bank by executing Deed of Hypothecation and Letter of Undertaking on 18.04.2016 for purchasing vehicle and he agreed to pay interest at the rate of 10.20% p.a. and further it shows that, inspite of repeated demands and issuance of notice to the Defendant, he has not repaid the loan amount and he is defaulter of payment of installments and even inspite of service of notice, he has not replied to the said notice nor repaid the loan amount. The loan account itself 10 S.C.No.1185/2019 SCCH5 establishes that, the Defendant is chronic defaulter to the Plaintiff Bank and has not paid the entire loan amount together with interest. As per Ex.P.10 Letter of Revival, the Defendant has executed the said document and revived his loan and has confirmed that he has granted time to adhere to the facilities. But inspite of executing revival letter on 20.08.2018 he has not paid the loan amount with interest as agreed by him.
11. As already discussed above, inspite of service of notice to the Defendant, he remained absent and has not come forward to challenge the case of the Plaintiff Bank and has not denied the case of the Plaintiff Bank. Therefore, whatever the oral and documentary evidence adduced by the Plaintiff Bank is remained unchallenged and uncontraverted. Hence, Plaintiff Bank has proved these two points. Accordingly, Points No.1 and 2 are answered in Affirmative.
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12. Point No.3: The Plaintiff Bank in its pleadings and evidence has sought for suit claim amount with interest at the rate of 9.70% p.a. compounded monthly plus 2% penal interest per annum from the date of the suit till date of realization of the suit claim amount. As per the Deed of Hypothecation and Agreement, the agreed rate of interest is 10.20% p.a. Since the Plaintiff Bank has successfully established its case and Defendant has obtained loan from the Plaintiff Bank and after borrowing the loan from the Plaintiff Bank, he has not repaid the loan amount with interest to the Plaintiff Bank. Therefore, under the facts and circumstances of the case, it is just and necessary to direct the Defendant to repay the suit claim amount together with interest at the rate of 10% p.a. from the date of the suit till its realization. Accordingly, the Plaintiff Bank is entitled for suit claim amount of Rs.1,15,534/ together with interest at the 12 S.C.No.1185/2019 SCCH5 rate of 10% p.a. from the date of the suit till its realization. Accordingly, I answer this Point in partly affirmative.
13. Point No.4: Inview of the above reasons and discussions to the above points, I proceed to pass the following:
::ORDER::
Suit of the Plaintiff Bank is hereby decreed with costs.
The Defendant is hereby directed to repay the suit claim amount of Rs.1,15,534/ together with interest at the rate of 10% p.a. from the date of suit till its realization.
Draw decree accordingly. (Dictated to the stenographer, transcript thereof is corrected and then pronounced by me in the Open Court on this the 23rd day of August, 2021) (KUMARA. S.) VIII ADDL. JUDGE & ACMM, COURT OF SMALL CAUSES, BENGALURU.13 S.C.No.1185/2019
SCCH5 ::A N N E X U R E::
LIST OF WITNESSES EXAMINED ON BEHALF OF THE PLAINTIFF:
PW1 : Sri. Shashi Raju LIST OF DOCUMENTS MARKED ON BEHALF OF THE PLAINTIFF:
Ex.P.1 : Loan Application
Ex.P.2 : Sanction Memorandum
Ex.P.3 : Deed of Hypothecation
Ex.P.4 : Irrevocable Mandate for Deduction of
Loan Installments
Ex.P.5 : Letter evidencing execution of
documents
Ex.P.6 : Copy of Notice
Ex.P.7 : Postal Receipt
Ex.P.8 : Postal Acknowledgment
Ex.P.9 : Loan Account Extract
Ex.P.10 : Letter of Revival
Ex.P.11 : Copy of Authorization Letter
LIST OF WITNESSES EXAMINED ON BEHALF OF THE DEFENDANT:
NIL LIST OF DOCUMENTS MARKED ON BEHALF OF THE DEFENDANT:
NIL (KUMARA. S.) VIII ADDL. JUDGE & ACMM, COURT OF SMALL CAUSES, BENGALURU.