Bangalore District Court
Union Bank Of India vs Sri.Aiyappa.B on 6 April, 2021
IN THE COURT OF THE SMALL CAUSES AT BENGALURU
PRESENT: Smt.Champaka., B.A.,(LAW),LL.M.,
XVIII ADDL. JUDGE,
Court of Small Causes,
BENGALURU
Dated this the 6th day of April, 2021
S.C.No.77/2021
PLAINTIFF: Union Bank of India,
Chamrajpet Branch,
No.97, Mahaveer Arcade,
First Floor, Sirsi Road,
Bengaluru560 018.
Represented by its Branch Manager,
Sri.Kalaraju.K.
(By Sri.P.R.C.B. Adv.,)
V/s
DEFENDANT/S : Sri.Aiyappa.B,
S/o Balu,
Aged about 37 years,
R/at No.293/14, Pantharapalya,
Ambedkar Nagar,
Gurusarav Bhomanagar,
Bengaluru560 039.
And also at
R/at No.529, Ambedkar Nagar,
Nayandahalli, Bengaluru560 039.
( Exparte)
Date of institution of the suit: 21.01.2021
Nature of the suit (suit on
pronote, Money suit
SCCH - 4 2 SC.77/2021
suit for declaration and
possession
suit for injunction, etc.,):
Date of the commencement of 25.03.2021
recording of the evidence:
Date on which the Judgment 06.04.2021
was pronounced:
Year/s Month/s Days
Total duration: 00 02 15
JUDGMENT
The plaintiff bank has filed the suit against the defendant for recovery of a sum of Rs.65,856.52/ with future interest @ 9.45% + 2% penal interest per annum from the date of the suit till the date of realization of the amount.
2. The brief facts of the plaintiff's case are as under:
The defendant has approached the plaintiff for term loan for the purchase of vehicle i.e., Atul Gem Cargo Premium XL under the scheme called as "Pradan Mantri Mudra Yojana"
PMYY Scheme". Further contended that, the plaintiff bank sanctioned the loan on 28.09.2016 a sum of Rs.1,87,000/ SCCH - 4 3 SC.77/2021 and the defendant has agreed to repay the aforesaid loan in 36 equated monthly installments of Rs.5,194.44/ per month plus applicable interest thereon as on date. Further contended that, the defendant had agreed to pay interest as on the date of sanction and current rate of interest is 9.45% p.a., and defendant has executed all the loan documents in favour of the plaintiff and same is produced. Further contended that, the defendant has failed and neglected to repay the EMIs regularly, promptly, contravened and violated the terms of repayment clause as agreed by the defendant. In spite of several reminders, the defendant has failed to repay as agreed by him. The plaintiff bank also sent legal notice to the defendants, inspite of that, the defendants failed to make repayment towards the balance due. Hence, the defendant is liable to repay the outstanding loan amount with interest at the rate of 9.45 % + 2% penal interest per annum from the date of suit till the date of realization of the amount. Hence, the suit.SCCH - 4 4 SC.77/2021
3. In spite of service of summons, the defendant was remained absent hence, he was placed exparte. The plaintiff bank examined its Branch Manager as PW.1 and got marked documents as Ex.P1 to 15.
4. Heard the arguments and perused the records.
5. Now, the points that are arisen for the due consideration of this court are as under:
1. Whether the plaintiff bank is entitled to recover the suit claim amount? If so, what is the rate of interest?
2. What order or decree?
6. My findings on the above points are as under: Point No.1 - In the Partly Affirmative;
Point No.2 - As per final order;
for the following:
REASONS
7. POINT No.1: It is the contention of the plaintiff bank that, the defendant has borrowed a vehicle loan under SCCH - 4 5 SC.77/2021 the scheme called as "Pradhan Mantri Mudra Yojana". It is also contended that, the defendants have agreed to repay the loan amount with interest @ 9.45% with penal interest. It is further pleaded that, at the time of availment of loan, the defendant has executed the Hypothecation agreement and loan documents.
8. To substantiate the contention of the plaintiff, the branch manager is examined as PW.1 and he has reiterated that, the defendant has borrowed sum of Rs.1,87,000/ on 28.09.2016 and agreed to repay same with interest. The evidence of the PW.1 discloses that, the defendant borrowed the loan for the purpose of purchase vehicle and agreed to repay the loan amount with the interest.
9. To substantiate the oral evidence of PW.1, he has placed reliance on documentary evidence Ex.P.1 is the loan application and Ex.P.2 is the Sanction letter. On perusal of the Ex.P.1 and 2, it clearly indicate that, the defendant has approached the plaintiff bank for carrying business and the SCCH - 4 6 SC.77/2021 plaintiff bank sanctioned of Rs.1,87,000/ on 28.09.2016. The Ex.P3 to 5 are the tax invoice, DPN and letter of under taking and Ex.P.6 and 7 are the letter of continuity and interest agreement. The Ex.P8 is the Hypothecation Agreement executed by the defendant by Hypothecating the vehicle to the plaintiff bank.
10. It is the further contention of the plaintiff bank that, Inspite of service of notice, the defendant has not repaid the loan amount. Thus, it is clear that, the plaintiff bank has made repeated demands with the defendant for the repayment of the outstanding amount. In order to prove the same the PW.1 also produced Ex.P10 to 14 i.e., copy of the notice and postal acknowledgments. The evidence of PW.1 clearly discloses the facts that, inspite of the repeated demand, the defendant has not repaid the loan amount. The evidence of PW.1 remained unchallenged even otherwise; there is no evidence on record to show that, the defendant has repaid the loan amount. To substantiate the evidence of PW.1, he placed SCCH - 4 7 SC.77/2021 reliance on Ex.P.15 Statement of Account. The genuineness of Ex.P.15 is not denied by the defendant. In respect of Ex.P15 there is presumption under the Bankers book of Evidence Act, to rebut the presumption in respect of Ex.P15. The plaintiff also produced the certificate under section 2A (b) and 2A (C) of the Banker's Book of Evidence Act. There is no rebuttal evidence from the side of the defendant. Therefore, the proof in respect of Ex.P15 stands un rebutted and to disbelieve the evidence of PW.1 regarding outstanding balance and the contents of Ex.P15, there is no reason much less good reasons before the court. The defendant has borrowed the loan on 28.09.2016 and executed simple balance confirmation letter Ex.P9 on 25.02.2019. The plaintiff filed the suit on 27.01.2021, hence, the suit is with in 3 years and the same is well with in time.
11. The perusal of the documents produced by the plaintiff bank clearly established the fact that, the defendant has borrowed the loan of Rs.1,87,000/ for purchase vehicle. SCCH - 4 8 SC.77/2021 In fact loan documents clearly established the fact that, the defendant has agreed to repay the loan amount with interest. The evidence of PW.1 discloses the fact that, the defendants have agreed to pay interest of 9.45% p.a., with monthly. Therefore, the plaintiff bank is entitled such claim with the interest.
12. As discussed above, the plaintiff has proved its case, therefore the defendants are liable to pay the loan due amount with the interest. On perusal of the documents the defendant has borrowed the loan for purchase vehicle. When he took the loan for his own use, it is him to repay the same with the agreed interest; the defendant has made use of the loan for his persona necessity. Since, the defendant borrowed the loan under the "Pradan Mantri Mudra Yojana", he shall repay the outstanding amount of Rs.65,856.52 which is rounded of to Rs.65,857/ with the interest @ 6% p.a. Hence, point No.1 answered in the partly affirmative.
SCCH - 4 9 SC.77/2021
13. POINT No.2: In view of above discussion and findings on point No.1, I proceed to pass the following:
ORDER The suit of the plaintiff is partly decreed with cost.
The defendant is liable to pay sum of Rs.65,857/ with interest @ 6% p.a., to the plaintiff bank from the date of suit till its realization.
Draw the decree accordingly. (Directly typed on computer, corrected and then pronounced in the Open court by me on this the 6th day of April, 2021) (CHAMPAKA) XVIII ADDL.JUDGE, Court of Small Causes, [ BENGALURU.
ANNEXURE List of witnesses examined for plaintiff PW.1 Sri.Kalaraju.K List of exhibits marked on behalf of plaintiff Ex.P1 Loan application Ex.P2 Sanction letter Ex.P3 Tax invoice Ex.P4 Demand promissory note Ex.P5 Letter of under taking Ex.P6 Letter of continuity SCCH - 4 10 SC.77/2021 Ex.P7 Interest agreement Ex.P8 Hyphotication vehicle agreement Ex.P9 Simple debit Ex.P10 Legal Notice Ex.P11 to 14 Postal acknowledgment (4 in nos) Ex.P15 Statement of account with certificate List of witnesses examined for defendant None List of exhibits marked on behalf of defendant NIL (CHAMPAKA) XVIII ADDL.JUDGE, Court of Small Causes, BENGALURU.