Bangalore District Court
Syndicate Bank vs Sri.K.Suresh on 1 October, 2016
IN THE COURT OF THE XXIX ADDL. CITY CIVIL
& SESSIONS JUDGE AT BANGALORE CITY. (CCH-30)
DATED THIS THE 1st DAY OF OCTOBER, 2016.
PRESENT: SMT. S.K. TARIMANE,
B.Com.,LL.B., (Spl.) ,
PRESIDING OFFICER:
XXIX ADDL CITY CIVIL JUDGE, BANGALORE.
O.S.No. 8343/2015
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 others places and a
branch called as:
Garden City College Branch,
Bangalore, represented by its
Branch Manager Sri.Dhanesh
K.V., Aged about 30 years.
(By: Sri. M.R.R., Adv.)
Vs.
Defendant/s: Sri.K.Suresh, S.o. Krishna
Murthy, aged about 34 years,
R/at No.54, 3rd Main, Chandan
Villa, Anjanappa Layout,
Horamavu, K.R.Puram,
Bangalore.560 043, Prop. of
Professional Men's Saloon.
2 O.S.No. 8343/2015
(Defendant - Exparte)
Date of institution of the suit 01/10/2015
Nature of the suit (suit on Recovery of money.
pronote. Suit for declaration
and possession suit for
injunction, etc.)
Date of the commencement 22/08/2016
of recording of the evidence.
Date on which the judgment 01/10/2016
was pronounced
Total duration Year/s Month/s Day/s
01 00 00
( S.K.TARIMANE)
XXIX Addl. City Civil Judge,
Bangalore.
JUDGM ENT
The plaintiff bank has filed this suit for recovery of an
amount Rs.4,82,917/- with future interest @13.25%p.a.,
compounded with monthly rests, alleged to be due by the
defendant under a loan account.
3 O.S.No. 8343/2015
2. The case of the plaintiff in brief is as under:
The defendant has approached the plaintiff bank for loan
facility for purchasing materials for his business with a loan
application dated 1/12/2013. After considering the request of
the defendant, the plaintiff sanctioned a loan of Rs.
5,00,000/- on 20/01/2014. The defendant agreed to repay
the said loan amount with interest @ 11.5%p.a. being 1.25%
over and above in equal monthly installments of Rs. 9,776/-
each. Thereafter defendant has executed the Original
Composite Hypothecation Agreement, dated 20/01/2014,
consideration receipt etc., in favour of the plaintiff bank as
per the terms and conditions. Thereafter, the defendant has
failed to repay the loan amount as agreed. Hence, the plaintiff
bank repeated requests, reminders, demands and personal
approaches, inspite of that also, the defendant has failed to
repay the loan amount. As on the date of the suit and as per
the accounts duly maintained by the plaintiff bank, the
defendant is in due of Rs. 4,82,917/- to the plaintiff bank and
defendant is liable to pay the suit amount. Hence, the
4 O.S.No. 8343/2015
plaintiff bank constrained to file this suit and prays for decree
of the suit.
3. On service of the suit summons, the defendant
remained absent. Hence he is placed as exparte.
4. The plaintiff bank has examined its Branch Senior
Manager as PW.1 and got produced Ex.P.1 to Ex.P.6
documents.
5. I have heard the arguments.
6. The following points are arisen for my
consideration is as under:
1. Whether the plaintiff bank proves that the
defendant has availed loan facilities for
purchasing materials for his business of
Rs. 5,00,000/- on 20/01/2014 by executing
necessary documents and by agreeing to
repay the same with interest
@11.5%p.a.being 1.25% over and above
with monthly rests and in equal
installments., of Rs. 9,776-00 each and as
on the date of the suit the defendant is
liable to pay to the plaintiff bank a sum of
Rs. 4,82,917/- including interest up to
date?
5 O.S.No. 8343/2015
2. Is plaintiff bank entitled for the suit reliefs
as sought for?
3. What Order or Decree?
7. My findings on the aforesaid points are held as
under:-
1. Point No.1: In the Affirmative.
2. Point No.2: In the Affirmative.
3. Point No.3: As per final order below,
for the following:-
REASONS
8. Point No.1 and 2: Both these points are inter-
linked and in order to avoid possible repetition of evidence and
facts, I took these points simultaneously for discussion.
9. The plaintiff bank has examined its Branch Manager
as PW.1. PW.1 in her evidence she has specifically stated that
the defendant has approached the plaintiff bank for loan
facility for purchasing materials for his business with a loan
application dated 01/12/2013. After considering the request of
the defendant, the plaintiff sanctioned a loan of Rs. 5,00,000/-
6 O.S.No. 8343/2015
on 20/01/2014. The defendant agreed to repay the said loan
amount with interest @ 11.5%p.a. being 1.25% over and
above in equal monthly installments of Rs. 9,776/- each.
Thereafter the defendant has executed necessary documents in
favour of the plaintiff bank i.e., Consideration receipt dated
20/01/2014 and Composite Hypothecation Agreement etc.
Thereafter defendant has not repaid the loan amount as agreed.
Inspite of repeated demands followed by the plaintiff bank, the
defendant has not repaid the loan amount. Hence the plaintiff
bank constrained to file this suit and prays for decree of the
suit. The defendant is liable to pay the suit amount to the
plaintiff bank.
10. To further prove its case, the plaintiff bank has
produced Ex.P.1 to Ex.P.6. Ex.P.1 is the loan application,
Ex.P. 2 is the consideration receipots, Ex.P. 3 is Composite
Hypothecation Agreement, Ex.P. 4 is Statement of account,
Ex.P. 5 is Kannadaprabha News paper, dated 10/06/2016,
Ex.P. 5(a) is Portion of News and Ex.P. 6 is News paper bill.
7 O.S.No. 8343/2015
11. The version of PW.1 given in proof of plaint
averments and claim of the plaintiff bank at Ex.P.1 to Ex.P.6 is
remained unchallenged as the defendant is placed exparte.
Therefore there is no reason for me to disbelieve the evidence
given in proof of plaint averments, Ex.P.1 to 6 and claim of the
plaintiff bank.
12. Further, from the version of PW.1 and Ex.P.1 to 6,
it clearly evident that the defendant has availed loan facilities
of Rs. 5,00,000/- for purchasing materials for his business by
agreeing to repay the loan amount with interest @11.5%p.a.
being 1.25% over and above with monthly rests and in equal
installments of Rs. 9,776/- each. Thereafter the defendant has
executed Consideration receipt and Composite Hypothecation
Agreement at Ex.P.2 and 3. From the version of P.W.1 and
Ex.P.2 and 3 and also Ex.P. 4, the statement of accounts duly
maintained by the plaintiff bank, the defendant is in due of
Rs.4,82,917/- including interest up to date as on the date of the
suit. Further, from the version of PW.1 and Ex.P.1 to 6, it
clearly evident that inspite of demands followed by several
8 O.S.No. 8343/2015
reminders, the defendant has failed to repay the loan amount as
agreed. Therefore, I am of the view that the plaintiff bank is
entitled to recover the suit amount of Rs. 4,82,917/- from the
defendant and the defendant is liable to pay the suit amount to
the plaintiff bank.
13. On going through the version of PW.1 and plaint
averments it reveals that the cause of action for the suit arose
on 20/01/2014 when the defendant, availed the loan facility
and executed necessary documents in favour of the plaintiff
bank, on 2/09/2014 when the defendant made his last payment
towards his loan account and also on all other dates of
demands and transactions. The suit is filed on 01/10/2015.
Therefore, the suit is well within time.
14. The plaintiff bank has sought for future interest
@13.25%p.a. compounded with monthly rests. It is well settled
that the court can grant future interest at yearly rests but not
monthly rests or quarterly rests. According to Section 34 of
CPC, the court can grant future interest at any rate by
9 O.S.No. 8343/2015
considering the loan transaction and nature of the loan between
the parties. Looking into the nature of the loan, i.e., the
defendant has availed loan facilities to purchase materials for
his business from the plaintiff bank, I am of the view that the
plaintiff bank is entitled for future interest @6%p.a. from the
date of the suit till its complete realization on the suit amount.
Accordingly, I answer these points No.1 and 2 in the
Affirmative.
15. Point No.3:- In view of my finding to the above
point, the suit filed by the plaintiff bank deserves to be
decreed. Hence, I proceed to pass the following:-
ORDER
The suit filed by the plaintiff bank is decreed with costs for Rs. 4,82,917/- with future interest @6%p.a. from the date of the suit till complete realization.
The defendant is liable to pay the decree amount to the plaintiff bank.
10 O.S.No. 8343/2015The defendant is hereby directed to pay or deposit the decree amount within two months from the date of this order.
Draw decree accordingly.
(Dictated to the Judgment-writer, after transcription, corrected by me and then pronounced and signed by me in the open court, on this the 01st day of October 2016).
(S.K.TARIMANE) XXIX Addl. City Civil Judge, Bangalore.
ANNEXURE LIST OF WITNESSES EXAMIEND FOR PLAINTIFF:
PW.1: Smt. Swetha LIST OF DOCUMENTS EXHIBITED FOR PLAINTIFF:
Ex.P.
1) Loan application
2) Consideration receipt
3) Composite Hypothecation agreement
4) Statement of Account
5) Kannadaprabha News paper
6) News paper bill 5(a) Portion of News.11 O.S.No. 8343/2015
LIST OF WITNESES EXAMINED BY THE DEFENDANT:
NIL LIST OF DOCUMENTS MARKED BY THE DEFENDANT:
NIL (S.K.TARIMANE) XXIX Addl. City Civil Judge, Bangalore.12 O.S.No. 8343/2015
Order pronounced in the open court vide separate ORDER The suit filed by the plaintiff bank is decreed with costs for Rs. 4,82,917/- with future interest @6%p.a. from the date of the suit till complete realization.
The defendant is liable to pay the decree amount to the plaintiff bank.
The defendant is hereby directed to pay or deposit the decree amount within two months from the date of this order.
Draw decree accordingly.
(S.K.TARIMANE) XXIX Addl. City Civil Judge, Bangalore.13 O.S.No. 8343/2015 14 O.S.No. 8343/2015