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Bangalore District Court

Corporation Bank vs Shivananda G on 2 February, 2026

KABC010191542017




    IN THE COURT OF THE X ADDL. CITY CIVIL & SESSIONS
              JUDGE, BENGALURU (CCH-26).

              Dated this the 2nd day of February, 2026

                                 Present
                Sri Vijaya Kumar Rai, B.Com., LL.B.,
                X Addl. City Civil & Sessions Judge,
                             Bengaluru.

                          O.S.No.5317/2017

Plaintiff:         Corporation Bank
                   A body corporate constituted under the
                   Banking Companies (Acquisition and
                   Transfer of Undertakings Act, 1980)
                   having its Head Office at Mangaladevi
                   Temple Road, Mangalore-575 001 and
                   having among other branches a branch
                   at Bangalore namely Bangalore City
                   Branch, No.24, Ground Floor
                   Kavi Kalidasa Road, Gandhinagar
                   Bangalore-560 009, represented by its
                   Chief Manager Sri B.L.N. Swamy
                   s/o Janardana Rao, aged about 56 years.

                   (By Sri S.R. Raviprakash, Adv.)
                             Vs.
Defendants:        1) Mr.Shivananda, G
                      s/o Gavisiddaiah
                      Aged about 51 years
                   2) Smt.D. Bhagyamma
                      s/o G. Shivananda
                      Aged about 47 years
                   Both are r/at No.7, 'D' Grade House
                   University Quarters, Jnanabhatathi Post
                   Bangalore-560 056.

                   (In person)
                                    2               O.S.No.5317/2017



Date of institution of the suit                   03.08.2017

Nature of the suit                                    For
                                               recovery of money

Date of the commencement                          23.04.2019
of recording of evidence

Date on which the judgment                        02.02.2026
Pronounced

Total duration                         Years Months Days
                                         08    05    29


                                (Vijaya Kumar Rai)
                        X Addl. City Civil & Sessions Judge,
                                    Bengaluru.

                             JUDGMENT

This suit is filed by the plaintiff bank for recovery of ₹5,33,510/- along with interest at the rate of 12.25% per annum from the date of suit until its realisation.

2. The case of the plaintiff-bank in brief is as hereunder:-

The plaintiff is a banking company. The defendant No.1 has borrowed a loan of ₹5,20,000/- from it on 10.04.2014 and defendant No.2 is co-obligant. The loan was repayable in 180 EMI of ₹5,668/- commencing from 04.09.2014. The defendant No.1 was irregular in payment of the loan and though he had made some payments, it was not made intime and therefore the loan account becomes NPA on 04.04.2015. As on the date of filing of this suit, the principal 3 O.S.No.5317/2017 amount due was Rs.4,08,249/- and the interest due was Rs.1,25,261/- and therefore, the defendants are liable to pay the same.

3. Pursuant to the suit summons issued by this Court, the defendants entered appearance in person and filed the written statement. In the written statement filed by the defendants, though they have not denied the availment of the loan, they have disputed the quantum of the liability pleaded by the plaintiff. It is contended by the defendants that the signature of the defendants were taken in the blank papers and even after repayment of huge amount, the plaintiff-bank has not maintained proper accounts and the repayments made by the defendants are not entered in the account statement. It is contended that the subsidy amount payable on the loan are not credited to the loan account and the plaintiff-bank has even filed another suit in O.S.No.897/2018 and thereby two suits are filed for the single loan. They have taken up a contention that they have paid 30 instalments and though the tenure of repayment is still due the plaintiff has filed the false suit.

4. On the basis of the above pleadings, this Court has framed the following issues:-

1) Does plaintiff-bank proves that the defendants are liable to pay a sum of Rs.5,33,510/- with current and future interest at 12.25% per annum? 4 O.S.No.5317/2017
2) Do defendants prove that the plaintiff-bank has not maintained proper accounts and the bank has not taken into account the repayment made by them to their loan account?
3) What order or decree?

5. In support of the case of the plaintiff-bank, initially the previous Manager was examined as PW1 and later he did not turn up and therefore the present Manager is examined as PW2 and Ex.P1 to 5 documents are marked. PW1 is subjected to cross examination by defendant No.1 in person and Ex.D1 to 38 are marked. On behalf of the defendants, the defendant No.1 is examined as D.W.1 and documents Ex.D.39 to 44 are also marked.

6. Heard the arguments.

7. Findings of this Court on the above issues are as hereunder:

Issue No.1 : Partly in the affirmative Issue No.2 : Partly in the affirmative Issue No.3 : As per final order, for the following:
-: REASONS :-

8. Issue Nos.1 and 2:- The specific case of the plaintiff- bank is that the defendant No.1 being the principal borrower and defendant No.2 being a co-obligant borrowed loan of ₹5,20,000/- on 10.04.2014 and though certain irregular payments were made, 5 O.S.No.5317/2017 there was a due amount of ₹4,08,249/- towards the principal and interest of ₹1,25,261/-. In the written statement filed by the defendants, they have contended that the plaintiff-bank has obtained signatures in the blank papers and instituted two suits for the one loan. In support of the case of the plaintiff, the plaintiff has produced the loan application, statement of account, loan sanction intimation, loan agreement. letter of undertaking and other documents. In the cross-examination of DW1, he has admitted that he has received loan of ₹5,20,000/-, which was agreed to be repaid in 180 EMI of ₹5,668/-. The defendant No.1 has also admitted his signatures in the loan application and other loan agreements. Therefore, the disbursement of loan of ₹5,20,000/- to the defendants is proved.

9. The plaintiff-bank has contended that as on the date of filing of the suit, the due amount was principal amount of ₹4,08,249/- and interest of ₹1,25,261/-. The defence raised by the defendant No.1 is that he has repaid substantial amount which is not taken into consideration. In this regard, he has produced Ex.D1 to 38 counter foils evidencing the payment made by the defendant No.1 to the plaintiff towards the loan. In the cross-examination, PW1 has admitted that Ex.D1 to 38 are in respect of the repayment of the loan by the defendants. PW1 has also admitted that apart 6 O.S.No.5317/2017 from Ex.D1 to 38 another amount of ₹2,00,000/- is also paid on 23.01.2024.

10. During the course of arguments, on 16.12.2025, learned counsel appearing for the plaintiff has produced account statement of the bank. He has also contended that in the written statement itself, the defendants have admitted the due of 150 EMIs. I have heard both the sides at length. On 09.01.2026, in the presence of the learned counsel appearing for the plaintiff and defendant No.1, this court has recorded the payment said to be made by the defendants towards the loan along with the date of payment and the exhibits and the amount of payment. The learned counsel appearing for the plaintiff could not point out the payments so made in Ex.D.1 to 38. The record of proceedings made during the hearing on 09.01.2026 is extracted as hereunder:-

         Exhibits              Date             Amount
          Ex.D1             22.01.2015               17,000
          Ex.D2             16.02.2016                4,000
          Ex.D3             07.05.2016                4,000
          Ex.D4             14.06.2016                5,000
          Ex.D5             15.04.2016               40,000
          Ex.D6             15.09.2016                2,400
          Ex.D7             15.09.2016                5,700
          Ex.D8             04.07.2016                3,000
          Ex.D9             03.11.2016                6,000
          Ex.D10            03.11.2016                2,500
          Ex.D11            20.04.2017                6,000
                                 7            O.S.No.5317/2017


          Ex.D12             25.04.2017                3,000
          Ex.D13             01.08.2017               12,000
          Ex.D14             08.05.2017                3,000
          Ex.D15             06.08.2015                5,000
          Ex.D16             07.09.2015                4,000
          Ex.D17             31.12.2014               10,000
          Ex.D18             10.09.2013                1,000
          Ex.D19             16.10.2015                5,000
          Ex.D20             11.03.2015                  400
          Ex.D21             02.02.2015               13,000
          Ex.D22             22.01.2015                  300
          Ex.D25             15.01.2013                4,200
          Ex.D26             19.11.2015                5,000
          Ex.D27             29.06.2015                4,000
          Ex.D28             07.01.2016                5,000
          Ex.D29             08.12.2015                4,500
          Ex.D30             31.03.2015                1,200
          Ex.D31             31.12.2014                1,400
          Ex.D32             07.11.2016                6,000
          Ex.D33             10.11.2016                3,000
          Ex.D34             02.01.2017                3,000
          Ex.D35             05.01.2017                5,700
          Ex.D36             01.03.2017                5,700
          Ex.D37             01.03.2017                2,300
          Ex.D38             01.03.2017                2,300
                             23.01.2024             2,00,000
                                Total               4,05,600


11. During the course of hearing, learned counsel appearing for the plaintiff could not point out these payments in the account statements produced by the plaintiff bank. Therefore, it is clear that the above payments are not included in the bank account statement 8 O.S.No.5317/2017 relied upon by the plaintiff. Under these circumstances, the above payment of ₹4,05,600/- shall be deducted from the suit claim.

12. The suit claim is Rs.5,33,510/-. The suit came to be filed on 03.08.2017. Ex.D1 to 38 shows that an amount of ₹2,05,600/- was paid before the institution of the suit and the remaining amount of ₹2,00,000/- was paid on 23.01.2024. Therefore, an amount of ₹2,05,600/- shall be directly deducted from the total claim amount of ₹5,33,510/-. Therefore, in the due amount, amount of Rs.2,05,600/- shall be required to be deducted. Further, the amount of ₹2 lakhs paid on 23.01.2024 is also required to be deducted. On these observations, issues No.1 & 2 are answered partly in the affirmative, holding that the plaintiff-bank is entitled to recover the amount after deducting the amount of ₹4,05,600/- paid as above.

13. Issue No.3:- In view of the answer given to issues No.1 & 2 as above, the plaintiff-bank is entitled for the balance amount after deducting ₹4,05,600/-. The liability to pay interest shall be calculated by taking into account the dates on which the above payment of ₹4,05,600/- are paid. The exact interest liability can be calculated in the execution petition. Therefore, if the defendant is directed to pay a sum of Rs.1,27,910/- (5,33,510-4,05,600) along with interest at the rate of 12.25% per annum after taking into consideration the dates of the payment of ₹4,05,600/- made as 9 O.S.No.5317/2017 above, it would be just and proper. Accordingly, the following order is passed:-

ORDER The suit is decreed in part with the proportionate cost.
The defendants are directed to pay a sum of ₹1,27,910/- along with interest at the rate of 12.25% per annum.
The interest shall be calculated after taking into consideration the dates on which the amount of ₹4,05,600/- is paid as noted in para-10 of this judgment.
Draw decree accordingly.
(Dictated to the Dictaphone and Speech to Text App, carried out corrections by the Senior Sheristedar, print out taken and then pronounced in the Open Court on this the 2 nd day of February, 2026) (Vijaya Kumar Rai) X Addl. City Civil & Sessions Judge, Bengaluru.
ANNEXURE List of witnesses examined for the plaintiff:
PW.1 :      B.L.N. Swamy
PW.2 :        Shanees K.A.
List of documents exhibited for plaintiff:
Ex.P1 : Authorization letter Ex.P2 : Loan application Ex.P3 : Loan sanction intimation Ex.P4 : Loan agreement Ex.P5 : Letter of undertaking 10 O.S.No.5317/2017 List of witnesses examined for the defendants:
D.W1 : G. Shivananda List of documents exhibited for defendants: Ex.D.1 to 38 : Counter files Ex.D39 : Endorsement Ex.D40 : Unsigned demand promissory note Ex.D41 : Copy of take delivery letter Ex.D42 : Copy of the letter given to the Bank Ex.D43 & 44: Copies of notices X Addl. City Civil & Sessions Judge, Bangalore.
Digitally signed by VIJAYA VIJAYA KUMAR RAI KUMAR B Date:
RAI B 2026.02.02 17:52:10 +0530