Bangalore District Court
State Bank Of India vs M/S Vinayaka Selection on 17 October, 2025
1
COM.O.S.863/2025
KABC170020522025
IN THE COURT OF LXXXII ADDL.CITY CIVIL &
SESSIONS JUDGE, COMMERCIAL COURT,
BENGALURU (CCH-83)
PRESENT: SRI. VIDYADHAR SHIRAHATTI, LL.M.,
LXXXII ADDL.CITY CIVIL & SESSIONS
JUDGE,
BENGALURU.
Com.O.S.No.863/2025
Dated on this 17th Day of October 2025
Plaintiff State Bank of India, SME
Centre, Banasawadi, No.13,
2A Munireddy Layout,
Horamavu Main Road,
Banasawadi, Bengaluru -
560 113, represented by
Chief Manager, Sri. Prakash
Kumar, aged about 40 years,
S/o Balram Mistry.
(By Sri. Vachanna.G.K -
Advocate)
//versus//
2
COM.O.S.863/2025
Defendant M/s Vinayaka Selection,
No.88/5, Jayanthi Nagar Main
Road, Raghavendra Circle,
Ramamurthy Nagar,
Bengaluru - 560 016,
represented by its Proprietor,
Sri. Pradeep Lumar Palariya
Defendant is Placed exparte
on 22.09.2025)
Date of Institution of the
20.06.2025
suit
Nature of the suit (suit
on pronote, suit for
declaration & Suit for recovery of money
Possession, Suit for
injunction etc.)
Date of commencement
08.10.2025
of recording of evidence
Date on which judgment
17.10.2025
was pronounced
Total Duration Year/s Month/s Day/s
00 03 27
(VIDYADHAR SHIRAHATTI),
LXXXII Addl.City Civil & Sessions Judge,
Bengaluru.
3
COM.O.S.863/2025
JUDGMENT
This suit is filed by the Plaintiff bank against the Defendant for recovery of Rs.11,76,113/- under Cash Credit facility bearing Loan account No.38933546731 inclusive interest till 11.06.2025 and future interest at the rate of 11.90% per annum with monthly rests from 12.06.2025 to till the date of realization.
2. The Brief facts as per Plaint are as follows:-
The Plaintiff Bank is constituted under the State Bank of India Act, 1955. The Defendant have made an application on 07.11.2019 before the plaintiff for sanction of Cash Credit facility for improving their business. As per the request made by the Defendant, the Plaintiff have sanctioned the Cash Credit facility of Rs.5,00,000/- to the Defendant and agreeing to repay the same together with interest thereon @ 11.05% per annum compounded with monthly rests revised by the bank from time to time as per Letter of Arrangement dated 16.11.2019. In consideration of having availed the said loan facilities the Defendant have executed Agreement of Loan cum Hypothecation dated 4 COM.O.S.863/2025 16.11.2019 in favour of the Plaintiff. The Defendant have requested the Plaintiff for renewal of existing Cash Credit facility and sanction of Capital GECL credit facility. As per the request made by the Defendant, Plaintiff have renewed existing Cash Credit Facility and sanctioned GECL credit facility of Rs.97,000/-. The Defendant agreed to reapy the same together with Interest @7.80% p.a. The Letter of Arrangement and Supplemental Agreemental Loan cum hypothication dtd.03.06.2020 are executed. The Defendant has also requested the Plaintiff for encashment of existing cash credit facility. The Cash Credit facility is enhanced upto the limit of Rs.10,00,000/-. The Interest is agreed at 9.90% p.a. The Letter of Arrangement cash credit facility, supplemental agreemental loan cum hypothication dtd.23.10.2020 is executed in favour of the Plaintiff. The Defendant have not kept their undertakings and they have defaulted in making payment as when due to the Plaintiff. The Defendant have neither responded nor attempted to clear the outstanding amount in-spite of repeated requests and demands made by the Plaintiff. Finally, the Plaintiff got issued a Legal Notice dated 03.08.2024 to address 5 COM.O.S.863/2025 furnished by the Defendant through RPAD calling upon to pay the outstanding amount and the said Legal Notice was not served to the Defendant. Further, the Defendant have not come forward to clear the loan amount to till the date. The Plaintiff filed an application for pre-institution mediation before the District Legal Services Authority, Bengaluru Urban vide PIM No.2260/2024 against the Defendant on 24.09.2024 and the said authority issued the Form-3: Non Starter report dated 10.06.2025.
3. The Defendant is due to the Plaintiff a sum of Rs.11,76,113/- along with future interest @ 11.90% per annum with monthly rests from 12.06.2025 to till the date of realization. Hence, the plaintiff has constrained to file this suit.
4. Inspite of service of summons through paper publication, the Defendant is not appeared before this court. Hence, the Defendant is placed ex-parte. In support of the plaintiff case the Manager of the Plaintiff Bank present and filed affidavit in the form of chief- examination and examined as Pw.1 and relied upon 15 documents marked as Ex.P.1 to Ex.P.15.
6COM.O.S.863/2025
5. Heard the arguments of the counsel for the plaintiff on the points was arise by this court.
6. Based on the above pleadings of the Plaintiff, the following points arise for my consideration :-
1. Whether the Plaintiff is entitled for the Suit Claim from the Defendant ?
2. What Order ?
7. My findings on the above Points are as under:
1. Point No.1 :- In the Affirmative.
2. Point No.2 :- As per the final Order for the following reasons.
REASONS
8. Point No.1 :- On 07.11.2019, the Defendant has approached the plaintiff bank for sanction of cash credit facility for improving their business. As per the request made by the Defendant, the plaintiff have sanctioned said cash credit facility of Rs.5,00,000/- to the Defendant. The Defendant has agreed to repay the same together with interest thereon @11.05% p.a. The Defendant has executed Letter of Arrangement, Agreement of Loan cum hypothecation on dtd.16.11.2019.
7COM.O.S.863/2025
9. The Defendant have requested the Plaintiff for renewal of existing Cash Credit facility and sanction of Capital GECL credit facility. As per the request made by the Defendant, Plaintiff have renewed existing Cash Credit Facility and sanctioned GECL credit facility of Rs.97,000/-. The Defendant agreed to repay the same together with Interest @7.80% p.a. The Letter of Arrangment and Supplemental Agreemental Loan cum hypothication dtd.03.06.2020 are executed.
10. The Defendant has also requested the Plaintiff for encashment of existing cash credit facility. The Cash Credit facility is enhanced upto the limit of Rs.10,00,000/-. The Interest is agreed at 9.90% p.a. The Letter of Arrangement cash credit facility, supplemental agreement of loan cum hypothication dtd.23.10.2020 is executed in favour of the Plaintiff.
11. After receipt of the amount the Defendant was defaulted in making a payment. The Plaintiff has issued Legal notice on 30.08.2024 through RPAD and also initiated proceedings before DLSA, Bengaluru in PIM No.2260/2024. However, Defendant has not made payment and also agreed default interest @12.40%p.a. 8 COM.O.S.863/2025
12. On the basis of above claim, Plaintiff's Manager Veena B. has examined and Ex.P.1 to 15 are marked. Ex.P.2 is the Loan Application submitted by the Defendant to the Plaintiff in Pradhan Mantri Mudra Yojana. Ex.P.3 is Letter of Arrangement it reveals that, Plaintiff bank has advising sanction of credit facilities for Rs.5,00,000/-. Ex.P.4 is an Agreement of Loan cum hypothecation wherein Defendant also agreed to receive Rs.5,00,000/- and the plaintiff has sanctioned the said amount. Ex.P.5 Letter of Arrangement dtd.03.06.2020 which reveals that, payment of Rs.5,00,000/- and term loan of Rs.97,000/-, total amount is Rs.5,97,000/-. Ex.P.6 is supplemental Agreement of loan cum hypothication for Rs.5,00,000/- + Rs.97,000/-. Ex.P.7 is Letter of Arrangement dtd.23.10.2020 for advance to SME segment for Rs.10,00,000/-. Ex.P.8 is the supplemental Agreement of loan cum hypothication dtd.23.10.2020, wherein also the Arrangement made for Rs.5,00,000/- and supplemental Agreement loan cum hypothication for Rs.5,00,000/-. Ex.P.9 is the revival letter.
13. The Defendant has defaulted, the plaintiff has constrained to issue Legal notice as per Ex.P.10 on 9 COM.O.S.863/2025 dtd.30.08.2024. According to Ex.P.10, Plaintiff has demanded Rs.10,57,692/- with interest @12.40% p.a. and @9.25% p.a. The said notice was not served to the Defendant. Ex.P.11 is Postal cover.
14. Ex.P.13 and 14 are the Statement of Accounts as Defendant has due for claim amount. Further that, the statement of accounts are online computer generated copy. Hence, the plaintiff filed certificate U/s.2A of Banker's Book of Evidence Act, 1891. The said certificate is marked as Ex.P.15. Ex.P.12 is PIM report as Defendant has not appeared before the DLSA, Bengaluru. Ex.P.2 to 10, 13 and 14 are clearly reveals that, the Defendant is due for Rs.11,81,858/- as on 12.06.2025. Therefore, the Defendant has not appeared. Hence, the claim of the Plaintiff remained unchallenged. The Defendant has agreed to pay Interest in credit facility account @ 11.90% p.a. Therefore, in view of the above discussions, I answer point No.1 in ' Affirmative'.
15. Point No.2 : -Therefore, I proceed to pass the following Order.
10COM.O.S.863/2025 ORDER The Suit of the Plaintiff is hereby decreed with cost.
The Defendant is hereby directed to pay a sum of Rs.11,76,113/- with Interest @ 11.90% p.a. in respect to Cash Credit facility Loan Account number.38933546731 to the plaintiff bank from 12.06.2025 to till realization.
The Defendant is hereby directed to pay a sum of Rs.5,745/- with Interest @ 9.25% p.a. in respect to Cash Credit facility Loan Account number.39366543590 to the plaintiff bank from 12.06.2025 to till realization.
Draw Decree accordingly.
The Office is directed to send copy of this Judgment to Plaintiff and Defendant to their email ID as required under Order XX Rule 1 of the Civil Procedure Code as amended under Section 16 of the Commercial Courts Act.
(Dictated to the Typist, typed by her online, verified and corrected by me and then pronounced by me in open Court on this the 17th day of October, 2025).
(VIDYADHAR SHIRAHATTI), LXXXII Addl.City Civil & Sessions Judge, Bengaluru.
11COM.O.S.863/2025 ANNEXURE LIST OF WITNESSES EXAMINED ON BEHALF OF THE PLAINTIFF PW-1 Veena.B LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE PLAINTIFF Ex.P.1 Authorization letter Ex.P.2 Loan Application.
Ex.P.3 Letter of Arrangement dated 16.11.2019. Ex.P.4 Agreement of Loan cum hypothication. Ex.P.5 Letter of Arrangment dated 03.06.2020. Ex.P.6 Supplemental agreement of loan cum hypothication dated 03.06.2020. Ex.P.7 Letter of Arrangement dated 23.10.2020. Ex.P.8 Supplemental agreement of loan cum hypothication dated 23.10.2020. Ex.P.9 Revival letter dated 06.04.2024. Ex.P.10, O/C of Legal notice dtd.09.01.2025 along with 01 Ex.P.10 postal receipt
(a) Ex.P.11 1 unopened postal cover.
Ex.P.12 PIM report dated 27.01.2025. Ex.P.13 Statement of Account (pg no.55 to 137) Ex.P.14 Statement of Account (pg no.138 to 144) Ex.P.15 Certificate under sec.2A of Bankers book of evidence Act 12 COM.O.S.863/2025 LIST OF WITNESSES EXAMINED ON BEHALF OF THE DEFENDANT NIL LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE DEFENDANT NIL (VIDYADHAR SHIRAHATTI), LXXXII Addl.City Civil & Sessions Judge, Bengaluru.