Bangalore District Court
Bank Has Produced Ex.P.6 Statement Of ... vs To The Plaintiff Bank In Respect Of The ... on 21 September, 2016
IN THE COURT OF THE SMALL CAUSES, AT BANGALORE
(SCCH-7)
Dated this, the 21st day of September, 2016.
Present : SMT. INDIRA MAILSWAMY CHETTIYAR
B.Com.,LL.B.(Spl.,),L.L.M.,
IX Addl. Small Causes Judge & XXXIV ACMM,
Court of Small Causes,
Member, MACT-7, Bangalore.
S.C.No.1383/2016
State Bank of Mysore, : ..... PLAINTIFF
Coffee Board Layout Branch,
Bangalore.
Represented by the Stressed
Assets, Resolution Centre, having
its Office at Annexure Building,
behind SBM Head Office Building,
K.G. Road,
Bangalore-560024.
Represented by its City Case
Officer, Sri Umakanth V.R.,
Aged 59 years.
(By Sri. N.G. Ravi Kumar, Adv.,)
V/s
1. Mr. Pramod Babu,
Major,
S/o. Sri Kanth Reddy, : ..... DEFENDANTS
Resident of No.127, 1st Floor,
Anjaneyaswamy Nilaya,
Venkata Gowda Layout,
Hebbal, Kempapura,
Bangalore-560024.
2. Sri. O. Ravindra Babu,
SCCH-7 2 S.C.No.1383/2016
Major,
S/o. Sri. O. Ramappa,
Residing at No.81, 11th Cross,
Bhuvaneshwara Nagar,
Hebbal, Kempapura,
Bangalore-560024.
(D-1 and D-2 Exparte)
1. Date of Institution : 03.08.2016
2. Nature of Suit : Recovery of Money
3. Date of Evidence : 19.09.2016
4. Date of Judgment : 21.09.2016
5. Total duration : YEAR/S MONTH/S DAYS
00 01 20
(INDIRA MAILSWAMY CHETTIYAR)
IX Addl. Small Causes Judge & XXXIV ACMM,
Court of Small causes,
Member, MACT-7, Bangalore.
JUDGMENT
The Plaintiff Bank has filed this suit as against the Defendants No.1 and 2 for recovery of Rupees 1,79,000/- from the Defendants with interest at the rate of 14.50% p.a., compounded quarterly from the date the suit till the date of realization of the decretal amount and for sale of the suit schedule property for realization of the decretal amount and for miscellaneous and typing charges of Rupees 2,000/- and costs.
SCCH-7 3 S.C.No.1383/20162. The suit schedule property is, LMV Maruthi Swift VDI Car.
3. The brief averments of the Plaintiff Bank's case are as follows;
a) It is a body Corporate constituted under the State Bank of India (Subsidiary Banks) Act, 1959, carrying on Business of Banking through its various Branches, which has its Head Office at K.G. Road, Banglaore-560009 and the State Bank of Mysore, Small and Medium Enterprises City Credit Centre, No.8/, 2nd Floor, Ranga Rao Road, Shankarapuram, Bangalore, through its one of the Branch at Coffee Board Layout Branch, Vyalikaval, Bangalore, represented by State Bank of Mysore, Stressed Assets Resolutiaon Centre, by its City Case Officer Sri. Umakantah V.R., aged 59 years, Annexure Building, behind SBM Head Office Building, K.G. Road, Bangalore.
b) The Defendant No.1 had applied to their Bank for Term loan of Rupees 3,50,000/- to purchase Swift VDI B.S.4 Car on the guarantee of the Defendant No.2. The loan was sanctioned and the Defendants were called upon to execute necessary loan papers. The Defendants have accepted the terms and conditions for the sanction.
c) On 26.10.2010, the Defendant No.1 has executed Deed of Hypothecation for Term Loan of Rupees 3,50,000/- in favour of it and hypothecated schedule property as collateral security and SCCH-7 4 S.C.No.1383/2016 agreed to repay the said loan amount in 84 monthly installments with interest in the following manner.
i) Rate of interest for the first year at 8.25% compounded monthly rest.
(ii) Rate of interest for the second and third year at 10.25% compounded monthly rest.
(iii) Rate of interest for the fourth and fifth year at 11.75% compounded monthly rest.
(iv) Rate of interest for the sixth and seventh year at 8.25% compounded monthly rest.
Repayments:
(i) For the 1st year each installment of Rupees 5,500/-.
(ii) For the 2nd and 3rd Year each installment of Rupees 5,810/-.
(iii) For the 4th and 5th year each installment of Rupees 5,950/-.
(iv) For the 6th and 7th year each installment of Rupees 5,970/-.
d) On 26.10.2010, the second Defendant stood as guarantee to the said loan and he has executed Guarantee Agreement for a sum of Rupees 3,50,000/- in favour of it and agreed to repay the said sum in terms of the Guarantee Agreement.
e) The Defendant has availed full facility under the said loan. The present loan liability is amounted to Rupees 1,79,000/-
as per the calculation made here under:
SCCH-7 5 S.C.No.1383/2016a) As per the Statement of Accounts Maintained by the Bank in the usual course as on 06.06.2016 inclusive of interest debited up to 31.06.2015 Rs.1,54,960-87
b) Unapplied interest from .. to 01.07.2015 till the date of filing Rs. 24,041-13 of the suit.
c) Legal Notice Charges Rs. 1,000-00
________________
Total in all Rs. 1,79,000-00
_________________
f) It has maintained a Statement of Account pertaining to
the loan account of the Defendant under the Bankers Books of Evidence Act. The Defendants are presently liable to pay interest at 14.50% p.a., compounded monthly rest.
g) The Defendants have failed to pay the loan amount as under taken by them in spite of repeated demands in oral and legal notice.
h) The suit filed this day is in time and has not filed any other suit or proceedings before this Hon'ble Court or any other Hon'ble Court earlier against the Defendants on the same cause of action. Hence, pleadings cause of action, the Plaintiff Bank has filed this suit.
4. Though the suit summonses were duly served on the Defendants No.1 and 2, they were remained absent and hence, they are placed as exparte on 02.09.2016.
SCCH-7 6 S.C.No.1383/20165. In order to prove its case, the Plaintiff Bank has examined its City Case Officer and Deputy Manager, who is also the signatory of the plaint, as P.W.1 by filing an affidavit as his examination-in-chief and has placed reliance upon Ex.P.1 to Ex.P.9.
6. Heard the arguments.
7. Now, the Points that arise for my consideration are as follows;
POINTS
1. Whether the Plaintiff Bank is entitled for a sum of Rupees 1,79,000 with current and future interest at the rate of 14.50% p.a. compounded quarterly from the date of suit till its realization and for sale of the suit schedule property and Miscellaneous and Typing Charges of Rupees 2,000/- with costs from the Defendants jointly and severally as prayed for?
2. What Order?
8. My answers to the above Points are as follows;
Point No.1 : Partly in the Affirmative, Point No.2 : As per the final Order, for the following;
SCCH-7 7 S.C.No.1383/2016REASONS
9. POINT NO.1 :- The P.W.1, who is the City Case Officer and Deputy Manager of the Plaintiff Bank, who is also the signatory of the plaint, has stated that, the Defendant No.1 has availed term loan of Rupees 3,50,000/- from their Bank to purchase Swift Car on the guarantee of the Defendant No.2. and on 26.10.2010, the Defendant No.1 has executed Deed of Hypothecation for a sum of Rupees 3,50,000/- and agreed to repay the same with interest at 8.25%, 10.25%, 11.25% and 8.25% per annum compounded monthly in 84 monthly installments and hypothecated the schedule property as security. He has further stated that, on 26.10.2010, the Defendant No.2 has executed Deed of Guarantee for a sum of Rupees 3,50,000/- and agreed to repay the same in terms of the Guarantee Agreement. He has further stated that, the Defendants have availed full facility under the loan.
10. To corroborate its case as well as the oral version of P.W.1, the Plaintiff Bank has produced Ex.P.1 Loan Application dated 06.10.2010, Ex.P.2 Loan Sanction Letter, Ex.P.3 Deed of Hypothecation dated 26.10.2010, Ex.P.4 Supplementary Letter to Agreement of Hypothecation dated 26.10.2010 and Ex.P.5 Guarantee Agreement dated 26.10.2010.
11. On perusal of the contents of Ex.P.1 to Ex.P.5, it clearly goes to show that, the Defendant No.1 as a principle borrower and Defendant No.2 as a guarantor, have borrowed a loan of Rupees SCCH-7 8 S.C.No.1383/2016 3,50,000/- on 26.10.2010 from the Plaintiff Bank for the purpose of purchase of Swift Car by executing necessary and required documents by agreeing its terms and conditions and also agreed to repay the said loan with interest at the rate of 8.25%, 10.25%, 11.25% and 8.25% p.a., compounded monthly, i.e., varied interest from time to time, in 84 monthly installments and also hypothecated the said Swift Car in favour of the Plaintiff Bank as a security to the said loan. The said evidence of P.W.1 as well as the contents of Ex.P.1 to Ex.P.5, are clearly corroborated with the case made out by the Plaintiff Bank as against the Defendants.
12. The P.W.1 has stated that, the present loan liability as on the date of suit is amounted to Rupees 1,79,000/- and the Defendants have not repaid the loan amount as undertaken by them inspite of repeated demands in oral, writing and legal notice and hence, this suit is filed.
13. For consideration of the said oral evidence of P.W.1, the Plaintiff Bank has produced Ex.P.6 Statement of Account along with Closer Memo and Certificate, Ex.P.7 Office Copy of Legal Notice dated 08.06.2016 along with 3 Postal Receipts, Ex.P.8 Postal Acknowledgements 2 in numbers and Ex.P.9 Returned Unserved Postal Cover.
14. On perusal of the entries made in Ex.P.6 Statement of Account along with Closer Memo and Certificate, it clearly goes to show that, the Defendants are very irregular in making payments of loan installments to the Plaintiff Bank and as such, as on SCCH-7 9 S.C.No.1383/2016 30.06.2016, a sum of Rupees 1,54,960-87 is due from the Defendants to the Plaintiff Bank in respect of the said loan.
15. On perusal of the contents of Ex.P.7 Office Copy of Legal Notice dated 08.06.2016 along with 3 Postal Receipts, Ex.P.8 Postal Acknowledgements 2 in numbers and Ex.P.9 Returned Unserved Postal Cover, it further made crystal clear that, before filing the present suit, the Plaintiff Bank has made a prompt effort to recover the outstanding amount from the Defendants, but, in spite of that, the Defendants did not care to pay the outstanding amount to the Plaintiff Bank and as such, as there is no alternative, the Plaintiff Bank has filed the present suit as against the Defendants for recovery of the said outstanding loan amount. Hence, the Plaintiff Bank has cause of action for filing the present suit as against the Defendants and as such, it is maintainable.
16. From the above said material evidence, both oral and documentary, it is clearly proved that, as on 30.02.2016, a sum of Rupees 1,54,960-87 is due from the Defendants to the Plaintiff Bank.
17. The date of loan is on 26.10.2012. The Plaintiff Bank has filed the present suit as against the Defendants on 09.06.2016. On perusal of the said dates, it prima-facie appears that, the Plaintiff Bank has filed the present suit as against the Defendants after a lapse of period of limitation. But, based on the same, it cannot be said that, the suit filed by the Plaintiff Bank as against the Defendants is clearly barred by law of limitation, as, SCCH-7 10 S.C.No.1383/2016 on perusal of the entries made in Ex.P.6 Statement of Account along with Closer Memo and Certificate, it is clear that, the Defendants have made last payment in respect of the said loan on 05.07.2016 for a sum of Rupees 5,060/- and within 3 years from the date of the said last payment, the Plaintiff Bank has filed the present suit as against the Defendants for recovery of the said outstanding amount of Rupees 1,54,960-87. Hence, the suit filed by the Plaintiff Bank as against the Defendant is well within time and as such, it is maintainable.
18. The Plaintiff Bank has also claimed unapplied interest from 01.07.2015 till the date of filing of the suit, which is amounting of Rupees 24,041-13 and Legal Notice Charges of Rupees 1,000/-. As this Court has already observed and come to the conclusion that, inspite of issuance of legal notice, the Defendants did not care to pay the outstanding balance loan amount to the Plaintiff Bank and as such, the Plaintiff Bank has filed the present suit for the recovery of the outstanding loan amount of Rupees 1,54,960-87. It is also clear from the entries made in Ex.P.6 Statement of Account that, the Plaintiff Bank has not applied the interest from 01.07.2015 till filing of this suit. Hence, there are merits in the claim of unapplied interest from 01.07.2015 till the date of filing of the suit, which is of Rupees 24,041-13 and Legal Notice Charges of Rupees 1,000/- by the Plaintiff Bank from the Defendants.
19. From the above said material evidence, it is made crystal clear that, as on the date of filing of the present suit, the SCCH-7 11 S.C.No.1383/2016 outstanding loan amount of Rupees 1,54,960-87, unapplied interest from 01.07.2015 till the date of filing of this suit, which is amounting of Rupees 24,041-13 and Legal Notice Charges of Rupees 1,000/-, in total, Rupees 1,79,000/-, is due from the Defendants to the Plaintiff Bank, which is the present suit claim.
20. To deny or to discard the same, nothing is available on record on behalf of the Defendants, as, though the suit summonses were duly served on Defendants No.1 and 2, they were remained absent and hence, they are placed as exparte. The non-appearance of the Defendants No.1 and 2 in the present suit clearly implies that, they have indirectly admitted the entire case made out by the Plaintiff Bank as against them as well as the evidence adduced by it to prove its case. Hence, the Defendants No.1 and 2 are jointly and severally liable to pay the suit claim of Rupees 1,79,000/- to the Plaintiff Bank.
21. The Plaintiff Bank has claimed interest at the rate of 14.50% p.a., compounded quarterly on the entire suit claim of Rupees 1,79,000/- from the date of the suit till its realization.
22. No doubt, it is very much clear from the entries made in Ex.P.6 Statement of Account that, the Defendants are very irregular in making payments of the loan installments to the Plaintiff Bank as agreed. While discussing above, this Court has already observed and come to the conclusion that, at the time of availing the loan, the Defendants have agreed to repay the said loan amount of Rupees 3,50,000/- with interest at the rate of SCCH-7 12 S.C.No.1383/2016 8.25%, 10.25%, 11.75% and 8.25%, i.e., varied interest from time to time, p.a., compounded monthly. Hence, there are merits in the claim of current and future interest at the rate of 14.50% p.a., compounded quarterly by the Plaintiff Bank from the Defendants. But, the Plaintiff Bank is not entitled for the said rate of interest on the entire suit claim, as, the suit claim is already included the unapplied interest from 01.07.2015 till the date of filing of the suit, which is amounting of Rupees 24,041-13 and Legal Notice Charges of Rupees 1,000/-. Hence, the Plaintiff Bank is entitled for current and future interest at the rate of 14.50% p.a., compounded quarterly on the actual loan due amount of Rupees 1,54,960-87 from the date of suit till its realization from the Defendants.
23. The Plaintiff Bank has also claimed sale of schedule property for realization of the decretal amount and Miscellaneous and Typing Charges of Rupees 2,000/- and costs. Since, the Defendants are very irregular in making payment of the loan installments to the Plaintiff Bank and since the Defendants have dragged the Plaintiff Bank to file the present suit for recovery of the outstanding loan amount inspite of issuance of legal notice, there are merits in the claim of the Plaintiff Bank in respect of sale of schedule property for realization of decretal amount, Miscellaneous and Typing Charge of Rupees 2,000/- and costs of the present suit. Hence, the Defendants are liable to pay the same, to the Plaintiff Bank.
SCCH-7 13 S.C.No.1383/201624. Under the above said facts and circumstances as well as the reasons given, this Court has come to the conclusion that, the Plaintiff Bank is entitled for a sum of Rupees 1,79,000/- from the Defendants jointly and severally with current and future interest at the rate of 14.50% p.a., compounded quarterly on the actual due amount of Rupees 1,54,960-87 from the date of suit till its realization and for sale of the schedule property for realization of the suit decretal amount and Miscellaneous and Typing Charges of Rupees 2,000/- and Court costs. The Defendants No.1 and 2 are jointly and severally liable to pay the same to the Plaintiff Bank. Hence, the suit filed by the Plaintiff Bank as against the Defendants are liable to be partly decreed with costs. Accordingly, I answered Point No.1 partly in the Affirmative.
25. POINT NO.2 :- For the aforesaid reasons, I proceed to pass the following;
ORDER The suit filed by the Plaintiff Bank is hereby partly decreed with costs.
The Defendants No.1 and 2 are hereby directed to pay a sum of Rupees 1,79,000/- jointly and severally with current and future interest at the rate of 14.50% p.a. compounded quarterly on the actual due amount of Rupees 1,54,960-87 from the date of the suit SCCH-7 14 S.C.No.1383/2016 till its realization and miscellaneous and typing charges of Rupees 2,000/-, to the Plaintiff Bank, within two months from the date of this Order.
If the Defendants fail to pay, by then, the Plaintiff Bank is at liberty to recover the same by sale of the hypothecated suit schedule property and by other modes, in accordance with law.
Draw Decree accordingly.
(Dictated to the Stenographer directly on computer and typed by her, corrected and then, pronounced by me in the open Court on this, the 21st day of September, 2016.) (INDIRA MAILSWAMY CHETTIYAR) IX Addl. Small Causes Judge & XXXIVACMM, Court of Small Causes, Member, MACT-7, Bangalore.
ANNEXURE
1. WITNESSES EXAMINED BY THE PLAINTIFF :-
P.W.1 : Sri. Umakanth. V.R.
2. DOCUMENTS MARKED BY THE PLAINTIFF :-
Ex.P.1 : Loan Application dated 06.10.2010
Ex.P.2 : Loan Sanction Letter
Ex.P.3 : Deed of Hypothecation dated 26.10.2010
SCCH-7 15 S.C.No.1383/2016
Ex.P.4 : Supplementary Letter to Agreement of
Hypothecation dated 26.10.2010
Ex.P.5 : Guarantee Agreement dated 26.10.2010
Ex.P.6 : Statement of Account along with
Closer Memo and Certificate
Ex.P.7 : Office copy of Legal Notice dated 08.06.2016
along with 3 Postal Receipts
Ex.P.8 : Postal Acknowledgements (2 in nos.)
Ex.P.9 : Returned Unserved Postal Cover
3. WITNESSES EXAMINED BY THE DEFENDANTS :-
-NIL-
4. DOCUMENTS MARKED BY THE DEFENDANTS :-
-NIL-
(INDIRA MAILSWAMY CHETTIYAR) IX Addl. Small Causes Judge & XXXIV ACMM, Court of Small Causes, Member, MACT-7, Bangalore.