Bangalore District Court
Indian Bank vs Sri.Raghavendra Thane on 24 March, 2016
IN THE COURT OF THE XXIV ADDL.CITY CIVIL &
SESSIONS JUDGE BANGALORE CITY (C.C.H.No.6)
This the 24th day of March, 2016
Present: Sri. S.SRIDHARA,
B.Sc.,LL.B.,
th
24 Addl. City Civil & Sessions Judge,
Bangalore City.
O. S. No.500/2015
PLAINTIFF: INDIAN BANK, A body Corporate
Constituted under the Banking
Companies (Acquisition and Transfer
of Undertakings) Act 1970,
having its Head Office
at No.254-260, Royapettah,
Chennai- 600 014 and one of its
Branches known as Chamarajpet
Branch, situated No.7, 4th Main
Road, Chamarajpet, Bengaluru-18,
Repr. By its Chief Manager
Sri.S.R.Ramkumar.
(By Sri.P.Ganapathi Bhat, Advocate)
Vs.
DEFENDANTS: 1. Sri.Raghavendra Thane
S/o Sri.Krishna Rao Thane,
Major, R/at No.20,
Srinivasa Reddy Building,
2nd Main, 6th Cross,
B.K.Nagar, Yeshwanthapur,
Bengaluru- 560 022.
-2- O.S.500/2015
2. Sri.Pramod Govind Katti
S/o Sri. Govind,
Major, R/at No.8,
3rd cross, Subedarpalya,
Bengaluru- 560 022.
(Exparte.)
Date of institution of the suit: 13.01.2015
Nature of the suit: Money suit.
Date of commencement of 12.02.2016
recording of evidence:
Date on which Judgment was 24.03.2016
pronounced:
Duration: Days Months Years
11 02 01
JUDGMENT
The instant suit filed by the plaintiff Bank against the defendants is one for recovery of a sum of Rs.3,95,200/- together with current and future interest at the rate of 14.50% p.a. compounded monthly rests from the date of the suit till the date of realization of the suit claim and also for cost and such other reliefs.
-3- O.S.500/2015
2. a) The plaintiff has stated that on 26.5.2005 the 1st defendant has sought and availed Term Loan/ Education Loan of Rs.2,50,000/- from the plaintiff bank for his education purpose i.e. for the course of MBA Marketing agreeing to repay the same in 60 monthly installment of Rs.5,500/- per month commencing from July 2005 together with interest thereon at 11% p.a. with monthly rest. The plaintiff further stated that for having availed the said loan, the 1st defendant has executed on demand promissory note for Rs.2,50,000/-, Disposal of proceeds letter, Specimen Letter, Agreement for Educational Loan, which are dated 26.5.2005 in favour of the plaintiff bank and accordingly the plaintiff has produced all the original documents referred to above including the Sanction Ticket and Loan application.
b) The plaintiff further stated that the 2nd defendant stood himself as guarantor for the repayment of the said loan amount together with interest thereon and in token whereof the 2nd defendant also executed agreement of
-4- O.S.500/2015 guarantee dated 26.5.2005 in favour of the plaintiff bank and accordingly the plaintiff has also produced the original document referred to above.
c) The plaintiff further stated that the 1st defendant has acknowledged his liability to the plaintiff bank on 28.2.2008 for Rs.3,17,285/-, on 20.1.2009 for a sum of Rs.3,38,296/- and also on 17.1.2012 for a sum of Rs.2,55,141/- in favour of the plaintiff bank and accordingly original acknowledgement of debts are also produced.
d) The plaintiff further stated that the defendants have not kept up their undertaking and had failed and defaulted in making monthly installment as relied upon. The defendants has neither responded nor attempted to clear the entire outstanding amount inspite of repeated requests and demands made by the plaintiff bank. The plaintiff bank has also got issued legal notice on 17.12.2014 demanding the defendants to clear the
-5- O.S.500/2015 outstanding amount, but the defendants have not responded to the said legal notice and accordingly the plaintiff also produced copy of the legal notice and filed this suit.
e) The plaintiff also further stated that the defendants have also agreed to pay the interest thereon on the said loan amount to a minimum of 11% p.a. compounded monthly rests or such rates as may be revised by the bank from time to time. According to the plaintiff bank's current rate of interest, which is payable by the defendants on the outstanding amount, is 14.50% p.a. compounded monthly (inclusive of 2% penal interest). Hence, the defendants are liable to pay the current and future interest at the rate of 14.50% p.a. compounded monthly.
f) The plaintiff also further stated that they have also maintained transparent statement of account pertaining to the loan transaction of the defendants. As
-6- O.S.500/2015 per the guidelines issued by the Reserve Bank of India, the periodical interest has not been debited to the said loan account after classifying the loan account as NPA. Therefore according to the plaintiff, the defendants are liable to pay outstanding amount shown in the said account as well as the unapplied interest since the date of NPA. Copy of the statement of account with certificate thereof is also produced.
g) The plaintiff bank further stated that as per the statement of account maintained by the plaintiff bank, the total outstanding due from the defendants on the date of filing of the suit is Rs.3,94,450/-, a sum of Rs.750/- being typing, Xerox charges and other incidental expenses total amounting to Rs.3,95,200/- with current and future interest at the rate of 14.50% p.a. compounded monthly rests from the date of the suit till the date of realization of the suit claim.
h) The plaintiff also stated that the subject matter of the suit is not pending in any other Courts and also
-7- O.S.500/2015 pleaded cause of auction in para-11 of the plaint and accordingly praying this Court to decree the suit as prayed for.
3. After issuing summons to defendants 1 and 2 by paper publication, which is duly published and inspite of that, defendants 1 and 2 failed to appear before the Court and they placed exparte on 9.4.2015.
4. On perusal of the plaint, the points that arise for my consideration are:
1. Whether the plaintiff proves that the 1st defendant borrowed a sum of Rs.2,50,000/-
from the plaintiff bank on 26.5.2005 as Term Loan/ Education Loan by executing the suit documents as stated in the plaint?
2. Whether the plaintiff further proves that the 2nd defendant stood as guarantor to the 1st defendant for the repayment of the said loan amount with interest thereon and accordingly executed Agreement of Guarantee as stated in the plaint?
3. Whether the plaintiff further proves that the defendants are jointly and severally liable to repay the said loan amount to the plaintiff
-8- O.S.500/2015 bank along with interest at 14.50% p.a. compounded monthly rests inclusive of penal interest at 2% p.a.?
4. Whether the plaintiff further proves that the defendants are jointly and severally liable to pay the suit claim of Rs.3,95,200/- to the plaintiff bank as stated in the plaint?
5. What order or decree?
5. In support of the case of the plaintiff, the Manager of the plaintiff bank is examined as PW.1 and got marked Ex.P.1 to Ex.P.14 and the relevant signatures therein and accordingly closed their evidence.
6. As discussed earlier, defendants placed exparte and no evidence is adduced by the defendants.
7. Since no argument was addressed on behalf of the plaintiff, the argument of the plaintiff is taken as not addressed on 16.3.2016.
8. My findings on the above Points are:
Point No.1: Affirmative.
Point No.2: Affirmative
-9- O.S.500/2015
Point No.3: Affirmative.
Point No.4: Affirmative.
Point No.5: As per the final order
for the following;
REASONS
9. Point Nos.1 to 4: Since these four issues are
interlinked with each other and require common
discussion of facts, they are taken together for common discussion to avoid repetition of facts.
10. When the plaintiff pleads that the 1st defendant borrowed a sum of Rs.2,50,000/- from the plaintiff bank for his educational purpose on 26.5.2005 by executing the suit documents agreeing to repay the same along with interest, it is the plaintiff to establish the same.
11. Similarly when the plaintiff pleads that the 2nd defendant stood as guarantor to the 1st defendant for the repayment of the said loan amount with interest thereon, it is also for the plaintiff to establish the same.
- 10 - O.S.500/2015 12. When the plaintiff further pleads that the
defendants are liable to pay the suit claim, it is also for the plaintiff to establish the same.
13. In support of the case of the plaintiff, the plaintiff has relied upon Ex.P.1 to P.14 and the relevant signatures therein.
14. Ex.P.1 is the loan application executed by both the defendants on 26.5.2005 signed by both the defendants as per Ex.P.1(a) and Ex.P.1(b), seeking sanctioning of educational loan to the 1st defendant.
15. Ex.P.2 is the sanction ticket issued by the plaintiff bank to the defendants on 26.5.2005 for having sanctioned the loan to the 1st defendant to an extent of 2,50,000/- directing the 1st defendant to repay the said loan amount in 60 monthly installments with interest at the rate of 11% p.a. repayable in monthly installment of Rs.5,500/- per month commencing from July 2005. Ex.P.2(a) is the signature of the 1st defendant, whereby
- 11 - O.S.500/2015 the 1st defendant by agreeing to the terms and conditions affixed his signature.
16. Ex.P.3 is an important document, which is a Demand Promissory Note executed by the 1st defendant in favour of the plaintiff bank on 26.5.2005 for having availed the loan from the plaintiff' bank to an extent of Rs.2,50,000/- and also agreed to repay the said loan amount with interest at the rate of 11% p.a. Ex.P.3(a) is the signature of the 1st defendant.
17. Ex.P.4 is the disposal of proceeds letter dated 26.5.2005 executed by the 1st defendant for availing loan of Rs.2,50,000/- from the plaintiff bank, Ex.P.4 (a) is the signature of the 1st defendant.
18. Ex.P.5 is also an important document i.e. agreement for educational loan executed by the 1st defendant in favour of the plaintiff bank also on 26.5.2005, whereby the 1st defendant availed the said loan to an extent of Rs.2,50,000/- for his MBA Education.
- 12 - O.S.500/2015 Thereby, the 1st defendant also agreed to repay the loan amount in 60 monthly installment along with interest at the rate of 11% p.a. compounded on monthly rests and accordingly affixed his signature as per Ex.P.5(a) by agreeing to the terms and conditions of agreement for educational loan.
19. Ex.P.6 is the Agreement of Guarantee executed by the 2nd defendant, whereby the 2nd defendant offered himself as the guarantor for the repayment of the loan amount by the 1st defendant to the plaintiff bank and this agreement of guarantee was executed by the 2nd defendant on 26.5.2005 in respect of loan obtained by the 1st defendant for his educational purpose and condition No.9 also indicates that Ex.P.6 is continuing guarantee whereby the 2nd defendant offered himself as guarantor and by agreeing to the terms and conditions of Ex.P6, the 2nd defendant also affixed his signature as per Ex.P6(a).
- 13 - O.S.500/2015
20. Ex.P.7, Ex.P.8 and Ex.P.9 are all acknowledgement of debts executed by the 1st defendant in favour of the plaintiff bank, whereby under Ex.P.7, the 1st defendant acknowledged his liability on 22.8.2008 to an extent of Rs.3,17,285/-; under Ex.P.8, the 1st defendant acknowledged his liability on 20.1.2009 to an extent of Rs.3,38,296/- and under Ex.P.9, the 1st defendant also acknowledged his liability on 17.1.2012 to an extent of Rs.2,55,141/- and by acknowledging his liability, the 1st defendant has also affixed his signatures as per Ex.P.7(a), Ex.P.8(a) and Ex.P.9(a).
21. Ex.P.10 and Ex.P.11 both are postal receipts for having sent notice to defendants. Ex.P.12 is the served postal acknowledgement for having served legal notice on the 1st defendant, who is the borrower of the loan amount.
22. Ex.P.13 is the postal cover for having sent legal notice to the 2nd defendant. Ex.P.13(a) is the notice
- 14 - O.S.500/2015 available in the postal cover, wherein the plaintiffs called upon the defendants 1 and 2 to repay the said loan amount along with interest, which is outstanding to an extent of Rs.3,90,483/- along with interest thereon at 12.25% p.a. within 10 days.
23. Ex.P.14 is the certified copy of the Ledger Extract maintained by the plaintiff bank in the regular course of business pertaining to the loan transaction of the 1st defendant and this document also indicates the fact that the 1st defendant is due to an extent of Rs.3,94,450/- on the date of preparing of the account extract. Presumption can also be drawn with regard to the due and correctness of the entries made in Ex.P.14 under the Bankers Books Evidence Act.
24. The Manager of the plaintiff bank is also examined as PW.1, wherein he has reiterated the plaint averments. The oral evidence of PW.1 and documentary evidence of Ex.P.1 to Ex.P.14 and relevant signatures there in goes
- 15 - O.S.500/2015 undisputed and unchallenged throughout. This suit filed by the plaintiff bank is also in time in view of the acknowledgement of debts executed by the 1st defendant as per Ex.P.7 to Ex.P.9 and also in view of the agreement of guarantee executed by the 2nd defendant as per Ex.P.6 in favour of the plaintiff bank. There is no reason to disbelieve the evidence of PW.1 in view of the documents executed by the defendants as per Ex.P.1 to Ex.P.13.
25. So from the material available on record, the plaintiff successfully proved that the 1st defendant borrowed a sum of Rs.2,50,000/- from the plaintiff bank on 26.5.2005 for his educational purpose by executing the suit documents. The plaintiff also successfully proved that the 2nd defendant stood himself as guarantor to the 1st defendant for the repayment of the said loan amount by the 1st defendant by executing agreement of guarantee. The plaintiff also successfully proved that the defendants are jointly and severally liable to pay the said loan amount to the plaintiff bank along with present rate
- 16 - O.S.500/2015 of interest at 14.50% p.a. compounded monthly including penal interest at 2% p.a. Plaintiff bank also proved that the defendants are jointly and severally liable to pay the suit claim of Rs. 3,95,200/- to the plaintiff bank as claimed by the plaintiff bank. Accordingly, I answer Point Nos.1 to 4 in the 'affirmative'.
26. Point No.5: In view of my findings on Point Nos.1 to 4, I proceed to pass the following:
ORDER The instant suit filed by the plaintiff bank against defendants is hereby decreed with cost.
The plaintiff bank is held entitled to recover a sum of Rs.3,95,200/- from the defendants No.1 and 2 jointly and severally with current and future interest at the rate of 14.50% p.a. compounded monthly rests from the date of suit till the date of realization of the entire suit claim as prayed for.
- 17 - O.S.500/2015 Defendant Nos.1 and 2 are also jointly and severally liable to pay the suit claim of Rs.3,95,200/- to the plaintiff bank along with current and future interest at the rate of 14.50% p.a. compounded monthly rests from the date of suit till the date of realization of the entire suit claim as prayed for.
(Dictated to the Judgment writer, transcribed by her and then corrected, signed and pronounced by me in the open Court on this the 24th day of March, 2016).
(S.SRIDHARA) XXIV ADDL.CITY CIVIL & SESSION JUDGE, BANGALORE CITY.
ANNEXURE List of witnesses examined for the plaintiff:
P.W.1: Sri.S.R.Ramakumara List of documents marked for the plaintiff:
Ex.P.1: Loan application.
Ex.P.1(a) & Signatures of defendants. P.1(b):
Ex.P.2: Sanctioned ticket.
Ex.P.2(a) & Signatures of defendants. P.2(b):
Ex.P.3: On demand promissory note dated 26.5.2005.
- 18 - O.S.500/2015 Ex.P.3(a): Signature of 1st defendant Ex.P.4: Disposal of proceeds letter. Ex.P.4(a): Signature of 1st defendant. Ex.P.5: Agreement for education loan dt. 26.5.2005. Ex.P.5(a): Signature of 1st defendant. Ex.P.6: Agreement of guarantee. Ex.P.6(a): Signature of 2nd defendant. Ex.P.7 & Acknowledgement of debs dated 28.2.2008 P.8: and 20.1.2009.
Ex.P.7(a) & Signatures of 1st defendant.
P.8(a):
Ex.P.9: Acknowledgement of debt dated 18.1.2012 Ex.P.9(a): Signature of 1st defendant.
Ex.P.10 to Two Postal receipts and one postal P.12: acknowledgement Ex.P.13: Returned RPAD postal cover.
Ex.P.13(a): Legal notice in the cover Ex.P.13. Ex.P.14: Certified copy of the Account extract.
List of witnesses examined and documents marked for the defendants: Nil.
(S.SRIDHARA) XXIV ADDL.CITY CIVIL & SESSION JUDGE, BANGALORE CITY.