Bangalore District Court
Bank Has Stated In His ... vs Approached Their Bank On 02.05.2015 For ... on 1 October, 2016
IN THE COURT OF THE SMALL CAUSES, AT BANGALORE
(SCCH-7)
Dated this, the 1st day of October, 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.748/2016
Vijaya Bank, : ..... PLAINTIFF
Trinity Circle Branch,
Bangalore-560 001.
Represented by its,
Asst. General manager,
Mrs. T.M. Mini,
W/o. Mr. A.S. Rajeev,
Aged about 45 years.
(By Sri. V. Raghunathan, Adv.,)
V/s
1. Mr. Vijendra, :
..... DEFENDANTS
S/o. H. Ramaiah Setty,
Aged about 56 years,
Residing at No.10, 6th Cross,
Thimmaiah Garden,
Temple Road,
R.T. Nagar,
Bangalore-560 032.
2. Mr. Chandrashekaraiah,
S/o. Shivandaiah,
SCCH-7 2 SC No.748/2016
Aged about 44 years,
Residing at No.2,
Rameshnagar, 2nd Cross,
Vibhuthipura Layout,
Bangalore-560 037.
3. Mr. Sanjukumar,
S/o. Basavaraj. A.,
Aged about 38 years,
Residing at No.10, 1st Main,
7th Cross, 1st Stage, 3rd Phase,
West of Chord Road,
Rajajinagar,
Bangalore-560 010.
4. Mrs. Shobha Vijendra,
W/o. H.R. Vijendra,
Aged about 39 years,
Residing at No. 10, 6th Cross,
Thimmaiah Garden,
Temple Road, R.T. Nagar,
Bangalore-560 032.
(D-1 to D-4 Exparte)
1. Date of Institution : 30.04.2016
2. Nature of Suit : Recovery of Money
3. Date of Evidence : 28.09.2016
4. Date of Judgment : 01.10.2016
5. Total duration : YEAR/S MONTH/S DAYS
00 05 01
(INDIRA MAILSWAMY CHETTIYAR)
IX Addl. Small Causes Judge & XXXIV ACMM,
Court of Small causes,
Member, MACT-7, Bangalore.
SCCH-7 3 SC No.748/2016
JUDGMENT
The Plaintiff Bank has filed this suit as against the Defendants No.1 to 4 for recovery of Rupees 51,448/- from the Defendants with current and future interest at the rate of 15.75% p.a., with monthly rests from the date of the suit till the date of payment together with a sum of Rupees 2,500/- being the typing and other miscellaneous expenses as per Order XXA of CPC and costs.
2. The brief averments of the Plaintiff Bank's case are as follows;
a) It is one of the several branches of Vijaya Bank, a body Corporate incorporated under the provisions of Banking Companies (Acquisitions and transfer of Undertaking), Act, 1980, having its Head Office at No.41/2, M.G. Road, Bangalore-560 001. It is a Government of India Undertakings.
b) The Defendants approached it on 02.05.2015 for a V- Cash Loan of Rupees 60,000/- for the purpose of education of son.
c) It sanctioned a sum of Rupees 60,000/- to the Defendants on 02.05.2015.
d) The Defendant No.1 executed an On Demand Promissory Note dated 02.05.2015 for a sum of Rupees 60,000/-
SCCH-7 4 SC No.748/2016at 13.30 percent interest per annum to be compoundable monthly.
e) The Defendant No.1 also executed a Letter of Repayment on the even date in favour of it agreeing to repay the loan in 24 EMI with the agreed rate of interest and in default further agreed to pay additional 2% penal interest on the sum received.
f) The Defendant No.1 also executed Articles of Loan Agreement in favour of it on 02.05.2015.
g) The Defendants No.2, 3 and 4 are the guarantors of the loan availed by the Defendant No.1 and had executed a Letter of Continuing Guarantee in favor of it.
h) It got issued a lawyer notice to the Defendants on 15.04.2016 and the said notice returned without service to the Defendants stating that, Addressee left, insufficient address, door locked and addressee left respectively.
i) The Defendants, who had promised to discharge the loan in monthly installments has failed to do so as reflected in the computerized statement of account.
j) After giving credit to the repayments made by the Defendants, the Defendants are still due in a sum of Rupees 51,448/- as on the date of filing of this suit as per computerized SCCH-7 5 SC No.748/2016 statement of account of the Defendants in A/c No.133107121000366 as follows;
Book debt Rs. 50,826-00
Unapplied interest from
31.03.2016 to 29.04.2016 Rs. 622-00
Total amount due from Defendants Rs. 51,448-00
k) There is no pendency of any legal proceedings and
litigation with either in the past or present concerning any part of the subject-matter of this suit in any Court within the knowledge of it. Hence, pleadings cause of action, the Plaintiff Bank has filed this suit.
3. Though the suit summonses were duly served on the Defendants No.1 to 4 through paper publication, they were remained absent and hence, they are placed as exparte on 23.08.2016.
4. In order to prove its case, the Plaintiff Bank has examined its Assistant Manager, as P.W.1 by filing an affidavit as his examination-in-chief and has placed reliance upon Ex.P.1 to Ex.P.10.
5. Heard the arguments.
SCCH-7 6 SC No.748/20166. Now, the Points that arise for my consideration are as follows;
POINTS
1. Whether the Plaintiff Bank is entitled for a sum of Rupees 51,488/- with current and future interest at the rate of 15.75% p.a. with monthly rests from the date of the suit till its realization and Rupees 2,500/- being the typing and other miscellaneous expenses and costs from the Defendants jointly and severally as prayed for?
2. What Order?
7. My answers to the above Points are as follows;
Point No.1 : In the Affirmative, Point No.2 : As per the final Order, for the following;
REASONS
8. POINT NO.1 :- The Plaintiff Bank has filed this suit as against the Defendants No.1 to 4 for recovery of Rupees 51,448/- from the Defendants with current and future interest at the rate of 15.75% p.a., with monthly rests from the date of the suit till the date of payment together with a sum of Rupees 2,500/- being the typing and other miscellaneous expenses as per Order XXA of CPC and costs.
SCCH-7 7 SC No.748/20169. The P.W.1, who is the Assistant Manager of the Plaintiff Bank has stated in his examination-in-chief that, the Defendants approached their Bank on 02.05.2015 for a V-Cash Loan of Rupees 60,000/- for the purpose of education of son of the Defendant No.1 and their Bank sanctioned a sum of Rupees 60,000/- to the Defendant on 02.05.2015. He has further stated that, the Defendant No.1 executed an On Demand Promissory Note dated 02.05.2015 for a sum of Rupees 60,000/- at 13.30% interest per annum to be compoundable monthly and also executed a Letter of Repayment on the even date in favour of their Bank agreeing to repay the loan in 24 EMI with the agreed rate of interest and in default further agreed to pay additional 2% penal interest on the sum received. He has further stated that, the Defendant No.1 has also executed Articles of Loan Agreement in favour of their Bank on 02.05.2015 and the Defendants No.2, 3 and 4 are the guarantors of the loan availed by the Defendant No.1 and had executed a Letter of Continuing Guarantee in favour of their Bank.
10. To corroborate the said oral evidence of P.W.1 as well as its case, the Plaintiff Bank has produced Ex.P.1 Loan Application dated 29.04.2015 along with Annexure, Ex.P.2 Loan Sanction Letter dated 02.05.2015, Ex.P.3 On Demand Promissory dated 02.05.2015, Ex.P.4 Letter of Repayment dated 02.05.2015, Ex.P.5 Articles of Agreement dated 02.05.2015 and Ex.P.6 Letter of Guarantee dated 02.05.2015.
SCCH-7 8 SC No.748/201611. On perusal of the contents of Ex.P.1 to Ex.P.6, it clearly goes to show that, the Defendants have borrowed a loan of Rupees 60,000/- from the Plaintiff Bank on 02.05.2015 for the purpose of education of the son of the Defendant No.1 and the Defendants No.2 to 4 stood as guarantors in respect of the said loan and they have agreed to repay the said loan amount in 24 equal monthly installments with interest at the rate of 13.30% per annum compounded monthly and also agreed to pay penal interest at the rate of 2% p.a., in case of default and the Defendant No.1 has executed an On Demand Promissory Note, Letter of Repayment and Articles of Loan Agreement in favour of the Plaintiff Bank agreeing its terms and conditions and the Defendants No.2 to 4 have executed a Letter of Continuing Guarantee in favour of the Plaintiff Bank agreeing its terms and conditions. From this material evidence, it is clearly proved that, the Defendants have borrowed a loan of Rupees 60,000/- from the Plaintiff on 02.05.2015 for the purpose of education of the son of the Defendant No.1.
12. The P.W.1 has stated that, their Bank got issued a Lawyer Notice to the Defendants on 15.04.2016 and the said notice returned without service to the Defendants stating that, Adreseee left, Insufficient Address, Door locked and Addressee Left, respectively. He has further stated that, the Defendants, who had promised to discharge the loan in monthly installments, has failed to do so as reflected in the computerized statement of account. He has further stated that, after giving credit to the repayments made by the Defendant, the Defendants are still due SCCH-7 9 SC No.748/2016 in a sum of Rupees 51,448/- as on the date of filing of this suit as per computerized statement of account of the Defendants in A/c No.109707121000366. He has further stated that, a sum of Rupees 50,826/- towards Book Debt, Rupees 622/- towards Unapplied Interest from 31.03.2016 to 29.04.2016, totally, Rupees 51,448/- is due from the Defendants to their Bank.
13. The Plaintiff Bank has produced Ex.P.7 Office Copy of Legal Notice dated 15.04.2015, Ex.P.8 Postal Receipts 4 in numbers, Ex.P.9 Returned Unserved Postal Covers 4 in numbers and Ex.P.10 Statement of Account along with Certificate.
14. On perusal of the entries made in Ex.P.10 Statement of Account, it clearly goes to show that, the Defendants are very irregular in making repayment of the loan installments to the Plaintiff Bank and as such, as on 05.04.2016, a sum of Rupees 50,826-21 is due from the Defendants to it. It is also clearly mentioned in Ex.P.10 Statement of Account that, the entire suit claim of Rupees 51,448/- is due from the Defendants to the Plaintiff Bank, which includes up to date interest till the filing of this suit. Based on the same, it can be safely held that, as on the date of filing of the present suit, a sum of Rupees 51,448/- is due from the Defendants to the Plaintiff Bank in respect of the loan amount of Rupees 60,000/-, which was borrowed by them for the purpose of education of the son of the Defendant No.1.
15. The contents of Ex.P.7 Office Copy of Legal Notice dated 15.04.2015, Ex.P.8 Postal Receipts 4 in numbers and Ex.P.9 SCCH-7 10 SC No.748/2016 Returned Unserved Postal Covers 4 in numbers, clarify the fact that, before filing the present suit, the Plaintiff Bank has made prompt efforts for the recovery of the outstanding loan amount of the Defendants by issuing a legal notice and inspite of that, the Defendants did not care to pay the outstanding loan amount to the Plaintiff Bank and as such, the Plaintiff Bank as no other alternative way, has filed the present suit for recovery of suit claim of Rupees 51,448/- as against the Defendants. Therefore, the Plaintiff Bank has cause of action for filing the present suit and as such, it is maintainable.
16. The date of loan is on 05.02.2015. The Plaintiff Bank has filed the present suit as against the Defendants on 30.04.2016. On perusal of the said dates, it prima-facie appears that, the suit filed by the Plaintiff Bank as against the Defendants is well within time. Hence, the suit filed by the Plaintiff Bank as against the Defendants is maintainable.
17. From the above said material evidence, both oral and documentary, produced by the Plaintiff Bank to consider its case, it is clearly proved that, on the date of filing of this suit, a sum of Rupees 561,448/- is due from the Defendants to the Plaintiff Bank. 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 them through paper publication, they were remained absent and hence, they are placed as exparte. The non-appearance of the Defendants in the present suit clearly implies that, they have indirectly admitted the entire case made SCCH-7 11 SC No.748/2016 out by the Plaintiff Bank as against them as well as the evidence adduced by it to prove its case in the present suit. Hence, the Defendants are liable to pay the suit claim of Rupees 51,448/- to the Plaintiff Bank.
18. The Plaintiff Bank has claimed current and future interest at the rate of 15.75% p.a., with monthly rests on the suit claim of Rupees 51,448/- from the date of the suit till the date of payment and Rupees 2,500/- towards typing and other miscellaneous expenses.
19. Based on the contents of Ex.P.1 to Ex.P.6, 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 loan amount of Rupees 60,000/- in 24 Equal Monthly Installments and interest at the rate of 13.30% per annum compounded monthly and also 2% penal interest in case of default. The entries made in Ex.P.10 Statement of Account clearly show that, the Defendants are irregular in making payment of loan installments to the Plaintiff Bank as agreed. Further, inspite of issuance of legal notice, the Defendants have dragged the Plaintiff Bank to file the present suit for recovery of suit claim of Rupees 51,448/-. Under such circumstances, the current and future interest at the rate of 15.75% per annum with monthly rests on the suit claim of Rupees 51,448/- by the Plaintiff Bank from the Defendants from the date of suit till its realization is proper and correct. Hence, there are merits in the claim of typing and miscellaneous of Rupees 2,500/-
SCCH-7 12 SC No.748/2016and costs and the same is entitled by the Plaintiff Bank from the Defendants.
20. 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 51,448/- from the Defendants jointly and severally with current and future interest at the rate of 15.75% p.a., with monthly rests from the date of this suit till its realization and Rupees 2,500/- towards Typing and other Miscellaneous expenses with costs. The Defendants 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 is liable to be decreed with costs. Accordingly, I answered Point No.1 in the Affirmative.
21. POINT NO.2 :- For the aforesaid reasons, I proceed to pass the following;
ORDER The suit filed by the Plaintiff Bank is hereby decreed with costs.
The Defendants No.1 to 4 are hereby directed to pay a sum of Rupees 51,448/- jointly and severally with current and future interest at the rate of 15.75% p.a. with monthly rests from the date of the suit till its realization SCCH-7 13 SC No.748/2016 and typing and other miscellaneous expenses of Rupees 2,500/-, 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, 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 1st day of October, 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 : A.R. Mahesh
2. DOCUMENTS MARKED BY THE PLAINTIFF :-
Ex.P.1 : Loan Application dated 29.04.2015 along with
Annexure
Ex.P.2 : Loan Sanction Letter dated 02.05.2015
Ex.P.3 : On Demand Promissory dated 02.05.2015
Ex.P.4 : Letter of Repayment dated 02.05.2015
SCCH-7 14 SC No.748/2016
Ex.P.5 : Articles of Agreement dated 02.05.2015
Ex.P.6 : Letter of Guarantee dated 02.05.2015
Ex.P.7 : Office copy of Legal Notice dated 15.04.2016
Ex.P.8 : Postal Receipts (4 in nos.)
Ex.P.9 : Returned Unserved Postal Covers (4 in nos.)
Ex.P.10 : Statement of Account along with Certificate
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.