Bangalore District Court
Canara Bank vs Sri. Hidayath Ulla H on 18 February, 2020
IN THE COURT OF THE LVI ADDL. CITY CIVIL &
SESSIONS JUDGE, BENGALURU (CCH 57)
:Present :
Sri. N.Sunil Kumar Singh., B.Com., LL.B.,
LVI Addl. City Civil & Sessions Judge,
Bengaluru
Dated this the 18 th day of February, 2020
O.S.No.1814/2019
PLAINTIFF : Canara Bank
A body corroborate constituted under
the Banking Companies
(Acquisition and Transfer of
Undertakings) Act 1970
and having its Head Office at
No.112, J.C.Road, Bangalore-560002,
And having amongst others a
Branches Office at Fraser Town,
No.80/3, Coles Road,
Bangalore-560005.
PAN No.AAACC6106G
And represented by its Chief Manager
And Constituted Attorney,
Mrs.T.N.Sowbhagyam,
D/o T.Nagabhushanam,
Aged about 52 years.
(By Smt.Anuradha D., Advocate)
- Vs.
DEFENDANT : Sri. Hidayath Ulla H.,
S/o Sri.Abdul Hameed,
Aged about 33 years,
R/at No.32/6, 1st Floor, 16th Cross,
Noor Layout, Rashad Nagar,
Arabic College, Bangalore-560045.
9742618161.
(Exparte)
2
O.S.No.1814/2019
Date of institution of the : 07.03.2019
suit
Nature of the suit : Money Suit
Date of commencement of : 07.01.2020
recording of the evidence
Date on which the : 18.02.2020
Judgment was
pronounced.
: Year/s Month/s Day/s
Total duration
00 11 11
* * * * * * *
JUDGMENT
This suit is filed by the plaintiff against the defendant for recovery of money and such other reliefs.
2. The facts in brief of the plaintiff's case is that, plaintiff is the banking company incorporated under Banking Companies (Acquisition and Transfer) of Undertaking Act, 1970 having its head office at No.112, J.C.Road, Bangalore and having one of the Branches at Fraser Town, Bangalore. The defendant approached plaintiff's bank in March 2016 for financial assistance for purchase of Nisssan Sunny XLD car and in pursuance of which submitted all loan documents. Thus, plaintiff's bank sanctioned loan of Rs.7,80,000/- on 03.03.2016. On the said date the defendant has executed memorandum of agreement and other loan documents and hypothecated the car purchased in favour of plaintiff bank agreeing to repay the loan amount in 60 monthly 3 O.S.No.1814/2019 installments of Rs.17,012/- each from May 2016 and also agreed to pay interest at the rate of 10.20% p.a. compounded monthly and also agreed to pay penal interest of 2% p.a. in case of default in payment of installments amount.
3. After availing of such loan defendant not paid monthly installments regularly and there was outstanding balance of Rs.6,73,259.78/- on 14.01.2019. Thus the plaintiff bank issued notice to pay outstanding balance, but defendant has not paid the same along with accrued interest. Thus without any alternative the plaintiff filed the present suit against the defendant for recovery of Rs.6,73,259.78/- along with interest at the rate of 11.70% p.a. compounded monthly from the date of suit till realization and prayed to decree the suit.
4. After service of suit summons defendant not appeared before this court. Hence, defendant was placed exparte and case was posted for plaintiff's evidence.
5. On the above pleadings following points arises for my consideration.
1. Whether the plaintiff proves that, defendant has borrowed loan of Rs.7,80,000/- from the plaintiff bank on 03.03.2016 for purchase of car agreeing to repay the same along with interest at the rate of 10.20% p.a.?
4O.S.No.1814/2019
2. Whether the plaintiff proves that they are entitled to recover a sum of Rs.6,73,259.78/- along with interest at the rate of 11.70% p.a. from the date of suit till realization from the defendant?
3. Whether the plaintiff is entitled to the relief as claimed in the suit?
4. What order or decree?
6. In order to prove the case of the plaintiff, the Chief Manager of plaintiff bank got examined herself as P.W.1 by filing her affidavit evidence and got marked documents Ex.P.1 to P.11. Since the defendant was placed exparte there was no evidence on behalf of the defendant.
7. Heard arguments of learned counsel for plaintiff.
8. My finding to the above Points are as follows:
Point No.1 to 3 : In the Affirmative Point No.4 : As per my final order for the following:
REASONS
9. POINT 1 TO 3 : Since these three Points are interconnected to each other, they have been taken together for my discussion in order to avoid repetition of facts and findings to be given their under.
5O.S.No.1814/2019
10. The brief averments of plaintiffs case is that, plaintiff is the banking company incorporated under Banking Companies (Acquisition and Transfer) of Undertaking Act, 1970 having its head office at No.112, J.C.Road, Bangalore and having one of the Branches at Fraser Town, Bangalore. The defendant approached plaintiff's bank in March 2016 for financial assistance for purchase of Nisssan Sunny XLD car and in pursuance of which submitted all loan documents. Thus, plaintiff's bank sanctioned loan of Rs.7,80,000/- on 03.03.2016. On the said date the defendant has executed memorandum of agreement and other loan documents and hypothecated the car purchased in favour of the plaintiff bank agreeing to repay the loan amount in 60 monthly installments of Rs.17,012/- each from May 2016 and also agreed to pay interest at the rate of 10.20% p.a. compounded monthly and also agreed to pay penal interest of 2% p.a. in case of default in payment of installments amount.
11. After availing of such loan defendant not paid monthly installments regularly and there was outstanding balance of Rs.6,73,259.78/- on 14.01.2019. Thus the plaintiff bank issued notice to pay outstanding balance, but defendant has not paid the same along with accrued interest. Thus without any alternative the plaintiff filed the present suit against the defendants for 6 O.S.No.1814/2019 recovery of Rs.6,73,259.78/- along with interest at the rate of 11.70% p.a. compounded monthly from the date of suit till realization.
12. In order to prove the case of the plaintiff, Chief Manager of plaintiff bank got examined herself as P.W.1 by filing her affidavit evidence reiterated the plaint averments and deposed that, she has been authorized by plaintiff bank to depose on their behalf since she is working as Chief Manager of plaintiff bank. There is no dispute with regard to PW.1 working as chief manager of plaintiff bank who has authorized to represent the plaintiff bank in the present suit. Further PW.1 deposed in her evidence that, plaintiff is the banking institution constituted under Banking Companies (Acquisition and Transfer) of Undertaking Act, 1970 and head office is situated J.C.Road Bangalore and plaintiff bank is one of the branches situated at Fraser town Bangalore. To dispute the said fact the defendant not appeared in the present suit.
13. PW.1 further deposed that, defendant has approached their bank in March 2016 for financial assistance to purchase Nissan Sunny XLD car and submitted loan application and in pursuance of which plaintiff bank has sanctioned loan of Rs.7,80,000/- to the defendant on 03.03.2016 and on the date of such 7 O.S.No.1814/2019 sanction after availing of loan defendant has executed memorandum of agreement of loan along with hypothecation agreement and other relevant documents in favour of plaintiff bank agreeing to repay the loan amount in 60 monthly installments of Rs.17,012/- each commencing from May 2016 and last installment will be Rs.17,261/- and also agreed to pay the loan amount along with interest at the rate of 10.20% p.a. compounded monthly and also agreed to pay overdue interest at the rate of 2% p.a. on the defaulted installments. In order to substantiate the same, loan application submitted by defendant to the plaintiff bank is marked as Ex.P.1 and seeman signature card //of the defendant is marked as Ex.P.2, Hypothecation agreement is marked as Ex.P.4 and service invoice is marked as Ex.P.5, letter of undertaking of loan and advances executed by defendant in favour of plaintiff bank is marked as Ex.P.6, tax invoice for having purchased car is marked as Ex.P.7, 'B' Register extract of car hypothecated in favour of plaintiff bank by defendant is marked as Ex.P.8. Project report of the car purchased is marked as Ex.P.9 and letter issued by plaintiff bank for creating hypothecation entry in the RC book of the car hypothecated by defendant is marked as Ex.P.10. The evidence of PW.1 and these documents clearly discloses that, defendant has availed loan of Rs.7,80,000/- on 8 O.S.No.1814/2019 03.03.2016 from the plaintiff bank for purchase of Nissan Sunny XLD car and after purchase of said car it was hypothecated in favour of plaintiff bank. The evidence of PW.1 and documents discloses that, defendant has agreed to repay the loan amount in 60 monthly installments of Rs.17,012/- each and last installment being Rs.17,261/-. It is also agreed by defendant to repay the loan amount along with interest at the rate of 10.20% p.a. along with penal interest of 2% p.a. in case of default of payment of installments.
14. PW.1 further deposed that, after availing of loan amount the defendant was chronic defaulter in payment of loan amount and there was outstanding balance of Rs.6,73,259.78/- as on 14.01.2019. In order to substantiate the same, loan ledger extract of the defendant maintained by plaintiff bank in the regular course of business transaction is marked as Ex.P.11. The recitals of which clearly discloses that, defendant was due to pay a sum of Rs.6,73,259.78/- as on the date of filing of this suit. PW.1 further deposed that, before filing the present suit they have issued notice to the defendant dated 21.11.2017 calling upon him to repay the outstanding balance of Rs.6,72,486/- along with interest as agreed upon. In order to substantiate the same, copy of notice is marked as Ex.P.3. PW.1 further deposed that, 9 O.S.No.1814/2019 despite of issuance of notice since defendant has not paid the outstanding loan amount Rs.6,73,259.78/- as on the date of filing of this suit. They have constrained to file the present suit for recovery of said amount along with interest at the rate of 11.70% p.a. Despite of evidence of PW.1 and marking of documents Ex.P.1 to 11 there is no rebuttal evidence on behalf of the defendant. In the absence of rebuttal evidence on behalf of the defendant there is no material available on record to disbelieve the evidence and documents of PW.1 herein. On perusal of documents produced on behalf of the plaintiff it is pertinent to note that, vehicle bearing registration No.KA.03.AD.1045 was hypothecated by defendant in favour of plaintiff bank. Thus, the plaintiff bank is entitled to seize the said vehicle and auction the said vehicle in accordance with law and appropriate the sale proceeds towards the loan amount outstanding. The evidence of PW.1 and their documents Ex.P.1 to 11 clearly discloses that, after availing of loan of Rs.7,80,000/- for purchase of car and despite of execution of required documents defendant has failed to repay the loan amount in regular installments and there is outstanding balance of Rs.6,73,259.78/- as per the recitals of Ex.P.11. Thus, plaintiff bank is entitled to recover the suit claim along with interest at the rate of 10 O.S.No.1814/2019 11.70% p.a. from the date of suit till realization. Accordingly, I hold Point No.1 to 3 as Affirmative.
15. POINT NO.4: For my discussion to point No.1 to 3 above, I proceed to pass the following:-
ORDER The suit of the plaintiff is decreed with cost.
The plaintiff bank is entitled to recover a sum of Rs.6,73,259.78/- along with interest at the rate of 11.70% p.a. from the date of suit till realization from the defendant.
Consequently, the plaintiff bank is entitled to seize and sell the vehicle bearing Registration No.KA.03.AD.1045 in accordance with law and appropriate the sale proceeds towards the suit claim.
Draw decree accordingly.
(Typed to my online dictation by Stenographer, revised and signed by me and thereafter pronounced in the Open Court on this the 18 th Day of February, 2020) (N. Sunil Kumar Singh) LVI Addl.City Civil & Sessions Judge, Bengaluru.
ANNEXURE
1. Witnesses examined on behalf of the plaintiffs.
P.W.1 Smt.T.N.Sowbhagyam
2. Witnesses examined on behalf of the defendants.
-NIL-
11O.S.No.1814/2019
3. Documents marked on behalf of the plaintiff.
Ex.P.1 Loan application.
Ex.P.2 Signature of DW.1.
Ex.P.3 Credit Sanction Intimation.
Ex.P.4 Deed of Hypothecation of Vehicles.
Ex.P.5 Invoice.
Ex.P.6 Letter of Undertaking.
Ex.P.7 Tax Invoice.
Ex.P.8 Copy of RC Book.
Ex.P.9 Project report.
Ex.P.10 Letter issued by plaintiff bank.
Ex.P.11 Ledger extract.
4. Documents marked on behalf of the defendant.
-NIL-
(N. Sunil Kumar Singh) LVI Addl.City Civil & Sessions Judge, Bengaluru.
12 O.S.No.1814/2019 Order pronounced in open Court.
(Vide separate order) ORDER The suit of the plaintiff is decreed with cost.
The plaintiff bank is entitled to recover a sum of Rs.6,73,259.78/-
along with interest at the rate of 11.70% p.a. from the date of suit till realization from the defendant.
Consequently, the plaintiff
bank is entitled to seize and sell
the vehicle bearing Registration
No.KA.03.AD.1045 in accordance
with law and appropriate the sale
proceeds towards the suit claim.
Draw decree accordingly.
LVI Addl.City Civil & Sessions
Judge, Bengaluru.
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O.S.No.1814/2019
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O.S.No.1814/2019
.