Bangalore District Court
Canara Bank vs Smt.P.Thangam on 19 November, 2021
IN THE COURT OF THE SMALL CAUSES AT
BENGALURU
PRESENT: RAJU.M.., M.A., LL.B.,
XVIII ADDL. JUDGE,
Court of Small Causes & ACMM,
BENGALURU.
Dated this the 19th day of November, 2021
S.C.No.713/2021
PLAINTIFF: Canara Bank,
Uttarahalli Branch,
Represented by Senior Manager,
Smt.K.Gowri,
W/o Sri.Srinivas Sasthan,
Aged about 59 years.
(By Sri.RRA.,Adv)
V/s
DEFENDANT: Smt.P.Thangam,
W/o Sri.Ravi Kumar,
Aged about 38 years,
No.13, Old No.7/2,
Near Arehalli Arch,
Kodipalya, Uttarahalli,
Bengaluru560 061.
(Exparte)
Date of institution of the suit: 20.09.2021
Nature of suit: Money suit
Date of commencement of
recording of evidence: 16.11.2021
SCCH-4 2 SC No.713/2021
Date of pronouncement of judgment: 19.11.2021
Duration: Year/s Month/s Day/s
00 01 29
*******
: J U D G M E NT :
The plaintiff Bank has filed this suit against the
defendant for recovery of a sum of Rs.1,66,100/ along with
current and future interest at the rate of 11.90% p.a.,
compounded monthly with respect to term loan and at
Rs.9.50%, from the date of suit till the date of realisation.
2. The plaint averments in brief is as under:
The plaintiff is a Banking company constituted under
the Banking Companies (Acquisition and Transfer of
Undertakings) Act 1970, having its head office at No.112,
J.C.Road, Bengaluru560 002, and a Branch office inter alia at
Uttarahalli Branch, Bengaluru560 061, represented by its
Senior Manager.
The defendant approached the plaintiff bank for the
purpose of credit facility. The plaintiff accordingly on
05.03.2018 granted a term loan of Rs.2,00,000/ to the
SCCH-4 3 SC No.713/2021
defendant for her Saree business needs. The defendant to
ensure prompt repayment of the loan amount availed by her
executed the necessary documents like on demand and pro
note and agreement cum hypothication deed dated 5.3.2018.
in favour of the plaintiff bank. The defendant as per the
sanction terms and the documents agreed to repay the loan
amount along with interest at the rate of 10.85% p.a.,
compounded. The defendant has also agreed to pay interest at
varied rate as per the changes in the rate of interest. The
defendant have also agreed to pay over due interest of 2% in
case of default in payment of loan amount as agreed. The
defendant under took to repay the loan amount in 36 equated
monthly installments of Rs.6,787/ each commencing from
31.03.2018 and interest to be paid as and when due. Further
the defendant again approached the plaintiff bank for the
purpose of credit facility. The further submits that, on
25.06.2020 also it has granted an guarantee emergency credit
limit facility of Rs.24,000/ to the defendant for her saree
business needs. In this regard the defendant has executed on
SCCH-4 4 SC No.713/2021
demand promissory note, Take delivery letter to DPN,
agreement cum hypothication deed, and particulars of
equipments dated 25.6.2020. The defendant as per the
sanction terms and the documents executed agreed to repay
the loan amount along with interest 6.90% p.a., compounded.
The defendant has also agreed to pay over due interest at 2%
in case of default in payment of loan amount as agreed and to
repay the loan amount in 36 equated monthly installments of
Rs.747/ each with a repayment holiday of 12 months from
date of availing the loan and interest to be paid as and when
due. The defendant continued the default in operation the
account inspite of repeated demands, personal approaches
made by the plaintiff officials. The plaintiff finally got issued a
legal notice dated 13.09.2021 and recalled the entire amount
due. The defendant has neither replied to the notice nor paid
the amount due under the notice. The cause of action for the
suit has arisen to the plaintiff on 05.03.2018 and 25.06.2020
and when the defendant availed the credit facilities and
executed the suit documents in favour of the plaintiff bank.
SCCH-4 5 SC No.713/2021
3. After service summons the defendant is placed
exparte.
4. To prove the case of plaintiff the Senior Manager of
plaintiff bank examined as P.W.1 and got marked the
documents at Ex.P.1 to P.14.
5. The following points arise for my consideration.
1. Whether the plaintiff prove that
defendant has availed loan of
Rs.2,00,000/ on 05.03.2018 and
Rs.24,000/, on 25.6.2020?
2. Whether the plaintiff prove that the
defendant has agreed to pay interest
as sought for ?
3. What order or decree?
6. I have heard the arguments of plaintiff's counsel.
7. My findings on the above points are as follows:
Point No.1 and 2: In the affirmative;
Point No.3 : As per the final orders
:REASONS:
8. Point No.1 and 2: Since these two points are inter
linked with each other, they are taken up together for common
discussion.
SCCH-4 6 SC No.713/2021
That by reiterating all the averments made in the plaint,
the PW.1 has filed his affidavit in lieu of chiefexamination. In
support of his claim, he has produced the loan application,
loan sanction letter, Pro note executed by defendant,
agreement cum hupothication deed, another loan application,
another sanction letter, Pro note executed by defendant, take
delivery letter to DPN, agreement cum deed of hypothication,
particulars of hypothication, letter of revival, copy of legal
notice along with postal receipt, statement of account along
with certificate and another statement of account along with
certificate. All these documents have been marked as Ex.P.1 to
P.14.
9. The documents goes to show that the plaintiff bank
has sanctioned the loan of Rs.200000/ on 5.3.2018 to the 1 st
defendant, who has agreed to repay the loan with interest at
the rate of 8.30% plus 2.95%. As per the loan account No.
27787680000059 the defendant is due a sum of Rs.
1,39,924/ as on 13.09.2021.
SCCH-4 7 SC No.713/2021
10. The plaintiff bank has also sanctioned the loan of
Rs.24,000/ on 25.6.2020 to the 1 st defendant ,who has
agreed to repay the loan with interest at the rate of 6.90%. As
per another loan account No.2778755000019 the defendant
is due a sum of Rs.24,287/ as on 25.8.2021.
11. If at all the defendant did not borrow any loan from
the plaintiff bank, he could have contest the case by putting
forth their defence. Whereas, the defendants kept quite
without contesting the suit, an inference could be drawn that
the defendant has borrowed the loan amount. The oral and
documentary evidence of plaintiff bank has not been
challenged by defendant either by adducing evidence or by
cross examining the P.W.1. Hence there are no reasons to
discard the evidence of plaintiff bank. The evidence specifically
reveals that, the defendant No.1 has borrowed the suit amount
from the plaintiff bank but she has not cleared the entire loan
amount. When the defendant has borrowed the loan from the
plaintiff bank there is an obligation on the part of the
defendant to repay the loan amount of Rs.1,39,924/ along
SCCH-4 8 SC No.713/2021
with interest at the rate of 8.30% + 2.95% and defendant is
also liable to pay Rs.24,287/ with interest at the rate of
6.90%. Accordingly, I answer point No.1 and 2 in the
affirmative.
POINT NO.3:
12. In view of my findings on above points, I proceed to
pass the following.
ORDER
The suit of the plaintiff bank is hereby decreed with cost.
The plaintiff bank is entitled to recover a sum of Rs.1,39,924/ along with interest at the rate of 11.25% (including penal interest) and Rs.24,287/ with interest at the rate of 6.90% from the date of suit till the date of realization of entire amount.
Draw decree accordingly. [Dictated to the stenographer directly on computer, typed by her, then corrected by me and pronounced in open court on this the 19th day of November, 2021.] (RAJM.M) XVIII ADDL.JUDGE, Court of Small Causes & ACMM, BENGALURU.
SCCH-4 9 SC No.713/2021ANNEXURE LIST OF WITNESSES EXAMINED ON BEHALF OF THE PLAINTIFFS:
PW.1 : K.Gowri LIST OF WITNESSES EXAMINED ON BEHALF OF THE DEFENDANT:
NONE LIST OF THE DOCUMENTS MARKED ON BEHALF OF THE PLAINTIFFS:
Ex.P.1 : Loan application Ex.P.2 : Loan sanction letter Ex.P.3 : Pro note executed by defendant Ex.P.4 : Agreement cum hypothication deed Ex.P.5 : Another loan application Ex.P.6 : Another sanction letter Ex.P.7 : Pro note executed by defendant Ex.P.8 : Take delivery letter to DPN Ex.P.9 : Agreement cum deed of hypothication Ex.P.10 : Particulars of hypothication Ex.P.11 : Letter of revival Ex.P.12 : Copy of legal notice along with postal receipt Ex.P.13 : Statement of account along with certificate Ex.P.14 : Another statement of account along with certificate LIST OF THE DOCUMENTS MARKED ON BEHALF OF THE DEFENDANT:
NONE (RAJM.M) XVIII ADDL.JUDGE, Court of Small Causes & ACMM, BENGALURU.