Bangalore District Court
The vs Have Failed To Repay The Loan Amount As ... on 21 January, 2023
13
COM.O.S.636/2022
IN THE COURT OF LXXXII ADDL.CITY CIVIL & SESSIONS JUDGE,
AT BENGALURU (CCH.83)
THIS THE 21st DAY OF JANUARY 2023
PRESENT:
SMT. SUMANGALA S BASAVANNOUR.,B.COM,L.L.M.,
LXXXII ADDL.CITY CIVIL & SESSIONS JUDGE,
BENGALURU.
Com.O.S.No.636/2022
BETWEEN:
Canara Bank, Malleswaram
18th Cross Branch, Bengaluru
- 560 003. represent by its
Chief Manager Mr.Aman
Gupta Aged about 35 years
: PLAINTIFF
(Represented by Prakasha
Hegde K-Advocate)
AND
1. Mr. G.Shivakumar, S/o
Gangamari, Major, R/at
No.114/2, Lakshmidevinagar,
Lakshminagar, Bengaluru-
560 096.
2. Mrs. Veena, W/o
G.Shivakumar, R/atNo.114/2,
Lakshmidevinagar,
Lakshminagar,
Bengaluru-560 096
: DEFENDANTS
13
COM.O.S.636/2022
(Defendants are placed
exparte as 04.01.2023)
Date of Institution of the
21.04.2022
suit
Nature of the suit (suit on
pronote, suit for
Suit for recovery of money
declaration & Possession,
Suit for injunction etc.)
Date of commencement of 18.01.2023
recording of evidence
Date on which judgment 21.01.2023
was pronounced
Total Duration Year/s Month/s Day/s
00 09 00
(SUMANGALA S BASAVANNOUR),
LXXXII Addl.City Civil & Sessions Judge,
Bengaluru.
JUDGMENT
This suit is filed by the Plaintiff Bank for recovery of Rs.4,36,753/- with future interest at 13.25% p.a. outstanding as on 31.11.2021 along with interest from 31.03.2022 till realization.
2. The Brief facts of the Plaint are as follows:-
The Defendants have approached the Plaintiff Bank earlier Syndicate Bank now Canara Bank for Credit Facility for Vehicle 13 COM.O.S.636/2022 Loan for purchase of Muruti Swift Desire. Plaintiff had considered the request of the Defendants and sanctioned the Vehicle Loan for purchase of Maruti Swift Desire of Rs.5,45,000/-. The loan was sanctioned on 04.06.2015 in Loan Account No.04249910000085. Defendants while availing the credit facility from the Plaintiff Bank, on 08.06.2015 had executed Composite Hypothecation Agreement in favor of Plaintiff. The Defendant had hypothecated Maruti Swift Desire in favour of Applicant Bank. Defendants had availed the credit facility and had also agreed that in default of payment or interest on respective due dates, Defendant shall pay on such overdue with additional interest @ 2% over and above the agreed rate of interest. The interest has been charged by the Plaintiff Bank in conformity with RBI guidelines and internal circular issued by the Bank from time to time. Defendants had agreed to service the interest with equated monthly installments with variable rate of interest thereon that may be charged from time to time as per the direction of RBI and presently at 11.25% p.a. at monthly rests. The Defendants were very irregular in matter of servicing of interest and loan amount. The Defendants have failed to repay the loan amount as agreed in spite of regular request and notice. The Defendants have failed to repay the loan amount as per the terms of the Loan. Thereafter the Plaintiff Bank had seized the 13 COM.O.S.636/2022 Vehicle and sold the said vehicle in public auction and recovered a sum of Rs.1,85,000/- and the same was adjusted to the loan account on 20.02.2020. Plaintiff on 06.12.2021 issued notice to Defendant recalling the entire outstanding amount in the loan accounts in view of the default by him and same is returned. Defendants had failed to repay the admitted outstanding due amount Rs.4,36,753/-. The Defendants herein is now owe to the Bank a sum of Rs.4,36,753/- with future interest @ 11.25% p.a. outstanding as on 31.03.2022 with future interest. Amount due to Plaintiff towards the loan amount Rs.4,36,753/- with future interest @ 13.25% p.a. outstanding as on 31.03.2022 Complete statement of account extracted from the ledger account book of the Plaintiff Bank maintained in the usual course of its banking business and duly certified by its Manager as required under Banker's Book Evidence Act is produced along with the Plaint.
3. Inspite of paper publication, the Defendant has not appeared before this court, after waiting for 30 days, i.e., the time limit for filing written statement, he was placed ex-parte on 04.01.2023.
4. The Plaintiff has examined PW-1 and got marked Ex.P.1 to Ex.P.8. I have heard the arguments of the Advocate for the Plaintiff.
13COM.O.S.636/2022
5. Based on the above pleadings of the Plaintiff, the following points arise for my consideration :-
1. Whether the Plaintiff is entitled for the Suit Claim from the Defendant ?
2. What Order ?
6. My findings on the above Points are as under:
1. Point No.1 :- In the Partly Affirmative.
2. Point No.2 :- As per the final Order for the following reasons.
REASONS
7. Point No.1 :- The Plaintiff Bank substantiate of this case examined its Manager Sri. Basavaraja as PW.1. PW.1 in his evidence reiterated averments of the Plaint, and got marked Ex.P.1 to Ex.P.8.
8. In the decision reported in A.I.R. - 2000 - Karnataka - 234 (Syed Ismail vs. Smt. Shamshia Begum), the Hon'ble High Court of Karnataka has held as follows :-
"3. The impugned order does not disclose the nature of pleading placed by the plaintiff and whether there is prima facie material to grant a decree in his favour. A 13 COM.O.S.636/2022 judgement in favour of the plaintiff is not automatic. The Court has to consider the case of the plaintiff and grant a decree in his favour. The learned trial Judge has not referred to the pleadings of the plaintiff and the documents produced by him to substantiate even a prima facie case for grant of a decree in his favour. Therefore, the judgement and decree in favour of the plaintiff is not automatic on failure of the opposite party to put his defence. The Court can grant a judgement in favour of the party only upon consideration of the case of the plaintiff including appreciation of pleadings and evidence."
9. The averments of the Plaint, evidence of PW.1 and Ex.P.2 to Ex.P5 discloses that the Defendants have approached the Plaintiff Bank earlier Syndicate Bank now Canara Bank for Credit Facility for Vehicle Loan for purchase of Muruti Swift Desire. Plaintiff had considered the request of the Defendants and sanctioned the Vehicle Loan for purchase of Maruti Swift Desire of Rs.5,45,000/-.
10. The loan was sanctioned on 04.06.2015 at Ex.P. in Loan Account No.04249910000085. Defendants while availing the credit facility from the Plaintiff Bank, on 08.06.2015 had executed Composite Hypothecation Agreement at Ex.P.3 in favor of Plaintiff. The Defendant had hypothecated Maruti Swift Desire in favour of Applicant Bank.
13COM.O.S.636/2022
11. The Defendants had availed the credit facility and had also agreed that in default of payment or interest on respective due dates, Defendant shall pay on such overdue with additional interest @ 2% over and above the agreed rate of interest. The interest has been charged by the Plaintiff Bank in conformity with RBI guidelines and internal circular issued by the Bank from time to time.
12. The Defendants were very irregular in matter of servicing of interest and loan amount. The Defendants have failed to repay the loan amount as agreed in spite of regular request and notice. The Defendants have failed to repay the loan amount as per the terms of the Loan. Thereafter the Plaintiff Bank had seized the Vehicle and sold the said vehicle in public auction and recovered a sum of Rs.1,85,000/- and the same was adjusted to the loan account on 20.02.2020. Plaintiff on 06.12.2021 issued notice at Ex.P.5 to Defendant recalling the entire outstanding amount in the loan accounts in view of the default by him and same is returned. Defendants had failed to repay the admitted outstanding due amount Rs.4,36,753/-.
13. From Ex.P.8 the Statement of account speaks to the effect that total amount payable includes the interest accrued and therefore, Plaintiff has successfully proved that the Defendants 13 COM.O.S.636/2022 have availed loan and have not repaid the same and are liable to pay the suit claim amount as on the date of suit. The Plaintiff has prayed interest on the suit claim amount at 13.25% per annum from till the date of payment. However by considering the interest prevailing, it is proper to award interest @ 10% per annum from the date of suit.
14. The above mentioned transactions commenced from 4.06.2015 and the defendant had made the part payment on 20.02.2020 and the suit filed on 21.04.2022 is within the limitation period.
15. In this case in spite of paper publication, the Defendant is not appeared and denied the claim of the Plaintiff Hence, it shows the Defendants admitted the case of the Plaintiff. The evidence of PW.1 and Ex.P.1 to Ex.P.8 are remained unchallenged. Therefore, the Plaintiff is entitle for recovery of the suit claim amount of Rs. 4,36,753/- with future interest @ 10% per annum from the date of suit till realization of the entire amount. Hence, I answer this Point in " Partly Affirmative".
16. Point No.2 : -Therefore, I proceed to pass the following Order.
13COM.O.S.636/2022 ORDER The Suit of the Plaintiff is decreed in part with cost.
The Defendants are hereby directed to pay Rs.4,36,753/- with interest @ 10% per annum from till the date of payment.
Draw Decree accordingly.
The Office is directed to send copy of this Judgment to Plaintiff and Defendant to their email ID as required under Order XX Rule 1 of the Civil Procedure Code as amended under Section 16 of the Commercial Courts Act.
( Dictated to the Stenographer, typed by her directly on computer, verified and then pronounced by me in open Court on this the 21st day of January, 2023).
(SUMANGALA S BASAVANNOUR), LXXXII Addl.City Civil & Sessions Judge, Bengaluru.
ANNEXURE LIST OF WITNESSES EXAMINED ON BEHALF OF THE PLAINTIFF PW-1 Sri. Basavaraja 13 COM.O.S.636/2022 LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE PLAINTIFF Ex.P.1 Loan application Ex.P.2 Letter of sanction dated 04.06.2015 Ex.P.3 Composit hypothication agreement dated 04.06.2015 Ex.P.4 Correspondence regarding seizer of vehicle dated 20.02.2020 (3 pages) Ex.P.5 & P.5(a), (b) Office copy of legal notice dated 06.12.2021 with two postal receipts Ex.P.6 & P.6(a) Unserved RPAD (Opened in open court), Postal cover marked as Ex.P.6 and notice marked as Ex.P.6(a) Ex.P.7 & P.7(a) Unserved RPAD (Opened in open court), Postal cover marked as Ex.P.7 and notice marked as Ex.P.7(a) Ex.P.8 Statement of account with certificate LIST OF WITNESSES EXAMINED ON BEHALF OF THE DEFENDANT NIL LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE DEFENDANT NIL (SUMANGALA S BASAVANNOUR), LXXXII Addl.City Civil & Sessions Judge, Bengaluru.