Bangalore District Court
Karnataka Bank Limited vs M/S.Tirumala Traders on 4 September, 2021
IN THE COURT OF XXXV ADDL.CITY CIVIL &
SESSIONS JUDGE, BENGALURU (CCH36)
DATED ON THIS THE 4th DAY OF SEPTEMBER 2021
Present: Sri.Sathisha.L.P., B.A.,L.L.B.,
C/c XXXV Addl.CC & SS Judge, Bengaluru.
O.S.No.5279/2020
Plaintiff : Karnataka Bank Limited,
A Bank Company incorporated under
the Indian Companies Act, 1913,
carrying the Banking business having
its Registered and H. at Mahaveer at
Circle, P.B.No.599, Kankanady,
Mangaluru575002 ad several
branches through out India and one
amongst them and Kengeri Satellite
Town Branch, Bengaluru60.
Represented by its power of attorney
holder and Senior branch Manager
Sri.Madhu.K.S.
(By Sri.B.B.S.N., Advocate)
Vs
Defendant : M/s.Tirumala Traders,
Rep by its Prop: Mr.Vasu Reddy,
S/o.Sri.Basava Reddy,
Aged about 47 years,
No.189/22/2345/2,
Site No.3, KHB Colony,
Kengeri Satellite Town,
Bengaluru560 060.
Also at
To:
Mr.Vasu Reddy,
Prop of M/s.Tirumala Traders,
No.4, Gandhinagar, 1st main,
1st cross, Near Mahaveer Cornet
Apartment, Kengeri Satellite Town,
Bengaluru560 060.
(Exparte)
*****
Date of institution of the : 21102020
suit
Nature of the suit : Money suit
Date of commencement of
recording of the evidence : 02092021
Date on which the judgment : 04092021
was pronounced
Total duration : Years/s Month/s Day/s
00 10 13
(SATHISHA.L.P)
C/cXXXV Addl.City Civil &
Sessions Judge, Bengaluru
Judgment
The Plaintiff Bank has filed this suit against the
defendant for recovery of money.
3
2. In brief, the case of plaintiff Bank is as
follows:
On 03112017, the defendant has borrowed a sum
of Rs.5,00,000/ (Five Lakhs) over draft facility and
Rs.4,00,000/ (Four Lakhs) credit facility under DPN
facility, in all amounting to Rs.9,00,000/ (Nine Lakhs)
from the plaintiff Bank, for the business purpose of
Steel and Cement and for working capital for the
business of Steel and cement by executing necessary
documents and agreeing to pay interest at the rate of
15.70% p.a. compounded monthly. The defendant has
failed to pay the loan amount. Hence, the plaintiff -
Bank issued a legal notice to the defendant, calling upon
it to pay the loan amount. In spite of request, the
defendant has not paid the loan amount. As on the
date of suit, the defendant is liable to pay a sum of
Rs.9,50,69770/ (Rupees Nine Lakhs Fifty Thousand Six
4
Hundred and Ninety Seven). Therefore, it is prayed to
decree the suit.
3. As could be seen from the order sheet,
dt: 2672021, the defendant is placed exparte.
4. The Senior Manager of the plaintiff - Bank one
Sri.Mahabaleshwar V Dixit, is examined as P.W.1 and got
marked Exs.P.1 to P.32.
5. Heard.
6. The points that arise for consideration are as
follows:
1. Whether the plaintiff Bank is entitled
for suit claim?
2. What Order?
7. My answer to the above points are as follows:
Point No.1 : In the affirmative
5
Point No.2 : As per final order for the
following:
REASONS
8. Point No.1: The Senior Manager of plaintiff
Bank one Sri.Mahabaleshwar V Dixit is examined as
P.W.1. In his affidavit evidence, he has clearly explained
the transaction between the plaintiff Bank and
defendant. He has deposed that the defendant has
availed Over Draft credit facility in all a amounting to
Rs.9,00,000/ for the purpose of business of Steel and
Cement and working capital for Steel and Cement
business and executed necessary documents. In his
evidence, Ex.P.1 is the notarized copy of Power of
Attorney Original seen and returned to witness, Ex.P.2 is
the credit sanction intimation dated 3112017, Ex.P.3 is
the declaration dated 16112017, Ex.P.4 is the consent
letter dated 16112017, Ex.P.5 is the account opening
form dated 16112017, Ex.P.6 is the check collection
6
letter dated 16112017, Ex.P.7 is the application for
standing instruction dated 16112017, Ex.P.8 is the
Hypothication Agreement dated 16112017, Ex.P.9 is
the take delivery letter dated 16112017, Ex.P.10 is the
demand promissory note dated 16112017, Ex.P.11 is
the undertaking letter dated 16112017, Ex.P.12 is the
General Power of Attorney for Book Debts, Ex.P.13 is the
Declaration dated 16112017, Ex.P.14 is the consent
letter from the borrowers dated 16112017, Ex.P.15 is
the Account opening form dated 16112017, Ex.P.16 is
the Check collection letter dated 16112017, Ex.P.17 is
the Request to retain account No. of OD account dated
16112017, Ex.P.18 is the take delivery letter dated
16112017, Ex.P.19 is the demand promissory note
dated 16112017, Ex.P.20 is the Hypothication
agreement dated 16112017, Ex.P.21 is the General
Power of Attorney for Book Debts, Ex.P.22 is the sanction
of credit facility intimation, Ex.P.23 is the request for
7
Over Draft and cash credit facilities, Ex.P.24 and Ex.P.25
are the office copies of the legal notice dated 15112019,
Ex.P.26 & Ex.P.27 are the two returned RPAD covers,
Ex.P.26(a) and Ex.P.27(a) are the contents of RPAD
covers, Ex.P.28 and P.29 are the office copy of the Legal
notice dated 23112019, Ex.P.30 is the postal
acknowledgment, Ex.P.31 is the Banker Book Evidence
Act certificate, Ex.P.32 is the Account Statement. From
this, it is evident that the defendant has availed loan and
has not paid loan amount. The defendant is placed
exparte. The oral and documentary evidence placed on
record is not challenged. Hence, point No.1 is answered
in the affirmative.
9. Point No.2: In view of my answer to point No.1,
I proceed to pass the following:
ORDER
Suit is decreed with cost. 8 The defendants are directed to pay a sum of Rs.9,50,698/ (Rupees Nine Lakhs Fifty Thousand Six Hundred and Ninety Eight only) to the plaintiff Bank within two months along with interest at the rate of 15.70% p.a. compounded monthly from the date of the suit till realization of entire amount.
Draw Decree accordingly. (Dictated to the JudgmentWriter, transcribed and typed by her and then corrected and pronounced by me in the open court on this the 4th day of September 2021) (SATHISHA.L.P) C/c XXXV Addl.City Civil & Sessions Judge, Bengaluru ANNEXURE Witnesses examined on behalf of the plaintiff.
P.W.1 : Sri.Mahabaleshwar V Dixit 9 Witnesses examined on behalf of the defendant.
Nil Documents marked on behalf of the plaintiff. Ex.P.1 : Notarized copy of Power of Attorney Ex.P.2 : The credit sanction intimation dated 3112017 Ex.P.3 : The declaration dated 16112017 Ex.P.4 : The consent letter dated 16112017 Ex.P.5 : The account opening form dated 16112017 Ex.P.6 : The check collection letter dated 16112017 Ex.P.7 : Application for standing instruction dated 16112017 Ex.P.8 : Hypothication Agreement dated 16112017 Ex.P.9 : Take delivery letter dated 16112017 Ex.P.10 : Demand promissory note dated 16112017 10 Ex.P.11 : Undertaking Letter dated 16112017 Ex.P.12 : General Power of Attorney for Book Debts Ex.P.13 : Declaration dated 16112017 Ex.P.14 : Consent letter from the borrowers dated 16112017 Ex.P.15 : Account opening form dated 16112017 Ex.P.16 : Check collection letter dated 16112017 Ex.P.17 : Request to retain Account No.of OD account dated 16112017 Ex.P.18 : Take delivery letter dated 16112017 Ex.P.19 Demand Promissory note dated 16112017 Ex.P.20 : Hypothication Agreement dated 16112017 Ex.P.21 : General Power of Attorney for Book Debts Ex.P.22 : Sanction of credit facility intimation Ex.P.23 : Request for Over Draft and cash credit facilities 11 Ex.P.24 : Office copy of the Legal notice dated & P.25 15112019 Ex.P.26 : Two Returned RPAD covers & P.27 Ex.P.26(a) : Contents of RPAD covers & P.27(a) Ex.P.28 : Office copy of the Legal notice dated & P.29 23112019 Ex.P.30 : Postal acknowledgment Ex.P.31 : Banker Book Evidence Act Certificate Ex.P.32 : Account Statement Documents marked on behalf of the defendant.
Nil (SATHISHA.L.P.) C/c XXXV Addl.City Civil & Sessions Judge, Bengaluru 12 Judgment pronounced in open Court (Vide separate Judgment) ORDER Suit is decreed with cost. The defendants are directed to pay a sum of Rs.9,50,698/ (Rupees Nine Lakhs Fifty Thousand Six Hundred and Ninety Eight only) to the plaintiff Bank within two months along with interest at the rate of 15.70% p.a. compounded monthly from the date of the suit till realization of entire amount. Draw Decree accordingly. (SATHISHA.L.P) C/c XXXV Addl.City Civil & Sessions Judge, Bengaluru