Bangalore District Court
Union Bank Of India vs Abhishek K Mandolu on 23 August, 2025
KABC020729822024
IN THE COURT OF THE IX ADDL. SMALL CAUSES
AND, ACJM, (SCCH-7), BENGALURU.
Before: Sri. SHYAM PRAKASH
B.A.L, LLB.,
IX Addl. Small Causes Judge,
Court of Small Causes,
Member, MACT-7, Bengaluru.
Dated this 2nd day of August 2025
S.C. No.954/2024
Plaintiff: Union Bank of India,
Branch at: No.148 old Madras,
K.R. Puram, Bengaluru - 560 036.
K.R. Puram Branch,
Represented by its Authorized
Branch Manager,
Mr. K.Gangoji Reddy,
S/o Mr. K.Jayarami Reddy.
(By Sri.M.V. Kini, Advocate)
-VERSUS-
Defendant: Mr. Abhishek K. Mandolu,
S/o Mr. Kantil,
No.12, 2nd Main, 2nd Cross,
Vinayakanagar,
South Audgodi,
Bengaluru - 560 030.
(Exparte)
2 SCH-7
SC.No.954/2024
*****
Date of Institution of suit 08.11.2024
Nature of the suit Recovery of Money
Date of Commencement of
22-07-2025
evidence
Date of pronouncement of
23-08-2025
judgment
Year's Month/s Day/s
Total Duration
00 09 15
(Shyam Prakash)
IX ASCJ & ACJM,
Benglauru.
JUDGMENT
This is a suit for recovery of money filed by the Plaintiff bank against defendant for a sum of Rs.1,17,473.10/- along with interest @11% p.a., compoundable monthly on the said due from the date of present suit with monthly rests till the date of realization entire amount.
2. The brief facts averred in the Plaint are as under:
The Plaintiff is established under the Banking companies (acquisition & transfer of undertakings) Act and the defendant had approached the plaintiff bank for seeking Pradhan Mantri Mudra Yojana for term loan of Rs.3,50,000/- for business development and
3 SCH-7 SC.No.954/2024 filed Ex.P-2/Loan application and considering his application and other relevant documents the plaintiff bank sanctioned term loan for a sum of Rs.3,50,000/- (Rupees Three Lakhs Fifty only) under PMMY Loan account No.149130100038329 with interest @ 11% p.a. as per Ex.P.3/Sanction letter dated 07.11.2020. The defendant has agreed to repay the borrowed amount with monthly EMI installments with interest @8.55% p.a., (presently ROI) and variable rate of interest thereon as per the direction of RBI. The Defendant had executed Ex.P-4/Term Loan Agreement/Hypothecation of Movables dated 10.11.2020, Ex.P.5/Letter of undertaking dated 10.11.2020, Ex.P.6/Letter of Undertaking not to alienate the hypothecated goods dated 10.11.2020, Ex.P.7/Letter of General Lien and Set-off agreement dated 10.11.2020 and Ex.P.8/Interest rate agreement dated 10.11.2020 in favour of Plaintiff Bank for availing loan by the defendant. Subsequently the Defendant had utilized loan facility and started defaulting in payment of overdrawn amount and other conditions as per the terms of agreement and continued to commit default in spite of repeated requests and demands made by the Plaintiff Bank. Though the defendant has executed various documents acknowledging his above liability, he has 4 SCH-7 SC.No.954/2024 failed to repay the above loan regularly. As the defendant has failed to pay the loan as undertaken and committed default of the other terms of the loan agreement, he become liable to pay the entire debt forthwith. The defendant is in due to the plaintiff to the tune of Rs.1,17,473.10/- as on the date fell due and is liable to pay interest thereon at 11% p.a. compounded at monthly with penal interest. The defendant is irregular in making payments of said installments. The plaintiff bank demanded the defendant to repay the borrowed amount and in-spite of demands from the plaintiff bank, the defendant has failed and neglected to pay the amount as and when they fell due. As per Ex.P.9/Statement of account, the defendant is due for a sum of Rs.1,17,473.10/- as on the date of filing the suit. Hence the plaintiff constrained to file this suit.
3. In pursuance of suit summons, the defendant remained absent and hence, he was placed exparte.
4. The plaintiff bank in order to prove it's case, got examined it's Chief Manager - Sri. Mobassar Aslam, as PW.1 and got marked documents as Ex.P1 to Ex.P11 documents.
5. Heard the arguments.
5 SCH-7 SC.No.954/2024
6. On the basis of the pleadings and the materials available on record, the following Points arise for my consideration:
1) Whether the Plaintiff bank is
entitled for the relief as
sought for?
2) What order or decree?
7. My findings to the above Points is in the AFFIRMATIVE for the following:
REASONS
8. Point No.1:- Plaintiff filed the present suit against the defendant for recovery of a sum of Rs.1,17,473.10/- along with interest @11% p.a., compoundable monthly on the said due from the date of present suit with monthly rests till the date of realization entire amount.
9. According to the plaintiff's case, the defendant had approached the plaintiff bank for seeking Pradhan Mantri Mudra Yojana for term loan of Rs.3,50,000/- for business development and filed Ex.P-2/Loan application and considering his application and other relevant documents the plaintiff 6 SCH-7 SC.No.954/2024 bank sanctioned term loan for a sum of Rs.3,50,000/- (Rupees Three Lakhs Fifty only) under PMMY Loan account No.149130100038329 with interest @ 11% p.a. as per Ex.P.3/Sanction letter dated 07.11.2020. The defendant has agreed to repay the borrowed amount with monthly EMI installments with interest @8.55% p.a., (presently ROI) and variable rate of interest thereon as per the direction of RBI. The Defendant had executed Ex.P-4/Term Loan Agreement/Hypothecation of Movables dated 10.11.2020, Ex.P.5/Letter of undertaking dated 10.11.2020, Ex.P.6/Letter of Undertaking not to alienate the hypothecated goods dated 10.11.2020, Ex.P.7/Letter of General Lien and Set-off agreement dated 10.11.2020 and Ex.P.8/Interest rate agreement dated 10.11.2020 in favour of Plaintiff Bank for availing loan by the defendant. Subsequently the Defendant had utilized loan facility and started defaulting in payment of overdrawn amount and other conditions as per the terms of agreement and continued to commit default in spite of repeated requests and demands made by the Plaintiff Bank. Though the defendant has executed various documents acknowledging his above liability, he has failed to repay the above loan regularly. As the defendant has failed to pay the loan as undertaken 7 SCH-7 SC.No.954/2024 and committed default of the other terms of the loan agreement, he become liable to pay the entire debt forthwith. The defendant is in due to the plaintiff to the tune of Rs.1,17,473.10/- as on the date fell due and is liable to pay interest thereon at 11% p.a. compounded at monthly with penal interest. The defendant is irregular in making payments of said installments. The plaintiff bank demanded the defendant to repay the borrowed amount and in-spite of demands from the plaintiff bank, the defendant has failed and neglected to pay the amount as and when they fell due. As per Ex.P.9/Statement of account, the defendant is due for a sum of Rs.1,17,473.10/- as on the date of filing the suit.
10. The burden to prove the framed Point lies on the Plaintiff. Hence, in order to prove its case, the Plaintiff bank has adduced oral evidence through its Chief Manager so that, the said Chief Manager by name Mobassar Aslam, is examined as P.W.1 by filing affidavit evidence and he has reiterated the entire plaint averments in his evidence before this Court and also produced as many as Ex.P1 to Ex.P11 documents. I have gone through the documents produced by P.W.1. Ex.P.1 is the Authorization letter, Ex.P.2 is the Loan Application, Ex.P.3 is the Sanction letter dated 8 SCH-7 SC.No.954/2024 07.11.2020, Ex.P-4 is the Term Loan Agreement/Hypothecation of Movables dated 10.11.2020, Ex.P.5 is the Letter of undertaking dated 10.11.2020, Ex.P.6 is the Letter of Undertaking not to alienate the hypothecated goods dated 10.11.2020, Ex.P.7 is the Letter of General Lien and Set-off agreement dated 10.11.2020, Ex.P.8 is the Interest rate agreement dated 10.11.2020, Ex.P.9 is the Statement of Accounts, Ex.P.10 is the Pre-litigation application filed before DLSA dated 10.10.2023 and Ex.P.11 is the Certificate under Section 63(1) of BSA.
11. The contents of Ex.P.1 to P.11 discloses that, the defendant had approached the plaintiff bank for seeking Pradhan Mantri Mudra Yojana for term loan of Rs.3,50,000/- for business development and filed Ex.P-2/Loan application and considering his application and other relevant documents the plaintiff bank sanctioned term loan for a sum of Rs.3,50,000/- (Rupees Three Lakhs Fifty only) under PMMY Loan account No.149130100038329 with interest @ 11% p.a. as per Ex.P.3/Sanction letter dated 07.11.2020. The defendant has agreed to repay the borrowed amount with monthly EMI installments with interest @8.55% p.a., (presently ROI) and variable rate of interest thereon as per the direction of RBI. The 9 SCH-7 SC.No.954/2024 Defendant had executed Ex.P-4/Term Loan Agreement/Hypothecation of Movables dated 10.11.2020, Ex.P.5/Letter of undertaking dated 10.11.2020, Ex.P.6/Letter of Undertaking not to alienate the hypothecated goods dated 10.11.2020, Ex.P.7/Letter of General Lien and Set-off agreement dated 10.11.2020 and Ex.P.8/Interest rate agreement dated 10.11.2020 in favour of Plaintiff Bank for availing loan by the defendant. Subsequently the Defendant had utilized loan facility and started defaulting in payment of overdrawn amount and other conditions as per the terms of agreement and continued to commit default in spite of repeated requests and demands made by the Plaintiff Bank. Though the defendant has executed various documents acknowledging his above liability, he has failed to repay the above loan regularly. As the defendant has failed to pay the loan as undertaken and committed default of the other terms of the loan agreement, he become liable to pay the entire debt forthwith. The defendant is in due to the plaintiff to the tune of Rs.1,17,473/- as on the date fell due and is liable to pay interest thereon at 11% p.a. compounded at monthly with penal interest. The defendant is irregular in making payments of said installments. The plaintiff bank demanded the defendant to repay the 10 SCH-7 SC.No.954/2024 borrowed amount and in-spite of demands from the plaintiff bank, the defendant has failed and neglected to pay the amount as and when they fell due. As per Ex.P.9/Statement of account, the defendant is due for a sum of Rs.1,17,473/- as on the date of filing the suit. In view of the Ex.P-9/ Statement of account, the last transaction made by the defendant on 25.10.2023 towards repayment of the borrowed loan amount and the present suit is filed on 08.11.2024, hence the present suit is well within the limitation of time.
12. The Contents of these documents Ex.P1 to Ex.P11 would clearly show that the defendant has borrowed a loan of Rs.3,50,000/- from plaintiff bank and he has executed all necessary documents in favour of the plaintiff bank. The defendant is defaulter and he has failed to repay the due loan amount as agreed upon. Though the plaintiff has made the demand for payment of the outstanding due amount from defendant, the defendant failed to pay the balance loan amount. As per Ex.P.9/Statement of Accounts, the defendant is due for a sum of Rs.1,17,473/- as on the date of filing the suit as alleged. All these facts remain undisputed and unchallenged as the defendant has not filed written statement and remained absent and placed exparte 11 SCH-7 SC.No.954/2024 and has not chosen to contest the matter by way of entering into any defence. As such, the entire evidence of P.W.1 as well as the contents of the documents produced by him remain undisputed and unchallenged. Hence, in the absence of anything to the contrary, I do not find any reasons to disbelieve or discard his evidence.
13. Under these circumstances, I hereby come to the conclusion that, case of the plaintiff is clearly established through the evidence of P.W.1 as well as the documents produced by him. Hence, I hereby hold that these are sufficient evidence and materials on record to show that defendant is liable to pay the suit claim as prayed for. Accordingly, I answered Point No.1 in the Affirmative.
14. Point No.2:- In view of my above discussions and findings, I proceed to pass the following:
ORDER The suit of the plaintiff is hereby decreed with cost.
The plaintiff is entitled to recover a sum of Rs.1,17,473/- [Rupees One Lakh Seventeen Thousand Four Hundred and Seventy Three only] with interest 12 SCH-7 SC.No.954/2024 thereon 11% p.a from the date of suit till the date of realization of the entire decreetal amount from the defendant.
Draw decree accordingly.
(Dictated to the Stenographer directly on computer, typed by him, corrected and signed by me and then pronounced in the Open Court on 23rd day of August 2025) [Shyam Prakash] IX ADDL. JUDGE & ACJM, Court of Small Causes, Bengaluru.
ANNEXURE
1. List of witnesses examined for the plaintiff:
PW.1 : Mobassar Aslam
2. List of documents exhibited for the plaintiff:
Ex.P.1 : Authorization letter
Ex.P.2 : Loan Application
Ex.P.3 : Sanction letter dated 07.11.2020
Ex.P-4 : Term Loan Agreement/Hypothecation
of Movables dated 10.11.2020
Ex.P.5 : Letter of undertaking dated
10.11.2020
13 SCH-7
SC.No.954/2024
Ex.P.6 : Letter of Undertaking not to alienate
the hypothecated goods dated
10.11.2020
Ex.P.7 : Letter of General Lien and Set-off
agreement dated 10.11.2020
Ex.P.8 : Interest rate agreement dated
10.11.2020
Ex.P.9 : Statement of Accounts
Ex.P.10 : Pre-litigation application filed before
DLSA dated 10.10.2023
Ex.P.11 : Certificate under Section 63(1) of BSA.
3. List of witness examined for the defendant:
--Nil--
4. List of documents exhibited for the defendant:
--Nil--
[Shyam Prakash] IX ADDL. JUDGE & ACJM, Court of Small Causes, Bengaluru.