Bangalore District Court
Canara Bank vs Mr. Akbar Ali Baig on 3 April, 2018
IN THE COURT OF THE PRINCIPAL CITY CIVIL AND
SESSIONS JUDGE, AT BENGALURU
Dated this the 3rd day of April, 2018
PRESENT: SRI. SHIVASHANKAR B. AMARANNAVAR,
B.Com., LL.M.,
Principal City Civil and Sessions Judge,
Bengaluru.
O.S. No.4498/2017
PLAINTIFF : CANARA BANK
Neelasandra Branch,
Bangalore - 560 047.
Represented by its
Senior Manager,
Sri. Sidhartha Sankar Acharjya,
S/o.Sri. Jyoti Prasad Acarjya,
Aged about 45 years.
[By Sri.Ramanand Achar, Advocate]
Vs.
DEFENDANT: Mr. Akbar Ali Baig,
S/o. Late. Bakhar Baig,
Aged about 42 years,
R/at. No.82, 7th "B" Cross,
Rose Garden, Neelasandra,
Bangalore - 560 047.
[Placed Ex-parte]
Date of institution of suit 03.07.2017
Nature of the suit Money Suit
Date of commencement of 20.03.2018
evidence
Date of closure of evidence 20.03.2018
Date on which Judgment 03.04.2018
pronounced
Total Duration 0 years 9 Months 0 days
2 O.S.No.4498/2017
JUDGMENT
The plaintiff has filed this suit for recovery of a sum of Rs.9,65,840/- along with current and future interest at the rate of 12% p.a. compounded monthly from the date of the suit till realization from the defendant.
2. It is the case of the plaintiff that 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, Bengaluru and it is represented by its Senior Manager. It is the further case of the plaintiff that the defendant approached the plaintiff-Bank seeking loan for the purpose of his business activities and accordingly on 24.04.2015 the plaintiff-Bank sanctioned the loan of Rs.9,90,000/- to the defendant and the defendant executed a loan application dated 24.04.2015 and an Agreement-cum-Deed of Hypothecation dated 24.04.2015. It is the further case of the plaintiff that the defendant, as per the sanction terms and documents has agreed to repay the loan amount with interest at 10.55% p.a. compounded monthly. The defendant has also agreed to pay overdue interest at 2% in case of default in payment of loan amount 3 O.S.No.4498/2017 as agreed. The defendant has agreed to pay the loan amount in 60 monthly installments of Rs.25,177/- and last installment of Rs.16,500/- commencing from 24.05.2015. It is the further case of the plaintiff that the defendant did not operate the loan account satisfactorily and committed default. The defendant did not pay the monthly installment regularly as and when due. It is the further case of the plaintiff-Bank that it finally issued a Recall Notice dated 28.03.2017 and recalled the entire amount due. It is the further case of the plaintiff that the defendant is due a sum of Rs.9,63,639.20 as on 24.06.2017 and Rs.2,210.80 being interest from 25.06.2017 till the date of filing of the suit. It is the further case of the plaintiff that the defendant is due totally a sum of Rs.9,65,840/- as on the date of filing the suit. It is the further case of the plaintiff that the plaintiff is entitled to current and future interest on the suit claim at the rate of 12% p.a. compounded monthly from the date of suit till realization.
3. The suit summons issued to the defendant returned un-served as the address not traced. The summons has been issued through paper publication and the summons has been published in the newspaper of 28.11.2017 and the 4 O.S.No.4498/2017 defendant did not appear and has been placed ex-parte. The Senior Manager of the plaintiff-Bank tendered his evidence affidavit and has been examined as PW.1 and got marked Ex.P.1 to P.5.
4. Heard the arguments.
5. The following points arise for my consideration;
1. Whether the plaintiff-Bank proved that the defendant is due a sum of Rs.9,65,840/- as on the date of the suit ?
2. What Order?
6. My answer to the above points are as under;
Point No.1: In the Affirmative.
Point No.2 : As per final order for the following;
REASONS
7. Point No.1: One Siddarth Sankar Acharjya, the Senior Manager of the plaintiff-Bank has tendered his evidence affidavit and has been examined as PW.1. PW.1 has reiterated the plaint averments in his evidence affidavit. 5 O.S.No.4498/2017 Ex.P.1 is the loan application filed by the defendant. The defendant has sought loan from the plaintiff-Bank for the purpose of his business. Ex.P.2 is the sanction memorandum dated 24.04.2015 whereunder a loan of Rs.9,90,000/- has been sanctioned to the defendant and it is repayable in 60 months along with interest at the rate of 10.55% p.a. Ex.P.1 and 2 are signed by the defendant. Ex.P.3 is agreement cum deed of hypothecation dated 24.04.2015 executed by the defendant in favour of the plaintiff-Bank. The defendant has hypothecated computer and accessories, printer and multi- function copier etc., described in the schedule of the plaint to the plaintiff-Bank. The defendant did not repay the loan amount. Therefore, the plaintiff-Bank has issued recall notice dated 28.03.2017 which is at Ex.P.4. In spite of the said recall notice, the defendant has not repaid the entire loan amount. Ex.P.5 is the statement of loan account of the defendant with the plaintiff-Bank. As per Ex.P.5, the defendant is due a sum of Rs.9,63,639.20 as on 24.06.2017. The suit has been filed on 3.7.2017. The plaintiff-Bank has calculated the interest from 25.06.2017 till the date of filing the suit at Rs.2,210.80. Therefore, the defendant is totally due a sum of Rs.9,65,840/- as on the date of the suit to the 6 O.S.No.4498/2017 plaintiff-Bank. Ex.P.5(a) is the certificate enclosed to Ex.P.5 as required u/Sec.2(A)(b) of Banker's Book of Evidence Act. The evidence of PW.1 remained unchallenged. The defendant remained ex-parte. There is nothing on record to disbelieve the case of the plaintiff. The plaintiff has proved that the defendant has availed loan from the plaintiff-Bank and is due a sum of Rs.9,65,840/- as on the date of the suit and the defendant is liable to pay the same along with interest. The agreed rate of interest is 10.55% p.a. and penal interest is 2% p.a. The plaintiff-Bank has claimed interest at the rate of 12% p.a. The transaction being commercial, the plaintiff- Bank is entitled to the agreed rate of interest at 12% p.a. from the date of filing the suit. Accordingly, I answer point No.1 in the affirmative.
8. Point No.2: For the aforesaid reasons and findings, I proceed to pass the following;
ORDER The suit of the plaintiff is decreed with costs.
The defendant is liable to pay a sum of Rs.9,65,840/- (Rs.Nine Lakhs Sixty Five 7 O.S.No.4498/2017 Thousand Eight Hundred and Forty only) along with interest at the rate of 12% p.a. from the date of the suit till its realization.
Draw decree accordingly.
(Dictated to the Judgment Writer, transcribed and computerized by her, the transcript corrected, signed and then pronounced by me in the open Court on this the 3rd day of April, 2018).
(SHIVASHANKAR B. AMARANNAVAR) Principal City Civil & Sessions Judge, Bengaluru.
ANNEXURE
1. List of witnesses examined on behalf of the plaintiff:
PW.1 : Sri. Siddarth Shankar Acharjya
2. List of witnesses examined on behalf of the defendant:
- NIL -
3. List of documents exhibited on behalf of the plaintiff:
Ex.P.1 : Loan Application.
Ex.P.2 : Sanction Memorandum. Ex.P.3 : Agreement cum Deed of Hypothecation. Ex.P.4 : Office copy of notice dt.28.3.2017 issued to defendant. Ex.P.5 : Loan Ledger Extract of defendant.8 O.S.No.4498/2017
Ex.P.5(a): Certificate u/S.2(A)(b) of Banker's Book of Evidence Act.
4. List of documents exhibited on behalf of the defendant:
- NIL -
(SHIVASHANKAR B. AMARANNAVAR) Principal City Civil & Sessions Judge, *pst/- Bengaluru.Digitally signed by SHIVASHANKAR BASAPPA AMARANNAVAR DN: cn=SHIVASHANKAR
SHIVASHANKAR BASAPPA
AMARANNAVAR,ou=HIGH
BASAPPA COURT OF
AMARANNAVAR KARNATAKA,o=GOVERNME
NT OF
KARNATAKA,st=Karnataka,c
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Date: 2018.04.05 12:16:14
IST