Bangalore District Court
Bank Of Baroda vs Mr.Prakash.H on 6 June, 2020
IN THE COURT OF THE XIX ADDL. CITY CIVIL &
SESSIONS JUDGE AT BANGALORE CITY: (CCH.18)
Dated this the 6th day of June, 2020.
Present
Present SRI.DINESH HEGDE, B.A.,LL.B.,
XIX ADDL. CITY CIVIL & SESSIONS JUDGE,
O.S.NO.1578/2019
PLAINTIFF: Bank of Baroda,
A body corporate constituted under
section 9 of the Banking Companies
(Acquisition and Transfer of
Undertakings) Act, 1970 and section 9 of
the Banking companies (Acquisition and
Transfer of Undertakings) Act, 1980, (40
of 1980), under Order No.G.S.R.2[E]
dated 02.01.2019 passed by the Central
Government after consultation with the
Reserve Bank of India through the
Branch Chief Manager Mr.V.Nandagopal
and having its J.C.Road Branch at No.2,
Corporation Shop,
Jayachmarajendra Road,
Bengaluru-560 002.
Represented by its Branch Manager
Mr.V.Nandagopal,
aged about 59 years.
(By Sri.T.P.Muthanna, Advocate)
-VS-
2
O.S.No.1578/2019
DEFENDANT : Mr.Prakash.H,
s/o Hanumanthaiah,
aged about 48 years,
No.256, Chikkagollarahatti,
Kodigehalli, Bengalore North,
Bangalore-560 091.
Also at:
Royal Garment,
Shop No.1, Venkatappa Building,
Anjana Nagar,
Magadi Main Road,
Bengaluru-560 091.
(Exparte)
Date of Institution of the suit : 26/2/2019
Nature of the Suit : Recovery of money
Date of commencement of recording
of evidence : 10/12/2019
Date on which the Judgment was
pronounced : 6/6/2020
Year/s Month/s Day/s
Total Duration : 01 03 10
(Dinesh Hegde)
XIX Addl.City Civil & Sessions Judge,
B'lore City.
3
O.S.No.1578/2019
JUDGMENT
The plaintiff bank has filed this suit against defendant for recovery of Rs.8,56,178/- along with current and future interest at the rate of 10.20% p.a. compounded monthly plus penal interest at 2% p.a. from the date of suit till realization, for court costs and such other reliefs.
2) The case of plaintiff in nutshell:-
The plaintiff is a body corporate constituted under Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980. The defendant approached the plaintiff bank for the financial assistance of Rs.10,00,000/- as a Term Loan facility for purchase of Embroidery Machine - Tajima for embroidery work. Considering the application of the defendant, on 10/5/2017 plaintiff bank sanctioned term loan of Rs.9,75,000/- for the above said purpose with a 4 O.S.No.1578/2019 condition that the said loan was to be repaid in 60 installments of Rs.20,812/- with interest at the rate of 10.20% on the terms and conditions as set out in the agreement. In this regard, defendant executed necessary loan documents like demand promissory note dtd:15/7/2017, letter of General Lien and set off for borrowing arrangement from the borrower dtd:12/5/2017, General undertaking dtd:12/5/2017 and Agreement of Hypothecation dtd;12/5/2017 after acknowledging the terms and conditions of the loan.
After availing the loan, defendant remained defaulter. In this regard, legal notice came to be issued on 4/2/2019 calling upon the defendant to pay the outstanding loan amount due of Rs.8,55,428/- as on 31/1/2019 and future applicable interest plus penal interest at 2% p.a. with monthly rests thereon from 1/2/2019. Thus, the defendant is liable to pay a sum of Rs.8,55,428/- to the plaintiff bank as on 31/1/2019 and Rs.750/- towards the miscellaneous expenditure totally amounting to 5 O.S.No.1578/2019 Rs.8,56,178/-. Hence plaintiff was constrained to file this suit for recovery of the outstanding amount from the defendant.
3) Inspite of service of suit summons through substitute service by way of paper publication, defendant remained absent. Hence, he was placed exparte and posted the case for plaintiff's evidence.
4) On behalf of plaintiff bank, Manager of the plaintiff bank is examined as P.W.1 and marked Ex.P.1 to Ex.P.9 and closed its side.
5) Heard the arguments and perused the records.
6) From the above facts, the points that arise for consideration are:-
1) Whether the plaintiff bank proves that on 10/5/2017 defendant borrowed Term Loan of Rs.9,75,000/- from the plaintiff bank for the purpose of purchasing an Embroidery Machine -
Tajima agreeing to repay the same in 60 monthly installments of Rs.20,812/- with interest at 10.20% p.a. compounded monthly plus penal interest of 2% p.a. in case of default 6 O.S.No.1578/2019 by executing necessary loan documents and he committed default in repaying the loan?
2) Whether the plaintiff is entitled for suit claim amount along with current and future interest at 10.20% p.a. compounded monthly plus penal interest at 2% p.a. as prayed for?
3) What order or decree?
7) My findings to the above points are:-
Point No.1: - In Affirmative;
Point No.2: - In Affirmative;
Point No.3: - As per final order for the following:-
REASONS
8) Point Nos.1 & 2:- These two points are considered together as they require common discussion.
9) It is the case of the plaintiff that on 10/5/2017 defendant borrowed Term Loan of Rs.9,75,000/- from the plaintiff bank for the purpose of purchasing an Embroidery Machine - Tajima agreeing to repay the same in 60 monthly installments of Rs.20,812/- with 7 O.S.No.1578/2019 interest at 10.20% p.a. compounded monthly plus penal interest of 2% p.a. by executing on demand promissory note dtd:15/7/2017, letter of general lien, general under taking and agreement of hypothecation dtd:12/5/2017 and he committed default in repaying the loan.
10) In order to prove his case, he has produced the documents Ex.P.1 to Ex.P.9. Ex.P.1 is the notarized copy of the power of attorney given by the plaintiff bank in favour of P.W.1 to depose and to look after the case.
Ex.P.2 is the loan application given by defendant. Ex.P.3 is the terms and conditions of the loan. Ex.P.4 is the on demand promissory note dtd:12/5/2017. Ex.P.5 is the letter of General Lien dtd:12/5/2017. Ex.P.6 is the Undertaking letter dtd:12/5/2017 given by the defendant. Ex.P.7 is the agreement of hypothecation dtd:12/5/2017. Ex.P.8 is the notice dtd:4/2/2019 issued to defendant demanding repayment of the loan with postal receipt. Ex.P.9 is the statement of account reveal that as on 31/1/2019 defendant is in due of 8 O.S.No.1578/2019 Rs.8,55,428/- to the plaintiff bank.
11) On perusal of the oral and documentary evidence produced by plaintiff, it is clear that on 10/5/2017 defendant borrowed Term Loan of Rs.9,75,000/- from the plaintiff bank for the purpose of purchasing an Embroidery Machine - Tajima agreeing to repay the same in 60 monthly installments of Rs.20,812/- with interest at 10.20% p.a. compounded monthly plus penal interest of 2% p.a. in case of default by executing on demand promissory note dtd:15/7/2017, letter of general lien, general under taking and agreement of hypothecation dtd:12/5/2017 and he committed default in repaying the loan. Further, Bank Statement marked at Ex.P.9 clearly discloses the amount deposited by plaintiff to defendant's loan account and the amount due by him as on the date of filing of the suit
12) It is further relevant to note that the documents produced by plaintiff have remained 9 O.S.No.1578/2019 unchallenged since defendant remained exparte without contesting suit. In the absence of rebuttal evidence, there is no reason to disbelieve or discard the evidence and the documents produced by P.W.1. Defendant has not challenged the suit claim nor contested the suit. So, the plaintiff has proved that he is entitled for the recovery of the loan amount borrowed by the defendant.
13) Plaintiff has claimed current and future interest at 10.20% p.a. compounded at monthly rests and 2% penal interest since defendant committed default in repaying the loan on the suit claim amount from the date of suit till the date of realization. The loan documents produced by plaintiff i.e., Terms and Conditions marked at Ex.P.3, on demand promissory note marked Ex.P.4 and General undertaking marked at Ex.P.6 discloses the agreed rate of interest at 10.20% p.a. and penal interest of 2% p.a. in case of default committed by defendant. Hence, I inclined to award future interest at 12.20% p.a. (10.20% p.a. + 2% p.a. = 12.20% 10 O.S.No.1578/2019 p.a.) compounded monthly on the suit claim amount as defendant committed default in repaying the loan.
14) Therefore, plaintiff bank is entitled for suit claim amount of Rs.8,56,178/- along with current and future interest at the rate of 12.20% p.a. compounded monthly from the date of suit till the date of realization. Hence, I answer point No.1 & 2 in the affirmative.
15) Point No.3:- In view of finding on point Nos.1 & 2, I pass the following:-
ORDER The suit of the plaintiff is decreed with costs. The defendant shall pay to the plaintiff a sum of Rs.8,56,178/- along with current and future interest at 12.20% p.a. compounded monthly from the date of suit till its realization.
Draw decree accordingly (Dictated to the Judgment Writer, transcribed and computerized by her, corrected by me in computer and then pronounced by me in the open Court on this the 6 th day of June, 2020).
(Dinesh Hegde) XIX ADDL.CITY CIVIL & SESSIONS JUDGE, BANGALORE CITY.
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O.S.No.1578/2019 ANNEXURE I. List of witnesses examined on behalf of :
(a) Plaintiff's side :
P.W.1 - S.Balu
(b) Defendant's side : N I L II. List of documents exhibited on behalf of :
(a) Plaintiff's side :
Ex.P.1 Notarized copy of power of
attorney
Ex.P.2 Loan application
Ex.P.3 Terms and conditions letter
Ex.P.4 On demand promissory note
Ex.P.5 General Lien
Ex.P.6 Undertaking
Ex.P.7 Agreement of Hypothecation
Ex.P.8 Legal notice dtd:4/2/2019
with postal receipt
Ex.P.9 Statement of account
(b) Defendant's side : - Nil -
(Dinesh Hegde)
XIX ADDL.CITY CIVIL & SESSIONS JUDGE, BANGALORE CITY.
GVU/-
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O.S.No.1578/2019 Judgment pronounced in open court vide separate detailed judgment with the following operative portion:-
ORDER The suit of the plaintiff is decreed with court costs.
The defendant shall pay to the plaintiff a sum of Rs.8,56,178/- along with current and future interest at 12.20% p.a. compounded monthly from the date of suit till its realization.
Draw decree accordingly (Dinesh Hegde) XIX ADDL.CITY CIVIL & SESSIONS JUDGE BANGALORE CITY.