Bangalore District Court
5. Based On The Above Pleadings Of The ... vs The Plaintiff Bank Has Sanctioned A Loan ... on 24 January, 2023
15 COM.O.S.558/2021
IN THE COURT OF LXXXII ADDL.CITY CIVIL & SESSIONS
JUDGE, AT BENGALURU (CCH.83)
THIS THE 24th 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.558/2021
BETWEEN:
Canara Bank Earstwhile
Syndicate Bank,
Malleshwaram, 18th
Cross Branch, Sampige
Road, Malleshwaram,
Bangalore - 560 055,
represented by its Chief
Manager, Sri. Aman
Gupta.
: PLAINTIFF
(Represented by Sri.
Jayavardhan B.R., -
Advocate)
AND
Mr. Gaviyappa. C., S/o
Late. Chunchaiah, Aged
about 35 years, R/at No.
15 COM.O.S.558/2021
706, 3rd Main, 3rd Cross,
Kamalanagar, Bangalore
-560 079.
: DEFENDANT
(Defendant is placed
exparte as per order
dated 04.01.2023)
Date of Institution of the
27.08.2021
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 20.01.2023
recording of evidence
Date on which judgment 24.01.2023
was pronounced
Total Duration Year/s Month/s Day/s
01 04 28
(SUMANGALA S BASAVANNOUR),
LXXXII Addl.City Civil & Sessions Judge,
Bengaluru.
15 COM.O.S.558/2021
JUDGMENT
This suit is filed by the Plaintiff for recovery of Rs.6,90,250.14 towards the outstanding balance in term loan account to pay interest at the rate of 15% per annum from the date of filing the suit till the date of realization.
2. The Brief facts of the Plaint are as follows:-
The Defendant is a constituent of the Plaintiff Bank. The Defendant applied for financial facility in the form of loan of Rs. 11,80,000/- by submitting the loan application for credit facilities to micro and small enterprises loan on 09.03.2017. On the request of the Defendant, the Plaintiff Bank has sanctioned a loan amount of Rs. 11,80,000/- for the purpose of working capital, the loan is sanctioned through letter of sanction dated 13.03.2017 to the Defendant. The loan amount was fully disbursed to the Plaintiff and the disbursement was duly acknowledged in connection with the said advance, the Defendant has executed a Composite Hypothecation Agreement on e-stamp paper of Rs. 2,400/- on 17.03.2017 agreeing to hypothecate the said loan in favour of the Plaintiff Bank for a sum of Rs. 11,80,000/- and that the loan amount was fully disbursed to the Plaintiff and the disbursement was duly 15 COM.O.S.558/2021 acknowledged in connection with the said advance, the Defendant has executed a OG-28 A & B on 18.03.2017 the said loan in favour of the Plaintiff Bank for a sum of Rs. 11,80,000/-.
The Defendant has agreed to repay the loan amount together with interest thereon at the rate of 10.25% per annum along with monthly rests. The Defendant has also agreed to pay overdue interest rate of 1.50% per annum as such rate of interest as may be fixed by the bank from time to time on the amount overdue. The Defendant has also agreed that the Bank may without notice vary the interest rate as may be prevalent in the Bank time to time or as per instructions of Reserve Bank of India or Head Office of the Bank or other regulatory authorities and the borrower has expressly waived the right of notice of intimation of such variation of in the interest rate. The present rate of interest is 10.25% Per annum. The loan is sanctioned for purpose of purchase of new force motors tempo traveler D1 (HR) BSIII. As per the composite Hypothecation Agreement executed by the Defendant in favour of the Plaintiff Bank, loan sanctioned for the purpose purchase of new force motors tempo traveler DI (HR) BSII, under Government Sponsored CGTMSE Scheme. The said vehicle loan is repayable in 57 equal monthly installments of Rs. 26,236/- per month starting from 30.06.2017 to 28.02.2022. The Defendants has not adhered to the terms of sanction and has not repaid the 15 COM.O.S.558/2021 loan amount. The Defendant has failed and neglected to repay the loan amount and the interest accrued thereon in spite of repeated request and reminders of the Plaintiff. Now the Defendant is liable to pay a sum of Rs. 6,90,250.14 with includes interest up to 31.05.2021. They had sent notices to the Defendant to repay the dues the Defendant has filed and neglected to repay the loan amount in spite of Plaintiffs repeated requests and reminders. In view of the failure on the part of the Defendant to regularize the account and repay the arrears, the Plaintiff had to classify the loan as NPA on 06.12.2020 and got issued the legal notice dated 14.06.2021 demanding to payment of the loan amount, but the Defendant has acknowledged the said notice, and the receipt from the post office and the un-served postal acknowledge for the said notice which are received from the postal department. The Defendant is now due in loan and liable to pay a total of Rs. 6,90,250.14 as on 31.05.2021 as per the loan account statement from the Bank. As per the mandatory procedure of this court for Pre- Institution Mediation has been filed before the DLSA, bengaluru on 28.06.2021 in PIM No. 642/2021 and after filing Defendant through RPAD and the RPAD returned with postal endorsement as ' no such person' and the said petition is closed and the said DLSA authority has issued the endorsement on 23.08.2021. Hence, the Plaintiff has filed this suit for the above-mentioned 15 COM.O.S.558/2021 reliefs.
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.7. I have heard the arguments of the Advocate for the Plaintiff.
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.15 COM.O.S.558/2021
REASONS
7. Point No.1 :- The Plaintiff Bank substantiate of this case examined its Chief Manager, Basavaraju as PW.1. PW.1 in his evidence reiterated averments of the Plaint, and got marked Ex.P.1 to Ex.P.7.
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 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."15 COM.O.S.558/2021
9. The averments of the Plaint, evidence of PW.1 and Ex.P.1 to Ex.P.5 discloses that the Defendant applied for financial facility in the form of loan of Rs. 11,80,000/- by submitting the loan application for credit facilities to micro and small enterprises loan on 09.03.2017. On the request of the Defendant, the Plaintiff Bank has sanctioned a loan amount of Rs. 11,80,000/- for the purpose of working capital, the loan is sanctioned through letter of sanction dated 13.03.2017 at Ex.P.2 to the Defendant. The Defendant has executed a Composite Hypothecation Agreement on e-stamp paper of Rs. 2,400/- on 17.03.2017 at Ex.P.3 in favour of the Plaintiff Bank for a sum of Rs. 11,80,000/- and that the loan amount was fully disbursed to the Plaintiff and the disbursement was duly acknowledged in connection with the said advance, the Defendant has executed a OG-28 A & B on 18.03.2017 at Ex.P.4 the said loan in favour of the Plaintiff Bank for a sum of Rs. 11,80,000/-.
10. The Defendant has agreed to repay the loan amount together with interest thereon at the rate of 10.25% per annum along with monthly rests. The Defendant has also agreed to pay overdue interest rate of 1.50% per annum as such rate of interest as may be fixed by the bank from time to time on the amount overdue.
15 COM.O.S.558/202111. The Defendant has also agreed that the Bank may without notice vary the interest rate as may be prevalent in the Bank time to time or as per instructions of Reserve Bank of India or Head Office of the Bank or other regulatory authorities and the borrower has expressly waived the right of notice of intimation of such variation of in the interest rate. The present rate of interest is 10.25% Per annum.
12. The loan is sanctioned for purpose of purchase of new force motors tempo traveler D1 (HR) BSIII. As per the composite Hypothecation Agreement executed by the Defendant in favour of the Plaintiff Bank, loan sanctioned for the purpose purchase of new force motors tempo traveler DI (HR) BSII, under Government Sponsored CGTMSE Scheme. The said vehicle loan is repayable in 57 equal monthly installments of Rs. 26,236/- per month starting from 30.06.2017 to 28.02.2022. The Defendants has not adhered to the terms of sanction and has not repaid the loan amount.
13. The Defendant has failed and neglected to repay the loan amount and the interest accrued thereon in spite of repeated request and reminders of the Plaintiff. Now the Defendant is liable to pay a sum of Rs. 6,90,250.14 with 15 COM.O.S.558/2021 includes interest up to 31.05.2021. They had sent notices to the Defendant to repay the dues the Defendant has filed and neglected to repay the loan amount in spite of Plaintiffs repeated requests and reminders.
14. In view of the failure on the part of the Defendant to regularize the account and repay the arrears, the Plaintiff had to classify the loan as NPA on 06.12.2020 and got issued the legal notice dated 14.06.2021 at Ex.P.5 demanding to payment of the loan amount.
15. From Ex.P.7 the Statement of account of loan account facility speaks to the effect that total amount payable includes the interest accrued and therefore, Plaintiff has successfully proved that the Defendants 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 15% per annum form the date of suit till realization. However by considering the interest prevailing, it is proper to award interest @ 10% per annum from the date of suit.
15 COM.O.S.558/202116. The Defendant had made the last payment on 25.02.2020 and the suit filed on 27.08.2021 is within the limitation period.
17. 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.7 are remained unchallenged. Therefore, the Plaintiff is entitle for recovery of the suit claim for loan liability of Rs. 6,90,250.14 with interest at 10% per annum from the date of suit till realization. Hence, I answer this Point in "Partly Affirmative".
18. Point No.2 : -Therefore, I proceed to pass the following Order.
ORDER The Suit of the Plaintiff is decreed in part with cost.
The Defendant is hereby directed to pay loan account of Rs. 6,90,250.14/- to the Plaintiff, with interest at the rate of 10% per annum from the date of suit till realization.
Draw Decree accordingly.
15 COM.O.S.558/2021The 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 24th 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 Basavaraju LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE PLAINTIFF Ex.P.1 Loan Application Ex.P.2 Loan sanction letter dtd.13.03.2017 Ex.P.3 Composit hypothication agreement dtd.17.03.2017 Ex.P.4 Copy of the receipt dtd.18.03.2017 Ex.P.5 Office copy of legal notice dtd.14.06.2021 with 15 COM.O.S.558/2021 postal receipt Ex.P.5(a) Ex.P.6 Unserved RPAD, opened in open court, notice marked as Ex.P.6(a) Ex.P.7 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.