Bangalore District Court
Bank Against The vs For Recovery Of A Sum Of Rs.3 on 12 October, 2020
1 O.S.No.4311/2018
IN THE COURT OF XXXIX ADDITIONAL CITY CIVIL JUDGE
BANGALORE CITY (CCH-40)
Dated on this the 12th day of October 2020
-: PRESENT :-
Sri. Khadarsab, B.A., LL.M.,
XXXIX Additional City Civil & Sessions Judge,
Bangalore City.
Original Suit No.4311/2018
Plaintif :
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.GSR 2[E] dated 2.1.2019
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,
Jayachamarajendra Road, Bengaluru - 02.
Repd by its Branch Manager,
Mr.V.Nandagopal, 59 Years.
[By Sri.T.P.Muttanna, Advocate]
/ VERSUS /
Defendant:
Lingaraju S/o. Basavegowda, Major, No.23,
Thyaginagar, Near Laxshmidevi Nagar,
Laggere, Bengaluru - 560 096.
2 O.S.No.4311/2018
(Exparte)
: 19.06.2018
Date of Institution of the suit
Nature of suit : Money Suit
Date of commencement of
evidence : 10.01.2019
Date on which the judgment is
pronounced : 12.10.2020
Years Months Days
Duration taken for disposal :
02 03 24
***
JUDGMENT
This suit is filed by the plaintiff - bank against the defendant for recovery of a sum of Rs.3,59,798.08/- together with interest at the rate of 12% P.A. compounded monthly plus penal interest @ 2% P.A. from the date of suit till the date of realization.
2. The case of the plaintiff-bank in brief is as follows:-
That, the defendant applied for loan of Rs.4,80,000/- to the plaintiff - bank for purchase of MARUTI RITZ LDI Car on 19-10-2016. Accordingly, the plaintiff - bank sanctioned a loan of Rs.4,80,000/- on 21.10.2016 to the defendant. The 3 O.S.No.4311/2018 defendant had executed Demand Promissory Note, Letter of General Lien and set off for Borrowing arrangements form the borrowers,General Undertaking and Agreement of Hypothecation to secure motor trucks and other Transport vehicles with spares, accessories, tools etc,. All the documents have been executed on 24.10.2016 in favour of the plaintiff - bank. The defendant agreed to repay the loan amount in 36 monthly equated installments of Rs.18,602/- plus interest each after two months from the date of disbursement and interest @ 11% P.A.
3. The plaintiff further contended that the defendant is very irregular in repayment of loan. The defendant failed and neglected to repay the loan amount as agreed, inspite of requests and demands. The defendant owes to the plaintiff bank a total sum of Rs.3,59,798.08/- together with interest. Hence, the plaintiff prays for decreeing the suit.
4. After presentation of the suit, summons was issued to the defendant, but the defendant refused to receive 4 O.S.No.4311/2018 the suit summons. The refusal of the suit summons amounts to deemed service. Hence, the defendant placed exparte on 04.10.2018.
5. In order to substantiate its claim, the plaintiff
- bank has examined its Manager as P.W.1 and documents got marked as Exs.P.1 to P.9.
6. Heard the arguments of the plaintiff.
7. On the basis of the pleadings, documents and evidence, the following points arise for my consideration:
(1) Whether the plaintiff-bank is entitled for the reliefs as sought in the suit ? (2) What order or decree?
8. My findings to the above points are as follows:
Point No.1 : In the affirmative.
Point No.2 : As per final order, for the following:
REASONS
9. Point No.1 :- To substantiate its claim, the plaintiff
- bank has examined its Manager as P.W.1, who filed affidavit 5 O.S.No.4311/2018 in lieu of examination-in-chief, wherein he has reiterated the plaint averments. P.W.1 sworn that, on 19.10.2016 the defendant applied for loan to purchase car as per Ex.P.2. Accordingly, the plaintiff - bank sanctioned a loan of Rs.4,80,000/- on 21.10.2016 to the defendant as per Ex.P.3. The defendant executed Demand Promissory Note, Letter of General Lien and Set-off for borrowing arrangements from the borrowers, General Undertaking, Letter of Hypothecation on 24.10.2016 as per Exs.P.4 to P.7. The defendant agreed to repay the loan amount in 36 monthly equated installments of Rs.18,602/-. The defendant has agreed to repay the said loan amount with interest at the rate of 11% p.a. The defendant failed and neglected to repay the loan amount as agreed, inspite of requests and even though the plaintiff - bank got issued a recall notice as per Ex.P.9 on 28.5.2018, even then the defendant has failed to repay the said loan amount. The defendant is in due of Rs.3,59,048.08/- to the plaintiff - bank and claimed Rs.750/- towards miscellaneous expenditure incurred in filing the suit. The plaintiff bank produced the 6 O.S.No.4311/2018 defendant Loan Account Statement i.e., Account No.027954023943 as per Ex.P.8. Hence, he prays for decreeing the suit.
10. As could be seen from the records, as per Ex.P.2 the defendant approached the plaintiff - bank for loan of Rs.4,80,000/- on 19.10.2016 for purchase of Maruthi Ritz Ldi car. Accordingly the plaintiff - bank sanctioned a loan of Rs.4,80,000/- on 21.10.2016 as per Ex.P.3. The defendant has executed demand promissory note, letter of general lien, general undertaking and agreement of hypothecation as per Exs.P.4 to P.7. The defendant has received the loan amount and acknowledged the same and also agreed to the terms and conditions. After receipt of the said loan amount, the defendant has purchased the Maruthi Ritz Ldi car bearing its Registration No.KA-04/AB-0154.
11. Though the defendant availed the loan and utilised it for purchase of the above said car, but he failed to repay the said loan amount within stipulated period. On failure of 7 O.S.No.4311/2018 the defendant to repay the loan amount, the bank authority had issued Notice to the defendant as per Ex.P.9. Even then, the defendant has failed to repay the said amount.
12. The documents produced by the plaintiff - bank establish that the defendant has availed a loan of Rs.4,80,000/- from the plaintiff - bank. That, as per Ex.P.8 - Account Extract and interest calculation, the defendant is due for a sum of Rs.3,59,048.08/- as on 31.05.2018. The plaintiff - bank also claimed Rs.750/- towards the miscellaneous expenditure incurred in filing the suit. That, as per Order XX A Rule 1(c) of C.P.C., the plaintiff bank is entitled for the expenditures incurred for filing the suit. Hence, the plaintiff - bank is entitled to recover a sum of Rs.3,59,798.08 /-.
13. Here in the instant case, the defendant had two opportunities to deny the alleged transaction. First one is, by giving reply to Ex.P.9 - notice issued by the plaintiff - bank and second opportunity is, by appearing before this Court and contesting the claim of the plaintiff - bank. The defendant 8 O.S.No.4311/2018 has failed to avail his defence in both occasions. On the other hand, there is no ground to disbelieve the claim of the plaintiff
- bank. The oral and documentary evidence on record clearly establishes the claim of the plaintiff - bank.
14. Hence, the plaintiff - bank is entitled for recovery of Rs.3,59,798/- towards the loan amount, with interest at the rate of 12% p.a. and penal interest @ 2% p.a. from the date of suit till the date of realization. Hence, I answer the above point in the affirmative.
15. Point No.2:- In view of my finding on point No.1, I proceed to pass the following:
ORDER Suit of plaintiff - bank is hereby decreed with costs.
The plaintiff - bank is entitled to recover a sum of Rs.3,59,798/- (Rupees Three Lakhs Fifty Nine Thousand Seven Hundred and Ninety Eight only) from the defendant along with interest at the rate of 12% p.a. and penal interest @ 2% p.a. from the date of suit till the date of realization.9 O.S.No.4311/2018
The defendant is liable to pay the above said amount along with interest to the plaintiff - bank within 60 days from the date of this order. Draw decree accordingly.
(Dictated to the Judgment Writer, typed directly on computer, script corrected, signed and then pronounced by me in the open court, this the 12th day of October, 2020.) (KHADARSAB), XXXIX Additional City Civil & Sessions Judge, Bangalore City.
*** ANNEXURE
1. List of witnesses examined for plaintif-bank:
P.W.1 : Krushnappa.D.R.
2. List of documents exhibited for plaintif-bank:
Ex.P1 Attested copy of GPA dated
13.6.2015
Ex.P2 Loan application form dated
19.10.2016
Ex.P3 Conveying of sanction terms and
conditions under Small Road
Transport Operator (SRTO) Scheme
dated 21.10.2016
Ex.P.4 Demand promissory note dated
24.10.2016
Ex.P.5 Letter of general lien and set-of form
borrowing arrangement form from
10 O.S.No.4311/2018
the borrowers dated 24.10.2016
Ex.P.6 General undertaking dated 24.10.2016 Ex.P.7 letter of hypothecation dated 24.10.2016 Ex.P.8 Accounts statement pertains to A/c No.027954023943 (KHADARSAB), XXXIX Additional City Civil & Sessions Judge, Bangalore City.
*** 11 O.S.No.4311/2018 Judgment pronounced in the open Court (Vide separate Judgment) ORDER Suit of plaintiff - bank is hereby decreed with costs. The plaintiff - bank is entitled to recover a sum of Rs.3,59,798/- (Rupees Three Lakhs Fifty Nine Thousand Seven Hundred and Ninety Eight only) from the defendant along with interest at the rate of 12% p.a. and penal interest @ 2% p.a. from the date of suit till the date of realization.
The defendant is liable to pay the above said amount along with interest to the plaintiff - bank within 60 days from the date of this order.
Draw decree accordingly.
XXXIX A.C.C & S. Judge, Bangalore City.