Bangalore District Court
O.S./3281/2019 on 11 November, 2021
KABC010144932019
[C.R.P. 67] Govt. of Karnataka
Form No.9 (Civil)
Title Sheet for
Judgment in Suits
(R.P.91)
IN THE COURT OF THE XIV ADDL. CITY CIVIL JUDGE
AT BANGALORE [CCH.No.28]
Present: Sri. MALLIKARJUNA., B.Com., LL.M.,
XIV ADDL. CITY CIVIL JUDGE
Dated this the 11th day of November, 2021
O.S.No.3281/2019
Plaintiff/s :
Bank of India,
A body corporate constituted
under Banking companies,
(Acquisition & Transfer of Undertakings)
Act 1970, having Head office, at stair
House, Plot No.C.S.G-Block,
Bandra Kurla Complex,
Bandra (East),Mumbai-400 051
& having a branch office amongst other
places at Peenya IND Estate MCB Branch,
#488-B VITC Modle Exports park,
4th Phase, Peenya Industrial Area,
Bangalore-58, Represented by its
Branch By Senior Manager and
Constituted Attorney Holder
Mr.Shivarudrayya C Kolurmath,
S/o Channabasayya, aged about 55 years,
(By Sri.G.P., Advocate)
- Vs -
O.S.No.3281/2019
2
Defendant/s :
1. M/s. S.V.Prints
Rep.by its Proprietor
Mr.Srinivaas H.G.
S/o Govindappa,
No.22/2 Vigneshwara Nagar Main Road,
Sunkadakatte, Bangalore-560091.
2. Srinivasa H.G.
S/o Govindappa,
No.2, 1st Main,
Vinayak Nagar,
Sunkadakatte,
Bangalore-560079
Also at:
Hoovina Hole Village,
Hiriyoor Thaluk,
Chithradurga District.
( Defs - Exparte)
Date of institution
of the suit : 25-04-2019
Nature of the suit
[suit on pronote, suit : Recovery of Money
for declaration and
possession, suit
for injunction]
Date of the commencement
of recording of the evidence : 29-10-2021
Date on which the
Judgment was pronounced : 11-11-2021
Year/s Month/s Day/s
Total Duration 02 06 11
O.S.No.3281/2019
3
JUDGMENT
This suit is filed by the plaintiff's bank against the defendants for recovery of money.
2. The brief facts of the plaintiff's case are as under:
The 2nd defendant is the proprietor of M/s S.V.Prints had approached the plaintiff's bank seeking financial assistance under working capital over draft scheme for an amount of Rs.3,50,000/- in account No.8439251100000009. Pursuant to his application, the plaintiff bank has sanctioned Rs.3,50,000/- on 09-01-2014 and the defendants are accepted the sanction terms of loan on 10-01-2014. The defendants have executed necessary loan documents in favour of plaintiff's bank and agreeing into pay the interest at the rate of 1.50 over BOI base rate presently 11.75% p.a. with monthly rests. Again the defendants have approached the plaintiff bank at Peenya Branch, Bangalore for additional working capital overdraft limit. After considering the request of the defendants, the O.S.No.3281/2019 4 plaintiff's bank sanctioned additional working capital over draft loan limit of Rs.1,50,000/- dated: 04-05-2015. The defendants executed supplemental deed of hypothication on 04-05-2015. After availing two working capital over draft limit facilities the defendants has failed to adhere to the terms and conditions of sanction of loan. The defendants have failed to repay the dues as and when it fell due and has not cleared the loan amount together with interest thereon. Inspite of several demands and request made by the plaintiff bank the defendant had not repaid the entire dues with interest. The plaintiff bank has also caused legal notice dated 04-04-2019, calling upon the defendants to repay the outstanding loan amount of Rs.6,61,122.47 as on 06-06-2018 along with uncharged interest. The defendants are jointly and severally liable to repay the remaining loan amount together with interest. Hence the present suit is filed, therefore prayed for decreeing the suit in favour of plaintiff's bank against the defendants directing them to pay Rs.7,32,709.47/- along with interest at presently O.S.No.3281/2019 5 1.50% above base rate presently 10.90% p.a.) with monthly rests from the date of suit till realisation and order for sale of movable properties described in the schedule.
3. After service of summons, the defendants remained absent, hence they have been placed exparte. That to prove the case of the plaintiff, its Manager got examined as P.W.1, and got marked 19 documents as per Ex.P-1 to P-19.
4. Heard the arguments of counsel for the plaintiff.
5. Perused the plaint, evidence and documents available on record.
6. The following points arisen for my consideration.
1. Whether the plaintiff's bank proves that defendants have availed loan of Rs.3,50,0000/- dated: 09-01-2014, and additional loan of Rs.1,50,000/- dated 04-05-2015, but they have failed to repay the loan amount with agreed rate of interest?
2. What order or decree ?
O.S.No.3281/2019 6
7. My answers to the above points are as under;
Point No.1 : In the affirmative,
Point No.2 : As per final order for
the following;
REASONS
8. Point No.1: It is the case of the plaintiff's bank that, 2nd defendant is the proprietor of M/s S.V.Prints had approached the plaintiff's bank seeking financial assistance under working capital over draft scheme for an amount of Rs.3,50000/-. Pursuant to his application, the plaintiff bank has sanctioned Rs.3,50,000/- on 09-01-2014 and the defendants are accepted the sanction terms of loan on 10-01-2014. The defendants have executed necessary loan documents in favour of plaintiff's bank and agreeing into pay the interest at the rate of 1.50 over BOI base rate presently 11.75% p.a. with monthly rests. Again the defendants have approached the plaintiff bank at Peenya Branch, Bangalore for additional working capital overdraft limit. After considering the request of the defendants, the plaintiff's bank sanctioned additional O.S.No.3281/2019 7 working capital over draft loan limit of Rs.1,50,000/- dated:04-05-2015. The defendants executed supplemental deed of hypothication on 04-05-2015. after availing two working capital over draft limit facilities the defendants have failed to adhere to the terms and conditions of sanction of loan. The defendants have failed to repay the dues as and when it fell due and has not cleared the loan amount together with interest thereon. Inspite of several demands and request made by the plaintiff bank the defendant had not repaid the entire dues with interest. The plaintiff bank has also caused legal notice dated 04-04-2019 calling upon the defendants to repay the outstanding loan amount of Rs.6,61,122.47 as on 06-06-2018 along with uncharged interest. Inspite of persistent request and demands made by the plaintiff bank to the defendants to regularize the loan account has not yielded any fruitful result. The defendants are jointly and severally liable to repay the remaining loan amount together with interest. The P.W.1 is the Branch Manager of plaintiff's bank in her affidavit O.S.No.3281/2019 8 filed in the form of examination-in-chief reiterated the plaint averments and in support of her oral contention he has relied Ex.P-1 to 19 documents. That on perusal of contents of the documents Ex.P-1 is the Loan application, dated: 26-12-2013, Ex.P-2 is the borrowers profile, Ex.P-3 is the Loan sanctioned letter, Ex.P-4 is the On demand promissory note, Ex.P-5 is the Installment letter, Ex.P-6 is the Declaration letter dt: 10-01-2014, Ex.P-7 is the Hypothication letter, Ex.P-8 is the request letter for additional loan, Ex.P-9 is the On demand promissory note, Ex.P-10 is the Agreement dated: 4-5-2015, Ex.P-11 is the Loan Revival Letter, Ex.P-12 is the office copy of notice, Ex.P-13 to 15 are the receipts, Ex.P-16 to 17 are the returned postal covers, Ex.P-16(a) and 17 (a) are the letters kept in the returned postal cover, Ex.P-18 is the Account Extract, Ex.P-19 is the Additional Hypothication letter, it is quite clear the defendants have approached the plaintiff's bank for seeking financial assistance accordingly, the bank considering the request of the defendants sanctioned loan a sum of Rs.3,50,000/- and O.S.No.3281/2019 9 Rs.1,50,000/- respectively for the purpose of working capital over draft scheme. Though the defendants agreed to repay the said amount with agreed rate of interest, but failed to repay the same as on the date of suit they are liable to pay due a sum of Rs.7,32,709/- along with interest at the presently 1.50% above base rate presently 10.90% p.a. with monthly rests. Inspite of service of summons, the defendants remand absent, hence they have been placed exparte, The very conduct of the defendants discloses that they have no case to make out against the plaintiff. The evidence of PW.1 and contents of Ex.P.1 to 19 documents remained unquestioned. That taking into consideration of all these facts and circumstances one point is clear that, plaintiff's bank has initially discharged the burden of defendants availing loan by executing loan documents as agreed to repay the said loan have failed to comply the same. Therefore, the plaintiff's bank has filed this suit, accordingly proved their contention with cogent and convincing evidence. No reason is available to deny the same, the plaintiff's bank O.S.No.3281/2019 10 has proved this point. Hence, I have answered point No.1 in the 'affirmative'.
9. Point No.2:- In the result, I proceed to pass the following;
ORDER The suit of the plaintiff's bank is hereby decreed with cost.
The defendants are directed to pay a sum of Rs.7,32,709/-(Rupees Seven lakh thirty two thousand seven hundred and nine) only jointly and severally to the plaintiff's bank together with interest at presently 1.50% above base rate presently 10.90% p.a. with monthly rests from the date of suit till realisation and further plaintiff's bank is liberty to sale of movable properties described in schedule for recovery of above amount.
O.S.No.3281/2019 11 Draw the decree accordingly.
[Dictated to the Judgment writer, transcribed & computerized by him, corrected on computer and signed by me then pronounced in the Open Court, dated this the 11th day of November, 2021] (MALLIKARJUNA) XIV Addl. City Civil Judge Bangalore.
ANNEXURE List of witnesses examined on behalf of the plaintiff/s:
P.W.1 : Sri.Rakesh R.Naik List of documents marked on behalf of the plaintiff/s:
Ex.P-1 : Loan application
Ex.P-2 : Borrowers profile
Ex.P-3 : Loan sanctioned letter
Ex.P-4 : On demand promissory note
Ex.P-5 : Installment letter
Ex.P-6 : Declaration letter dt: 10-01-2014
Ex.P-7 : Hypothication letter
Ex.P-8 : Letter for request to sanction additional loan
O.S.No.3281/2019
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Ex.P-9 : On demand promissory note
Ex.P-10 : Agreement, dated: 4-5-2015
Ex.P-11 : Loan Revival Letter
Ex.P-12 : Office copy of notice
Ex.P-13 to 15 : Receipts
Ex.P-16 to 17 : Returned postal covers Ex.P-16(a) and 17 (a) : Letters kept in the returned postal cover Ex.P-18 : Account Extract Ex.P-19 : Additional Hypothication letter List of witnesses examined on behalf of the defendant/s:
-NIL-
List of documents marked on behalf of the defendant/s :
-NIL-
XIV Addl. City Civil Judge Bangalore.