Bangalore District Court
Canara Bank vs M/S.M.Jenna Shg on 26 November, 2016
IN THE COURT OF XL ADDL.CITY CIVIL &
SESSIONS JUDGE (CCH-41) AT BENGALURU.
Dated this the 26th day of November 2016.
:PRESENT:
SRI.JINARALAKAR. B.L.,
B.A., LL.B. (Spl.)
XL Addl.City Civil & Sessions Judge, Bengaluru.
O.S.NO.6752 / 2015
PLAINTIFF: CANARA BANK,
Mahila Banking Branch,
Jayanagara 3rd Block, Bengaluru-560 011,
Represented by its Manager-
Smt.Vani Badarinath,
W/o. Sri.Badarinath,
Aged about 57 years.
(By Sri.Raghavendra G.K., Advocate.)
AND:
DEFENDANTS: 1. M/S.M.JENNA SHG,
Office at No.46/5, Allpain Park Appt.,
Bommanahalli, Bengaluru-560 068,
Represented by its authorized
representatives-Smt.Manjula &
Mrs.Jabeena.
2. SMT.MANJULA,
D/o. Sri.Sivarama Shetty, Aged Major,
No.252/6, 7th A Cross, 27th Main, Agara,
Bengaluru-560 102.
3. MRS.JABEENA,
D/o. Mr.Nasar Ahmed, Aged Major, 101,
5th Cross, 2nd Main, Agara, Bengaluru-560
102.
2 O.S.6752/2015
4. SMT.VALLI,
W/o. Sri.Sendil Kumar, Aged Major,
24th Cross, Agara, Bengaluru-560 102.
5. SMT.NEELAMMA,
W/o. Not known to plaintiff, Aged Major,
No.494, HSR 2nd Stage, 24th Main, Agara,
Bengaluru-560 102.
6. SMT.ARUNA,
W/o. Sri.Krishna Reddy, Aged Major,
No.36/2, 5th Cross, 24th Main, Agara,
Bengaluru-560 102.
7. SMT.NALINI,
W/o. Sri.Gopala, Aged Major, 7th Cross, 9th
Main, Agara, Bengaluru-560 102.
8. SMT.THULASI,
W/o. Sri.Sasidhara, C/o. Kondareddy,
Aged Major, 7th Cross, 24th Main, Agara,
Bengaluru-560 102.
9. SMT.ROOPA,
W/o. Sri.Honmura Gouda, Aged Major,
5th Cross, 24th Main, Agara, Bengaluru-560
102.
10.MRS.SHAIK AMIJA BANU,
W/o. Sri.Irfan, Aged Major,
5th Cross, 24th Main, Agara, Bengaluru-560
102.
11. SMT.SARASAMMA,
W/o. Nagaraja Reddy, Aged Major,
5th Cross, 24th Main, Agara, Bengaluru-560
102.
(Exparte.)
***
3 O.S.6752/2015
i) Date of Institution of the 03.08.2015
suit.
ii) Nature of the suit. Money suit.
iii) Date of the
commencement of recording 19.10.2016
of evidence.
iv) Date on which the
judgment was pronounced. 26.11.2016
v) Total Duration Years Months Days
01 03 03
*****
JUDGMENT
The plaintiff Bank has filed the suit against the defendants directing them to pay jointly and severally a sum of Rs.1,89,855/-, together with current and future interest at the rate of 13.20% p.a. compounded monthly from the date of suit till the date of payment and costs, etc. .2. The averments of the plaint in brief are that:
The plaintiff is a Body corporate established under the Banking Companies (Acquisition & Transfer of undertakings) Act, 1970 having its Head Office at No.112, J.C. Road, Bengaluru-02 and Branch Office at Mahila 4 O.S.6752/2015 Banking Branch, Jayanagar 3rd Block, Bengaluru-11, represented by its Manager.
The 1st defendant is Self Help Group and defendants No.2 to 11 are its members and it is represented by its authorized representatives i.e., defendants No.2 and 3. The defendants No.2 to 11 have joined together and formed M.Zenna Self Help Group i.e., 1st defendant with an intention to carry on saving and credit and other economic activities for mutual benefit of its members and object is to help each other as Self Help Group with a view to developing and ameliorating the social and economical condition of its members. In this behalf, the defendants No.2 to 11 have entered into an interse Agreement executed between the members of 1st defendant on 21.03.2011, under which defendants No.4 to 11 have elected the defendants No.2 and 3 as their authorized representatives i.e., leaders. As per the said Agreement, the defendants No.2 and 3 are empowered to look after and manage the date-to-day affairs and activities of 1st 5 O.S.6752/2015 defendant and things to be done by them are to apply for loan before financial institutions and execute necessary documents in it's favour, to collect the loan amount from financial institutions on behalf of 1st defendant and deposit the same in savings account of 1st defendant for the purpose of lending to its members in accordance with the decision of 1st defendant and to deposit the loan installments recovered from the members of 1st defendant to the loan account of financial institutions.
The 1st defendant represented by its authorized representatives i.e., defendants No.2 and 3 have approached the plaintiff Bank for loan with an application dated 21.03.2011 for the purpose of lending to its members and the plaintiff sanctioned loan facility and the defendants have availed loan of Rs.2,00,000/- on 21.03.2011 under Loan Account No.2725737000741. In consideration whereof the defendants No.2 and 3 have executed Articles of Agreement for Financing Self Help Groups and agreed to repay the loan amount of 6 O.S.6752/2015 Rs.2,00,000/- along with interest at 10.75% p.a., compounded monthly with varied rate of interest from time to time and also agreed to pay penal interest at the rate of 2% p.a. in case of default. They have agreed to repay the loan amount of Rs.2,00,000/- in 25 equal monthly installments of Rs.8,965/- each plus interest commencing from 21.04.2011 and they have also authorized the plaintiff to deduct the agreed monthly installments from its SB Account.
The defendants have not repaid the loan installments regularly inspite of repeated demands and approaches and they have admitted the loan liability and executed Letter of Revival on 13.08.2012 and agreed to repay the due amount. Inspite of execution of the said Letter of Revival, the defendants have failed to clear the loan dues and become chronic defaulters, failed and neglected to repay the amount due. The plaintiff got issued Legal Notice on 10.07.2015 calling upon the defendants to pay amount due. As on the date of the suit, the defendants are 7 O.S.6752/2015 liable to pay amounts due together with interest calculated upto 12.07.2015 of Rs.1,88,778/- and interest from 13.07.2015 to till date of filing of suit of Rs.1,077/-, in total of Rs.1,89,855/-. The plaintiff Bank is producing a complete certified statement of accounts extract pertaining to the suit loan mentioned in the usual and ordinary course of its business and duly certified by its Manager as required under the Banker's Book Evidence Act. The defendants are liable to pay interest at 13.20% p.a. compounded monthly from the date of suit till the date of payment. Hence, the plaintiff Bank has filed the present suit.
.3. The defendant No.7 did not appear before the Court inspite of service of summons and she placed exparte. The defendants No.1 to 6 & 8 to 11 also did not appear before the Court inspite of paper publication and they placed exparte. The case proceeded with the plaintiff's evidence. 8 O.S.6752/2015 .4. In support of the case, the plaintiff Bank got examined its Senior Manager as PW.1, got marked documents at Ex.P.1 to Ex.P.17 and closed the side.
.5. Heard arguments.
.6. The Points that arise for my consideration are:
1. Whether the plaintiff Bank is entitled for the reliefs sought?
2. What Order or Decree?
.7. My findings on the above points are:
Point No.1 - In the affirmative.
Point No.2 - As per final order for the following:
REASONS .8. POINT NO.1: The plaintiff Bank has filed the suit against the defendants directing them to pay jointly and severally a sum of Rs.1,89,855/-, together with current and future interest at the rate of 13.20% p.a. compounded monthly from the date of suit till the date of payment and costs, etc. 9 O.S.6752/2015 In support of the case, the plaintiff Bank got examined its Manager as PW.1 who in her affidavit evidence stated regarding defendants No.2 to 11 members of 1st defendant Self Help Group represented by its authorized representatives-defendants No.2 and 3, the defendants No.2 to 11 joining together and forming the 1st defendant Self Help Group, the defendants No.2 to 11 entering into Interse Agreement and defendants No.4 to 11 electing the defendants No.2 and 3 as their authorized representatives / leaders empowering them to look after and manage day-to-day affairs and activities of the 1st defendant, the things to be done by them, the defendants No.2 and 3 approaching the plaintiff Bank for loan and availing loan of Rs.2,00,000/- on 21.03.2011 by executing necessary documents and agreeing to pay the loan amount along with interest at 10.75% p.a. compounded monthly and further agreeing to repay the loan amount in equal monthly installments of Rs.8,965/- each, failure to repay the loan installments regularly, issuance of Legal 10 O.S.6752/2015 Notice, etc., by reiterating the averments of the plaint and got marked documents at Ex.P.1 to Ex.P.17.
.9. The plaintiff Bank has produced Interse Agreement at Ex.P.1, Loan Application at Ex.P.2, Articles of Agreement at Ex.P.3, Letter of Revival at Ex.P.4, Office copy of Legal Notice at Ex.P.5 and Accounts Extract with Certificate at Ex.P.17 and these documents support it's contention regarding the defendants No.2 and 3 representing the 1st defendant approaching for loan, availing loan of Rs.2,00,000/- by executing necessary documents agreeing to pay the interest at 10.75% p.a. and further agreeing to pay the same in monthly installments and failure to pay the installments inspite of issuance of Legal Notice and due a sum of Rs.1,89,855/-. The defendants did not appear before the Court and not challenged the claim of the plaintiff Bank. Under such circumstances, the Court has to rely on unchallenged case of the plaintiff Bank, evidence of PW.1 and documents produced by it. From the evidence of PW.1and above referred documentary evidence go to 11 O.S.6752/2015 show that the defendants No.2 and 3 represented by the defendant No.1 have availed loan of Rs.2,00,000/- from the plaintiff Bank, agreeing to pay the same with interest at 10.75% p.a. and in monthly installments and they have failed to repay the loan installments and due a sum of Rs.1,89,855/-. The plaintiff Bank having advanced loan to the defendants and defendants having committed default in payment of the loan as agreed, is entitled to recover the due amount and the defendants are liable to pay due sum of Rs.1,89,855/-. Though the plaintiff Bank claimed interest on monthly rests, Ex.P.3-Articles of Agreement do not specifically disclose to pay the loan amount with interest on monthly rests. However, the plaintiff Bank is entitled to recover the said due amount with interest at the rate of 13.20% p.a with quarterly rests. Hence, the plaintiff Bank is entitled for the reliefs sought for, accordingly, I answered Point No.1 in the affirmative. .10. POINT NO.2: In view of my findings on the above Point, I proceed to pass the following:
12 O.S.6752/2015
ORDER Suit of the plaintiff Bank is hereby decreed with costs as under:
The defendants are jointly and
severally directed to pay a sum of
Rs.1,89,855/- to the plaintiff Bank with future interest at the rate of 13.20% p.a., compounded quarterly from the date of suit till realization.
Draw decree accordingly.
(Dictated to the Judgment Writer, computerized by her and corrected, revised, signed and then pronounced by me in the open Court on this the 26th day of November 2016.) (JINARALAKAR. B.L.) XL Addl. City Civil & Sessions judge, Bengaluru.
ANNEXURE WITNESSES EXAMINED ON BEHALF OF PLAINTIFF:
PW.1 - Smt.Vani Badrinath W/o. Sri.Badrinath. DOCUMENTS PRODUCED ON BEHALF OF PLAINTIFF:
Ex.P.1 : Interse Agreement. 13 O.S.6752/2015 Ex.P.2 : Loan application. Ex.P.3 : Articles of Agreement. Ex.P.4 : Letter of Revival. Ex.P.5 : Office copy of Legal Notice. Ex.P.6 to Postal Receipts. Ex.P.16: Ex.P.17: Accounts Extract with Certificate. WITNESSES EXAMINED ON BEHALF OF DEFENDANTS: -NIL- DOCUMENTS PRODUCED ON BEHALF OF DEFENDANTS: -NIL- (JINARALAKAR.B.L.) XL Addl. City Civil & Sessions judge, Bengaluru. 14 O.S.6752/2015