Bangalore District Court
Bank Of Baroda vs Nowshad A on 26 September, 2025
1
COM.O.S.929/2025
KABC170022102025
IN THE COURT OF LXXXII ADDL.CITY CIVIL &
SESSIONS JUDGE, COMMERCIAL COURT,
BENGALURU (CCH-83)
PRESENT: SRI. VIDYADHAR SHIRAHATTI, LL.M.,
LXXXII ADDL.CITY CIVIL & SESSIONS
JUDGE,
BENGALURU.
Com.O.S.No.929/2025
Dated on this 26th Day of September 2025
Plaintiff Bank of Baroda, A body
corporate constituted under
The banking Companies
(Acquisition and Transfer of
undertaking) Act, 1970,
having its head office at
Mandvi Baroda, and a Branch
at No. 17, Krishna Grand,
Outer Ring Road Junction,
Marathalli, Bengaluru - 560
037. represented herein by
one of its Principal Officers,
Viz., The Chief Manager of
the Marathahalli Branch,
Smt. Vishu Singha, aged
about 37 years.
2
COM.O.S.929/2025
(By Sri. M. Anantha Kumar -
Advocate)
//versus//
Defendant 1. Mr. Nowshad. A. S/o
Ameensab Basha, aged about
48 years, Residing at No. 195,
Venkatappa Building, 5th
Cross, HAL, 3rd Main,
Islampura, Vimapura,
Bengaluru - 560 017.
2. Mrs. Afroz, W/o Shaikh
Anwar, aged about 54 years,
Residing at No. 340, 3rd Cross,
Near Councilor House,
Islampur, Vimanapura,
Bengaluru - 560 017.
(Defendants are placed
exparte on 04.08.2025)
Date of Institution of the
02.07.2025
suit
Nature of the suit (suit
on pronote, suit for
declaration & Suit for recovery of money
Possession, Suit for
injunction etc.)
Date of commencement
04.09.2025
of recording of evidence
3
COM.O.S.929/2025
Date on which judgment
26.09.2025
was pronounced
Total Duration Year/s Month/s Day/s
00 02 24
(VIDYADHAR SHIRAHATTI),
LXXXII Addl.City Civil & Sessions Judge,
Bengaluru.
JUDGMENT
This suit is filed by the Plaintiff bank against the Defendant for recovery of Rs. 17,39,709.51/- together with interest at the rate of 11.55% per annum with monthly rests and penal interest @ 2% per annum from the date of suit till date of realization.
2. The Brief facts as per Plaint are as follows:-
2.1. The Plaintiff Bank submits that, in the year 2015, Defendant No.1 approached the Plaintiff Bank seeking financial assistance for the purpose of purchasing a four-wheeler vehicle for commercial use. Defendant No.1 represented that he intended to purchase a 4 COM.O.S.929/2025 NISSAN - SUNNY MC XVD (Yellow Board) car and undertook to hypothecate the said vehicle in favour of the Plaintiff Bank as security for the loan sought under SRTO (LMV) V-Cab Loan facility. Accoding to the said request, the Plaintiff Bank sanctioned a Vehicle Loan of Rs.8,50,000/- in favour of Defendant No.1, vide Sanction Order and Sanction Intimation Letter both dated 27/08/2015. Defendant No.1 duly accepted the terms and conditions of the sanction. Defendant No.2, sister of Defendant No.1, joined in the said request and executed a Guarantee in favour of the Plaintiff Bank, agreeing to be liable as guarantor for the due repayment of the said loan.
2.2. In respect of the said loan, the Defendants executed the following documents in favour of the Plaintiff Bank on 27/08/2015 a. On Demand Promissory Note for Rs.8,50,000/- agreeing to repay the loan on demand with interest @ 11.55% p.a. b. Letter of Repayment of Installments, whereby Defendant No.1 undertook to repay the loan in 58 monthly instalments of Rs.19,200/- each.5
COM.O.S.929/2025 c. Loan Agreement-cum-Hypothecation Deed, executed by Defendant No.1 hypothecating the said vehicle in favour of the Plaintiff Bank as security.
d. Letter of Guarantee, executed by Defendant No.2, guaranteeing the repayment of the loan.
2.3. The loan was disbursed under Vehicle/Term Loan Account bearing No. 74530600000655 (erstwhile A/c No. 144808401000004) maintained in the Core Banking System of the Plaintiff Bank. Defendant No.1 failed to adhere to the terms and conditions of the loan and defaulted in repayment of the instalments. Despite repeated requests and demands, the Defendant did not regularize the loan account. Consequently, the account was classified as Non-Performing Asset on 28/09/2017. The Plaintiff thereafter recalled the entire outstanding loan, but the Defendants failed to comply with the recall and did not discharge their liability. After accounting for all payments, interest, charges, and reversing the compounding of penal interest, the outstanding amount due in the said account stood at Rs.6,81,810.11 as on 20/06/2025, as reflected in the Statement of Account maintained by the Plaintiff Bank in its ordinary course of business. The said statement is duly certified under the 6 COM.O.S.929/2025 Bankers' Books Evidence Act. The manually calculated total amount due and recoverable as on 20/06/2025, including future interest and penal interest, is Rs.17,39,709.51. The Defendants have from time to time acknowledged their liability towards the loan amount by issuing Letters of Acknowledgment of Debt dated 05/04/2018, 30/03/2019, and 04/11/2019, thereby admitting the outstanding dues and extending the limitation period.
2.4. The Plaintiff submits that, the vehicle bearing Registration No. KA-03-AC-4586, purchased from the loan amount, stands hypothecated to the Plaintiff Bank as security. The said hypothecation is duly recorded in the Registration Certificate of the vehicle. Despite receipt of Notices dated 28/09/2017 and 07/10/2017, the Defendants failed to pay the due amounts. The Plaintiff authorized M/s TVS Credit Service Limited, vide Letter dated 07/10/2017, to seize the said hypothecated vehicle. However, Defendant No.1 has evaded seizure and neither repaid the amount nor responded to the notices. Left with no other remedy, the Plaintiff has been constrained to file the present suit for recovery. The Plaintiff Bank is therefore entitled to 7 COM.O.S.929/2025 recover a sum of Rs.17,39,709.51 with interest @ 11.55% p.a. and penal interest @ 2% p.a., from the Defendants jointly and severally, from the date of classification as NPA i.e., 28/09/2017, till realization. The plaintiff approached the DLSA, Bengaluru. However, the matter was not settled as per PIM Case No. 795/2022 dated 21.03.2022. Hence the defendant is liable to total for Rs. 17,39,709.51.
3. Inspite of service of summons the Defendant is not appeared before this court. Hence, the Defendant is placed ex-parte. In support of the plaintiff case the Chief Manager of the Plaintiff Bank present and filed affidavit in the form of chief-examination and examined as Pw.1 and relied upon 10 documents marked as Ex.P.1 to Ex.P.16.
4. Heard the arguments of the counsel for the plaintiff on the points was arise by this court.
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 ?8
COM.O.S.929/2025
2. What Order ?
6. My findings on the above Points are as under:
1. Point No.1 :- In the Affirmative.
2. Point No.2 :- As per the final Order for the following reasons.
REASONS
7. Point No.1 :- The Plaintiff filed this suit for recovery of Rs.17,39,709.51 with interest at the rate of 11.55% and penal interest @ 2% per annum from the date of suit till its realization.
8. The Defendant has borrowed the loan from Plaintiff Bank for purchasing Car under SRTO (LMV) V- Cab Loan facility for yellow board. Plaintiff bank sanctioned the loan as per order dated 27.08.2015 and the Defendant has used the vehicle for his commercial purpose. The Defendant has executed hyphocation deed, Demand Promissory Note dated 27.08.2025, Letter of repayment installment dated 27.08.2025. Loan agreement Cum-Hypothecation Deed dated 27.08.2025 and Letter of guarantee dated 27.08.2025. The loan sanction for 60 EMI's in monthly rests for Rs.
9COM.O.S.929/2025 7,268/ per month. However, the defendant has not repaid the loan . Hence, the plaintiff has issued a legal notice. However, the defendant neither repaid nor reply the notice. Hence, the plaintiff has constrained to file this suit for recovery.
9. The plaintiff to substantiate its case, the Chief Manager of the Plaintiff bank examined as PW.1 and relied 16 documents marked as Ex.P.1 to Ex.P.16. Ex.P.1 is the authorization letter. Ex.P.2 is the Loan application. Ex.P.3 is the Sanction letter. Ex.P.4 is the Demand Promissory Note. Ex.P.5 is the letter of repayment dated 27.08.2015. Ex.P.6 is the Loan agreement cum hypothication deed. Ex.P.7 is the letter of Guarantee. Ex.P.8 is the Statement of Account. Ex.P.9 is the Certificate U/s 2A(b) and 2A(c) of Banker's book of evidence Act. Ex.P.10 is the Acknowledgment of liability dated 05.04.2018. Ex.P.11 is the Acknowledgment of liability dated 30.03.2019. Ex.P.12 is the letter dated 04.11.2019. Ex.P.13 is the B-register extract of vehicle. Ex.P.14 is the Seizer notice of vehicle dated 28.09.2017. Ex.P.15 is the letter dated 07.10.2017 and Ex.P.16 is the PIM report dated 16.06.2022.
10COM.O.S.929/2025
10. I have gone through the documents and oral evidence of PW.1. The loan borrowed by the Defendant as per loan application marked as Ex.P.2 on dated 27.08.2015 and the same is sanctioned as per Ex.P.3 on the same day for monthly installment of 60 EMI's total at Rs. 7,268/- per month. The Defendant No.1 has executed Demand Promissory Note as per Ex.P.4 and letter of repayment executed on 27.08.2015 is Ex.P.5. Ex.P.6 is the Loan agreement cum hypothication deed dated 27.08.2015.
11. The repayment agreement as per Ex.P.6 is agreement to pay 58 EMI's for 27th day of every month and Ex.P.7 is the letter of guarantee which also extend the period. As per Ex.P.6 the 1 st installment starts from 27.09.2020 and till the date end of last installment is to be paid i.e., 58th EMI on or before 27.07.2026. Therefore, the suit of the plaintiff is well within the period. Ex.P.2 to Ex.P.7 clearly reveals about the defendant has borrowed the loan from Plaintiff bank. Ex.P.8 is the Statement of Account which reveals that, the defendant is due a sum of Rs. 17,39,709.51 and which is supported by the Certificate U/s 2A(b) and 11 COM.O.S.929/2025 2A(c) of Banker's book of evidence Act. The Defendant have acknowledged of liability as per Ex.P.10 and 11. The plaintiff has submitted the notice to the Defendant to shows that, the vehicle is not within the hands of him and the B-register extract of vehicle is marked as Ex.P.13. The Seizer notice of Vehicle is marked as Ex.P.14 and letter dated 07.10.2017 is marked as Ex.P.15. Ex.P.16 is PIM report as Defendant has not appeared before the DLSA, Bengaluru. The Defendant is due for Rs.17,39,709.51/-. Therefore, the Defendant has not appeared. Hence, the claim of the Plaintiff remained unchallenged. The Defendant has agreed to pay interest the rate of 11.55% + penal interest at 2% per annum total 13.55% per annum from the date of suit till its realization. Therefore, in view of the above discussions, I answer point No.1 in ' Affirmative'.
12. Point No.2 : -Therefore, I proceed to pass the following Order.
ORDER The Suit of the Plaintiff is decreed with cost.
12COM.O.S.929/2025 The Defendants are hereby directed to pay a sum of Rs.17,39,709.51 with Interest at 13.55% p.a. to the plaintiff bank from the date of the suit till realization.
Draw Decree accordingly.
The 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, verified and corrected by me and then pronounced by me in open Court on this the 26th day of September, 2025).
(VIDYADHAR SHIRAHATTI), LXXXII Addl.City Civil & Sessions Judge, Bengaluru.
ANNEXURE LIST OF WITNESSES EXAMINED ON BEHALF OF THE PLAINTIFF PW-1 Vishu Singha 13 COM.O.S.929/2025 LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE PLAINTIFF Ex.P.1 Authorization letter Ex.P.2 Loan Application Ex.P.3 Sanction Letter Ex.P.4 Demand Promissory note Ex.P.5 Letter of repayment dtd.27.08.2015 Ex.P.6 Loan agreement cum hypothication deed Ex.P.7 Letter of Guarantee Ex.P.8 Statement of Account Ex.P.9 Certificate U/s.2A(b) and 2A(c) of Banker's book of evidence Act Ex.P.10 Acknowledgment of liability dtd.05.04.2018 Ex.P.11 Acknowledgment of liability dtd.30.03.2019 Ex.P.12 Letter dtd.04.11.2019 Ex.P.13 B-register extract of vehicle Ex.P.14 Seizer notice of vehicle dtd.28.09.2017 Ex.P.15 Letter dtd.07.10.2017 Ex.P.16 PIM report dtd.16.06.2022 LIST OF WITNESSES EXAMINED ON BEHALF OF THE DEFENDANT NIL 14 COM.O.S.929/2025 LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE DEFENDANT NIL (VIDYADHAR SHIRAHATTI), LXXXII Addl.City Civil & Sessions Judge, Bengaluru.