Bangalore District Court
Vijaya Bank vs Dr. Jagadeesh H.C on 31 May, 2016
IN THE COURT OF THE XXIX ADDL. CITY CIVIL
& SESSIONS JUDGE AT BANGALORE CITY.
(CCH-30)
DATED THIS THE 31st DAY OF MAY, 2016.
PRESENT: SMT. S.K. TARIMANE,
B.Com.,LL.B., (Spl.) ,
PRESIDING OFFICER:
XXIX ADDL CITY CIVIL JUDGE, BANGALORE.
O.S.No. 4725/2015
Plaintiff: Vijaya Bank, Cox Town
Branch, Bangalore-560 005,
Represented by its Chef
Manager Mr. Pradeep
Kumar.E., S/o. Late Kamil E.,
Aged about 48 years.
(By: Sri. V.R., Adv.)
Vs.
Defendant/s: 1. Dr. Jagadeesh H.C., S/o.
K.K.Chandrashekar, Aged
about 51 years, Residing at
No. 8, 9th A Main,
Jeevanbhimanagar, HAL
3rd Stage, Bangalore.
560 075.
2 O.S.No. 4725/2015
2. Dr.Rumamma Tabassum,
D/o.H. Fayaz Ahmed, Aged
about 36 years, Residing at
No.456, 5th "B" Main,
HRBR 2nd Block, Kalyan
Nagar, Bangalore-560 043.
3. Dr. Mohamed Azam
Danish, S/o. Syed Basheer
Ahmed, Aged about 38
years, Residing at No.3-
III, Whitehouse
Apartments, 001, 15th
Cross, 6th Main,
R.T.Nagar, Bangalore-
s560 032.
(Defendants - Exparte)
Date of institution of the 03/06/2015
suit
Nature of the suit (suit on Recovery of money.
pronote. Suit for
declaration and possession
suit for injunction, etc.)
Date of the 19-01-2016
commencement of
recording of the evidence.
Date on which the 31-05-2016
3 O.S.No. 4725/2015
judgment was pronounced
Total duration Year/s Month/s Day/s
00 11 28
( S.K.TARIMANE)
XXIX Addl. City Civil Judge,
Bangalore.
JUDGM ENT
The plaintiff bank has filed this suit for recovery
of an amount Rs.2,21,769/- with future interest
@17.75%p.a., with monthly rests, from the date of the
suit till the date of payment together with a sum of Rs.
2,500/- being the typing and other miscellaneous
expenses alleged to be due by the defendants under a loan
account.
2. The case of the plaintiff in brief is as under:
4 O.S.No. 4725/2015
The defendants approached the plaintiff on
18/03/2008 for a pronote loan of Rs. 2,80,000/- for the
purpose of Personal expenses and plaintiff sanctioned a
sum of Rs. 2,80,000/- to the defendants on 18/03/2008.
The defendants agreed to repay the said loan amount with
interest @ 14%p.a.(+2% penal interest) compounded
with monthly rests in 48 EMIs.. The defendant No.2 and
3 are the guarantors of the loan availed by the defendant
No.1. Thereafter defendants have executed the letter of
continuing guarantee, delivered the acknowledgement of
liability dated 01/01/2011, 06/03/2011 and 18/07/2013 in
favour of the plaintiff bank as per the terms and
conditions. Thereafter, the defendants have failed to
repay the loan amount as agreed. Hence, the plaintiff
bank issued a legal notice dtd. 11/05/2015 calling upon
the defendant to repay the loan amount as agreed. Inspite
of that also, the defendants have failed to repay the loan
amount. As on the date of the suit and as per the accounts
5 O.S.No. 4725/2015
duly maintained by the plaintiff bank, the defendants are
in due of Rs. 2,21,769/- to the plaintiff bank and Rs.
2,500/- being the typing and other miscellaneous
expenses incurred by the plaintiff and the defendants are
liable to pay the suit amount. Hence, the plaintiff bank
constrained to file this suit and prays for decree of the
suit.
3. On service of the suit summons, the
defendants remained absent. Hence they are placed as
exparte.
4. The plaintiff bank has examined its Branch
Chief Manager as PW.1 and got produced Ex.P.1 to
Ex.P.16 documents.
5. I have heard the arguments.
6. The following points are arisen for my
consideration is as under:
6 O.S.No. 4725/2015
1. Whether the plaintiff bank proves that
the defendants has availed loan of
Rs.2,80,000/- on 18/03/2008 by
executing necessary documents and by
agreeing to repay the same with
interest @14%p.a.(Floating) (+2%
penal interest) with monthly rests and
in 48 EMIs., and as on the date of the
suit the defendants are liable to pay to
the plaintiff bank a sum of Rs.
2,21,769/- including interest up to date
and +2,500/- being the typing and
other miscellaneous charges?
2. Is plaintiff bank entitled for the suit
reliefs as sought for?
3. What Order or Decree?
7. My findings on the aforesaid points are held as
under:-
1. Point No.1: In the Affirmative.
2. Point No.2: In the Affirmative.
3. Point No.3: As per final order below,
for the following:-
7 O.S.No. 4725/2015
REASONS
8. Point No.1 and 2: Both these points are inter-
linked and in order to avoid possible repetition of evidence
and facts, I took these points simultaneously for
discussion.
9. The plaintiff bank has examined its Senior
Branch Manager as PW.1. PW.1 in his evidence he has
specifically stated that the 1st defendant has availed pronote
loan of Rs.2,80,000/- on 18/03/2008. The defendant No.2
and 3 are the guarantors. Further, the defendants have
agreed repay the same with interest @ 14 %p.a. +
2%(penal interest) with monthly rests and in 48 EMIs.
Thereafter the defendants have executed necessary
documents in favour of the plaintiff bank i.e., Demand
Promissory Note, letter of repayment, acknowledgement of
liability etc., Thereafter defendants have not repaid the
loan amount as agreed. Inspite of repeated demands
followed by legal notice issued by the plaintiff bank, the
8 O.S.No. 4725/2015
defendants have not repaid the loan amount. Hence the
plaintiff bank constrained to file this suit and prays for
decree of the suit. The defendants are liable to pay the suit
amount to the plaintiff bank.
10. To further prove its case, the plaintiff bank has
produced Ex.P.1 to Ex.P.16. Ex.P.1 is the loan application,
Ex.P. 2 is loan sanctioned communication, Ex.P. 3 On
demand Promisory Note, Ex.P. 4 Letter of payment, Ex.P.
5 is letter of guarantee, Ex.P. 6 to 8 acknowledgement of
liability(3), Ex.P. 9 copy of notice, Ex.P. 10 is postal
receipts, Ex.P. 11 to 13 are Postal acknowledgements,,
Ex.P. 14 is statement of account, Ex.P. 15 is Udayavani
News Paper, Ex.P. 15(a) Portion of news and Ex.P. 16 is
bill.
11. The version of PW.1 given in proof of plaint
averments and claim of the plaintiff bank at Ex.P.1 to
9 O.S.No. 4725/2015
Ex.P.16 is remained unchallenged as the defendants are
placed exparte. Therefore there is no reason for me to
disbelieve the evidence given in proof of plaint averments,
Ex.P.1 to 16 and claim of the plaintiff bank.
12. Further, from the version of PW.1 and Ex.P.1 to
16, it clearly evident that the defendants have availed
Pronote Loan of Rs. 2,80,000/- on 18/03/2008 for the
purpose of personal expenses by agreeing to repay the loan
amount with interest @14(Floating)%p.a.(+2% penal
interest) compoundable with monthly rests and in 48
EMIs.,. Thereafter the defendants have executed Demand
promissory Note, Letter of payment, Letter of guarantee,
three acknowledgement of liability at Ex.P. 3 to Ex.P. 8
respectively. From the version of P.W.1 and Ex.P.3 to
Ex.P. 8 and also Ex.P. 14, the statement of accounts duly
maintained by the plaintiff bank, the defendants are in due
of Rs.2,21,769/- including interest up to date as on the
10 O.S.No. 4725/2015
date of the suit and Rs.2,500/- being the typing and other
miscellaneous expenses incurred by the plaintiff. Further,
from the version of PW.1 and Ex.P.1 to 16, it clearly
evident that inspite of demands followed by legal notice,
the defendants have failed to repay the loan amount as
agreed. Therefore, I am of the view that the plaintiff bank
is entitled to recover the suit amount of Rs. 2,21,769/- +
Rs. 2,500/- from the defendants and the defendants are
jointly and severally liable to pay the suit amount to the
plaintiff bank.
13. On going through the version of PW.1 and
plaint averments it reveals that the cause of action for the
suit arose on 18/03/2013 nd on 18th of every succeeding
month and subsequently when the defendant acknowledges
the liability on 01/01/2011, 06/03/2011 and 18/07/2013
and on 11/05/2015 when the legal notice is issued. The
11 O.S.No. 4725/2015
suit is filed on 03/06/2015. Therefore, the suit is well
within time.
14. The plaintiff bank has sought for future interest
@17.75%p.a. compounded with monthly rests. It is well
settled that the court can grant future interest at yearly rests
but not monthly rests or quarterly rests. According to
Section 34 of CPC, the court can grant future interest at
any rate by considering the loan transaction and nature of
the loan between the parties. Looking into the nature of the
loan, i.e., the defendants have availed personal loan from
the plaintiff bank, I am of the view that the plaintiff bank is
entitled for future interest @6%p.a. from the date of the
suit till its complete realization on the suit amount.
Accordingly, I answer these points No.1 and 2 in the
Affirmative.
12 O.S.No. 4725/2015
15. Point No.3:- In view of my finding to the above
point, the suit filed by the plaintiff bank deserves to be
decreed. Hence, I proceed to pass the following:-
ORDER
The suit filed by the plaintiff bank is decreed with costs for Rs. 2,21,769/- with future interest @6%p.a. from the date of the suit till complete realization + 2,500/- being the typing and other miscellaneous expenses.
The defendants are jointly and severally liable to pay the decree amount to the plaintiff bank.
The defendants are hereby directed to pay or deposit the decree amount within two months from the date of this order.
Draw decree accordingly. (Dictated to the Judgment-writer, after transcription, corrected by me and then pronounced and signed by me in the open court, on this the 31st day of May 2016).
(S.K.TARIMANE) XXIX Addl. City Civil Judge, Bangalore.
13 O.S.No. 4725/2015ANNEXURE LIST OF WITNESSES EXAMIEND FOR PLAINTIFF:
PW.1: Sri. Pradeep Kumar LIST OF DOCUMENTS EXHIBITED FOR PLAINTIFF:
Ex.P.
1) Loan application
2) Loan sanctioned communication
3) On demand promissory note
4) Letter of payment
5) Letter of guarantee
6) Acknowledgement of liability
7) Acknowledgement of liability
8) Acknowledgement of liability
9) Copy of notice
10) Postal receipts
11) to 13 Returned covers(3)
14) Statement of account
15) Udayavani News paper
16) Bill 15(a) Portion of news.14 O.S.No. 4725/2015
LIST OF WITNESES EXAMINED BY THE DEFENDANT:
NIL LIST OF DOCUMENTS MARKED BY THE DEFENDANT:
NIL (S.K.TARIMANE) XXIX Addl. City Civil Judge, Bangalore.15 O.S.No. 4725/2015
Order pronounced in the open court vide separate ORDER The suit filed by the plaintiff bank is decreed with costs for Rs. 2,21,769/- with future interest @6%p.a. from the date of the suit till complete realization + 2,500/- being the typing and other miscellaneous expenses.
The defendants are jointly and severally liable to pay the decree amount to the plaintiff bank.
The defendants are hereby directed to pay or deposit the decree amount within two months from the date of this order.
Draw decree accordingly.
(S.K.TARIMANE) XXIX Addl. City Civil Judge, Bangalore.16 O.S.No. 4725/2015 17 O.S.No. 4725/2015