Bangalore District Court
State Bank Of India vs M/S Elementz5 on 26 September, 2025
1
COM.O.S.436/2025
KABC170010882025
IN THE COURT OF LXXXII ADDL.CITY CIVIL &
SESSIONS JUDGE, COMMERCIAL COURT,
BENGALURU (CCH-83)
PRESENT: SRI. VIDYADHAR SHIRAHATTI, L.L.M.,
LXXXII ADDL.CITY CIVIL & SESSIONS
JUDGE,
BENGALURU.
Com.O.S.No.436/2025
Dated on this 26th Day of September 2025
Plaintiff State Bank of India, SME
Centre, Banasawadi, No.13,
2A Munireddy Layout,
Horamavu Main Road,
Banasawadi, Bengaluru -
560 113, represented by its
Chief Manager, Sri. Prakash
Kumar, aged about 39 years,
S/o Balram Mistry.
(By Sri. Vachanna.G.K -
Advocate)
//versus//
2
COM.O.S.436/2025
Defendant M/s Elementz5, No. 404, 4th
'A' Cross, Behind HDFC Bank,
2nd Block, HRBR Layout,
Kalyan Nagar, Bengaluru -
560 043, represented by its
Proprietor, Dr. N. Illatharasi.
Defendant is Placed exparte
on 29.08.2025)
Date of Institution of
21.03.2025
the suit
Nature of the suit (suit
on pronote, suit for
declaration & Suit for recovery of money
Possession, Suit for
injunction etc.)
Date of commencement
09.09.2025
of recording of evidence
Date on which
judgment was 26.09.2025
pronounced
Total Duration Year/s Month/s Day/s
00 06 05
(VIDYADHAR SHIRAHATTI),
LXXXII Addl.City Civil & Sessions Judge,
Bengaluru.
3
COM.O.S.436/2025
JUDGMENT
1. The Plaintiff filed this suit for recover Rs. 6,27,069/- inclusive interest till 11.03.2025 and also pay the future interest at 12.40% p.a. with monthly rests from 12.03.2025 to till the date of realization, in respect of Cash Credit facility loan A/c No. 37686868199.
2. The Plaintiff also seeks a direction to the Defendant to pay Rs. 29,451/- inclusive interest till 11.03.2025 and also pay the future interest at 9.25% p.a. with monthly rests from 12.03.2025 to till the date of realization, in respect of GECL Credit facility loan A/c No. 39363867085.
3. The Plaintiff also seeks a direction to the Defendant to pay Rs. 84,865/- inclusive interest till 11.03.2025 and also pay the future interest at 9.45% p.a. with monthly rests from 12.03.2025 to till the date of realization, in respect of FITL Credit facility loan A/c 4 COM.O.S.436/2025 No. 40355556512.
4. The Plaintiff also seeks a direction to the Defendant to pay Rs. 5,51,869/- inclusive interest till 11.03.2025 and also pay the future interest at 9.95% p.a. with monthly rests from 12.03.2025 to till the date of realization, in respect of WCTL Credit facility loan A/c No. 40355563608. In total the plaintiff has claimed 12,93,254/-.
5. The Brief facts as per Plaint are as follows:-
The Defendant have made an application before the Plaintiff on 01.03.2018 for sanction of Cash Credit facility for improving their business, and as per the request made by the Defendant, the Plaintiff have sanctioned the said Cash Credit facility of Rs. 10,00,000/- to the Defendant and agreeing to repay the same together with interest thereon @ 10.90% per annum compounded with monthly rests revised by the bank from time to time as per Letter of Arrangement dated 04.05.2018. In consideration of having availed the said loan facility the Defendant have executed 5 COM.O.S.436/2025 Agreement of Loan cum Hypothecation dated 04.05.2018 in favour of the Plaintiff. The Defendant have requested the Plaintiff for renewal of existing Cash Credit facility and sanction of GECL Credit facility. As per the request made by the Defendant, the Plaintiff have renewed the said existing Cash Credit facility of Rs.
10,00,000/- and sanctioned GECL Credit facility of Rs. 1,99,000/- to the Defendant and agreeing to repay the same together with interest thereon @ 7.80% per annum compounded with monthly rests revised by the bank from time to time as per Letter of Arrangement dated 05.06.2020. In consideration of having renewed/availed the said loan facilities the Defendant have executed Supplemental Agreement of Loan cum Hypothecation dated 05.06.2020 in favour of the Plaintiff. The Defendant have also requested the Plaintiff for restructure of existing Cash Credit facility, renewal of GECL Credit facility and sanction of CCECL Credit facility, FITL Credit facility and WCTL Credit facility. As per the request made by the Defendant, the Plaintiff have restructured the said existing Cash Credit facility upto the limit of Rs.5,00,000/-, renewed GECL Credit facility of Rs. 1,99,000/- and sanctioned CCECL 6 COM.O.S.436/2025 Credit facility of Rs.1,00,000/-, FITL Credit facility of Rs.1,53,300/- and WCTL Credit facility of Rs.5,10,000/- to the Defendant and agreeing to repay the same together with interest thereon compounded with monthly rests revised by the bank from time to time as per Letter of Arrangement dated 10.08.2021. In consideration of having renewed/availed the said loan facilities the Defendant have executed Supplemental Agreement of Loan cum Hypothecation dated 10.08.2021 in favour of the Plaintiff. The Defendant have further requested the Plaintiff for renewal of existing Cash Credit facility. As per the request made by the Defendant. The Plaintiff have renewed the said existing Cash Credit facility to the Defendant and agreeing to repay the same together with interest thereon @ 12.40% per annum compounded with monthly rests revised by the bank from time to time as per Letter of Arrangement dated 20.11.2023. The Defendant have not kept their undertakings and they have defaulted in making payment as when due to the Plaintiff. The Defendant have neither responded nor attempted to clear the outstanding amount in-spite of repeated requests and demands made by the Plaintiff.
7COM.O.S.436/2025 The Plaintiff got issued a Legal Notice dated 09.12.2024 to the address furnished by the Defendant through RPAD calling upon to pay the outstanding amount and the said Legal Notice was returned without service to Defendant. Further, the Defendants have not come forward to clear the loan amount to till the date. The plaintiff has approached the Pre-institution mediation before the DLA, Bengaluru urban vide PIM No. 42/2025 on 08.01.2025 and the authority issued the Non-starter report dated 12.03.2025, issued on 19.03.2025. The Defendant is due a total sum of Rs. 12,93,254/- along with future interest @ 12.40%, 9.25%, 9.45% and 9.95% per annum respectively with monthly rests from 12.03.2025 to till the date of realization of entire amount in respect of the Cash Credit facility, GECL Credit facility, FITL Credit facility and WCTL Credit facility. Hence, the plaintiff has constrained to file this suit.
6. Inspite of service of summons and paper publication the Defendant is not appeared before this court. Hence, the Defendant is placed ex-parte. In support of the plaintiff case the Manager of the Plaintiff Bank present and filed affidavit in the form of chief-
8COM.O.S.436/2025 examination and examined as Pw.1 and relied upon 16 documents marked as Ex.P.1 to Ex.P.17.
7. Heard the arguments of the counsel for the plaintiff on the points was arise by this court.
8. 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 ?
2. What Order ?
9. 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
10. Point No.1 :- On 25.11.2022, the Defendant has approached the plaintiff bank for sanction of cash credit and term loan facility for improving their business. On 01.03.2018, the Plaintiff bank has sanctioned cash credit facility for Rs.10,00,000/- and Defendant is 9 COM.O.S.436/2025 agreed to repay the same together with Interest @10.90% p.a. by executing hypothication deed. The Defendant has approached the renewal of the existing Loan and same is sanctioned of GECL Credit Facility and renewed the Loan along with Interest @ Rs.1,99,000/- and agreed to repay the same with Interest there on 7.80% p.a. As per the GECL Credit facility sanction of CCECL, FITL credit facility and WCTL credit facility, Plaintiff has restructured the said existing cash credit facility upto the limit of Rs.5,00,000/- renewed GECL credit facility of Rs.1,99,000/- and sanctioned CCECL credit facility of Rs.1,00,000/- and FITL credit facility of Rs.1,53,300/- and WCTL credit facility of Rs.5,10,000/-. The Defendant has agreed to repay the said amount as per letter of arrangement dtd.10.08.2021 and supplemental agreement of loan cum hypothication dtd.10.08.2021. As per the Agreement Defendant is agreed to repay the said amount with Interest at 12.40% p.a.
11. Inspite of all the service the Defendant not repaid the Loan amount, Plaintiff issued a Legal notice dtd.09.12.2024 and the said notice was not served. Plaintiff approached DLSA for pre institution mediation 10 COM.O.S.436/2025 in No.42/2025, wherein steps not taken.
12. The Defendant has due of Rs.6,27,069/- in the Loan Account No.37686868199 with future interest @12.40% p.a. from 11.03.2025.
13. The Defendant has also due of Rs.29,451/- with Interest at 9.25% p.a. in the loan account No.39363867085 from 11.03.2025.
14. The Defendant has also due of Rs.84,865/- with Interest at 9.45% p.a. from 11.03.2025 in loan account No.40355556512.
15. The Defendant is due for Rs.5,51,869/- with Interest at 9.95% from 11.03.2025 in loan account No.40355563608.
16. In total Defendant due of Rs.12,93,254/-, hence Plaintiff claimed the said amount with Interest.
17. In support of the pleadings, Veena B., Manager of Plaintiff Bank has examined as PW-1 and relied 17 documents which are marked as Ex.P.1 to 17. Ex.P.1 is 11 COM.O.S.436/2025 Authorization letter. Ex.P.2 is Loan Application dtd.01.03.2018. Ex.P.3 is letter of arrangement dtd.04.05.2018. Ex.P.4 is Agreement of loan cum hypothication. Ex.P.5, 7, 9 are the Letter of Arrangement dtd.05.06.2020, 10.08.2021 and 10.11.2023 respectively. Ex.P.6 and 8 are supplemental Agreement of loan cum hypothication dtd.05.06.2020 and 10.08.2021.
18. Ex.P.2 to 9 clearly reveals that, Defendant has borrowed the loan from Plaintiff bank and not repaid. The Plaintiff has issued Legal notice as per Ex.P.10 on dtd.09.10.2024, but the said notice is not served. Unopened postal cover is marked as Ex.P.11. Ex.P.12 is PIM report where steps not taken, hence the petition was closed. The Statement of Accounts marked as Ex.P.13 to 16, wherein which reveals about the Defendant is due as plaintiff claimed. Ex.P.13 to 16 are authenticated by submitting Ex.P.17 - certificate U/s.2A of Banker Book's of Evidence Act.
19. Ex.P.13 to 16 clearly reveals that, Defendant is due and not paid any Interest to the Plaintiff. Therefore, the Defendant neither appeared nor repaid the amount.
12COM.O.S.436/2025 The non appearance of the Defendant remained unchallenged of the Plaintiff case. Hence, the plaintiff is entitle for the claim made in the Petition. Accordingly, the suit is deserved for Decree. Hence, I answer Point No.1 in "Affirmative".
20. Point No.2 : -Therefore, I proceed to pass the following Order.
ORDER The Suit of the Plaintiff is decreed with cost.
The Defendant is hereby directed to pay a sum of Rs.6,27,069/- with Interest @ 12.40% p.a. in respect to Loan Account number.37686868199 from 12.03.2025 to the plaintiff bank till realization.
The Defendant is hereby directed to pay a sum of Rs.29,451/- with Interest @ 9.25% p.a. in respect to Loan Account number.39363867085 from 12.03.2025 to the plaintiff bank till realization.
The Defendant is hereby directed to pay a sum of Rs.84,865/- with Interest @ 9.45% p.a. in respect to Loan Account number.40355556512 from 12.03.2025 to the plaintiff bank till 13 COM.O.S.436/2025 realization.
The Defendant is hereby directed to pay a sum of Rs.5,51,869/- with Interest @ 9.95% p.a. in respect to Loan Account number.40355563608 from 12.03.2025 to the plaintiff bank 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.
14COM.O.S.436/2025 ANNEXURE LIST OF WITNESSES EXAMINED ON BEHALF OF THE PLAINTIFF PW-1 Veena.B LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE PLAINTIFF Ex.P.1 Authorization letter Ex.P.2 Loan application dtd.01.03.2018 Ex.P.3 Letter of Arrangement dtd.04.05.2018 Ex.P.4 Agreement of Loan cum hypothication dtd.04.05.2018 Ex.P.5 Letter of Arrangement dtd.05.06.2020 Ex.P.6 Supplemental Agreement of Loan cum hypothication dtd.05.06.2020 Ex.P.7 Letter of Arrangement dtd.10.08.2021 Ex.P.8 Supplemental Agreement of Loan cum hypothication dtd.10.08.2021 Ex.P.9 Letter of Arrangement dtd.10.11.2023 Ex.P.10 O/C of Legal notice dtd.09.10.2024 along with postal receipt Ex.P.11 Unopened postal cover Ex.P.12 PIM report dtd.12.03.2025 Ex.P.13 Statement of Account (pg no.77 to 128) Ex.P.14 Statement of Account (pg no.129 to 137) Ex.P.15 Statement of Account (pg no.138 to 142) 15 COM.O.S.436/2025 Ex.P.16 Statement of Account (pg no.143 to 147) Ex.P.17 Certificate U/s.2A of Banker's book of evidence Act LIST OF WITNESSES EXAMINED ON BEHALF OF THE DEFENDANT NIL LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE DEFENDANT NIL (VIDYADHAR SHIRAHATTI), LXXXII Addl.City Civil & Sessions Judge, Bengaluru.