Document Fragment View

Matching Fragments

This suit is filed by the Plaintiff bank against the Defendant for recovery of Rs.11,76,113/- under Cash Credit facility bearing Loan account No.38933546731 inclusive interest till 11.06.2025 and future interest at the rate of 11.90% per annum with monthly rests from 12.06.2025 to till the date of realization.

2. The Brief facts as per Plaint are as follows:-

The Plaintiff Bank is constituted under the State Bank of India Act, 1955. The Defendant have made an application on 07.11.2019 before the plaintiff for sanction of Cash Credit facility for improving their business. As per the request made by the Defendant, the Plaintiff have sanctioned the Cash Credit facility of Rs.5,00,000/- to the Defendant and agreeing to repay the same together with interest thereon @ 11.05% per annum compounded with monthly rests revised by the bank from time to time as per Letter of Arrangement dated 16.11.2019. In consideration of having availed the said loan facilities the Defendant have executed Agreement of Loan cum Hypothecation dated COM.O.S.863/2025 16.11.2019 in favour of the Plaintiff. The Defendant have requested the Plaintiff for renewal of existing Cash Credit facility and sanction of Capital GECL credit facility. As per the request made by the Defendant, Plaintiff have renewed existing Cash Credit Facility and sanctioned GECL credit facility of Rs.97,000/-. The Defendant agreed to reapy the same together with Interest @7.80% p.a. The Letter of Arrangement and Supplemental Agreemental Loan cum hypothication dtd.03.06.2020 are executed. The Defendant has also requested the Plaintiff for encashment of existing cash credit facility. The Cash Credit facility is enhanced upto the limit of Rs.10,00,000/-. The Interest is agreed at 9.90% p.a. The Letter of Arrangement cash credit facility, supplemental agreemental loan cum hypothication dtd.23.10.2020 is executed in favour of the Plaintiff. 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. Finally, the Plaintiff got issued a Legal Notice dated 03.08.2024 to address COM.O.S.863/2025 furnished by the Defendant through RPAD calling upon to pay the outstanding amount and the said Legal Notice was not served to the Defendant. Further, the Defendant have not come forward to clear the loan amount to till the date. The Plaintiff filed an application for pre-institution mediation before the District Legal Services Authority, Bengaluru Urban vide PIM No.2260/2024 against the Defendant on 24.09.2024 and the said authority issued the Form-3: Non Starter report dated 10.06.2025.
7

COM.O.S.863/2025

9. The Defendant have requested the Plaintiff for renewal of existing Cash Credit facility and sanction of Capital GECL credit facility. As per the request made by the Defendant, Plaintiff have renewed existing Cash Credit Facility and sanctioned GECL credit facility of Rs.97,000/-. The Defendant agreed to repay the same together with Interest @7.80% p.a. The Letter of Arrangment and Supplemental Agreemental Loan cum hypothication dtd.03.06.2020 are executed.

12. On the basis of above claim, Plaintiff's Manager Veena B. has examined and Ex.P.1 to 15 are marked. Ex.P.2 is the Loan Application submitted by the Defendant to the Plaintiff in Pradhan Mantri Mudra Yojana. Ex.P.3 is Letter of Arrangement it reveals that, Plaintiff bank has advising sanction of credit facilities for Rs.5,00,000/-. Ex.P.4 is an Agreement of Loan cum hypothecation wherein Defendant also agreed to receive Rs.5,00,000/- and the plaintiff has sanctioned the said amount. Ex.P.5 Letter of Arrangement dtd.03.06.2020 which reveals that, payment of Rs.5,00,000/- and term loan of Rs.97,000/-, total amount is Rs.5,97,000/-. Ex.P.6 is supplemental Agreement of loan cum hypothication for Rs.5,00,000/- + Rs.97,000/-. Ex.P.7 is Letter of Arrangement dtd.23.10.2020 for advance to SME segment for Rs.10,00,000/-. Ex.P.8 is the supplemental Agreement of loan cum hypothication dtd.23.10.2020, wherein also the Arrangement made for Rs.5,00,000/- and supplemental Agreement loan cum hypothication for Rs.5,00,000/-. Ex.P.9 is the revival letter.

Ex.P.3 Letter of Arrangement dated 16.11.2019. Ex.P.4 Agreement of Loan cum hypothication. Ex.P.5 Letter of Arrangment dated 03.06.2020. Ex.P.6 Supplemental agreement of loan cum hypothication dated 03.06.2020. Ex.P.7 Letter of Arrangement dated 23.10.2020. Ex.P.8 Supplemental agreement of loan cum hypothication dated 23.10.2020. Ex.P.9 Revival letter dated 06.04.2024. Ex.P.10, O/C of Legal notice dtd.09.01.2025 along with 01 Ex.P.10 postal receipt