kbp 1 234-03.sxw IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORIGINAL CIVIL JURISDICTION SUIT NO.234 OF 2003 The Sangli Bank Ltd. ..Plaintiffs Vs. Mrs.Vrishali S.Deo and ors. ..Defendants ......... Mrs.Nutan Desai, for plaintiff. ......... CORAM : A.S.OKA, J.. DATE : 17th November, 2009. JUDGMENT : 1] The plaintiffs have filed present suit for a recovery of sum of Rs.57,033/- together with interest thereon at the rate of 19% per annum compounded quarterly from the date of filing of the suit till the payment or realisation. A declaration has been claimed as regards validity of hypothecation in favour of the plaintiffs. A written statement was not filed by the defendants. 2] The plaintiffs were called upon to prove their claim by filing an affidavit. Accordingly, an affidavit of Mr.Puntambekar, Manager of the plaintiffs has been filed. The said affidavit is marked "X" for identification. The original documents along with a list have been tendered on record. The list along with the documents are collectively marked as "Y" for identification. The case made out by the plaintiffs is that the first defendant made a request to the plaintiffs on 12th kbp 2 234-03.sxw July, 1999 for grant of loan of Rs.50,000/- for purchase of a Colour T.V., a Refrigerator and a Washing machine. Accordingly, a loan of Rs.50,000/- was sanctioned by the plaintiffs which was released in favour of the first defendant. The first defendant agreed to repay the amount by installments as provided in the agreement between the parties. The second defendant guaranteed the repayment of the loan by the first defendant. 3] The case of the plaintiffs is that the first defendant committed default in payment of installments. The first defendant did not comply with the terms and conditions on which the loan was sanctioned. Therefore, notice dated 19th September, 2002 was issued by the plaintiffs, thereby calling upon the defendants to repay the entire loan amount together with interest thereon. 4] By the affidavit of Mr.A.S.Puntambekar, the plaintiffs have proved the execution of a demand promissory note, term loan agreement and undertaking which were executed by the first defendant on 20th July, 1999. There is an acknowledgment of signed by the first defendant. The Agreement of guarantee signed by the second defendant is also placed on record. The certified extract of loan amount of the first defendant has been placed on record. The aforesaid documents prove the claim of the plaintiffs. 5] The plaintiffs are claiming further interest at the rate of 19% per annum compounded quarterly from the date of filing of the suit till the realisation. Considering the facts of the case, further interest at the rate of 12% will have to kbp 3 234-03.sxw be fixed on the principal amount of Rs.38,283/-. The plaintiffs are entitled to a declaration in terms of prayer clause (b) as the hypothecation has been duly proved. 6] Hence, I pass the following order:- (a) There will be a decree in terms of prayer clauses (a) and (b) with modification that the plaintiffs shall be entitled to further interest at the rate of 12% per annum on the sum of Rs.38,283/- from the date of institution of the suit till the realisation or the payment. (b) The plaintiffs shall be entitled to recover the costs of the suit from the defendants. (c) Plaintiffs shall be entitled to refund of the Court Fees as per the rules. ( A.S.OKA, J. )