1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY O. O. C. J. SUIT NO.3813 OF 1997 United Bank of India. ...Plaintiff. Versus Satish Bajirao Mane. ...Defendant. ....... Mr.P. N. Singh i/b. Vyas & Bhalwal for the Plaintiff. None for the Defendant. ...... CORAM : DR. D.Y. CHANDRACHUD, J. July 28, 2009. P.C.: The Defendant was employed with the Plaintiff as a clerk at its Worli Branch. On 12th October 1992, the Defendant applied for a loan of Rs.1,50,000/- for the purchase of residential premises. The loan was sanctioned on 24th December 1992 in the amount of Rs. 1,50,000/-. The first amount of Rs. 1.10 lakh was to carry interest at 5.25% p.a., while the remaining amount of Rs.40,000/- was to carry interest at 11.50% p.a. The loan was recoverable in eighteen monthly instalments each of Rs.820/-. The Defendant signed and executed an agreement on 15th April 1993. In pursuance thereof, the Plaintiff issued a Pay Order of Rs.1,50,000/- for and on behalf of the Defendant to the developer for the purchase of the flat. Possession of 2 the flat was handed over to the Defendant on 17th April 1993. The loan was also secured by a Demand Promissory Note and the Defendant created a first lien and charge on the flat in favour of the Plaintiff by an instrument dated 15th April 1993. A Power of Attorney was executed by the Defendant on 29th March 1993 for executing a Deed of Mortgage including a mortgage by depositing a title deed. The Defendant issued a letter of lien and assigned his gratuity. A balance confirmation letter dated 12th April 1996 was issued by which the Defendant acknowledged that an amount of Rs. 1,75,607.15 was due and outstanding. There was a default in the payment of the outstandings. The services of the Defendant were terminated on 31st January 1996. Despite an Advocate's notice dated 14th June 1997, the loan was not paid. 2. The suit has been instituted for the recovery of the loan together with interest. The Defendant has been served with the writ of summons, but has failed to enter appearance. In these circumstances, the averments contained in the plaint have not been controverted. The Plaintiff has relied upon the affidavit in lieu of the 3 Examination-in-Chief of its Manager and on a compilation of the original documents. The claim has been duly proved on the basis of the evidence on record. The suit shall accordingly stand decreed in terms of prayer clauses (a) to (c ) and (g) with the modification that the Plaintiff will be entitled to interest at the rate of 12% p.a. from the date of the suit until payment or realization. .....