Bangalore District Court Bank As Against The vs In The Usual And Ordinary Course Of Its ... on 12 January, 2016 IN THE COURT OF THE SMALL CAUSES, AT BANGALORE (SCCH7) Dated this, the 12th day of January, 2016. Present : SMT. INDIRA MAILSWAMY CHETTIYAR B.Com.,LL.B.(Spl.,),L.L.M., IX Addl. Small Causes Judge & XXXIV ACMM, Court of Small Causes, Member, MACT7, Bangalore. S.C.No.1253/2015 Canara Bank, : ..... PLAINTIFF Okalipuram Branch, Bangalore560 021. Represented by its Senior Manager and P.A. Holder, C.Basavaraju S/o Sri. Chikkananjaiah, Aged 53 years. (By Sri.Somanatha Kote, Adv.,) V/s ..... DEFENDANT Mr. Nagaraju.T., S/o Mr. Thimmaiah, Aged about 53 years, 1233, 5th Cross, Sunkadakatte, Vigneshwaranagar, Bangalore 560 091. (Exparte) 1. Date of Institution : 26.10.2015 2 SC No.1253/2015 SCCH7 2. Nature of Suit : Recovery of Money 3. Date of Evidence : 19.12.2015 4. Date of Judgment : 12.01.2016 5. Total duration : YEAR/S MONTH/S DAYS 00 02 18 (INDIRA MAILSWAMY CHETTIYAR) IX Addl. Small Causes Judge & XXXIV ACMM, Court of Small causes, Member, MACT7, Bangalore. JUDGMENT The Plaintiff Bank has filed this suit as against the Defendant for recovery of Rupees 57,151/ from the Defendant with interest thereon at 13% p.a., compounded monthly from the date of suit till the date of realization and costs. 2. The brief averments of the Plaintiff Bank's case are as follows; a) It is a Banking Company, governing under the provisions of the Banking Company (Acquisition and Transfer of Undertaking Act 1970) having its Head Office at No.112, J.C. Road, Bangalore 560 002 and its Branch Office interalia, at Okalipuram, Bangalore 560 021, represented by its Senior Manager and P.A. Holder Sri. C.Basavaraju. b) The Defendant approached it for financial assistance for purchase of rice and improvement of his business purpose. It 3 SC No.1253/2015 SCCH7 has granted/sanctioned a loan of Rupees 50,000/ to the defendant for the above said retail trade purpose. The defendant has availed/obtained the said loan of Rupees 50,000/ from it under the MSME for Service Sector Loan Account No.0785.768. 000001 on 22.08.2013. In consideration whereof, the defendant has executed AgreementcumDeed of Hypothecation on 22.08.2013 in its favour, agreeing to pay to it the said sum of Rupees 50,000/ along with interest there on at 1.30% p.a., over and above the ongoing base rate with a minimum of 10% p.a., compounded monthly/quarterly together with varied rate of interest from time to time. The defendant has also agreed to pay the Bank charges, incidental charges, penal interest at 2% p.a., etc., to it. Without prejudice to the right of it, to recover the entire loan amounts from the defendant at any time, the defendant has agreed to repay the said loan amounts in monthly installments of Rupees 1,328/ each plus interest, etc., and the first of such installment shall commence from September 2013 to it. The defendant has authorized it to debit his SB Account No.78510139686 at any time with the amount of installment, interest, chargers costs, expenses, incurred as per the rules of the Bank and undertaking to provide sufficient balance in his said Bank Account. c) As security towards the said loan amount, the Defendant has hypothecated the stock in trade purchased out of loan amount as shown in schedule to the AgreementcumDeed of Hypothecation dated 22.08.2013 executed by the Defendant in its favour. 4 SC No.1253/2015 SCCH7 d) The Defendant has executed particulars of Equipment/livestock, etc., Hypothecated in Form No.NF 373 dated 28.08.2013 showing the particulars of Stock in Trade purchased out of the said loan executed by the Defendant in its favour. e) The Defendant became chronic defaulter in the matter of payment of monthly installments due, failed and neglected to pay the amount due and outstanding, despite repeated demands and requests made by it