Bangalore District Court Axis Bank Limited vs Nandi Enterprises on 15 March, 2024 KABC170031772023 IN THE COURT OF LXXXIV ADDL. CITY CIVIL AND SESSIONS JUDGE (CCH85) (COMMERCIAL COURT), BENGALURU DATED THIS THE 15th DAY OF MARCH 2024 PRESENT SRI.RAMAKANT CHAVAN, B.Com., LL.B.(Spl) LXXXIV ADDL. CITY CIVIL & SESSIONS JUDGE, BENGALURU. Com.O.S.No.1497/2023 PLAINTIFF: AXIS BANK LIMITED, having its Regd. Office at Trishul, 3rd floor, Opp. Samaratheshwar Temple, Near Law Garden, Ellis Bridge, Ahmedabad 380 006, Branch office at Plot No.41, Sheshadri Road, Anand Rao Circle, Bengaluru 560 009, rep. by its Senior Manager & Authorized representative Mr.B.Y.Arjun Dev (By Sri.Suresh V., Adv.) AND DEFENDANT: Nandi Enterprises, Rep. by its Proprietor Sri.Barun Nandi, S/o Sri.Nirmal Nandi, 2 Com.O.S.No.1497/2023 Aged about 35years, No.4, Near S.S.Kalyana Mantappa, Mallasandra, Bengaluru 560067 Also at: Nandi Enterprises, Rep. by its Proprietor Sri.Barun Nandi, S/o Sri.Nirmal Nandi, Aged about 35 years, Manjunath Complex, 2nd Floor, Koralu Mallasandra, Near S.S.Kalyana Mantappa, Bengaluru 560067 (By Sri.K.P.Raghavendra, Adv.) Date of Institution 20.12.2023 Nature of suit For recovery of money Date of First Case Management 26.02.2024 Hearing Date of commencement of 02.03.2024 recording of evidence Date on which judgment 15.03.2024 pronounced Time taken for disposal Years Months Days 1) From the date of First Case 00 00 18 Management Hearing 2) Total duration 00 02 24 LXXXIV Addl. City Civil & Sessions Judge (CCH85) Commercial Court, Bengaluru 3 Com.O.S.No.1497/2023 JUDGMENT This is a suit filed by the plaintiff for recovery of Rs.7,54,319/ together with interest at 24% p.a. from the date of filing of the suit till the date of realization. 2. Brief facts of the plaintiff's case are that the plaintiff Bank is engaged in the banking activities and services lending credit facilities to its customers under varied categories. The defendant approached the plaintiff Bank for sanction of SBB Cash Credit facility for the purpose of working capital. The plaintiff Bank sanctioned a loan of Rs.8.00 lakhs on 05.10.2021 and the defendant executed the Facility Agreement dated 04.03.2021 agreeing to repay the loan with interest at 11% p.a. at tenure of 12 months. As averred SBB Cash Credit facility of Rs.7.00 was released in A/c No.92130007762982 and the charge on hypothecation, the defendant entered into Deed of Hypothecation dated 23.02.2021. It is further stated that the defendant after availing the said financial assistance have been irregular in the operation of the account with the plaintiff bank and blatantly violated the terms and conditions of the Agreement. For having committed default, the plaintiff bank classified the loan account of the defendant as a NPA on 29.05.2022. The plaintiff bank has also issued notice on 04.03.2023 calling upon the defendant to pay a sum of Rs.7,54,319/ with interest, but there is no response from the defendant's side. The plaintiff Bank instituted the case before 4 Com.O.S.No.1497/2023 DLSA, Bengaluru in PIM No.1794/2013 but the defendant did not appear there also.Hence, the plaintiff is constrained to file this suit and prays for decree the suit. 3. On service of summons, the defendant has appeared through its counsel. The defendant has filed its written statement. It has denied most of the contents of the plaint averments. It has contended that the suit is not maintainable. The CGTMSE is set up under the Ministry of MSMED Bank of India and the said scheme was launched in 2000 and it offers credit guarantees ranging from 75% to 85% to MSEs across the country. Thus, under the scheme, the applicant's loan is backed by a party without the provision of any external collateral or third party guarantee. The defendant is into trading falling under MSME Enterprises availed credit facility of Rs.7.00 lakhs under CGTMSE for a period of 12 months with interest at 11% p.a. from the plaintiff bank. The defendant is guaranteed with coverage of 75%85% repayment in case of default on the principal loan amount and the defendant facility is applicable as the loan amount is less than Rs.50 lakhs. It is further stated that the defendant has paid the interes