Bangalore District Court Syndicate Bank vs Sri. Lakshmi Paper Products on 10 August, 2021 1 Com.O.S.No.7208 of 2019 IN THE COURT OF THE LXXXVIII ADDL. CITY CIVIL & SESSIONS JUDGE (EXCLUSIVE COMMERCIAL COURT): BENGALURU CITY. (CCH89) Present: Sri. P.J. SOMASHEKARA, B.A.,LL.M, LXXXVIII Addl. City Civil & Sessions Judge Bengaluru City. Dated this the 10th day of August 2021 Com.O.S.No.7208/2019 Plaintiff: Syndicate Bank, Vishwaneedam Branch, Sunkadakatte, Magadi Main Road, Bangalore 560 091. Rep by its Manager D. Srinivasulu, IFSC Code: SYNB0000450, PAN No.AACCS4699E, TAN No.BLRS00520C, Email:[email protected] Mob. No.944860054. (By Sri. K.M., Advocate) vs Defendant: Sri. Lakshmi Paper Products, Proprietor Narayan T., # 502/23, Behind Muthuraya Swamy Temple, Sunkadakatte, Magadi Main Road, Bangalore 560 091. Aadhar No:341105567090 9535140821, voter ID:REJo364257. (By Sri. H.M., Advocate) Nature of the suit Money suit Date of institution of the 09.10.2019 suit Date of commencement of 03.08.2021 2 Com.O.S.No.7208 of 2019 recording of the evidence Date on which the 10.08.2021 judgment was pronounced Total duration Year/s Month/s Day/s 01 10 01 JUDGMENT This is a suit filed by the plaintiff bank against the defendant for recovery of Rs.1,26,595.15/ in OSL/TL No.04507910001572 and Rs.8,24,191.27/ in OSL/TL 0450791400681 and Rs.4,09,764.09/ in SOD/Cash Credit Account No.0450124400613 are balance amount, in total amounting in 3 accounts a sum of Rs.13,60,550.51/ with interest @ 13% from 01.09.2019 till its realization and direct the seizure and sale of hypothecated goods and machineries which lying in business premises and residence. 2. Brief facts of the plaint are as under : The plaintiff bank in its plaint has alleged that the defendant being the proprietary concern namely Sri. Lakshmi Narayan Paper Products represented by its Proprietor T. Narayana, S/o late Thathaiah, situated at No.502/23, Behind Muthurayaswamy Temple, Sunkadhakatte, Magadi Main Road, Machohalli Colony, Chikkagollarahatti village, Bangalore North Taluk, Bangalore. The defendant is engaged in manufacture of paper plates and paper cups etc., approached by filing an application dated 30.11.2015 3 Com.O.S.No.7208 of 2019 and sought for two term loan accounts as OSL/TL, MSE loan account No.0450/791/1572 for Rs.2,00,000/ for improvement of business and interest at 10.95% another OSL/TL MSE Loan account No.0450/991/681 for Rs.14,98,000/ to purchase new machinery for manufacture of papers plates and paper cups at the interest of 10.50%. The 3rd facility SOD/Cash Credit Loan account No.0450/140/802 for Rs.4,00,000/ to manage working capital purpose interest at 10.95% compounded monthly rests for working capital purpose for manufacture of paper plates and paper cups. The defendant loan application has sponsored by Pradhana Mantri Mudra Yojana (PMMY) under SHISHU category. The defendant is purportedly in the business since 2011 and require to provide security for the loan by way of hypothecation of stocks and paper plates and cups manufacturing machineries all types of paper plates, paper cups accessories and its materials stock in trade valued at Rs.7,40,000/ since the defendant sought loan on a written application dated 30.11.2015 and executed original loan application form along with Prime Minister's Employment Generation Programme MSME, the assets and liability statement, the loan process note dated 11.01.2016, provision extension of existing limit and sanction letter dated 02.04.2019. After considering the documents, loan has been 4 Com.O.S.No.7208 of 2019 sanctioned for Rs.2,00,000/, 14,80,000/ for purchase of new machine manufacture of paper cups and paper plates and overdraft account for limit of Rs.4,00,000/ for working capital to be brought into credit once in a year. The 3 loans have covered under CGTMSE CG PAN No.CG202170235713WC. 3. The plaintiff bank in its plaint has further alleged that the 1st loan of Rs.2,00,000/ has to be repaid in 84 EMI of Rs.4,000/ per month starting from 29.02.2016 and the last instal