Bangalore District Court Canara Bank vs Kalasam Enterpises on 11 April, 2023 IN THE COURT OF THE LXXXVI ADDL. CITY CIVIL JUDGE AT BANGALORE [CCH.No.87] Present: Smt.NERALE VEERABHADHRAIAH BHAVANI, B.A., LLB(Hons) LXXXVI ADDL. CITY CIVIL JUDGE Dated this the 11th day of April, 2023 Com.O.S.No.1786/2022 Plaintiff/s : Canara Bank , Yelahanka Satellite Town Branch, No.31, I 'A' main road, Bangalore560 064 Represented by its Manager and constituted attorney Girish Babu, Aged about 38 years, S/o Chalapathi, Mobile No.919381600950 E mail [email protected] (By D.S.R Advocate) Vs Defendant/s : Kalasam Enterpises, Rep by its proprietor Gurukishan.S. Aged about 24 years, S/o sham sunder.N No.2283, Ground floor, 6th H main Road, 9th crossyelahanka New Town, Bengaluru560064. Telephone NoNot available Mobile No.9035903602 Email ID: [email protected] ( Defendants placed exparte) Date of institution 2 Com.O.S.No.1786/2022 of the suit : 03.12.2022 Nature of the suit [suit on pronote, suit : Recovery of Money for declaration and possession, suit for injunction] Date of the commencement : 10.04.2023 of recording of the evidence Date on which the Judgment was pronounced : 11.04.2023 Year/s Month/s Day/s Total Duration 00 04 07 (N.V.Bhavani) LXXXVI Addl. City Civil Judge Bangalore. JUDGMENT The plaintiff bank has filed a suit against the defendant for the recovery of a total sum of Rs.4,35,422.98ps towards loan account No.1812261005207 together with interest and 2% penal interest from the date of filing the suit till realization and other consequential relief. 2. The brief facts of the plaintiffs' case are as under: 3 Com.O.S.No.1786/2022 The plaintiff is a body corporate under the banking companies (Acquisition & Transfer) of undertakings Act 1970, having its head office at Bengaluru. 3. The plaintiff submits that the defendant has applied for sanction an Open Cash Credit (O.C.C) Facility in the Plaintiff Bank complying all the formalities and submitting necessary documents on 22.10.2020. Accordingly, on verifying an application, the plaintiff Bank has sanctioned O.C.C Facility to the limit of Rs.4,00,000/ (Rupees Four Lakhs) only under MSME/O.C.C Scheme vide Sanction Memorandum dated 13.01.2021 as a working capital requirement for the purpose of his business of Newspaper Distribution and to improve the said business under the Loan Account No1812261005207 by executing necessary loan documents in favor of Plaintiff Bank. As per the sanction memorandum, the plaintiff has agreed to repay the loan with interest at the rate of 8.55%p.a compounded monthly. Further, the said facility is a running limit tenable for one year till 12.01.2022. The original and photo copy of the loan Application dated 4 Com.O.S.No.1786/2022 22.10.2020 and Sanction Memorandum dated 13.01.2021. 4. The plaintiff submits that the defendant has executed several documents as per the banking norms such as Letter of Proprietorship informing that the defendant has running his business under the name and style of M/S Kalasam Enterprises. The defendant has also executed Request for Overdraft Facilities, PRONOTE for Rs.4,00,000/ and Cash Credit Agreement all dated 16.01.2021, wherein the defendant has agreed to repay the aforesaid loan amount with interest, costs, charges and expenses and on other terms and conditions as stated in the said documents. The said facility is also secured with hypothecation of stocks and bookdebts. Further, in the event of the defendant failing to pay the balance or any other money due to the Bank or by virtue of this Agreement or if for any reason the Bank thinks that the security is in jeopardy the defendant undertakes to deliver the said hypothecated assets to the Bank, on demand to enable the Bank deal with the hypothecated assets for realization of the balance due. Further, the 5 Com.O.S.No.1786/2022 defendant has also u