Bangalore District Court Uco Bank vs M/S. Maximal Interiors on 8 April, 2022 IN THE COURT OF LXXXIX ADDL.CITY CIVIL & SESSIONS JUDGE, BENGALURU. (CCH90) Present: Sri.S.J.Krishna, B.Sc., LL.B., LXXXIX Addl.City Civil & Sessions Judge, Bengaluru. Dated: 8th APRIL 2022 Com.O.S.No.663/2021 PLAINTIFF : UCO Bank. A Bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, As amended by the Banking Laws (Amended) Act, 1985, having its Office at No.10, Biplabi Trailokya Maharaj Sarani, Kolkata700 001 And one of its Branches at NO.238/35, 9th Main Road, 3rd Block, Jayanagar, Bengaluru560 011. Represented by its Chief Manager, Sri.Bachan Kumar Singh. Aged about 40 years. (Sri.K.R.Purushotham, Advocate) Vs DEFENDANTS : 1. M/s. Maximal Interiors, A Proprietorship Concern, Represented by its Proprietrix, Ms.Vaishnavi Maralay, R/at Flat No.B, 2016, Pride Apartment, Opp.Kalyani Motors, Bilekahalli, Bannerghatta Road, Bengaluru560 076. (Exparte) /2/ Com.O.S.663/2021 2. Ms.Vaishnavi Maralay, D/o Mr.Ratin Deep Gupta, Aged about 28 years, Proprietrix of M/s.Maximal Interiors, R/at No.233A, Mark Inn Building, Ground Floor, 26th Main, Jayanagar, 9th Block, Mallathahalli, Bengaluru560 069. (Exparte) Date of Institution of : 07.10.2021 suit Nature of suit : Money Suit (suit on pronote, suit for declaration and possession suit for injunction, etc.,) Date of commencement : 04.04.2022 of recording of evidence Date of judgment : 08.04.2022 Total duration : Year/s Month/s Day/s 00 06 01 (S.J.KRISHNA) LXXXIX ADDL.CITY CIVIL & SESSIONS JUDGE, BENGALURU. (CCH90) JUDGMENT The plaintiff bank has filed this suit against the defendants praying the Court to pass a Judgment and decree directing the defendants to pay a sum of ₹.9,44,336/ with interest at 11.45% p.a. compounded at monthly rests with /3/ Com.O.S.663/2021 penal interest @ 2% .p.a. from the date of suit till the date of realization; costs and such other reliefs. The summary of the case of the plaintiff bank is as follows: 2. The Defendant No.1 is a proprietary concern, the second defendant is the proprietrix of Defendant No.1. The Defendant No.2 approached the plaintiff bank for financial assistance in terms of working capital requirements for purchasing raw materials, meeting day to day business expenses in the year 2017 under StandUp India Scheme. She has submitted loan application on 20.09.2017. 03. The plaintiff bank after processing the application filed by the defendants sanctioned a Cash Credit Limit of ₹.10,20,000/ on 26.09.2017 vide Sanction Letter Bg.No.UCO/ JNR/ADV/416/201718 subject to terms and conditions that the limit shall be renewed once in 12 months from the date of original sanction or last renewal. The defendants agreed to pay interest at 11.45% p.a. and also to pay penal interest at 2%p.a in case of default in repayment of loan and nonsubmission of financial documents for renewal of the limits. The said loan was covered under Credit Guarantee Fund Scheme for Small Scale Industries (CGSSI) for Micro and Small Enterprise. /4/ Com.O.S.663/2021 04. The defendants have executed on demand promissory note in Form No. A1 dated 26.09.2017, Letter of Waiver in Form No. A47 dated 26.09.2017, Letter of Continuity Agreement in Form No. A3 dated 26.09.2017 and also executed an agreement of composite Deed of