Bangalore District Court Unknown vs Sri Narasima Murthy V on 11 April, 2022 1 O.S. No.6837/2019 IN THE COURT OF THE XXIV ADDL.CITY CIVIL AND SESSIONS JUDGE BANGALORE (CCH6) Dated this the 11th day of April, 2022 : Present : Kum. Sindhu Potadar, B.A., LLB, (Hons), LLM, 24th Addl. City Civil & Sessions Judge, Bengaluru. ORIGINAL SUIT .NO. 6837/2019 Plaintif : CANARA BANK, Savakanahalli Gate Branch, Deepu Complex, Doddaballapura Road, Devanahalli Taluk, Bangalore 562 110. Represented by its Manager and P A Holder, Smt. P. Prema Kumari, D/o. Sri G. Palani, Aged about 49 years. (By Sri Yogandhar, Advocate) AND Defendant : Sri Narasima Murthy V., S/o Sri Venugopal, Aged about 41 years, Residing at No.5/7, I Cross, K.B. Temple, 6th Block,Rajajinagar, Bengaluru 560 010. (Exparte) 2 O.S. No.6837/2019 Date of Institution of Suit : 19.09.2019 Nature of the Suit : Money Suit Date of commencement of recording of evidence : 25.03.2022 Date on which Judgment was pronounced : 11.04.2022 Total Duration : Year/s Month/s Day/s 02 06 22 ***** :JUDGMENT : This is a suit filed by the plaintif against defendant for recovery of money for a sum of Rs.5,22,771.01 as on 11.07.2019, plus an interest at 10.20% per annum, from 12.07.2019 till the date of realisation, with respect of the Account No. 4435768000273 along with an additional penal interest at 2% per annum from the due date till the date of realization and other reliefs. 2. The gist of the pleadings reads as hereunder: The plaintif Bank is a Nationalized Bank incorporated under the Banking Companies Act, 1970. The defendant has approached the plaintif bank seeking for a financial assistance for purchasing centering sheets and 3 O.S. No.6837/2019 scafolding for conducting his business. The plaintif Bank has sanctioned the loan facilities of Rs.4,91,000/ under MSME scheme on 11.03.2016, with respect of his loan account No.4435768000273, for the defendant to purchase the said materials and conduct the said business. As per the sanction memorandum, the defendant has agreed to repay the said loan amount along with an interest at the rate of 10.20% per annum, compounded monthly and in 84 EMIs of Rs.8,636/ each. The defendant has accepted the terms and conditions of the said sanction. The defendant has executed a deed of hypothecation Re: Machinery on 11.03.2016 in favour of the plaintif bank, thereby hypothecating the materials purchased and also agreed to repay the said loan to the plaintif bank in the manner as mentioned supra. Further, the defendant has also executed letter of undertaking regarding loans/advances in favour of the plaintif bank. The defendant has also executed particulars of machineries hypothecated in favour of the plaintif bank on 15.03.2016. The defendant has also agreed to pay an additional penal interest of 2% per annum in default of repayments as agreed upon by the defendant. The defendant has become chronic defaulter in the matter of repayment of the loan installments and the outstanding liability. Hence the account of the defendant has been classified as a Non Performing Asset (NPA) as per the 4 O.S. No.6837/2019 guidelines of the Reserve Bank of India on 11.08.2018. 3. The plaintif further averred that, the plaintif bank has given several remainders to the defendant to repay the loan amount as agreed by him, but the defendant has not repaid the same. The defendant though came forward an executed a letter of Revival in favour of the plaintif Bank on 10.04.2018, but did not make any repayments. Hence, without any alternative, the plaintif bank has got issued a notice to the defendant on 22.07.2019, but from the receipt