Bangalore District Court Punjab National Bank vs Sri. Praveen Kumar on 23 September, 2022 1 Com.O.S.No.623/2022 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 23rd day of September 2022 Com.O.S.No.623/2022 Plaintiff: Punjab National Bank, (Earstwhile Oriental Bank of Commerce) Ramamurthynagar Branch, No.28, 1 st Block, TC Palya Main Road, Akshyanagar, Ramamurthynagar, Bengaluru560 016 Represented by its Manager Smt. Shwetha T P W/o. Sri.Ravinandan.S Aged about 33 years As the Principal Officer thereof (By Sri. R.K.K., Advocate) vs Defendant: Sri. Praveen Kumar, Aged about 33 years, S/o. Sri. Ramgopal No.51, 52, Horamavu 2 Com.O.S.No.623/2022 Main Road, Near Government School, Kallikera Ramamurthynagar, Bengaluru560 016 (Exparte) Nature of the suit Money suit Date of institution of the 21.04.2022 suit Date of commencement of 13.09.2022 recording of the evidence Date on which the 23.09.2022 judgment was pronounced Total duration Year/s Month/s Day/s 00 05 02 JUDGMENT This is a suit filed by the plaintiff bank against the defendant for recovery of Rs.6,70,684/ with interest @ 11% p.a. compounded at monthly rests from the date of the suit till its realization. 2. Net shell of the plaintiff case are as under: The plaintiff bank in its plaint has alleged that the defendant was approached and sought for sanction of working capital for business requirements particularly utensils and other Kitchen ware business and file the loan application. After considering the application and requirements sanctioned Rs.50,000/ on 3 Com.O.S.No.623/2022 29.09.2015 as per the sanction letter dated 29.09.2015. The defendant has executed agreement of Term loan, common agreement for Rs.50,000/ in its favour unconditionally agreeing to pay the amount due on demand together with interest at 11.90% p.a. compounded monthly and agreed to repay the loan amount within 24 monthly equal installments of Rs.2,400/. The defendant again for business purpose availed a loan/Term loan of Rs.5,00,000/ on 01.12.2015 and executed agreement of Term loan common agreement for Rs.5,00,000/ in its favour. Unconditionally, agreeing to pay the amount due on demand together with interest at 11.90% p.a. compounded monthly and agree to repay the said loan amount with interest in monthly equal installments of Rs.4,230/ and to pay the interest due by every month, as a security the defendant hypothecated the utensils and other kitchen ware stocks of Book debts furniture and fixers and agreed to abide the rules and conditions. 3. The plaintiff bank in its plaint has further alleged that the defendant failed to repay the Term loan facility along with interest and charges in spite of various demands and became chronic defaulter. The defendant is very irregular in operating the account and became chronic defaulter right from beginning and 4 Com.O.S.No.623/2022 defendant acknowledging his liability including the acknowledgment of debt/balance and security confirmation dated 03.09.2018 and failed to keep up his promises as agreed. Thereby, legal notice has been issued to the defendant on 26.06.2021 calling upon the defendant for payment of the due amount with interest. But the defendant in spite of notice did not come forward to repay the loan amount with interest. The defendant is due a sum of Rs.6,70,689/. The cause of action for the suit which arose when the defendant availed the loan on 29.09.2015 and 01.12.2015 and when the defendant executed the agreement of Term loan, Common Agreement and when the defendant executed the acknowledgment of debts/balance of security confirmation dated 03.09.2018 acknowledging his li