Bangalore District Court Canara Bank vs R.K.Colour Lab And Studio on 8 August, 2024 KABC170005042024 IN THE COURT OF LXXXIV ADDL. CITY CIVIL AND SESSIONS JUDGE (CCH85) (COMMERCIAL COURT), BENGALURU DATED THIS THE 8th DAY OF AUGUST 2024 PRESENT SRI.RAMAKANT CHAVAN, B.Com., LL.B.(Spl) LXXXIV ADDL. CITY CIVIL & SESSIONS JUDGE, BENGALURU. Com.O.S.No.274/2024 PLAINTIFF: Canara Bank, A Body corporate constituted under the Banking Companies (Acquisition and Transfer of undertaking) Act, 1970 Having its Head Office at 112, J.C.Road, Bengaluru and a local branch at Canara Bank, Tumkur Road Branch Tumkur Road, Bengaluru 560 022 Rep. by its Senior Manager Sri.Sole Charan Pudu S/o Mirijapudu Aged about 38 years (By Sri.M.B.Chandra Shekar, Adv.) AND DEFENDANTS: 1. R.K. Colour Lab and Studio, Rep. by its Sole Proprietor, Smt.Sridevi N. 2 Com.O.S.No.274/2024 No.6, Maruthi Complex, Kurubarahalli circle, Bengaluru 560 086 2. Smt.Sridevi N., W/o Srinivasa Aged Major, No.1233, 4th Main, 2nd Stage, Rajajinagar, Bengaluru 560 010 (By Sri.Mahaveera K. Jain, Adv.) Date of Institution 17.02.2024 Nature of suit For recovery of money Date of First Case Management Hearing 20.04.2024 Date of commencement of recording of evidence 24.04.2024 Date on which judgment pronounced 08.08.2024 Time taken for disposal Years Months Days 1) From the date of First Case 00 03 19 Management Hearing 2) Total duration 00 05 22 LXXXIV Addl. City Civil & Sessions Judge (CCH85) Commercial Court, Bengaluru 3 Com.O.S.No.274/2024 JUDGMENT This is a suit filed by the plaintiff for recovery of Rs.19,41,973/ in respect to term loan A/c No.170005348720 calculated along with agreed rate of interest at 12.25% + 2% penal interest P.A. compounded monthly from the date of suit till realization and cost contingent charges incurred by the plaintiff bank till the recovery of entire decree dues. 2. Brief facts of the plaintiff's case are that, the defendant No.2 being the Sole Proprietor of the defendant No.1 is a Sole Proprietorship concern approached the plaintiff bank for availing loan under the MSME scheme to meet its business needs. Upon the consideration and request of the defendant, the plaintiff bank agreed to sanction a sum of Rs.18.75 lakhs under the term loan A/c No.170005348720 at the rate as stipulated in the loan agreement which would be changed from time to time. The defendants had also agreed to pay the incidental charges, penal interest at 2% etc., to the plaintiff bank by executing necessary documents. The plaintiff bank had also issued a Sanction Letter dated 20.07.2022 to the defendant. It is further pleaded that the defendants did not adhered to the agreed terms of sanction of loan facilities and did not regularize the loan account. Since the operation and conduct of the above loan accounts became irregular, the debts pertaining to both the accounts had been classified as NPA on 20.03.2023. Further, the plaintiff bank had sent demand letter to the defendants on several occasions thereby requesting them to repay the balance amount in order to revive the loan account 4 Com.O.S.No.274/2024 from the status of NPA. The defendants are bound to discharge the said loan liability due to the plaintiff bank, along with interest at the contractual rate from the date of the suit till its realization. It is further pleaded that the plaintiff bank had issued a demand legal notice dated 24.03.2023 calling upon the defendants to pay the amount due to the plaintiff bank together with interest within 15 days from the date of receipt of the said notice. But, the said notice was returned unserved with a shara stating "Addressee refused" even though the defendants are very much in the said address and are intentionally avoiding the same. The plaintiff bank also approached DLSA, Bengaluru prior to institution of this suit, vide PIM No.1946/2023. But, the defendants did not appeared there also. The defendants now owe a total sum of Rs.19,41,973/ in respect of term loan A/c no.170005348720 with interest calculated upto date and also liable to pay interest at 12.25% + 2%