Bangalore District Court Canara Bank vs Ramesh R on 7 June, 2024 KABC170018022023 IN THE COURT OF LXXXIV ADDL. CITY CIVIL AND SESSIONS JUDGE (CCH85) (COMMERCIAL COURT), BENGALURU DATED THIS THE 7th DAY OF JUNE 2024 PRESENT SRI.RAMAKANT CHAVAN, B.Com., LL.B.(Spl) LXXXIV ADDL. CITY CIVIL & SESSIONS JUDGE, BENGALURU. Com.O.S.No.864/2023 PLAINTIFF: CANARA BANK Vyalikaval Branch, Bengaluru Rep. by its Chief Manager and Power of Attorney Holder Sri.Sreedhar Sagabala S/o Srinivaslu Aged about 48 years (By Smt.Sunanda S.Rathod, Adv.) AND DEFENDANT: Sri.Ramesh R., S/o Late Ramu, Aged about 49 years, R/at No.39, 10th Main Road, BarathaMatha 'B' Block, P.G.Halli, Bengaluru 560 003 (By Sri.M.Krishna Reddy, Adv.) 2 Com.O.S.No.864/2023 Date of Institution 01.08.2023 Nature of suit For recovery of money Date of First Case Management 02.02.2024 Hearing Date of commencement of 12.02.2024 recording of evidence Date on which judgment 07.06.2024 pronounced Time taken for disposal Years Months Days 1) From the date of First Case 00 04 05 Management Hearing 2) Total duration 00 10 06 LXXXIV Addl. City Civil & Sessions Judge (CCH85) Commercial Court, Bengaluru JUDGMENT This is a suit filed by the plaintiff for recovery of Rs.72,356/ under Composite (Overdraft and Term loan under MSME) A/c No.0417256001090 and Rs.7,61,914.65 under Term loan A/c No.041772700002 with unapplied interest as on 25.02.2023, totally Rs.8,34,270.65 with interest at 8.30% p.a. and 9.15% p.a. plus 2% penal interest from 25.02.2023 till the date of realization and cost of the proceedings. 3 Com.O.S.No.864/2023 2. Brief facts of the plaintiff's case are that the defendant has approached the plaintiff Bank for financial assistance to start Xerox Centre with DTP Centre. In respect of the same, the defendant has submitted a loan application Form for overdraft limit and Term loan on 25.02.2021 for Rs.1.80 lakhs and Rs.7.20 lakhs. The plaintiff sanctioned the same on 26.02.2021 with respect to loan A/c Nos.0417256001090 and 041772700002. The defendant agreed to repay the said loan amount along with interest at the rate of 8.30% p.a. and 9.15% p.a. plus penal interest at 2% compounded monthly, the entire loan repayable in 84 EMIs. The defendant hypothecated machineries i.e. Canon IR colour copies / printer / scanner etc and executed Composite Loan Agreement for Rs.9.00 lakhs on 25.02.2021 and also executed necessary documents. The defendant is also agreed to pay penal interest in default of payment. It is further pleaded that the defendant has executed AOD and security documents on 20.12.2022 and he has acknowledged the debt. The loan account of the defendant has been classified as NPA on 23.02.2022. The plaintiff bank has issued legal notice on 04.03.2023 even issued reminders but, the defendant has not come forward to repay the installments. The defendant is liable to pay an amount of Rs.7,61,914.65 towards Term loan and OD loan of Rs.72,356/ with interest. Hence, the plaintiff is constrained to file this suit and prays for decree the suit. 3. On service of summons, the defendant has appeared through his counsel. The defendant has filed his written statement. He has denied most of the contents of the plaint 4 Com.O.S.No.864/2023 averments. He has contended that the plaintiff is not approached the court with clean hands. Due to Covid19 in 2019 to 2021, the intended business of the defendant not improved as per his expectation and he sustained loss. He is unable to maintain day to day expenses of the said business. The expected business was totally become zero. The defendant feared of his fall of business and reaches a critical condition and unable to pay EMIs towards loan which is obtained from the plaintiff bank. It is further contended that the defendant suffered a huge loss. The private persons attacked on the business premises of the defendant and taken away the colour xerox machine Canon IR C3 120 in the year 2022 forsiably. Because of this incident, the defendant collapsed and he decided to wind up his business and surrender all the machineries to the plaintiff bank and submitted an intimation to the plaintiff's bank on 15.03.2023. The plaintiff bank acknowledged the receipt of all the returned machineries as per