Final Order 1

Order Details: Ex-parte Judgement
Pdf Text: MHCC010017062019 Presented on 13/02/2019
Registered on 02/01/2020
Decided on 10/12/2024
Duration 5Y, 9M, 25D
Exhibit 20
IN THE CITY CIVIL COURT AT MAZGAON, MUMBAI
SUMMARY SUIT NO. 29 OF 2020
Corporation Bank, ]
A body corporate constituted under the ]
provisions of the Banking Companies ]
(Acquisition & Transfer of Understanding) ]
Act, 1980 having their having its ]
Zonal Office at 28, Mittal Chambers, ]
2nd Floor, Nariman Point, Mumbai 400 021 ]
and a Branch Office amongst others ]
at Corporation Bank, 520, Mangireesh ]
Building, Ground Floor, L.J.Road ]
Cross, Mahim, Mumbai 400016, ] (Deleted and substituted
represented through its Manager ] as per order dated
Mr. Anuj Kumar, age 41 years. ] 11/01/2023)
Union Bank of India (e-Corporation Bank), ]
a body corporate constituted under the ]
provisions of the Banking Companies ]
(Acquisition & Transfer of Understanding) ]
Act, 1980 having its Zonal Office at Union ]
Bank Building 6th Floor, 66/80 Mumbai ]
Samachar Marg, Fort, Mumbai 400 001 ]
-- 1 of 9 --
2 SUM SU NO. 29/2020
and a Branch Office amongst others at ]
Union Bank of India (e-Corporation Bank), ]
SIES School Compound KAS Road Matunga, ]
Mumbai 400019. ]...Plaintiff
V/s.
Mr. Satyajeet Laxman Dhayude, ]
Age: Adult, Occ. Not Known, having address ]
at Room No. 160, Chwal No. 16, Panchganga ]
Society Pant Nagar, Ghatkopar East, Mumbai- 400075 ]...Defendant
Appearance:-
Ld. Advocate V. B. Tiwari & Co.for the plaintiff.
Defendant absent (Ex-parte).
CORAM : HHJ SHRI SANGRAM SHRIHARI SHINDE
C. R. NO. : 81
DATE : 10/12/2024
JUDGMENT
( Dictated and pronounced in open Court)
01. This is the suit filed under Rule 2 of Order XXXVII of Code
of Civil procedure, 1908 (CPC) for recovery of amount of Rs. 39,886/-
alongwith further interest from defendant.
Brief facts of plaintiff’s case may be summarized as under:
02. The plaintiff is a body corporate constituted under the
Banking Companies (Acquisition and Transfer of Understanding) Act,
1980 having its Zonal Office at Union Bank Building 6th Floor, 66/80
Mumbai, Samachar Marg, Fort, Mumbai 400 001 and a Branch Office
amongst others at Union Bank of India (e-Corporation Bank), SIES
School Compound KAS Road Matunga, 400019 (in short plaintiff
-- 2 of 9 --
3 SUM SU NO. 29/2020
bank). The name of Corporation Bank is changed and it has been
amended accordingly vide order dated 11/01/2023 in draft Chamber
Summons. The Manager of plaintiff bank has instituted suit on the
basis of Power of Attorney dated 17/12/2018. The defendant was in
need of the loan of Rs. 50,000/- by way of term loan for meeting
working capital requirement for kirana store business. The defendant
approached the plaintiff bank and made an application on 09/03/2016
to borrow loan. The plaintiff agreed to provide the loan and
sanctioned vide sanction letter dated 10/03/2016. The defendant
executed Demand Promissory Note of Rs. 50,000/-, Take Delivery
Letter, Letter of Undertaking and Common Deed of Hypothecation of
movables/assets/debts on 10/03/2016. The defendant was holding
loan account bearing No. DLS/01/150084 (New Account No.
560536000054263) for Rs. 50,000/-. The loan was to be repaid in 24
monthly installments of Rs. 2,300/- together with 9.65% p.a. floating
interest thereon to the plaintiff bank.
03. According to the plaintiff, the defendant had agreed terms
and conditions of Hypothecation agreement. However, defendant
failed and neglected to pay monthly installments of loan, and the loan
account become N.P.A. on 30/06/2017. An amount of Rs. 39,520/-
was outstanding of loan as on 27/01/2019 against defendant.
Therefore, plaintiff bank issued a demand Notice on 28/01/20198,
however, the defendant failed to repay the same. The defendant made
last payment of Rs. 1,500/- on 08/02/2017. Therefore, plaintiff bank
has filed the present suit and prayed to decree the suit accordingly.
04. The defendant was served with the writ of summons. The
plaintiff has filed affidavit of service at Exh. 10. Despite service, the
-- 3 of 9 --
4 SUM SU NO. 29/2020
defendant has not caused his appearance and therefore, the suit
proceeded ex-parte against him by the order dated 16/02/2024.
05. In support of claim, the plaintiff filed its affidavit of claim
of Jasti V. V. Prasad, Authorized Signatory of the plaintiff bank at Exh.
10 and reiterated its contention of recovery of Rs. 39,886/- along with
further interest on the said amount at the rate of 11.65% p.a. The
plaintiff has filed and relied upon the following documents. Plaintiff
has filed evidence closed pursis at Exh. 19.
Sr.
No. Exhibit No. Particulars
1 Exh. 12 Original Loan application dated 09/03/2016
2 Exh. 13 Original Sanction Letter dated 10/03/2016
3 Exh. 14 Original Demand Promissory Note dated
10/03/2016
4 Exh. 15 Original Take Delivery Letter dated 10/03/2016
5 Exh. 16 Original Common Deed of Hypothecation of
movables dated 10/03/2016
6 Exh. 17 Office copy of Legal Notice dated 28/01/2019
7 Exh. 18 colly. Statement of Account and i) Original Banker’s book
of Evidence 2a(A) Certificate, ii) Original Banker’s
book of Evidence 2a(B) Certificate, and iii) Original
Banker’s book of Evidence 2a(C) Certificate, iv)
Original Banker's Book of Evidence Certificate for
Notional Interest in NPA Account, v) Original
Banker’s Book of Evidence NPA Certificate, vi)
Original Banker’s Book of Evidence Certificate
under Information Technology Act, 2000 and vii)
Original Banker’s Book of Evidence Certificate u/s.
2(8) Banker’s Books Evidence Act, 1891.
06. To decide the present suit, following points arise for my
determination to which my findings are recorded against each of them
for the reasons given below:-
-- 4 of 9 --
5 SUM SU NO. 29/2020
Sr.
No.
Points Findings
1. Whether the plaintiff is entitled to
recover amount of Rs. 39,886/-
from defendant ? If yes, at what
rate of interest ?
Yes.
Entitled to interest @ Rs.
9.65% per annum on Rs.
32,220/- from 01/04/2017
till its full realization.
2. What order and decree? As per final order.
R E A S O N S
AS TO POINTS NO. 1 & 2:
07. It is argued on behalf of the plaintiff bank that as per
requirement of defendant they advanced loan of Rs. 50,000/- as term
loan to the defendant, as he agreed to repay it in 24 installments
alongwith interest at the rate of 9.65% p.a. Further, defendant had
executed necessary documents which plaintiff has proved the same by
oral as well as documentary evidence. As defendant failed to repay
loan amount therefore, plaintiff bank is entitled to recover an amount
of Rs. 39,886/- alongwith interest at the rate of 11.65% p.a. till its
realization.
08. The plaintiff bank in support of their case has filed the
claim affidavit of its witness Mr. Jasti V. V. Prasad, P.W.1, an Authorized
Signatory of the plaintiff bank at Exh. 10 and reiterated its contention
in the plaint. Further, plaintiff bank also filed the original documents
i.e. Original loan application at Exh. 12, Original Sanction letter at
Exh. 13, Original Demand Promissory Note at Exh. 14, Original Take
Delivery Letter at Exh. 15, Original Common Deed of Hypothecation
at Exh. 16, office copy of demand notice at Exh. 17, Statement of Bank
-- 5 of 9 --
6 SUM SU NO. 29/2020
and Certificate under Section 2a(A) of Banker's Book of Evidence Act,
ii) Original Banker’s book of Evidence 2a(B) Certificate, and
iii) Original Banker’s book of Evidence 2a(C) Certificate, iv) Original
Banker's Book of Evidence Certificate for Notional Interest in NPA
Account, v) Original Banker’s Book of Evidence NPA Certificate,
vi) Original Banker’s Book of Evidence Certificate under Information
Technology Act, 2000 and vii) Original Banker’s Book of Evidence
Certificate u/s. 2(8) Banker’s Books Evidence Act, 1891 Exh. 18
(Colly.). On perusing said documents, it appears that the defendant
had borrowed term loan of Rs. 50,000/- vide loan application at Exh.
12 which was sanctioned vide Sanction letter at Exh. 13. Further,
defendant has executed Demand Promissory Note at Exh. 14, Take
Delivery Letter at Exh. 15 and Common Deed of Hypothecation at Exh.
16. The plaintiff bank to prove that defendant failed to pay loan
installments and amount is outstanding against him has filed bank
statement supported by Certificate under Section 2a(A) of Banker's
Book of Evidence Act at Exh. 18 colly. As the defendant failed to
appear, the evidence of the plaintiff bank has remained unchallenged.
09. Thus, the plaintiff bank has proved that the defendant
had taken the loan of Rs. 50,000/- on 10/03/2016. As defendant
failed to repay loan installments therefore, his loan account became
N.P.A. on 30/06/2017. As defendant failed to repay loan plaintiff bank
issued demand notice at Exh. 17 to the defendant. As per particulars of
plaintiff an amount Rs. 32,220/- was outstanding as on 07/02/2019.
Hence, I hold that on the basis of oral and documentary evidence of
plaintiff bank, it is proved that plaintiff bank is entitled to claim
outstanding amount against the defendant.
10. So far as prayer of interest on the said amount is
-- 6 of 9 --
7 SUM SU NO. 29/2020
concerned, the plaintiff bank has claimed 11.65% p.a. interest on the
said amount. The plaintiff has calculated the interest Rs. 7,666/- at
the rate of 11.65% per annum from 01/04/2017 to 07/02/2019. The
plaintiff bank has not filed any document to show that rate of interest
was agreed as 11.65% p.a. Hence, I hold that the plaintiff is entitled to
interest on Rs. 32,220/- at the rate of 9.65% p.a agreed by the plaintiff
bank. Thus, the plaintiff is entitled to recover an amount of Rs.
32,220/- towards principle with interest at the rate of 9.65% p.a. from
01/04/2017 till date of filing of suit.
11. Even, I hold that the plaintiff is entitled to the further
interest on the said amount from the date of filing the suit till
realization of amount. The plaintiff has prayed for the further interest
at the rate of 11.65% per annum. However, I am of the view that the
same is excessive as agreed between parties. Therefore, I am of the
view that granting the interest at the rate of 9.65% per annum. on the
principal amount would be just, proper and reasonable. Hence, I hold
that the plaintiff is entitled to further interest at the rate of 9.65% per
annum on the principal amount, from the date of filing the suit till its
full realization. Hence, I answer point No. 1 accordingly. In the result,
in answer to point No. 2, I proceed to pass following order.
O R D E R
1) Summary Suit No. 29 of 2020 is hereby decreed with the costs.
2) The defendant shall pay an amount of Rs. 32,220/- (Rupees
Thirty Two Thousand Two Hundred and Twenty only) to the
plaintiff.
3) The defendant shall pay to the plaintiff interest on Rs. 32,220/-
at the rate of 9.65% per annum from 01/04/2017 till its full
-- 7 of 9 --
8 SUM SU NO. 29/2020
realization.
4) The plaintiff may be entitled to get refund the court fees paid, if
provided for in Rules.
5) The decree be drawn up accordingly.
(Sangram S. Shinde)
Adhoc Judge,
City Civil Court Mazgaon, Mumbai
Court Room No.81
Date: 10/12/2024
Dictated on: 10/12/2024
Corrected & signed on: 11/12/2024
-- 8 of 9 --
9 SUM SU NO. 29/2020
CERTIFIED TO BE TRUE AND CORRECT COPY OF THE ORIGINAL
SIGNED JUDGMENT/ORDER”
UPLOAD DATE AND TIME NAME OF CLERK TYPIST
12/12/2024 at about 5.00 p.m. Mr. KAILAS U. KSHIRSAGAR
Name of the Judge
(with Court Room No.)
Shri S. S. Shinde
C.R. No.81
Date of Pronouncement of JUDGMENT/
ORDER 10/12/2024
JUDGMENT/ORDER signed by P. O. on 11/12/2024
JUDGMENT/ORDER uploaded on 12/12/2024
-- 9 of 9 --