Final Order 1

Order Details: Ex-parte Judgement
Pdf Text: SUMMARY SUIT NO. 1375/2018 1
Received on :30062018
Registered on :28112018
Decided on : 17122019
Duration : 01Y 05Y 18D
IN THE CITY CIVIL COURT AT MUMBAI
SUMMARY SUIT NO.1375 of 2018
(UNDER ORDER XXXVII THE CODE OF CIVIL PROCEDURE 1908)
( CNR NO.: MHCC010078862018)
Corporation Bank
a body corporate constituted under the provisions of
the Banking Companies (Acquisition & Transfer of
Undertakings) Act,1980 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, represented through
its Manager Mr.Noorul Haque Sheikh ...Plaintiff
Versus
1. Noor Mohammed Shah,
Adult
Residing at Room No.5,Plot No.6
Hirabai Compound Chawl, Cross Road
No.1, New Masjid, Mazgaon,
Mumbai 400010.
2. Feroz Aslam Khan,
Adult
Residing at Room No.14, Cross Road No.1,
Ghadpdev Compound, D Block,
Mazgaon, Mumbai 400 010. ….Defendants
Appearances:
Advocate Mr.P.S.Patil for the Plaintiff.
Defendants Exparte.
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SUMMARY SUIT NO. 1375/2018 2
CORAM : HIS HONOUR JUDGE
DEEPAK L. BHAGWAT
(C.R.NO.28)
DATE : 17TH DECEMBER 2019
J U D G M E N T
1. This is Summary Suit for recovery of Rs.6,06,184/(Rupees Six
Lakh Six Thousand One Hundred and Eighty Four Only) with simple
interest @ Rs.11.15% p.a. from the date of the suit till realization of
amount.
2. According to the plaintiff, it is a Banking Company. On the
request of defendant No.1 the plaintiff sanctioned loan of Rs.6,00,000/
in Octomber, 2015. Defendant No.2 stood as guarantor of defendant
No.1. The plaintiff disbursed the loan amount of Rs.6,00,000/ on
17/10/2015, in favour of defendant No.1. The Defendants executed
relevant documents as term loan agreement, guarantee agreement,
Common deed for Hypothecation and letter of undertaking/declaration.
The defendants had agreed to repay the loan amount in equated
monthly installments with interest @ 11.15% p.a. In case of failure to
repay the amount, the defendants also agreed to pay the penal interest
of 2% p.a. over and above the normal rate of interest. According to the
plaintiff, the defendants failed and neglected to pay the monthly
installments regularly. Vide notice dated 23/05/2018, the plaintiff
called upon the defendants to pay then due amount. At the institution
of the suit, the defendants were liable to pay Rs.6,06,184/. Therefore,
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SUMMARY SUIT NO. 1375/2018 3
the plaintiff claimed decree for recovery of said amount with interest.
3. Despite service of summons, the defendants failed to appear.
Therefore, the suit proceeded exparte against the defendants.
4. Considering the material on record and submissions made on
behalf of the plaintiff points arise for determination along with my
findings thereon for the reasons recorded are as under:
POINTS FINDINGS
1. Whether the plaintiff is entitled
to recovery of amount as prayed?
Yes
2. Whether the plaintiff is entitled
to the interest as prayed?
The plaintiff is entitled to the
interest @ 10% p.a. on principal
amount of Rs.6,00,000/ from the
date of suit till realization of the
amount.
3. What order and decree? As per final order
REASONS
AS TO POINTS NO.1 to 3:
5. The plaintiff examined its chief manager P.W.1 Noorul at Exh.6.
His testimony speaks that on the request of defendant No.1 loan of
Rs.6,00,000/ was disbursed in his favour by the plaintiff. Defendant
No.2 stood as the Guarantor. However, the defendants failed to repay
the loan amount by regular monthly installments. According to him,
amount of Rs.6,06,184/ was due and payable by the defendants.
6. His testimony is corroborated by the documents on record as the
loan application, dated 07/10/2015, which reveals that defendant No.1
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SUMMARY SUIT NO. 1375/2018 4
had applied for loan on 07/10/2015. Defendant No.2 also executed said
application showing his willingness to stand as guarantor. Sanction
letter dated 17/10/2015, term Loan agreement, Guarantee agreement
Letter of undertaking dated 17/10/2015, reveal that the defendants
agreed to repay the loan of Rs.6,00,000/ in equated monthly
installments with interest @11.15% p.a.. Defendant No.2 stood as
guarantor for defendant No.1. The statement of account reveals that the
loan was disbursed by the plaintiff to the account of defendant No.1.
Thus, it is clear that the plaintiff had paid loan amount of Rs.6,00,000/
to defendant No.1 with interest @ 11.15% p.a., but the defendants
failed to repay the loan. The statement of account shows that, on the
date of filing of the suit, the amount outstanding, due and payable by
the defendants was Rs.6,06,184/. In these circumstances, the plaintiff
is entitled to recover the amount of Rs.6,06,184/. So far as the
pendente lite interest and future interest is concerned, it may be noted
that the loan granted to defendant No.1 was from 'Pradhanmantri
Mudra Yojna'. It appears that it was granted to the defendant for his
business. Considering these circumstances, it is just and proper to grant
the interest at simple rate of 10% p.a. from the date of suit till
realization of amount. Hence, point No.1 is answered in the affirmative
and point No.2 is answered as that the plaintiff is entitled to the
interest @ 10% p.a. from the date of suit till realization of the amount.
In answer to point No.3 order as follows is passed.
ORDER
1. The suit is exparte decreed with costs as under:
2. Defendants No.1 & 2 shall jointly and severally pay to the plaintiff
amount of Rs.6,06,184/(Rupees Six Lakh Six Thousand One Hundred
and Eighty Four Only) with simple interest @ 10% p.a. on principal
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SUMMARY SUIT NO. 1375/2018 5
amount of Rs.6,00,000/ from the date of suit till realization of the
amount.
3. Decree be drawn up accordingly.
(Deepak L. Bhagwat)
AdHoc Judge,
Date: 17/12/2019 City Civil Court,Gr. Mumbai
Dictated on : 17/12/2019
Transcribed on : 19/12/2019
Signed on : 23/12/2019
CERTIFIED TO BE TRUE AND CORRECT COPY OF THE ORIGINAL SIGNED
JUDGMENT/ORDER.”
23/12/2019 at 4.00p.m. Mrs.J.V.Pawar
UPLOAD DATE AND TIME NAME OF STENOGRAPHER
Name of the Judge (With Court Room No.) HHJ Shri.D.L.Bhagwat
(C.R.NO.28)
Date of pronouncement of Judgment/Order 17/12/2019
Judgment/Order signed by P.O. on 19/12/2019
Judgment/Order uploaded on 23/12/2019
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