The High Court of Mumbai decided a suit by Bank of India for recovery of a loan. The court found that defendants failed to regularize the account and held them jointly and severally liable to pay the outstanding sum with interest.
Decree granted for Rs. 79,006.73 with simple interest at 18% per annum from the date of filing; costs awarded to plaintiffs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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16.S 2041-01
IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION
jmi
SUIT NO.2041 OF 2001.
Bank of India,
a body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act V of 1970, having their Head Office at Express Towers, Nariman Point, Mumbai 400021 and having its one of the branches at Girgaum, 281, Jagganath Shankarshet Road, Girgaum, Mumbai 400004, known as ‘Girgaum Branch’. .. Plaintiffs.
versus
1. Mr. Avinash Madhav Gadre,
of Mumbai, Indian Inhabitant, carrying on business in the firm name and style of M/s. Avinash Florist as Sole Proprietor thereof having his address as 160-K, Angre Wadi, V. P. Road, Girgaum, Mumbai 400004.
2. Mrs. Vrishali Gadre,
of Mumbai, Indian Inhabitant, Residing at 160-K, Angre Wadi, V. P. Road, Girgaum, Mumbai 400004. .. Defendants.
Ms. Juhi Parmar i/b. Mr. O. A. Das for Plaintiffs. None for the Defendants.
.... CORAM :- S.J.KATHAWALLA, J. DATE :- 11TH JANUARY 2012.
JUDGMENT :
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16.S 2041-01
Banking Companies (Acquisition and Transfer of Undertaking) Act V of 1970, inter alia , carrying on the business of advancing loans for business purposes.
(a) A Demand Promissory Note for Rs.1,00,000/- dated 29.10.1998, executed by the Defendant No.1 in favour of the Plaintiffs, wherein the Defendant No.1 promised to repay the aforesaid amount along with interest to the Plaintiffs.
(b) A Continuing Security Bond (No L-447) dated 29.10.1998, executed by the Defendant No.1 in favour of the Plaintiffs.
(c) A Letter of Lien and Set-off (No.L-478) dated 29.10.1998, executed and delivered by the Defendant No.1 in favour of the Plaintiffs.
(d) A letter dated 29.10.1998, executed and delivered by the Defendant No.1 in favour of the Plaintiffs to pay the amount
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16.S 2041-01
mentioned therein to the bearer or to credit the amount mentioned therein from Saving Bank Account No. 51297.
(e) A letter of installment (No.L-440) dated 29.10.1998, executed and delivered by the Defendant No.1 in favour of the Plaintiffs.
(f) A letter of Set-off & Appropriation dated 29.10.1998, executed and delivered by the Defendant No.1 in favour of the Plaintiffs.
(g) A letter of Undertaking dated 29.10.1998 executed and delivered by the Defendant No.1 in favour of the Plaintiffs for the utilisation of the said loan for the purpose mentioned in the Agreement.
(h) An undertaking dated 29.10.1998 to inform Bank in case of change in name, address, executed and delivered by the Defendant No.1 in favour of the Plaintiffs.
(i) A Declaration obtained from the Borrower dated 29.10.1998 of having no relation with the Plaintiffs' officers, executed and delivered by the Defendant No.1 in favour of the Plaintiffs.
(j) A letter of Set off & Appropriation executed and delivered by the Defendant No.1 in favour of the Plaintiffs.
(k) A Deed of Hypothecation to secure the Demand Loan dated 29.10.1998 in favour of the Plaintiffs executed and delivered by the Defendant No.1.
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the outstanding dues of the aforesaid facility granted to the Defendant No.1.
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addressed to the Defendant Nos.1 and 2, recorded the aforesaid facts of the personal visits and the telephonic conversations and called upon them, jointly and severally, to pay a sum of Rs.76,412 and 73 paise under the said loan along with further interest at the rate of 18% per annum with quarterly rests till the payment and/or realization thereof. However, in spite of this letter by the Plaintiffs’ Advocate, the Defendant Nos.1 and 2 have failed and neglected to pay the outstanding dues to the Plaintiffs and to settle the said loan.
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Rs. 79,006 and 73 paise as on 21st May 2001. The letter written by the Defendant No.1 dated 21st April 1999 establishes that the Defendant No. 1 has also acknowledged the debt due to the Plaintiffs. This is further established by the letters repeatedly written to the Defendants by the Plaintiffs including the letters dated 15th June 1999, 17th November 1999, 9th May 2000 and 26th December 2000.
(i) The Suit stands decreed in terms of prayer clause (a) with a modification that simple interest shall be payable at the rate of 18% per annum on the sum of Rs. 79,006 and 73 paise from the date of filing of this Suit till date date of realisation.
(ii) The Defendants to pay costs of this Suit to the Plaintiffs.
(iii) The Plaintiffs be refunded Court fees, if any, as per Rules.
[ S.J.KATHAWALLA, J. ]
2 issues framed by the court
Whether the defendants are liable to repay the outstanding loan amount and interest.
Whether the suit is decreeable in the facts and circumstances of the case.
S.J. KATHAWALLA
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
