Bangalore District Court
Axis Bank Ltd vs M/S Leela Creation on 21 June, 2025
KABC170018572024
IN THE COURT OF THE LXXXVIII ADDL. CITY CIVIL &
SESSIONS JUDGE (EXCLUSIVE COMMERCIAL COURT):
BENGALURU CITY (CCH-89)
Present:
Sri.MALLIKARJUN.B.NAGARALE, B.com., LL.M.,
LXXXVIII ADDL.CITY CIVIL & SESSIONS JUDGE,
BENGALURU
Dated this the 21st day of June, 2025
Com.O.S.945/2024
BETWEEN:
M/S AXIS BANK LIMITED,
Plot No.41, Seshadri Road, Anand
Rao Circle, Bengaluru - 560 009,
Represented by its Authorized
Signatory Mr.Manjunath M.S.
: PLAINTIFF
(Represented by Jai M. Patil -
Advocate)
AND
M/S LEELA CREATION
No.24/A, 1st Floor, Munivalas
Garden, Vrushabhavathinagar,
Kamakshipalya, Bengaluru - 560
079 Represented by its Proprietor
Mr.Mehar Singh
2 COM.O.S.945/2024
AND ALSO AVAILABLE AT -
Mr.Mehar Singh, S/o
Mr.Kenchappa, Aged about 37
years, No.30, 5th Cross, Near
Rudramma Rudregowda Choultry,
Kamakshipalya, Bengaluru - 560
079
: DEFENDANT
(Exparte)
Date of Institution of the suit 10.07.2024
Nature of the suit (suit on
pronote, suit for declaration &
Possession, Suit for Recovery of Money
injunction etc.)
Date of commencement of 16.06.2025
recording of evidence
Date on which judgment was 21.06.2025
pronounced
Total Duration Year/s Month/s Day/s
00 11 11
(MALLIKARJUN.B.NAGARALE)
LXXXVIII Addl.City Civil & Sessions Judge,
Bengaluru.
JUDGMENT
This is a suit filed by the plaintiff against the
defendant for recovery of money.
3 COM.O.S.945/2024
2. Brief facts of the plaint averments are as under:-
That plaintiff is a banking incorporated under the
Companies Act, 1956 functioning under the provision of
Banking Regulation Act 1949 having its registered office at
‘Trishul’ at Gujurat and having its branch office at
Bangalore. The defendant no.1 is a proprietorship concern
represented by its Proprietor Mr.Mehar Singh, approached
the plaintiff bank sought for financial assistance for a sum
of Rs.10,00,000/- towards cash credit disbursed through
loan account no.922030013528991. That considering the
request of the defendant, plaintiff bank has sanctioned the
loan under Cash Credit on 26.02.2022. The defendant
availed the said loan by executing necessary loan document
in favour of plaintiff bank. The defendant after availing the
said financial assistance has became defaulter in making
payment and plaintiff bank had declared the loan account
of the defendant as NPA. The defendant is liable to pay the
outstanding amount to the plaintiff in respect of the said
loan facility, the plaintiff bank issued recall notice dated
4 COM.O.S.945/202421.07.2023. Inspite of service of notice, defendant had not
come forward to comply the terms of the notice. Therefore,
plaintiff has approached the DLSA for holding the PIM, it is
also failed due to non cooperation of the defendant, hence
the present suit is filed. As on the date of the suit, the
defendant was due payable a sum of Rs.8,80,322.20/-
together with interest at the rate of 13.25% per annum
Hence, prayed for decreeing the suit in favour of the
plaintiff against the defendant directing him to pay the
outstanding amount with interest as agreed by him and
also to pay the cost of the suit.
3. After service of summons, defendant remained absent
and hence, he has been placed exparte.
4. That to prove the case of the plaintiff, one witness has
been examined as PW.1 and got marked as Ex.P.1 to
Ex.P.12 documents.
5. Heard the arguments. Perused the pleadings
5 COM.O.S.945/2024
evidence, documents and available materials placed on
record.
6. Following points arisen for my consideration are:-
1) Whether plaintiff proves that defendant had
approached the plaintiff for financial
assistance for his business purpose and
availed loan agreeing to repay the same with
agreed rate of interest and executed
necessary documents?
2) Whether plaintiff further proves that
defendant remained chronic defaulter in
repayment of loan amount, hence he is liable
to pay suit amount with interest?
3) What Order?
7. My findings to the above points are as under:
Point No.1:- In the Affirmative
Point No.2:- In the Affirmative
Point No.3:- As per the final Order
for the following:
REASONS
8. POINT NOS.1 & 2:- These points are interrelated and
connected to each other, to avoid repetition, I have taken
6 COM.O.S.945/2024
them jointly for discussion. It is the specific case of the
plaintiff that the defendant approached the plaintiff bank
and sought for financial assistance for a sum of
Rs.10,00,000/- towards his business. That considering
the request of the defendant, plaintiff bank has sanctioned
the loan under Cash Credit on 26.02.2022. The defendant
executed document demand promissory note and
hypothecation dated 10.03.2022 and other necessary
document in favour of plaintiff bank. The defendant after
availing the loan facility has became defaulter in repaying
the same and his loan account declared as NPA and the
defendant is liable to pay the outstanding amount to the
plaintiff in respect of the said loan facility. Therefore,
notice was issued neither he has complied it nor replied it,
the plaintiff approached the DLSA for holding PIM
proceedings. It has been failed due to non cooperation of
the defendant, hence present suit is filed. That after filing
the suit though the suit summons was duly served on the
defendant, but he remained absent not choosen to appear
7 COM.O.S.945/2024
before the court and to file his written statement denying
the case of the plaintiff. The very conduct of the defendant
clearly goes to show that the defendant has no case to
make out against the plaintiff. On the contrary to prove
the case of the plaintiff, its authorized signatory has been
examined as PW.1 in his affidavit filed in the form of
examination-in-chief, has reiterated the plaint averments.
9. In support of his oral evidence the PW.1 has relied
Ex.P.1 is the copy of SPA. Ex.P.2 is the loan application
dated 14.02.2022. Ex.P.3 is the sanction letter dated
26.02.2022. Ex.P.4 is the facility agreement and demand
promissory note dated 10.03.2022. Ex.P.5 is the deed of
hypothecation dated 10.03.2022. Ex.P.6 is the loan recall
notice. Ex.P.7 is the 2 postal receipts. Ex.P.8, Ex.P.8(a),
Ex.P.9 and Ex.P.9(a) is the 2 unserved postal cover and
copy of notices. Ex.P.10 is the PIM report dated
03.04.2024. Ex.P.11 is the statement of account. Ex.P.12
is the certificate under Bankers Act.
8 COM.O.S.945/2024
10. That on perusal of the oral evidence of PW.1 and
contents of above referred Ex.P.1 to Ex.P.12 documents, it
clearly reveals that the defendant has approached the
plaintiff bank for seeking financial assistance of
Rs.10,00,000/- for his business purpose, that considering
the same the plaintiff bank has sanctioned loan to the
defendant. The defendant while availing the said loan had
executed above referred documents agreeing to repay the
said loan with interest within stipulated time as stated
supra. That the defendant having availed the loan and
same has been utilized for his business purpose, but failed
to repay the said loan as agreed by him. Inspite of
repeated demands and requests the defendant not come
forward to discharge the loan amount, hence present suit
is filed. That has stated already above despite of service of
suit summons the defendant remained absent not choosen
to appear before the court and to file his written statement
denying the claim of the plaintiff. So, the very conduct of
9 COM.O.S.945/2024
the defendant itself clearly shows that he has no defence to
make out against the claim of the plaintiff, no reason to
deny the oral testimony of PW.1 and contents of Ex.P.1 to
Ex.P.12 documents relied by the plaintiff. In my view,
plaintiff has discharged its initial burden of proving its
case, thereby it has proved its contentions with cogent and
convincing evidence. Since, there is no defence to deny the
claim of the plaintiff, so it is entitled for the relief sought in
the suit arguments holds good. That taking into
consideration all these facts and circumstances it reveals
that the plaintiff has proved points Nos.1 and 2.
Accordingly, I answered them in Affirmative.
11. POINT No.3: – For the various reasons discussed in
point Nos.1 & 2 and findings given on it by me, I proceed
to pass the following;
ORDER
The suit of the plaintiff is decreed with
costs.
10 COM.O.S.945/2024
The defendant is liable to pay a sum of
Rs.8,80,322.20/- with interest at the rate of
13.25% per annum from the date of suit till
its realization to the plaintiff.
Draw decree accordingly.
(Dictated to the Stenographer directly on computer, typed by her, corrected
and then pronounced by me in open Court on this the 21st day of June, 2025).
(MALLIKARJUN.B.NAGARALE)
LXXXVIII Addl. City Civil & Sessions Judge,
Bengaluru.
ANNEXURE
LIST OF WITNESSES EXAMINED FOR THE PLAINTIFF’S
SIDE:
PW-1 Manjunath M.S.
LIST OF DOCUMENTS EXHIBITED FOR THE
PLAINTIFF's SIDE:
Ex.P.1 Copy of SPA dated 22.05.2024
Ex.P.2 Loan application dated 14.02.2022
Ex.P.3 Sanction letter dated 26.02.2022
Ex.P.4 Facility agreement and demand promissory
11 COM.O.S.945/2024
note dated 10.03.2022
Ex.P.5 Deed of hypothecation dated 10.03.2022
Ex.P.6 Loan recall notice
Ex.P.7 2 postal receipts (together)
Ex.P.8, 2 unserved postal cover (opened in the open
Ex.P.9, court) and copy of notices
Ex.P.8(a)
&
Ex.P.9(a)
Ex.P.10 PIM report dated 03.04.2024
Ex.P.11 Statement of account
Ex.P.12 Certificate under Bankers Act
LIST OF WITNESSES EXAMINED FOR THE
DEFENDANT’s SIDE:
NIL
LIST OF DOCUMENTS EXHIBITED FOR THE
DEFENDANT’S SIDE:
NIL
(MALLIKARJUN.B.NAGARALE)
LXXXVIII Addl.City Civil & Sessions Judge,
Bengaluru.