CHIRAG SHIRSAT M2110
Bangalore District Court
Canara Bank vs Mrs.Velangani on 7 July 2022
PLAINTIFF CANARA BANK
DEFENDANT MRS.VELANGANI
In this case, the defendant approached the bank with a request to sanction a term loan for running her business. She submitted her application to the bank and the application was processed and examined by the bank to sanction a loan of Rs 4,00,000/- for the purpose of purchasing Centering Sheets and Column Box under the MSME Scheme. The defendant has agreed to pay interest at 11.95% per annum compounded at monthly rests. The defendant has agreed to pay penal interest at 2% per annum on the overdue amounts. The loan is repayable in 60 equated monthly installments of Rs.8,888/-. The defendant had submitted a quotation issued by Sherwin Engineering for the supply of Centering Sheets and Column Box. The loan was directly paid to the supplier by the bank. The defendant has received the machinery purchased by her in good condition. The defendant has failed to comply with the terms and conditions of sanctioning the loan by the bank. The bank made several requests to the defendant to clear the dues. But the defendant has not repaid the loan amount. Ultimately the bank has issued a notice to the defendant to repay the entire dues. The defendant is liable to repay a sum of Rs.5,82,765/- with future interest at 12.90% per annum. As per the order bank should show the penal interest separately and should not show the penal interest in the capitalized amount and should not charge further interest on such capitalization of penal interest. The defendant shall pay to the bank the principal sum arrived at as per the calculation after adding the rest of the dues at 11.95% interest per annum from the date of filing of this suit till realization.