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IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH

DATED THIS THE 26^th DAY OF NOVEMBER, 2021

BEFORE

THE HON’BLE MS. JUSTICE JYOTI MULIMANI

C.R.P. NO.100088 OF 2021

BETWEEN:

1.

MURKUNDI

S/O HULIYAPPANAIK,

AGE: 64 YEARS, OCC: FISHING

R/O H.NO. 170/1, TADADI, GOKARNA,

POST:TADADI, GOKARNA – 581 326

TQ:KUMTA, DIST:UTTARA KANNADA.

2.

SURAJ

S/O MURKUNDINAIK,

AGE: 28 YEARS, OCC: FISHING

R/O H.NO. 170/1, TADADI, GOKARNA,

POST:TADADI, GOKARNA - 581326

TQ:KUMTA, DIST:UTTARA KANNADA. …PETITIONERS

(BY SMT.DEEPA UDIYAR, ADVOCATE)

AND:

KARNATAKA BANK LIMITED,

A BANKING COMPANY INCORPORATED UNDER

THE INDIAN COMPANIES ACT, 1913,

HAVING ITS REGISTERED AND HEAD OFFICE

AT MAHAVEER CIRCLE, KANKANADY, MANGALURU,

REPRESENTED BY ITS GOKARNA BRANCH MANAGER,

THE PRESENT BRANCH MANAGER,

SRI. PARAMESWAR GOPAL BHAT,

AGE, 47 YEARS,

R/O GOKARNA- 581 326

TQ:KUMTA, DIST:UTTARA KANNADA.

… RESPONDENT

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THIS CRP IS FILED UNDER SECTION 18 OF THE

KARNATAKA SMALL CAUSE COURTS ACT, 1964.

THIS CRP POSTED FOR ADMISSION, THIS DAY, THE

COURT MADE THE FOLLOWING:

ORDER

Smt.Deepa Udiyar, learned counsel for petitioners,

has appeared in person.

2.

This revision petition is listed for Admission.

3.

The parties are referred to as per their ranking

before the trial Court.

The plaintiff is Karnataka Bank Limited filed suit to

pass a judgment and decree against the defendants.

A. To pay amount of Rs.77,036/- (Rupees Seventy

seven and thirty six only) with future interest and

cost from 01.07.2020 till realization.

B.

The

future

interest

at

Rs.12.75%

p.a.

(9.75%+3%) compounded monthly from the date

of suit till full and final realization.

C. For sale of hypothecated goods.

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4.

The facts are simply stated as under:

It is stated that the plaintiff Bank is a Company

incorporated under the Indian Companies Act, 1913,

carrying the banking business having its Registered and

Head office at Mangaluru and it has got one of its

branches at Gokarana of Kumata Taluq.

It is the specific case of the plaintiff- Bank that the

defendants visited the Bank on 09.10.2014 and the first

defendant applied for agricultural loan of Rs.1,00,000/-

(Rupees One Lakh Only) for purchase of fishing boat and

net. The Bank sanctioned the loan of Rs.1,00,000/-

(Rupees One Lakh Only) to the first defendant as per

Sanction

Order

NO.BMR/252/113429/14-15

dated

13.10.2014. The first defendant availed the loan on

13.10.2014. The second defendant stood as guarantor to

the said loan and both the defendants executed necessary

documents in favor of the Bank viz., Declaration, Consent

Letters, Term Loan Agreement, Hypothecation Agreement

and other documents.

The loan was an agricultural loan and the defendants

agreed to repay the loan amount with interest @ 11.25%

4

p.a., additional penal interest of 3% to be charged in case

of

default

in

payment

within

the

stipulated

time

compounded monthly and the rate of interest varies from

time to time with the MCLR interest of the Bank.

According to the Bank, the defendants agreed to repay the

loan amount in 59 equated monthly installments of

Rs.1,667/- (Rupees One Thousand Six Hundred and Sixty

Seven Only) and 60^th installment is Rs.1,647/- starting

from 13.11.2014.

It is averred that the defendants did not repay the

loan amount as agreed and hence the Bank was

constrained to issue notice to the defendants and despite

notice the defendants did not repay the loan amount.

Accordingly, the Bank issued a notice on 16.11.2017 to

the first defendant and the same was served on

17.11.2017 and thereafter, a legal notice was issued to

the defendants. The notice was duly served but the

defendants did not repay the loan amount. Hence, the

Bank was constrained to initiate action against the

defendants.

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After the issuance of the suit summons, the

defendants appeared through t