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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.100092 OF 2021

BETWEEN:

1.

RAGHAVENDRA

S/O MURKUNDI NAIK,

AGE: 29 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 MURKUNDI NAIK,

AGE: 28 YEARS, OCC; FISHING

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

POST: TADADI, GOKARNA – 581 326.

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. PARAMESWARA 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:-

a.

Against the defendant to pay an amount

of Rs.87,094/- (Rupees Eighty seven thousand

and Ninety hundred and four only) with cost

and future interest and cost from 01.07.2020

till realization.

b.

The

future

interest

at

Rs.12.75%

(9.75%+3%) p.a. compounded monthly from

the date of the 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 Gokarna 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 Credit facility loan of

Rs.1,00,000/- (Rupees One Lakh Only) for purchase of

fishing boat and nets. The plaintiff- Bank sanctioned the

loan of Rs.1,00,000/- (Rupees One Lakh Only) to the first

defendant

as

per

Sanction

Order

NO.

BMR/252/

113296/14-15 dated 11.10.2014. The first defendant

availed the loan on 11.10.2014. 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.

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The loan was an agricultural loan and the defendants

agreed to repay the loan amount with interest @ 11.25%

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.1,666/-

(Rupees One Thousand Six Hundred and Sixty Six Only)

and 60^th installment Rs.1706/-(Rupees One Thousand

Seven Hundred and Six only) starting from 11.11.2014.

The defendants agreed to pay overdue interest above the

rate of interest that is charged in the account from time to

time.

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 has issued notice on 26.05.2017 to

the first defendant and the same was served on

01.06.2017 for repay the loan amount but they did not

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repay the loan amou