more-in A Delhi court has allowed a public sector bank to recover ?3.16 lakh of education loan from a man who defaulted on its repayment He had taken a loan of ?3.30 lakh from the bank at the rate of 10.75% interest per annum promising to repay it in 84 equated monthly instalments. His mother was a co-borrower. After paying a few instalments, the borrowers stopped paying back. But they, through letters to the bank, acknowledged their liability to the bank. Failed to appear The bank sent a legal notice to them but they neither replied to it nor did they make any payment. Thereafter, the bank filed a recovery suit. The court issued summons to the principal borrower but he failed to appear. It proceeded ex parte in the matter and decreed the suit in favour of Oriental Bank of Commerce and against the first borrower as his mother passed away before the suit was filed. “As per provisions of Order 37 CPC, if the defendant fails to file appearance within 10 days from receiving the summons, then averments made in the plaint are deemed to be admitted... the suit of the plaintiff [bank] is decreed,” Additional Sessions Judge Shunali Gupta said. “The decree is being passed only against the defendant no. 1 (main borrower) being the principal borrower as it is stated in the plaint that the co-borrower has already expired. Thus, plaintiff is held entitled to recover from defendant no.1 a sum of ?3,16,042 along with interest at the rate of 9% per annum from the date of filing of suit till the realisation,” the Judge said in the order.

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