rejection of plaint

Querist : Anonymous (Querist) 02 December 2009 This query is : Resolved
I have made application for Rejection of Plaint under order 7 Rule 11 of Cpc , on the ground that there is no cause of action, the suit which is filed by the plaintiff is for the recovery of money,

the case in brief is that i have taken loan from the bank and have taken one boat (water boat) and hypoticated the ame to the bank and also there were 3 guranters for the same. when my business stated suffering i sent a letter to the bank two years back before filing of the suit to sell the same boat and recover the amount..which is not benn done by the bank nor any steps whatsoever had taken by the bank to sell the boat and recover the amonnt ..now that letter is relied by the plaintiff itself..

now when i had sent a letter saying and calling them to sell the boat and recover the amount 2 years back how there can be cause of action thare to file this suit..please guide me with citations if you are having

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joyce (Expert) 02 December 2009
What reply did bank gave for ur letter? what communication next taken place between u n ur bank? did bank sent u the notice prior to the filing of recovery case? all these are necesary to answer ur qerry/ so kindly update.

S. Bharath (Expert) 02 December 2009
So long as the account is active and is outstanding, cause of action survives. You cannot put up this ground to say that the bank does not have a cause of action, though you may raise this in your defence.

H. S. Thukral (Expert) 02 December 2009
Whether there is a cause of action or no cause of action is to be seen from contents of the plaint and not from your reply. There are number of judgments on that.

niranjan (Expert) 02 December 2009
I agree with Mr. Thukral.

Raj Kumar Makkad (Expert) 02 December 2009
Suit for recovery is not be decided or cause of action is not dependent over your letter sent 2 years back to the bank rather it is the right of the bank to recover its debt on the basis of loan agreement and your undertaking to repay the amount of loan without any delay.

Kiran Kumar (Expert) 02 December 2009
I agree with Mr. Thakural.

bank has every right to recover the amount of loan, ur own letter is a good evidence with the bank.

if u were ready to sell off the boat 2 years bank then why r u worried of it being sold now?

try to reach at some settlement with the bank, generally banks compromise the matter.

N RAMESH. (Expert) 03 December 2009
Cause of action consists of bundle of facts and not confined to any single incident. In your case, you said you had hypothicated the boat to the bank. Then you have no right to the good and the bank remains the owner of the good. You are permitted to use the good and you have liability to pay the loan dues. In case of default, the bank has right to sieze the property and bring the same into auction sale and also has right to recover the remaining dues from you. By simply sending a letter to bank, asking them to sell the boat does not absolve you from any liability. At most, you could have surrenderd the boat to the bank and could have asked for pre-closure. In my opinion, the application filed by you under Order VII Rule 11 of CPC is not sustainable.