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[Cites 4, Cited by 0]

Delhi District Court

State Bank Of India vs Mr. Shashank on 9 October, 2018

                         IN THE COURT OF MS. MANJUSHA WADHWA  
                       ADJ ­ 04 (WEST), TIS HAZARI COURTS, DELHI

Suit No. 613600/16

State Bank of India,
a  body corporate constituted
under the State Bank of India
Act, 1955 ,having its Head office/
 Central office/Corporate office
 at State Bhawan, Madame Cama Road,
Nariman Point, Mumbai and  
one of its local Head Office at 11,
Sansad Marg, New Delhi­01 and having 
one of its Branch at Paschim Vihar and 
RACPC at A­5, Pearl Best Height­I,
Netaji Subhash Palace, New Delhi
Through its Chief Manager Sh. A.K.Fotedar                                                                                           ...Plaintiff

                      Versus

1.

  Mr. Shashank       S/o Sh. Rajesh Kumar

2.  Mr. Rajesh Kumar Sh. Mahinder Singh  Both At: R/o WZ­44, Titarpur,  Near Kirti Nagar Metro Station New Delhi­110027 Both Also At: 63/12A, IInd floor,  Mane Nagar, Rama Road, Near Kirti Nagar, New Delhi­110027           ...Defendants Date of Filing Suit : 08.10.2016 Date of Reserving Judgment : 24.09.2018  Date of Judgment   : 09.10.2018              Civ Dj No.613600/16          State Bank of India  vs. Shashank & Anr.                                                    Page  1 of 6 J U D G M E NT

1.    This is the suit for recovery of an amount of Rs. 5,90,613/­ alongwith pendentelite   and   future   interest,   filed   by   the   plaintiff   against   the defendants. 

2.      Succinctly put, facts of the present case as per the plaint are that defendant   no.1,   being   student   as   borrower   and   the   defendant   no.2, being father of the defendant no.1, as co­applicant­cum­guardian cum guarantor had approached the plaintiff's bank for grant of education loan   and   consequently,   the   plaintiff's   bank   had   sanctioned   and disbursed   education   loan   of   Rs.   4,00,000/­   to   the   defendants   on 30.04.2011. In order to avail the said loan, the defendants had executed loan documents including education loan agreement dated 30.04.2011, arrangement letter dated 30.04.2011 etc. 

3.    It is also pleaded by the plaintiff that the defendants agreed to repay the   entire   loan   amount   to   the   plaintiff     in   84   equated   monthly installments of Rs. 7,115/­ each in terms of loan agreement.

4.     The plaintiff further pleaded that  defendants failed and neglected to repay   the   installments,   as   a   result   of   which,   loan   account   became irregular. According to the plaintiff, the defendant nos 1 & 2 had paid the last installment on 12.09.2013 and loan account of the defendants was   declared   as   NPA   on   30.06.2016.   The   plaintiff   claimed   to  have              Civ Dj No.613600/16          State Bank of India  vs. Shashank & Anr.                                                    Page  2 of 6 issued legal demand notice dated 25.07.2016 to the defendants to repay the due amount, but to no avail. According to the plaintiff, an amount of Rs. 5,90,613/­ is due and recoverable from the defendants, details of which is provided in para 17 of the plaint as: 

Outstanding Amount as per  Statement of Account  Rs. 4,56,640/­ Accrued Interest from 30.06.16(NPA Date) to the date of 07/10/2016 Rs. 1,33,973/­ _____________ TOTAL Rs.  5,90,613/­ _____________

5.      The plaintiff's bank thus filed the present suit for recovery of an amount of Rs. 5,90,613/­ alongwith pendentlite and future interest @ 13.5% per annum with monthly rests & cost of the suit.  

6.     Perusal of the record shows that the defendants were served, but the defendants did not appear despite service. Vide order dated 17.07.2017, the defendants were proceeded exparte.

7.        In order to prove the case, the plaintiff's bank has examined Sh.

Prem   Kumar,   Chief   Manager,   SBI   as   PW­1   and   relied   upon   the following documents as:­  S.No. Particulars of documents Exhibition   of documents 1 Copy of Power of Attorney  Mark A              Civ Dj No.613600/16          State Bank of India  vs. Shashank & Anr.                                                    Page  3 of 6 2 Original loan application & proposal Ex­PW1/B(colly) forms ect 3 Copy   of   documents   qua   Intended Ex­PW1/C(colly) Course  4 Appraisal   report­Education   loan   & Ex­PW1/D(colly) sanction letter   5 Original Agreement of term loan   Ex­PW1/E 6 Original   Annexure   ­I   signed   and Ex­PW1/F submitted by the defendants 7 Original Operation Letter Ex­PW1/G 8 Copy   of   the   undertaking   by   the Ex­PW1/H defendants 9 Change   Letter   dated   30.04.2011, Ex­PW1/I(colly) release   of   installments   dated 03.04.2012 etc. 10 Copy   of   legal   notice   dated Ex­PW1/J(colly) 25.07.2016   and   its   original   postal receipt  11 Statements   of   account   of   the Ex­PW1/K defendants 12 Original   certificate   U/s   2A   of Ex­PW1/L. Bankers' Book of Evidence Act and Section 65B of Evidence Act.

13 Original   certificate   of   accrued Ex­PW1/M. interest  

8.        Heard Ld. counsel for the Plaintiff and perused the record. 

             Civ Dj No.613600/16          State Bank of India  vs. Shashank & Anr.                                                    Page  4 of 6

9.         PW­1 has deposed in his evidence about the contents of the plaint.

PW1   has   not   been   cross­examined   on   any   aspect.   Further,   non appearance of the defendants in the present case makes the testimony of PW­1 unrebutted, unchallenged and uncontroverted and thus, there is   nothing   on   record   to   disbelieve   the   testimony   of   the   plaintiff's witness.   Testimony   of   PW­1   coupled   with   the   aforesaid   documents establish   that   the   defendants   had   taken   Education   Loan   of   Rs. 4,00,000/­    and did not repay the same as per the agreed schedule.. Hence, the plaintiff has been successful in proving its case for recovery of the outstanding loan amount from the defendants. 

10. PW­1 has deposed in para 17 of his affidavit, Ex­PW1/1 that outstanding amount as per statement of account is Rs. 4,56,640/­ and accrued interest from 30.06.2016 i.e NPA Date till 07.10.2016 is Rs. 1,33,973/­.   He   deposed   that   the   plaintiff   is   entitled   to   recover   an amount of Rs. 5,90,613/­ from the defendants. 

11. According to the plaintiff, the defendant had paid last installment on 12.09.2013, and thereafter, did not pay any amount despite follow up   by   the   plaintiff.   The   plaintiff   had   declared   the   account   of   the defendant  as NPA  on 30.06.2016.  In  the  considered  opinion of  this court,   the   plaintiff   ought   to   have   filed   the   case   immediately   on declaring the loan account of the defendants as NPA, more so,when the defendants failed to pay any amount after 12.09.2013. In view thereof, the plaintiff is not entitled to claim contractual rate of interest after the loan account of the defendants was declared as NPA on 30.06.2016.

             Civ Dj No.613600/16          State Bank of India  vs. Shashank & Anr.                                                    Page  5 of 6

12. Keeping in view the provision as enumerated in Section 34 CPC, the ends of justice would be met by granting simple interest @6% per annum on the outstanding amount of Rs. 4,56,640/­ as on 30.06.2016 from 01.07.2016 till the date of payment.

13. In view  of  the above, suit filed  by the  plaintiff  is decreed  in favour of the Plaintiff and against the defendants jointly & severally for an   amount   of   Rs.   4,56,640/­  alongwith   simple   interest   @   6%   per annum from   01.07.2016 till its realization. Cost of the Suit is also awarded   in   favour   of   the   Plaintiff.   Decree   sheet   be   prepared accordingly. File be consigned to record  room.

         Announced in the open court         (Manjusha Wadhwa) th    on 09  October,  2018.                  Addl. District Judge­04 (West)                                         Tis Hazari Courts,Delhi Digitally signed by MANJUSHA MANJUSHA WADHWA WADHWA Date:

2018.10.10 15:56:58 +0600              Civ Dj No.613600/16          State Bank of India  vs. Shashank & Anr.                                                    Page  6 of 6