Delhi District Court
Punjab National Bank vs Virender Kumar on 4 June, 2025
1
IN THE COURT OF SH. RAKESH PANDIT, DISTRICT JUDGE
(COMMERCIAL)-04, SOUTH-WEST, DWARKA COURTS, DELHI
DLSW010041682024
CS (Comm) No. 240/2024
Punjab National Bank
Through Its Manager/AR
Mr. Amit Kumar
Head Office At:-
Plot No.4, Sector-10,
Dwarka, New Delhi-110075.
Branch AT:-
Sector-5, Dwarka, Delhi.
Also At:-
Circle SASTRA Centre, West Delhi
At 2nd Floor, Vikrant Tower,
Rajendra Place, New Delhi-110008. .......Plaintiff
Versus
1 Virender Kumar (through LR)
S/o Late Sh. Balbir Singh
2 Kamlesh Devi (through LR)
W/o Late Sh. Balbir Singh
Both R/o RZ-D-54, Partap Garden,
Near Bindapur, Village, Delhi-110059.
Also At
No. 50, Block-V, Near Bindapur,
DDA Flats, Vishnu Vihar, Uttam Nagar,
Delhi-110059. ...... Defendants
CS (Comm) No. 240/2024 Punjab National Bank Vs. Virender Kumar & Ors. Page 1/12
2
Date of institution : 30.04.2024
Date when order reserved : 29.05.2025
Date of Judgment : 04.06.2025
JUDGMENT
1 By this judgment, I shall dispose of suit for recovery of Rs.14,24,604.51/- along with interest filed by the plaintiff against the defendant.
2 The brief facts of the case as per plaintiff are that it is a body corporate under the Banking Companies, Act and appointed Sh. Amit Kumar, Manager, to represent it in the present case.
3 As per plaintiff, borrower late Balbir Singh proprietor of M/s Naveen Enterprises vide loan application approached the plaintiff bank in the month of June 2019 for Cash Credit Loan Facility and Term Loan Facility for business of hosiery and ready made garments.
After completing documentary formalities, on 24.06.2019, the Cash Credit Loan Facility of Rs.9,50,000/- was sanctioned and disbursed to the borrower vide loan account no. 1434250001809. On 17.06.2020, the Capital Term Loan CS (Comm) No. 240/2024 Punjab National Bank Vs. Virender Kumar & Ors. Page 2/12 3 (WCTL) under GECL Loan Facility of Rs.1,91,000/- was sanctioned and disbursed to the borrower vide loan account no. 1434300010876.
4 After availing the loans, borrower did not adhere to financial discipline and the account was termed as NPA on 29.07.2022. The borrower lastly paid Rs.23,000/- in account no. 1434250001809 and Rs.22,000/- in account no. 1434250001809 on 02.05.2022. Plaintiff issued a legal notice dated 01.11.2022 to the borrower but the he paid no heed to respond the notice. No amount was paid.
It is stated that on 03.06.2023, plaintiff bank came to know that Sh. Balbir Singh had expired on 05.06.2022. It is further stated that his LRs namely Kamlesh Devi and other LRs had acquired/inherited all the estate/assets of deceased borrower Sh. Balbir Singh.
As on 29.02.2024, amount of Rs.14,24,604.51/- is due against borrower/defendants.
Plaintiff also initiated pre-litigation mediation with DLSA South-West. When none appeared on behalf of defendant and the same ended as "Non-Starter" on 20.02.2023.
CS (Comm) No. 240/2024 Punjab National Bank Vs. Virender Kumar & Ors. Page 3/12 4The present suit is filed by the plaintiff seeking decree of recovery of money of Rs.14,24,604.51/- along with ancillary reliefs.
5 In written statement defendant stated that defendants have no liability to pay any amount to the plaintiff. It is stated that the EMI of the loan amounts were regularly deducted from the account of late Sh. Balbir Singh and the bank statement of late Sh. Balbir Singh shall clear the status of repayment of the said loan. It is stated that present defendants no. 1 and 2 had never taken any loan from plaintiff bank nor executed any documents and therefore they are not liable to pay the same. Rest of the contents of plaint were denied by defendants.
6 In replication to the written statement of defendants, plaintiff reiterated and reaffirmed the facts of the plaint and denied those of written statement.
7 On 03.01.2025, on the basis of material on record, following issues were framed:-
1 Whether Sh. Virender Kumar (defendant no. 1) being LR of deceased Balbir Singh has any liability to pay the debt, if any, of late Sh. Balbir Singh, towards plaintiff, if so, its effects? OPP.
2 Whether Smt. Kamlesh Devi (defendant no. 2) being LR of deceased Balbir Singh has any liability CS (Comm) No. 240/2024 Punjab National Bank Vs. Virender Kumar & Ors. Page 4/12 5 to pay the debt, if any, of late Sh. Balbir Singh, towards plaintiff, if so, its effects? OPP.
3 Whether the plaintiff is entitled for the recovery of Rs.12,68,788.08/- (for account no. 1434250001809)?
OPP.
4 Whether the plaintiff is entitled for any pendent-lite and future interest @ 10.55 % on the above said amount (for account no. 1434250001809) or at any other rate? OPP.
5 Whether the plaintiff is entitled for the recovery of Rs.1,55,816.43/- (for account no. 1434300010876)? OPP.
6 Whether the plaintiff is entitled for any pendente-
lite and future interest @9.25 % on the above said amount (for account no. 1434300010876) or at any other rate? OPP.
7 Whether the plaintiff is entitled for penal interest @ 2%? OPP 8 Relief?
8 To prove its case, plaintiff examined PW1 Sh. Amit Kumar. He deposed by way of affidavit of evidence, the facts of the plaint. He relied on following documents:-
Srl. Document/Particulars Exhibit(s) pages No. 1 General Power of Attorney Ex. PW 1/1 (OSR) 5 2 Notification Ex. PW 1 /2 7 3 Application form PMMY dated 12.06.2019 Ex. PW 1/3 (OSR) 5 4 GST Certificate, PAN Card, Aadhar Card, Ex. PW 1/ 4 (colly) 6 Election Card of defendant CS (Comm) No. 240/2024 Punjab National Bank Vs. Virender Kumar & Ors. Page 5/12 6 5 Sanction Letter dated 24.06.2019 Ex. PW 1/5 2 6 Form No. D 15 Agreement of Ex. PW 1/6 (OSR) 8 hypothecation of assets 7 Letter of continuity Ex. PW 1/7 (OSR) 2 8 Form D 39A Consent clause taken from Ex. PW 1/8 (OSR) 2 borrower 9 Declaration of sole proprietorship letter Ex. PW 1/9 (OSR) 2 10 Application for availing loan facility under Ex. PW 1/10 (OSR) 3 PNB Covid - 19 scheme 11 Demand Promissory note dated Ex. PW 1/11 (OSR) 1 18.05.2020 12 Form No. D 28, Agreement for term loan Ex. PW 1/12 (OSR) 19 dated 18.05.2020 13 Application/format for working capital Ex. PW 1/13 (OSR) 6 term loan (WCTL) under GECL loan facility 14 Agreement along with master agreement Ex. PW 1/14 (OSR) 26 for working capital term loan (WCTL) under GECL Loan Facility dated 17.06.2020 15 Promissory /demand note for WCTL Ex. PW 1/15 (OSR) 1 under GECL Loan facility dated 17.06.2020 16 Copy of legal notice dated 01.11.2022 Ex. PW 1/16 (colly) 5 along with the postal receipts 17 Non-starter report Ex. PW 1/17 1 18 Copy of death certificate of original Ex. PW 1/18 1 borrower/ defendant 19 The NPACR for the loan account Ex. PW 1/19 2 20 Account statement Ex. PW 1/20 4 21 Banker's Book Evidence Ex. PW 1/21 3
9 Affidavit of evidence of DWs were filed on record, however, on 14.05.2025, Ld. counsel for submitted that CS (Comm) No. 240/2024 Punjab National Bank Vs. Virender Kumar & Ors. Page 6/12 7 defendants do not want to lead any DE. So, DE was closed vide order dated 14.05.2025.
10 After the closure of evidence, final arguments were heard.
11 I have gone through the material on record and heard the submissions forwarded by Ld. Counsel for parties.
12 My issue wise finding is as under:-
ISSUES NO.3, 4, 5, 6 and 7Issue no. 3 Whether the plaintiff is entitled for the recovery of Rs.12,68,788.08/- (for account no. 1434250001809)?OPP.
Issue no. 4 Whether the plaintiff is entitled for any pendent-lite and future interest @ 10.55 % on the above said amount (for account no. 1434250001809) or at any other rate? OPP.
Issue no.5 Whether the plaintiff is entitled for the recovery of Rs.1,55,816.43/- (for account no. 1434300010876)? OPP.
Issue no.6 Whether the plaintiff is entitled for any pendente-lite and future interest @9.25 % on the above said amount (for account no. 1434300010876) or at any other rate? OPP.
Issue no. 7 Whether the plaintiff is entitled for penal interest @ 2%? OPP CS (Comm) No. 240/2024 Punjab National Bank Vs. Virender Kumar & Ors. Page 7/12 8
13 The onus to prove these issues are on plaintiff. No defence evidence is led by the defendant. To prove its case, plaintiff examined PW1. From the perusal of Ex.PW1/1, it appears that PW1 is duly duly authorized by plaintiff bank to depose in this case. Ex.PW1/2 is the copy of Notification. From the perusal of Ex.PW1/3 to Ex.PW1/15, it appears that late Balbir Singh availed loan from plaintiff bank. From Ex.PW1/16, it appears that since the outstanding amount was not paid, plaintiff served recall notice dated 01.11.2022 on the defendants. From the perusal of Ex.PW1/17, it appears that plaintiff had also initiated pre-litigation mediation with DLSA South-West and when none appeared on behalf of defendants and the same ended as "Non-Starter" on 20.02.2023. Ex.PW1/18 is death certificate of late Sh. Balbir Singh. Ex.PW1/19 is NPACR of the loan account. From the perusal of Ex.PW1/20, it appears that the suit amount is due against late Balbir Singh and defendant no.1. From the perusal of Ex.PW1/21 i.e. certificate u/sec.65B of Indian Evidence Act, it appears that statement of account Ex.PW1/20 is genuinely proved document.
In the cross-examination, the defendants had only given suggestion that the assets of Balbir Singh could not be attached. However, this defence is already met out in the law laid down in one judgment of Hon. High Court i.e. "Sanjeev Jain Vs. CS (Comm) No. 240/2024 Punjab National Bank Vs. Virender Kumar & Ors. Page 8/12 9 Rajni Dhingra & Ors", CS (OS) 378/2018 DOD 19.12.2018 DHC (detailed discussion follows on reasoning while deciding issues no.1 and 2).
14 So, in these circumstances, plaintiff was able to prove that late Balbir Singh had taken the loans. He failed to repay the entire loan amount in terms of contract. So, the plaintiff is entitled for the recovery of Rs.11,54,587.99/- as principal amount. Plaintiff is also entitled for the interest accrued on this amount. So the plaintiff is entitled for principal and interest thereupon i.e. Rs.14,24,604.51/-.
15 As far as pendent-lite and future interest is concerned, plaintiff has sought it @ 10.55 % for loan account no. 1434250001809. The same appears to be on the higher side. Accordingly pendent-lite and future interest @6% per annum is granted to the plaintiff on loan account no. 1434250001809.
16 As far as pendent-lite and future interest is concerned, plaintiff has sought it @ 9.25% for loan account no. 1434300010876. The same appears to be on the higher side. Accordingly pendent-lite and future interest @6% per annum is granted to the plaintiff to the plaintiff on loan account no. 1434300010876.
CS (Comm) No. 240/2024 Punjab National Bank Vs. Virender Kumar & Ors. Page 9/12 10Plaintiff has also sought penal interest @2% per month. I do not find any such provision in the law i.e. Interest Act regarding penal interest is not granted and declined.
These issues are decided in these terms.
ISSUES NO.1 & 2Issue no. 1 Whether Sh. Virender Kumar (defendant no. 1) being LR of deceased Balbir Singh has any liability to pay the debt, if any, of late Sh. Balbir Singh, towards plaintiff, if so, its effects? OPP.
Issue no. 2 Whether Smt. Kamlesh Devi (defendant no. 2) being LR of deceased Balbir Singh has any liability to pay the debt, if any, of late Sh. Balbir Singh, towards plaintiff, if so, its effects? OPP.
17 The onus to prove these issues are on plaintiff. As far as the plaintiff is concerned, admittedly, Virender Kumar and Smt. Kamlesh Devi are not having any privity of contract with the plaintiff. Originally, the loans were taken by one Sh. Balbir Singh (father of defendant no.1 Virender Kumar and husband of Smt. Kamlesh Devi, defendant no.2). Admittedly, this Balbir Singh died before filing of this case. So, defendants no. 1 and 2 were impleaded on the premise that they inherited the assets of deceased Balbir Singh in terms of the law laid down in "Sanjeev Jain Vs. Rajni Dhingra & Ors", CS (OS) 378/2018 DOD CS (Comm) No. 240/2024 Punjab National Bank Vs. Virender Kumar & Ors. Page 10/12 11 19.12.2018 DHC. As per this judgment, the suit is maintainable against legal heirs for the recovery of loan taken by predecessor who is not alive on the date of filing of the suit. So, defendant no.1 and defendant no. 2 are also liable to pay the amount ascertained by the court.
18 Now as per the judgment, in the present case also, it is clarified that this court has not gone into the issue as to whether the assets of Balbir Singh were inherited by LRs (Virender Kumar and Kamlesh Devi) or that it can be attached or sold, because plaintiff had not proved any fact that these LRs have inherited any specific asset of late Balbir Singh. The defences available to the LRs (Virender Kumar and Kamlesh Devi) u/sec.50 CPC and sec.52 CPC, shall continue to be available in any execution of the present judgment/decree. These issues are decided in these terms.
RELIEF 19 In view of the aforesaid discussions, plaintiff is able to prove its case and thus following reliefs follows:-
(i) Subject to the observations given in issues no. 1 and 2, the suit of the plaintiff is decreed for recovery of Rs.14,24,604.51/- against defendants.
(ii) Pendent-lite and future interest @6% per annum is granted to the plaintiff on loan account no.
1434250001809.
CS (Comm) No. 240/2024 Punjab National Bank Vs. Virender Kumar & Ors. Page 11/12 12(iii) Pendent-lite and future interest @6% per annum is granted to the plaintiff on loan account no. 1434300010876
(iv) Cost of the suit is also awarded.
20 Decree sheet be prepared accordingly.
21 Copy of judgment be issued to all the parties through
Digitally
email or hard copy be provided physically. signed by
RAKESH
RAKESH PANDIT
22 File be consigned to Record Room. PANDIT Date:
2025.06.04
16:04:39
+0530
Announced in the open court (Rakesh Pandit)
on 04.06.2025 District Judge (Commercial Court)-04
SW/Dwarka/Delhi
CS (Comm) No. 240/2024 Punjab National Bank Vs. Virender Kumar & Ors. Page 12/12