Delhi District Court
Uco Bank vs Seela Devi on 18 September, 2023
IN THE COURT OF MS. SWATI GUPTA-I: ARC/ACJ/CCJ:
PATIALA HOUSE COURTS: NEW DELHI
CIVIL SUIT NO. 1248/22
UCO Bank
A body corporate constituted under
Banking Companies (Acquisition & Transfer
of Undertaking) Act 1970,
Having Branch Office at:
40, Community Centre, Naraina Vihar,
N. Delhi-110028
Through its Branch Manager ......Plaintiff
Versus
Seela Devi
Proprietor: M/s Balaji Enterprises
Shop At:
B-93/3, Sonia Gandhi Camp,
Naraina Vihar, N. Delhi-28
Resident of:
B-97/3, Sonia Gandhi Camp,
Naraina Vihar, N. Delhi-28 .....Defendant
Suit for recovery of Rs. 2,01,238/- with all costs and interest
Date of institution of suit : 07.09.2022
Date of hearing of final arguments : 18.09.2023
Date of final judgment : 18.09.2023
Decision : Suit decreed
EX-PARTE JUDGMENT
1.The present suit has been filed by the plaintiff against the CS NO.1248/22 Page No. 1 of 6 UCO Bank Vs. Seela Devi defendant for recovery of a sum of Rs. 2,01,238/- (Rupees Two Lakh One Thousand Two Hundred and Thirty Eighty Only) alongwith interest pendente lite and future at the rate of 8.60% pa alongwith costs.
Brief facts
2. Brief facts of the present case, as averred in the plaint, are that the plaintiff bank i.e. UCO Bank is a Body corporate and is constituted and functioning under the Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970. As per plaintiff, the defendant was maintaining a Cash Credit Account having No. 10270510001127 with the plaintiff and defendant had approached the plaintiff bank for grant and sanction of a loan/credit facility of Rs. 2 lakhs under Pradhan Mantri Mudra Yojna (PMMY) vide loan application dated 11.09.2018 for enhancing her business of Grocery Trading 'M/s Balaji Enterprises'. The loan was sanctioned by the plaintiff bank to defendant on 19.09.2018. As per the plaintiff, the defendant has availed the said loan after executing necessary documents such as composite deed of hypothecation, demand promissory note (A-1), leter of continuity (A-3), letter of waiver (A-47) & composite deed of hypothecation and also created security in favour of CS NO.1248/22 Page No. 2 of 6 UCO Bank Vs. Seela Devi plaintiff by way of Hypothecation of Stocks & Book debts (existing & future). As per terms and conditions of Term Loan facility, defendant was to make regular payments in the account and the interest was charged @8.60% with monthly rests.
3. As per plaintiff, the defendant failed to adhere to financial discipline and defaulted in making the payment as per schedule. The account of defendant was declared as NPA on 31.05.2021. The defendant has failed to pay the said outstanding amount despite issuance of legal notice dated 29.11.2021. With these facts, the plaintiff has filed the present suit against the defendant for recovery of a sum of Rs. 2,01,238/- alongwith pendente lite and future interest thereon @ 8.60% per annum alongwith costs. Trial and Evidence
4. Summons were issued to the defendant. Despite service, defendant did not file any written statement within the statutory period and accordingly, her defence was struck of and she was proceeded ex-parte vide order dated 02.05.2023.
5. In ex-parte evidence, the plaintiff bank examined Sh.
Anivesh Shukla, Branch/Senior Manager/AR at UCO Bank, New Delhi, as PW-1, who tendered his evidence by way of CS NO.1248/22 Page No. 3 of 6 UCO Bank Vs. Seela Devi affidavit Ex.PW-1/A and relied upon the documents from Ex. PW1/2 to Ex. PW1/9 and Mark A.
6. Thereafter, ex-parte PE was closed.
Arguments and Relief
7. I have heard the ex-parte final arguments advanced by Ld. Counsel for the plaintiff and carefully perused the record.
8. In the present case, as noted above, vide order dated 02.05.2023, the defendant was proceeded ex-parte and her defence was struck of for not filing the written statement. The plaintiff has inter alia proved on record copy of General Board resolution in favour of AR as Mark A ; Loan application as Ex.PW1/2; Sanction letter as Ex.PW1/3; Demand Promissory Note (A-1) as Ex. PW1/4; letter of continuity (A-3) as Ex. PW1/5; letter of waiver (A-47) as Ex. PW1/6; composite deed of hypothecation as Ex. PW1/7; Certified copies of statements of account and certificate u/S 65B of Indian Evidence Act as Ex. PW1/8 (colly); Legal notice and postal receipt as Ex. PW1/9. The said evidence of PW1 stands unrebutted / unchallenged, as PW1 was not cross-examined by the said defendant. This Court does not find any reason to disbelieve the unrebutted testimony of AR of the plaintiff / PW-1 recorded on oath in CS NO.1248/22 Page No. 4 of 6 UCO Bank Vs. Seela Devi Court. In view of the unchallenged testimony of PW1, documents exhibited/tendered in evidence by PW1 and on the basis of material on record, it may be said that the plaintiff has been able to prove its case against defendant on preponderance of probabilities.
9. In view of the aforesaid discussion, the present suit is decreed in favour of the plaintiff and against defendant. The plaintiff bank is held entitled for the decreetal amount of Rs. 2,01,238/-. The plaintiff has claimed pendente lite and future interest at the rate of 8.60% p.a. However, it is settled law that pendentelite and future interest are matters of discretion and considering that the pendentelite and future interest at the rate of 8.60% p.a. is onerous and penal in nature, it is not considered equitable to grant such high rate of interest. Accordingly, simple interest at the rate of 6% per annum is considered just and equitable in the present case. In view of the above, the suit of the plaintiff stands decreed against defendant. Defendant is liable to pay the sum of Rs. 2,01,238/- to the plaintiff alongwith simple interest at the rate of 6% per annum from the date of institution of the suit till its realization.
10. Deficient court-fees, if any, be filed within 10 days from CS NO.1248/22 Page No. 5 of 6 UCO Bank Vs. Seela Devi today and decree sheet be prepared accordingly. Costs of the suit are also awarded in favour of the plaintiff.
11. File be consigned to Record Room after due compliance.
Announced in the open Court (SWATI GUPTA-I) today i.e. on 18.09.2023. ACJ/CCJ/ARC, NDD, PHC NEW DELHI : 18.09.2023 CS NO.1248/22 Page No. 6 of 6 UCO Bank Vs. Seela Devi