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Delhi District Court

Canara Bank vs M/S Rawal Industries And Anr on 25 April, 2024

           IN THE COURT OF GORAKH NATH PANDEY
           DISTRICT JUDGE (COMMERCIAL COURT),
          NORTH DISTRICT, ROHINI COURTS: DELHI.

CS (COMM.) 437/2021
CNR NO.DLNT010091362021

CANARA BANK
HAVING HEAD OFFICE AT
112, J. C. ROAD, BENGALURU,
KARNATAKA - 560002
AND ITS BRANCH OFFICE AT:
A-257, DERAWAL NAGAR, G. T. KARNAL ROAD,
AZADPUR, DELHI - 110009.
                                                         .............. Plaintiff
                                 Versus

(1)        M/S. RAWAL INDUSTRIES
           PROP. MR. INDERJEET RAWAL,
           31-C, GALI NO.5, ANAND PARBAT,
           INDUSTRIAL AREA, ROHTAK ROAD,
           NEW DELHI -110005.

(2)        MR. INDERJEET RAWAL
           (PROP. CUM GURANTOR)
           31-C, GALI NO.5, ANAND PARBAT,
           INDUSTRIAL AREA, ROHTAK ROAD,
           NEW DELHI -110005.

           ALSO AT : 431-C, PALAM VIHAR, GURGAON.
                                            .............. Defendant

Date of Institution              :          07.12.2021
Date of final arguments          :          25.04.2024
Date of decision                 :          25.04.2024
Decision                         :          Decreed




CS (COMM.) 437/2021                                       Page No.1 of 6
CANARA BANK VS. M/S. RAWAL INDUSTRIES AND ANR.
                             J U D G M E N T:

-

1. This suit has been filed by the Plaintiff Bank against the defendant seeking recovery of Rs.7,11,061.12 alongwith pendente-lite & future interest.

2. As per the case of the Plaintiff, the defendant approached it for grant of financial assistance for Rs.10,00,000/- and accordingly, a SOD LOAN in the amount of Rs.10,00,000/- was sanctioned in favour of the Defendant vide sanction letter dated 08.08.2017 after executing all the requisite documents by the defendant in favour of plaintiff bank i.e. letter of undertaking, undertaking letter/declaration from borrower; power of attorney for collection of bills book debt and other receivables; composite hypothecation agreement; letter of proprietorship; Annexure - 10; consent form; charge and hypothecation of book debts agreement; declaration letter all dated 19.08.2017. The loan amount of Rs.10,00,000/- in respect of SOD LOAN credited into the account no.90221250000268.

Further, on 21.01.2020, the defendant again approached the plaintiff bank for grant of OSL LOAN WORKING CAPITAL of Rs.5,92,000/-. After considering the request of the defendant and upon execution of requisite documents by the defendant in favour of the plaintiff bank i.e. charge and hypothecation of book debts agreement; letter of proprietorship dated 29.01.20; undertaking letter/declaration from borrowers and undertaking letter all dated 29.01.20, it sanctioned OSL for working capital facility of Rs.5,92,000/- to the defendant and credited loan amount vide account no.90229450001041.

It is stated that the defendant failed to adhere the financial CS (COMM.) 437/2021 Page No.2 of 6 CANARA BANK VS. M/S. RAWAL INDUSTRIES AND ANR.

discipline and therefore, the account in respect of Term Loan for Working Capital facility declared as NPA on 30.03.2021 as per RBI Guidelines. As per the plaintiff bank, an amount of Rs.7,11,061.12 was due and payable by the Defendant as on 31.10.2021. Hence, the present suit for recovery is filed by the plaintiff bank against the defendant.

3. The Defendant did not appear despite service of the summons nor filed written statement within the stipulated time as per Commercial Courts Act, 2015 and hence, the defendant was proceeded ex-parte vide order dated 10.05.2023.

4. On behalf of the Plaintiff, its Manager/Authorized Representative Sh. Janender Partap entered the witness box as PW-1. No other witness was examined by the Plaintiff.

5. I have heard Learned Counsel for the Plaintiff and have perused the plaint, documents filed alongwith the same as well as evidence led by the Plaintiff.

6. In the evidence by way of affidavit Ex.PW1/A, PW1 has reiterated the contents of the plaint. He has also proved the following documents:­ (1) Ex.PW1/1 (OSR): Authority letter dated 18.07.2022. (2) Ex.PW1/2: Original loan application dated 13.07.2017. (3) Ex.PW1/3: Sanction letter dated 08.08.2017. (4) Ex.PW1/4: Letter of undertaking dated 19.08.2017.

CS (COMM.) 437/2021 Page No.3 of 6

CANARA BANK VS. M/S. RAWAL INDUSTRIES AND ANR.

(5) Ex.PW1/5: Undertaking letter/declaration form dated 19.08.2017 executed by defendant in favour of plaintiff bank. (6) Ex.PW1/6: Power of attorney for collection of bills book debt and other receivables dated 19.08.2017 duly executed by the defendant in favour of plaintiff bank.

(7) Ex.PW1/7: Hypothecation agreement dated 19.08.2017. (8) Ex.PW1/8: Letter of Proprietorship dated 19.08.2017 executed by defendant in favour of the plaintiff bank.

(9) Ex.PW1/9: Annexure -10 dated 19.08.2017 executed by the defendant in favour of the plaintiff bank.

(10) Ex.PW1/10: Letter from borrower/guarantor regarding undrawn limits dated 19.08.2017 duly executed by defendant in favour of plaintiff bank.

(11) Ex.PW1/11: Credit guarantee fund scheme for Small Industries etc. consent from the borrower.

(12) Ex.PW1/12: Charge and hypothecation of Book Debts Agreement dated 19.08.2017 duly executed by defendant in favour of plaintiff bank. (13) Ex.PW1/13: Declaration letter dated 19.08.2017 duly executed by defendant in favour of plaintiff bank.

(14) Ex.PW1/14: Renewal letter dated 03.08.2018. (15) Ex.PW1/15: Loan application dated 21.01.2020 given by the defendant.

(16) Ex.PW1/16: Sanction letter dated 29.01.2020. (17) Ex.PW1/17: E-stamp money receipt dated 29.01.20 duly executed by defendant in favour of plaintiff bank.

(18) Ex.PW1/18: Charge and Hypotehcation of Book Debts Agreement dated 29.01.20 duly executed by defendant in favour of plaintiff bank.

CS (COMM.) 437/2021 Page No.4 of 6

CANARA BANK VS. M/S. RAWAL INDUSTRIES AND ANR.

(19) Ex.PW1/19: Letter of Proprietorship dated 29.01.2020 duly executed by defendant in favour of plaintiff bank. (20) Ex.PW1/20: Undertaking letter/declaration from borrowers dated 29.01.2020 duly executed by defendant in favour of plaintiff bank. (21) Ex.PW1/21: Undertaking letter dated 29.01.2020 duly executed by defendant in favour of plaintiff bank.

(22) Ex.PW1/22: Certified copy of statement of account of defendant. (23) Ex.PW1/23: Certificate in Term Loan for vehicles of Section 2A(b) of Bankers Book of Evidence Act.

(24) Ex.PW1/24: Certificate under Section 65-B of Indian Evidence Act.

7. PW1 was not cross­examined at all on behalf of the Defendant. Therefore, his testimony as well as documents proved by him have remained uncontroverted on behalf of the Defendant. Considering the deposition of this witness PW­1 as well as documents proved by him, it is manifest that the Plaintiff Bank has proved its case against the Defendant in entirety. Hence, a Decree in the sum of Rs.7,11,061.12 is hereby passed in favour of the Plaintiff Bank and against the Defendant alongwith pendentelite and future interest @ 9% per annum.

8. The Plaintiff shall be entitled to the costs of the suit also.

9. Decree sheet be drawn accordingly.

10. The copies of the judgement be issued to all the parties to the CS (COMM.) 437/2021 Page No.5 of 6 CANARA BANK VS. M/S. RAWAL INDUSTRIES AND ANR.

dispute through Electronic Mail. Judgment be also uploaded on the server.

11. File be consigned to Record Room after necessary compliance.

Announced in the open court (GORAKH NATH PANDEY) on 25th April, 2024. District Judge (Commercial Court) North:Rohini:Delhi/25.04.2024 CS (COMM.) 437/2021 Page No.6 of 6 CANARA BANK VS. M/S. RAWAL INDUSTRIES AND ANR.