Delhi District Court
Canara Bank vs M/S Sky Wall Mount on 31 May, 2024
IN THE COURT OF SANJEEV KUMAR MALHOTRA
DISTRICT JUDGE (COMMERCIAL COURT):
NORTH EAST: KARKARDOOMA COURTS:DELHI
CS (COMM.) No. 40/2022
CNR No. DL NE01-001534-2022
Canara Bank
Having Head Office At:-
112 JC Road, Bangalore, Karnataka,
And
Its Branch Office
DTC Depot, Yamuna Vihar,
North East, Delhi-110053
(Through its Asstt. Manager
Sh. Dheeraj Kaushik) ....Plaintiff
Vs
Irshad Ahmad
(Prop. of M/s Sky Wall Mount)
S/o Sh. Samshed Ahmed
Power Country Workshop,
House No. 6, Gali No. 6,
Chauhan Bangar, Delhi-110053 ....Defendant
Date of Institution : 20.05.2022
Date of Arguments : 15.05.2024
Date of Judgment : 31.05.2024
EX-PARTE JUDGMENT
1.The plaintiff bank has filed the present commercial suit for recovery of Rs.14, 92,332/- (Rupees Fourteen Lakhs Ninety Two Thousand Three Hundred Thirty Two Only) with pendente lite and future interest against the defendant through Sh. Dheeraj Kaushik, Asst. Manager of the plaintiff bank.
2. It is averred that the the defendant availed the credit facilities from Syndicate Bank a body corporate with perpetual succession and a common seal with powers subject to the provisions of Banking Companies (Acquisition & Transfer of Undertakings) Act 5 of 1970 and pursuant to the gazette CS (Comm.) 40/2022 Canara Bank Vs. Irshad Ahmed Prop. of M/s Sky Wall Mount Page 1 of 8 Notification no. CG-DL-E04032022-216535 published on 04.03.2020 of the Government of India, Syndicate Bank has been amalgamated with Canara Bank under section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 having its corporate office at Head Office at 112 J C Road, Bangalore. It is further averred that the Loan Agreements were executed at DTC Depot, Yamuna Vihar Branch Office, Delhi- 110053.
3. The case of the plaintiff is that the defendant being the proprietor of M/s Sky Wall Mount approached the plaintiff bank on 16.12.2011 and applied for SOD(H) under PMMY-SyndMSE- MUDRA for working capital requirements and after considering his request, the credit limit of Rs. 5,00,000/- was sanctioned to the defendant vide OD account no. 91301250000087 and defendant also executed the following documents:-
a. Loan Application Form dated 16.12.2011. b. Particular of assets and liabilities dated 16.12.2011.
c. Promissory Note dated 27.12.2011.
d. Composite Hypothecation Agreement loan (ASD-4)
dated 27.12.2011.
4. It is submitted that the defendant agreed to pay rate of interest @12.75% per annum and also agreed to pay the interest and other charges to the plaintiff on the principal amount of the said loan from time to time as per the terms and conditions set out in the loan agreement.
5. It is averred that in 2013, defendant again approached the plaintiff bank and requested for renewal and increasing the SOD Limit and after considering his request, the plaintiff bank CS (Comm.) 40/2022 Canara Bank Vs. Irshad Ahmed Prop. of M/s Sky Wall Mount Page 2 of 8 renewed and increased the limit to Rs. 10,00,000/-. It is further averred that in 2016, defendant once again approached the plaintiff bank and requested for renewal of said SOD Limit and on his request, the plaintiff bank renewed the SOD and Composite Hypothecation Agreement dated 17.05.2016 was executed. It is stated that in 2018, the defendant once again approached the plaintiff bank and requested for renewal of the said SOD limit and plaintiff bank again renewed the said SOD of Rs. 10,00,000/-.
6. It is stated that as per guidelines issued by RBI, GECL (Guaranteed Emergency Credit Limit) facilities were sanctioned to the defendant during the COVID-19 pandemic and in compliance of said directions, plaintiff bank opened a new GECL loan account of defendant vide loan account no.
91309160000117 for a sum of Rs. 2,00,000/-. It is further stated that the defendant also executed a Pronote in favour of the plaintiff bank. It is further submitted that thereafter another loan for relief under COVID FITL scheme was sanctioned to the defendant for a sum of Rs. 53,720/- vide loan account no. 91307100000043 as per RBI guidelines on 30.08.2021.
7. It is further stated that the plaintiff bank on various intervals requested the defendant to make the payment timely but due to financial indiscipline, the account of the defendant slipped to NPA on 18.09.2020 and after vigorous follow-up and persuasion, no regularization of account could be affected on the part of defendant and the defendant made the last payment in his account on 31.08.2020. It is further submitted that the following amount is outstanding against the defendant as on 28.02.2022:
CS (Comm.) 40/2022 Canara Bank Vs. Irshad Ahmed Prop. of M/s Sky Wall Mount Page 3 of 8Working Capital/OD Loan Account No. 91301250000087 S.No. PARTICULARS AMOUNT A Outstanding Balance as per ledger. Rs.9,99,999.25 B Towards interest upto 21.02.2022 (unapplied interest) Rs.1,65,750.53 C Towards Unserviced Interest. Rs. 22,234.22 D Outstanding service charges. Rs. 14,160.00 Total Rs. 12,02,144/-
GECL Loan Account No. 91309160000117
S.No. PARTICULARS AMOUNT
A Outstanding Balance as per ledger. Rs.2,00,000.00
B Towards interest upto 28.02.2022 (unapplied interest) Rs. 28,035.00
C Towards Unserviced Interest. Nil
Total Rs. 2,28,035/-
CFITL Loan Account No. 91307100000043
S.No. PARTICULARS AMOUNT
A Outstanding Balance as per ledger. Rs.53,720/-
B Towards interest upto 28.02.2022 (unapplied interest) Rs. 8,433/-
C Towards Unserviced Interest. Nil
Total Rs. 62,153/-
TOTAL IN ALL THE LOAN ACCOUNTS
S.No. PARTICULARS AMOUNT
A Total liability in Working Capital/OD Loan Account Rs.12,02,144/- No. 91301250000087 B Total liability in GECL Loan Account No. Rs.2,28,035/- 91309160000117 C Total liability in CFITL Loan Account No. Rs. 62,144/- 91307100000043 Total Rs. 14,92,332/-
8. It is stated that the plaintiff filed an application for pre- institution mediation before North East District Legal Services Authority on 18.08.2021 where the defendant did not appear and Non Starter Report was issued by North East District Legal CS (Comm.) 40/2022 Canara Bank Vs. Irshad Ahmed Prop. of M/s Sky Wall Mount Page 4 of 8 Services Authority vide order dated 06.09.2021.
9. The plaintiff bank prays that a decree may be passed in its favour and against the defendant for a total sum of Rs.14,92,332/- alongwith pendente lite and future interest @12.75% per annum compounded with 2% penal interest per annum from the date of filing of suit till realization along with costs of the suit. Hence, the present suit.
10. From the perusal of the record, it is revealed that the defendant was served by way of publication in newspaper "Veer Arjun" dated 07.02.2024, but did not appear and accordingly he was proceeded ex parte vide order dated 13.03.2024.
11. The plaintiff Bank led its evidence and examined its Authorized Representative Ms. Anu Jatav, Sr. Manager/Principal Officer as PW-1 who tendered her evidence by way of affidavit Ex.PW1/A and relied upon the following documents:-
1. Copy of the Authority Letter dated 07.11.2023 i.e. Ex. PW1/1 (OSR).
2. Copy of Gazette Notification of merger of Syndicate Bank with Canara Bank i.e. Ex. PW1/2.
3. Original Loan Application Form dated 16.12.2011 i.e. Ex. PW1/3.
4. Original of particulars of assets and liabilities of the defendant dated 16.12.2011 alongwith IDs of the defendant i.e. Ex. PW1/4 (Colly).
5. Original Promissory Note dated 27.12.2011 i.e. Ex.
PW1/5.
6. Original Composite Hypothecation Agreement (ASD-4) dated 27.12.2011 i.e. Ex. PW1/6.CS (Comm.) 40/2022 Canara Bank Vs. Irshad Ahmed Prop. of M/s Sky Wall Mount Page 5 of 8
7. Original Composite Hypothecation Agreement (ASD-4) dated 21.01.2013 i.e. Ex. PW1/7.
8. Original Composite Hypothecation Agreement (ASD-4) dated 17.05.2016 i.e. Ex. PW1/8.
9. Original Sanction Letter dated 09.03.2018 alongwith Loan Application Form dated 09.03.2018 and Composite Hypothecation Agreement dated 09.03.2018 i.e. Ex. PW1/9 (Colly).
10. Composite Hypothecation Agreement dated 06.07.2020 alongwith acknowledgment of debt i.e. Ex. PW1/10 (Colly).
11. Offer Letter for Guaranteed Emergency Credit Line (GECL) dated 06.07.2020 alongwith undertaking letter from borrowers i.e. Ex. PW1/11 (Colly).
12. Original Promissory Notes dated 06.07.2020 and 15.07.2020 i.e. Ex. PW1/12 (Colly).
13. Certificate by the officer/Manager Incharge of the Computer System i.e. Ex. PW1/13.
14. Computer generated statement of accounts of defendant i.e. Ex. PW1/14.
15. Non Starter Report dated 06.09.2021 i.e. Ex. PW1/15.
12. I have heard Sh. Puneet Pankaj, Ld. Counsel for the plaintiff bank and have also gone through the records of the case. None appeared for defendant to advance final arguments.
13. The evidence led by PW1 has gone unrebutted and unchallenged and there is nothing on record to disbelieve the same. PW-1 proved original Loan Application Form dated 16.12.2011 as Ex. PW1/3, original Promissory Note dated CS (Comm.) 40/2022 Canara Bank Vs. Irshad Ahmed Prop. of M/s Sky Wall Mount Page 6 of 8 27.12.2011 as Ex. PW1/5, original Sanction Letter dated 09.03.2018 alongwith Loan Application Form dated 09.03.2018, composite Hypothecation Agreement dated 06.07.2020 alongwith acknowledgment of debt as Ex. PW1/10 (Colly), Offer Letter for Guaranteed Emergency Credit Line (GECL) dated 06.07.2020 alongwith undertaking letter from borrowers as Ex. PW1/11 (Colly), original Promissory Notes dated 06.07.2020 and 15.07.2020 as Ex. PW1/12 (Colly), Computer generated statement of accounts of defendant as Ex. PW1/14 and Non Starter Report dated 06.09.2021 i.e. Ex. PW1/15.
14. The suit is also commercial in nature and squarely falls within the purview of section 2 (1) (c) of Commercial Courts Act and plaintiff has also duly complied with mandatory provisions of pre-institution mediation and conciliation as provided in section 12A of Commercial Courts Act.
15. Moreover, this court has the territorial jurisdiction over the present case as the loan documents were executed at DTC Depot Yamua Vihar Branch of plaintiff bank and defendant is also resident of Chauhan Banger, Delhi which areas falls within the territorial jurisdiction of this court. This court has also the pecuniary jurisdiction over the matter since the suit amount claimed by the plaintiff is more than the specified value of Rs.3 lacs of the Commercial Court. As per statement of account Ex. PW1/14, defendant lastly paid Rs.1,87,000/- on 31.08.2020 and the present suit is filed on 20.05.2022 i.e. within the period of limitation.
16. From the documents proved on record by PW1, it is clear that the defendant had approached and availed SOD (H) under CS (Comm.) 40/2022 Canara Bank Vs. Irshad Ahmed Prop. of M/s Sky Wall Mount Page 7 of 8 PMMY-SyndMSE-MUDRA for working capital limit of Rs. 5,00,000/- which was increased to Rs.10,00,000/- vide composite Hypothecation Agreement dated 21.01.2013 i.e. Ex. PW1/7, GECL (Guaranteed Emergency Credit Limit) facilities of Rs. 2,00,000/- and relief under COVID FITL for a sum of Rs. 53,720/-. It further shows that after availing and utilizing the said loans, defendant failed to clear the dues and pay the installments in time and thus committed default. Hence, the plaintiff is entitled for a decree as prayed for.
17. As per Composite Hypothecation Agreement Ex. PW1/6, defendant agreed to pay interest on the outstanding in the said credit facilities @12.75% per annum being 2% over and above Prime Lending Rate (PLR). In view thereof, it is held that the defendant is liable to pay to the plaintiff bank a sum of Rs.14,92,332/- alongwith pendente lite and future interest @12.75%per annum from the date of filing of suit till realization. Accordingly, the present suit is decreed for a sum of Rs.14,92,332/- (Rupees Fourteen Lakhs Ninety Two Thousand Three Hundred Thirty Two Only) alongwith pendente lite and future interest @12.75% per annum from the date of filing of suit till realization in favour of the plaintiff and against the defendant. Costs of the suit are also awarded to the plaintiff.
Decree Sheet be prepared accordingly.
File be consigned to Record Room.
Digitally signed by SANJEEV Announced in the open court SANJEEV KUMAR KUMAR MALHOTRA on 31.05.2024 MALHOTRA Date: 2024.05.31 16:09:25 +0530 (Sanjeev Kumar Malhotra) District Judge (Commercial Court) North-East District, Karkardooma Courts, Delhi CS (Comm.) 40/2022 Canara Bank Vs. Irshad Ahmed Prop. of M/s Sky Wall Mount Page 8 of 8