Delhi District Court
(Subsidiary Banks) Act vs M/S Techno Engineers on 21 October, 2010
IN THE COURT OF SH. A.K. CHAWLA : ADJ1 (CENTRAL) : DELHI. Suit No.0018/2010 Unique Case ID No.02401C0058962010 STATE BANK OF HYDERABAD, (Through its Branch Manager), A Body Corporate, established under the Hyderabad State Bank Act, XIX of 1350 Fasli, reconstituted under the State Bank of Hyderabad Act No.79 of 1956 and the State Bank of India, (Subsidiary Banks) Act, 1959, Having its H.O. at: Gunfoundry, Hyderabad, and a Branch Office at: 882, Ground Floor, East Park Road, Karol Bagh, New Delhi110005. ..... PLAINTIFF Versus 1. M/s TECHNO ENGINEERS Through its Sole Proprietor: Sh.Mahabir Singh A31, Street No.10, Near Geeta Bhawan Mandir, Badli Extension, Delhi110042. 2. SH. MAHABIR SINGH Sole Prop. of M/s Techno Engineers, A31, Street No.10, Near Geeta Bhawan Mandir, Badli Extension, Delhi110042. Also At: Sh.Mahabir Singh S/o Sh.Deep Chand VillageLivani, TehsilRai (Har.). .... DEFENDANTS Date of Institution of the suit : 16.02.2010 Date on which order was reserved : 04.10.2010 Date of decision : 21.10.2010 Suit No. 0018/2010 Page 1/4 JUDGMENT
Plaintiff has filed suit for recovery of Rs.3,10,000/ (Rupees Three Lacs Ten Thousand only) with interest and costs, against the defendants.
2. Plaintiff's case proceeds on the premises that the plaintiff was a body corporate, established under the Hyderabad State Bank Act, XIX of 1350 Fasli, reconstituted under the State Bank of Hyderabad Act No.79 of 1956 and the State Bank of India (Subsidiary Banks) Act, 1959 and that Ms.T. Vara Lakshmi, who had signed, verified and filed the suit on behalf of the plaintiff, was its Branch Manager and duly authorized vide Gazette Notification dated 13.4.1993. Defendants are said to have approached the plaintiff for grant of credit facilities to meet its working capital requirements for the industrial activity and also offered primary security in the form of hypothecation of its stocks/goods/Ram Materials created out of Bank's finance and collateral security by way of Pledge of Terms Deposit of Rs.3 Lacs in the name of the defendant no.2, to cover the loan proposed to be granted to defendant no.1 by the plaintiff bank. On 17.02.2007, the plaintiff sanctioned Cash Credit (Hypothecation) LUCC Facility of Rs.5 Lacs to the defendant no1 with defendant no.2, as surety, which was to be repaid with interest @ 0.25% below S.B.H. P.L.R. subject to a minimum rate of 11.75% p.a. with monthly rests. Also, as per the plaintiff, the Defendant no.1 executed Demand Promissory Note, D.P.Note Delivery Letter, Hypothecation Agreement, Security Delivery Letter, Letter of Waiver including Certificate of execution of documents and Borrower's consent for disclosure, all dated 17.02.2007. It is alleged that having availed the loan facility, the defendants failed to liquidate its outstanding liability, despite several requests and reminders and the legal notice dated 12.02.2010. Hence, the suit.
3. Defendants were served by way of publication in the newspaper but did not join the suit proceedings and were proceeded exparte.
Suit No. 0018/2010 Page 2/4
4. In support of its case, plaintiff examined PW1 and closed PE.
5. I have heard the Ld. Counsel for the plaintiff and perused the record carefully.
6. In his unchallenged testimony, PW1 has deposed that notification dated 13.4.1993 issued by State Bank of Hyderabad, authorizing him to sign and verify the plaint and institute the suit, was MarkI and that vide application dated 27.01.2007 Ex.PW1/A, the defendant nos.1 and 2 approached the plaintiff for grant of Credit Facilities to meet its Working Capital requirements for manufacturing of Control Panels, for which the they submitted proposal to the bank and also offered primary security in the form of hypothecation of its Stocks/Goods/Raw Materials created out of Bank's finance and collateral security by way of Pledge of Term Deposit of Rs.3 Lacs in the name of the defendant no.2, to cover the loan proposed to be granted to it by the plaintiff bank. He has also deposed that the defendants in consideration of the sanction and grant of Cash Credit (Hyp. LUCC facility) of Rs.5 Lacs executed Demand Promissory Note, D.P. Note Delivery Letter, Hypothecation Agreement, Security Delivery Letter, Letter of Waiver including Certificate of execution of documents, Borrower's Consent for disclosure, all dated 17.2.2007, which were Ex.PW1/D to Ex.PW1/J respectively. He has also deposed that Company's profile, statement of assets and liabilities and certificate of importerexporter code (IEC), issued by the Office of the Joint Director General of Foreign Trade, Ministry of Commerce was Ex.PW1/B (colly), sanction letter dated 17.2.2007 was Ex.PW1/C, copy of the bank's notice dated 24.9.2007 was Ex.PW1/K and its original acknowledgment AD card was Ex.PW1/L, copy of bank's letter dated 19.10.2007 was Ex.PW1/M, copies of the postal receipts were Ex.PW1/N and Ex.PW1/O, copy of bank's complaint to the police dated 26.12.2007 was Ex.PW1/P, copy of the statement Suit No. 0018/2010 Page 3/4 of loan account was Ex.PW1/Q, memorandum of statement of account from 1.1.2008 to 16.2.2010 of unvouched interest was Ex.PW1/R, copy of legal notice dated 12.2.2010 was Ex.PW1/S and its postal receipts were Ex.PW1/T to Ex.PW1/V. He has also deposed that the defendant failed to make the payment despite demand notice. Said unchallenged and unrebutted deposition of PW1 establishes the fact that the defendant having availed the credit facility, defaulted in making the payment of said credit facility and did not pay the outstanding amount, despite notice Ex.PW1/S and that at the time of filing the suit a sum of Rs.3,10,000/ was due and payable by the defendant.
7. In view of the foregoing, suit of the plaintiff is decreed in favour of the plaintiff and against the defendants in the sum of Rs.3,10,000 (Rupees Three Lacs Ten Thousand only) with pendente lite and future interest @ 12% p.a. and costs.
Announced in the open Court (A.K. Chawla)
on 21st day of October, 2010 Addl. Distt. Judge 1 (Central)
Tis Hazari Courts, Delhi.
Suit No. 0018/2010 Page 4/4