Delhi District Court
State Bank Of India vs Rakesh on 5 June, 2025
IN THE COURT OF MS. KIRAN BANSAL
LD. DISTRICT JUDGE (COMM-02) : SHAHDARA
KARKARDOOMA COURTS: DELHI
CS(COMM) No. 132/25
In the matter of
STATE BANK OF INDIA,
a body corporate constituted under the State Bank of India Act,
1955 carrying on its business of Banking having its central
office at Madam Cama, Nariman Point, Mumbai-440021 and
one of its local head offices at 11, Parliament Street, New
Delhi, various branches throughout Delhi including one at
Nand Nagari and also SME Centre, Bhola Nath Nagar, situated
at 182, Saini Enclave, Karkardooma, Delhi- 110032 through its
Manager, Shri Nivit Krishna.
.... Plaintiff
Versus
Sh. Rakesh,
S/o Sh. Megh Raj,
Unit at 6/96, Gali no.1,
Karkari Road, Delhi - 110032
Mob:9582254427
Email: [email protected]
CS(COMM) NO. 132/25 State Bank of India Vs. Sh. Rakesh Page No. 1 of 10
Also at:
R/o A-506, New Sanjay Amar Colony,
Vishwas Nagar, Shahdara, Delhi - 110032
Mob:9582254427
Email: [email protected] .... Defendant
Date of Institution : 28.02.2025
Date of hearing final arguments : 05.06.2025
Date of conclusion : 05.06.2025
Ex-Parte Judgment
1.The present suit has been filed by the plaintiff for recovery of an amount of Rs.5,33,859/- as on 07.02.2025 along with pendente lite and future interest @ 11.15% p.a. through its Manager Sh. Nivit Krishna.
2. Brief facts of case are that plaintiff is a corporate body constituted under the State Bank of India Act 1955 (Act No. XXIII of 1955) having its central office/corporate office at State Bank Bhawan, Madam Kama Road, Mumbai-440021 and it has one of its local head office at 11, Parliament Street, New Delhi and having one of its branch at Nand Nagari, Delhi and also SME Centre, Bhola Nath Nagar situated at 182, Ist Floor, Saini Enclave, Karkardooma, Delhi- 110092.
CS(COMM) NO. 132/25 State Bank of India Vs. Sh. Rakesh Page No. 2 of 10 2.1 It is stated that Mr. Nivit Krishna, who has signed and verified the plaint and instituted the present suit on behalf of plaintiff bank is fully conversant with the facts of the present suit on the basis of the records maintained by the plaintiff bank in ordinary course of its business, therefore, he is in a position to depose about the correctness thereof and he is competent & authorized to sign pleadings, Vakalatnama, Affidavits, Applications and executions, verify and institute the present suit and to do all such acts as are necessary for the proper conduct of the present suit vide Power of Attorney duly executed in his favor.
2.2 It is stated that defendant approached the plaintiff bank for grant of financial assistance under Pradhan Mantri Mudra Yojana (PMMY) vide loan application dated 11.09.2023 for grant of term loan of Rs.4,95,000/- to increase his business. On considering the request, plaintiff had sanctioned Rs.4,95,000/- on 12.09.2023 vide loan account no. 42429866981 including a moratorium period of 6 months. The defendant had consciously and voluntarily executed various loan documents on 27.10.2023 i.e.
(a) Letter of Arrangement;
(b) Agreement of loan cum hypothecation 2.3 It is submitted that defendant had agreed to pay interest @
11.15% per annum with monthly rest variable from time to time depending upon guidelines of RBI and defendant undertook to repay the terms loan along CS(COMM) NO. 132/25 State Bank of India Vs. Sh. Rakesh Page No. 3 of 10 with interest in 54 EMI of Rs.10,993/- and further agreed that in case borrowers commit any default in payments or agreed installments, the entire amount shall become due and payable. Further, it is submitted that after availing the said financial facility from plaintiff bank, the defendant miserably failed to comply with terms and conditions of loan agreement, consequently, his loan account was classified as NPA on 19.02.2024. Plaintiff has given the calculation of the interest as under:
(A) (B) (C) (D) (E)
The rate at The date from The total The total The daily rate
which interest which it is amount of amount of at which
is claimed claimed and interest without interest
date to which claimed to the interest accrues after
it is calculated date of claimed to the that date and
calculation date of total
calculation outstanding
(including
arrears
penalty)
amount up to
date of
@ 11.15% 19.02.2024 to Rs.38,859/- Rs.4,95,000/- Rs.5,33,859/-
07.02.2025
2.4 It is submitted that subject matter of suit is commercial dispute as
defined in under Section 2 (1)(c) of Commercial Courts, Commercial Division and Commercial Appellate Division of High Court Ordinance, 2015 and CS(COMM) NO. 132/25 State Bank of India Vs. Sh. Rakesh Page No. 4 of 10 plaintiff has also filed Pre Institution Mediation and Settlement under Section 12A of Commercial Courts Act before DLSA, Shahdara District, Karkardooma Court, Delhi and accordingly, the Non Starter Report was issued on 30.01.2025.
3. Defendant was served on 08.03.2025 and had appeared once on 09.04.2025 and sought time to engage an Advocate for filing WS along with statement of truth, affidavit of admission/denial of documents of plaintiff. However, thereafter defendant neither appeared nor filed any W.S within the stipulated period of 30 days or till today. Thus, the opportunity to file WS was closed and defendant was proceeded ex-parte vide order dated 03.05.2025 and matter was proceeded for ex parte evidence.
4. The plaintiff in support of his case has examined Sh. Nivit Krishna, Manager/AR of plaintiff bank as PW-1 who tendered his evidence by way of affidavit Ex.PW1/A and has relied upon the following documents:
. Copy of Gazette Notification published on 02.05.1987 as Ex.PW1/1; . Copy of ID Card of AR of plaintiff bank as Ex.PW1/2; . Loan Application Form along with copy of Bank Pass Book, PAN Card, Aadhar Card, eKYC and Udyam Registration Certificate of defendant is Ex.PW1/3 (colly);
. Interview cum Appraisal format for sanction of loan as Ex.PW1/4;
. Loan Sanctioned by CM Sanction as Ex.PW1/5;
. Agreement of loan cum hypothecation dated 27.10.2023 as Ex.PW1/6;
CS(COMM) NO. 132/25 State Bank of India Vs. Sh. Rakesh Page No. 5 of 10
. Letter of Arrangement dated 23.10.2023 as Ex.PW1/7;
. Loan Account Statement alongwith Discharge Quote and Loan Enquiry
as Ex.PW1/8 (colly);
. Certificate of accrued interest as Ex.PW1/9;
. Copy of Legal Notice along with Postal Receipts and Tracking Report
as Ex.PW1/10;
. Affidavit under Order XI Rule 6 (3) of Commercial Courts Act, 2015
read with Section 2 (8) Section 2A (B) of Bankers Books as Ex.PW1/11;
. Certificate under Section 63 of BSA, 2023 as Ex.PW1/12;
. Non Starter Report as Ex.PW1/13.
Thereafter, on statement of AR of plaintiff, plaintiff's evidence was closed.
5. The court has gone through the testimony of PW-1 and gone through the documents proved on record. The court has also perused the record and considered the arguments advanced by ld. counsel for plaintiff.
6. From the evidence on record, it is established that there is no dispute with regard to loan availed by the defendant from the plaintiff bank. PW1 in his evidence by way of affidavit Ex.PW1/A has reiterated the contents of the plaint. Perusal of Loan Application Form Ex.PW1/3 (colly) supported by copy of Bank Pass Book, PAN Card, Aadhar Card, eKYC and Udyam Registration Certificate of defendant reveals that defendant has applied for CS(COMM) NO. 132/25 State Bank of India Vs. Sh. Rakesh Page No. 6 of 10 loan of Rs.5,50,000/- against hypothecation of stock for 5 years and the same bears the photograph as well as signature of defendant Rakesh. Ex.PW1/5 Sanction Resolution Loans sanctioned by CM Sanction reveals that terms loan of Rs.4,95,000/- was sanctioned with a door to door tenor of 5 years, 0 months including a moratorium period of 0 years and 6 months and average maturity of 5 years and 0 months and the Next Regular Renewal Date as 11.09.2024 and the same was duly signed and stamped by the plaintiff bank. Ex.PW1/6 Agreement of loan cum hypothecation executed on 27.10.2023 also bears the aggregate limit sanctioned to the defendant Rakesh is Rs.4,95,000/- and the same was duly signed by the defendant at bottom of every page. Another document i.e. Legal Notice dated 10.12.2024 Ex.PW1/10 also reveals that defendant has been called upon to pay the entire outstanding loan amount of Rs.5,34,751/- as on 03.12.2024 along with future interest at the agreed rate within 7 days of receiving the notice and further called to pay legal notice charges to the tune of Rs.1100/-.
7. The Statement of Account Ex.PW1/8 (colly) establishes that the defendant has made the last payment of Rs.11,500/- on 03.12.2024 and the present suit has been instituted on 28.02.2025 i.e. within period of three years of the last payment. Thus, the suit is also within the period of limitation.
8. Moreover, this court has the territorial jurisdiction over the present case since the loan has been sanctioned by Branch Manager, Nand CS(COMM) NO. 132/25 State Bank of India Vs. Sh. Rakesh Page No. 7 of 10 Nagari, Shahdara Delhi Branch which falls within the jurisdiction of this Court. This court also has 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 Courts.
9. 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 provision of Pre-Institution Mediation and Conciliation as provided in Section 12 A of Commercial Courts Act, accordingly, the Non Starter Report was issued on 30.01.2025.
10. Section 34 of the Code of Civil Procedure, 1908 deals with award of interest by the Court in suits for money. It reads as follows:
"34. Interest (1) Where and in so far as a decree is for the payment of money, the Court may, in the decree, order interest at such rate as the Court deems reasonable to be paid on the principal sum adjudged, from the date of the suit to the date of the decree, in addition to any interest adjudged on such principal sum for any period prior to the institution of the suit, with further interest at such rate not exceeding six per cent, per annum, as the Court deems reasonable on such principal sum, from the date of the decree to the date of payment, or to such earlier date as the Court thinks fit.
Provided that where the liability in relation to the sum so adjudged had arisen out of a commercial transaction, the rate of such further interest may exceed six per cent, per annum, but shall not exceed the contractual rate of interest or where there CS(COMM) NO. 132/25 State Bank of India Vs. Sh. Rakesh Page No. 8 of 10 is no contractual rate, the rate at which moneys are lent or advanced by nationalized banks in relation to commercial transactions."
11. Section 34 empowers the court to award interest for the period from the date of the suit to the date of the decree and from the date of the decree to the date of payment where the decree is for payment of money.
12. Section 34 CPC does not empower the court to award pre-suit interest. The pre-suit interest would ordinarily depend on the contract (express or implied) between the parties or some statutory provisions or the mercantile usage - Secretary/General Manager, Chennai Central Co-operative Bank Ltd. Vs. S.Kamalaveni Sundaram 2011 (99) A/C 140 (SC).
13. The calculation of the outstanding amount of Rs.5,33,859/- as claimed by the plaintiff, which is to be recoverable from the defendant in tabular form is as under:
(A) (B) (C) (D) (E)
The rate at which The date from The total amount The total amount The daily rate at
interest is which it is of interest of without which interest
claimed claimed and date claimed to the interest claimed accrues after that
to which it is date of to the date of date and total
calculated calculation calculation outstanding
(including arrears
penalty) amount
up to date of
@ 11.15% 19.02.2024 to Rs.38,859/- Rs.4,95,000/- Rs.5,33,859/-
07.02.2025
CS(COMM) NO. 132/25 State Bank of India Vs. Sh. Rakesh Page No. 9 of 10
14. Further, the statement of the accounts Ex.PW1/8 of the account bearing no.42429866981 also establishes that an amount of Rs.4,95,000/- is due against the defendant as principal and defendant became irregular in maintaining the said account and the defendant has lastly made payment on 03.12.2024 and the account was declared NPA on 19.02.2024. As the borrower failed to pay the installment or outstanding amount, thus, in the event of failure to comply with the terms and conditions of the loan agreement, the defendant is responsible to pay the accrued interest i.e. Rs.38,859/- as pre suit interest to liquidate the respective loan account in any manner whatsoever.
15. As the loan amount has not been paid by the defendant. Hence, in the circumstances the suit of the plaintiff is decreed in the sum of Rs. 5,33,859/- (i.e. Rs. 4,95,000/- + Rs. 38,859/- as accrued interest) alongwith interest at the rate of 8% per annum from the date of filing the suit till its realization. Costs of the suit to the extent of court fees and Rs.20,000/- as litigation cost are also awarded to the plaintiff. Decree Sheet be prepared accordingly.
File be consigned to Record Room.
Digitally signed by KIRAN KIRAN BANSAL BANSAL Date:
2025.06.05 16:25:49 +0530 Pronounced in open court on 5th day of June, 2025 (Kiran Bansal) District Judge, Commercial Court-02 Shahdara, Karkardooma Courts Delhi/05.06.2025 CS(COMM) NO. 132/25 State Bank of India Vs. Sh. Rakesh Page No. 10 of 10