Delhi District Court
Canara Bank vs Mayank Garg on 4 May, 2024
IN THE COURT OF SH. PARVEEN SINGH, ADDL. DISTRICT
JUDGE-11, CENTRAL DISTRICT, TIS HAZARI COURT,
DELHI.
CS DJ No. : 642/2018
CNR No. DLCT010023042018
Canara Bank,
Having Head Office at:
112, J.C Road,
Bangalore-560003
Having its Branch Office at:
Bara Tooti Chowk, Sadar Bazar,
Delhi.
Through Sh. Mukesh Kumar Soyal,
Ch. Manager/ Principal Officer/
Constituted Attorney ...Plaintiff.
Versus
Mayank Garg,
S/o Sh. Girish Garg,
44/45, Main Road,
Bhola Nath Nagar,
Near Mother Dairy,
Shahdara, Delhi. ...Defendant.
Date of Institution : 16.02.2018.
Date of Arguments : 02.05.2024.
Date of Judgment : 04.05.2024.
Page No. 1 of 6 Digitally signed
CS DJ No. 642/2018 by PARVEEN
PARVEEN SINGH
Date:
SINGH 2024.05.04
16:21:44
+0530
SUIT FOR RECOVERY OF RS.7,08,178/-
JUDGMENT:
1. The present suit for recovery of Rs.7,08,178/- has been filed by the plaintiff against the defendant.
2. The brief facts of the case are that, on 16.02.2015, defendant approached the plaintiff bank for grant of term loan (car loan) in the sum of Rs.5,20,000/- for the purchase of Grand i10 Magna car from the plaintiff under CANMOBILE scheme. Plaintiff bank granted, sanctioned and disbursed a car loan of Rs.5,20,000/- on 16.02.2015 and the said loan was repayable in 35 equal monthly installments of Rs.16,950/- each and the last installment of Rs.18,860.13 commencing from 16.03.2015 with interest @ 10.70% per annum. Defendant executed loan application form, can mobile agreement, particulars of vehicles/ machinery/ equipment etc. hypothecated in favour of the plaintiff. Defendant also deposited the original invoice dated 14.02.2015 of the car with the bank. On 22.03.2016 also, defendant approached the plaintiff bank for grant of term loan of Rs.8 lacs for his business. The said loan was granted by the plaintiff bank on 22.03.2016 and the same was repayable in 59 equal monthly installments of Rs.17,076 and last installment of Rs.17,557/- alongwith interest @ 11.20% per annum. The defendant executed necessary documents i.e. take delivery letter to SPN alongwith pronote and agreement cum deed of hypthecation in favour of the plaintiff. However, after availing the said loans from the plaintiff bank, the Page No. 2 of 6 CS DJ No. 642/2018 Digitally signed by PARVEEN PARVEEN SINGH SINGH Date:
2024.05.04 16:21:57 +0530 defendant had been irregular in paying monthly installments to the bank. It is further submitted that as per the books of account maintained by the plaintiff bank, Rs.74,001/- was due against the defendant towards car loan and the plaintiff was also entitled to interest @ 12.70% per annum which includes 2% penal interest. As per the books of accounts, Rs.6,34,177.44 was due against the defendant towards term loan and the plaintiff was also entitled to interest @ 13.20% per annum which includes 2% penal interest. It is further submitted that when the defendant failed to adhere to the terms of the loan, the plaintiff was constrained to recall the term loan facilities granted to the defendant vide its recall notice dated 29.01.2018. Defendant failed to pay any heed to the demands raised by the plaintiff. Then plaintiff issued legal notices on 05.02.2018 calling upon the defendant to liquidate the liability in terms of loan facilities. Despite service of notices, defendant failed to discharge his liability. Hence, the present suit for recovery of Rs.7,08,178.58 alongwith interest.
3. Summons for settlement of issues were issued to the defendant. However, when the defendant failed to appear, he was proceeded ex-parte on 04.09.2021 by my learned predecessor. Thereafter, on 04.09.2021, following issues were framed by my learned predecessor:-
1. Whether plaintiff is entitled for recovery alongwith interest, as prayed for? OPP.
2. Relief.
4. Thereafter, plaintiff led its ex-parte evidence and examined Sh.
Page No. 3 of 6 Digitally signed
by PARVEEN
CS DJ No. 642/2018 PARVEEN SINGH
Date:
SINGH 2024.05.04
16:22:04
+0530
Nitin Tyagi, AR of the plaintiff bank as PW1.
5. My issue wise findings are as under:-ISSUE NO. 1
1. Whether plaintiff is entitled for recovery alongwith interest, as prayed for? OPP.
6. In order to prove this issue, plaintiff bank examined Sh. Nitin Tyagi as PW1.
7. PW1 Sh. Nitin Tyagi, AR of the plaintiff bank deposed on the lines of the plaint and proved the copy of attorney appended with the plaint as Ex.PW1/1, power of attorney dated 22.07.2013 as Ex.PW1/2, loan application form dated 16.02.2015 as Ex.PW1/3, Can Mobile Agreement as Ex.PW1/4, Vehicles/ Machinery/ Equipment/ Livestock etc. hypothecated dated 18.02.2015 as Ex.PW1/5, Loan Application form dated 22.03.2016 as Ex.PW1/11, Take Delivery Letter to DPA alongwith pronote dated 22.03.2016 as Ex.PW1/12, Agreement cum Deed of Hypothecation as Ex.PW1/13, Letter of Proprietorship as Ex.PW1/14, Legal notices dated 05.02.2018 as Ex.PW1/15, postal receipts as Ex.PW1/16, Copies of statement of account as Ex.PW1/17 and Ex.PW1/18.
8. I have heard learned counsel for the plaintiff and perused the record very carefully.
9. As the testimony of PW1 has been entirely unrebutted and unchallenged, I have no reasons to disbelieve the same. The statement Ex.PW1/17 reflects that an amount of Rs.74001/- is due out of the loan of Page No. 4 of 6 Digitally signed by CS DJ No. 642/2018 PARVEEN PARVEEN SINGH SINGH Date:
2024.05.04 16:22:12 +0530 Rs.5,20,000/- and as per statement Ex.PW1/18, an amount of Rs.6,34,177/- is due out of the loan of Rs.8,00,000/-. In view of the unrebutted testimony of plaintiff, the plaintiff has become entitled for a decree of Rs.7,08,178 i.e. Rs.74,001/- for car loan and Rs.6,34,177/- for term loan.
10. As regards the interest, it is to be seen that the present suit pertains to two loans taken by the defendant. One is a loan of Rs.5,20,000/-
for which the defendant had agreed to pay interest @ 10.70% per annum and the other is a loan of Rs.8 lacs for which defendant had agreed to pay interest @ 11.20% per annum. However, as the plaintiff has combined the dues of these two loans and filed a single suit, it would be in the interest of justice to award the lower rate of interest i.e. 10.70% per annum.
11. The plaintiff has further claimed a penal interest of 2% per annum. A perusal of loan agreement Ex.PW1/4 shows that the defendant had agreed to pay penal interest @ 2% per annum in case of default of payment. Hence, I find that the plaintiff is entitled to an interest @ 12.70% per annum. Issue no. 1 is accordingly decided in favour of the plaintiff.
RELIEF
12. In view of the above discussion, the suit of the plaintiff is decreed. A decree of Rs.7,08,178/- alongwith interest @ 12.70% per annum from the date of filing of the suit till the date of realization, is passed in favour of the plaintiff and against the defendant. Costs of the suit are also awarded to the plaintiff.
Digitally
Page No. 5 of 6 signed by
PARVEEN
PARVEEN SINGH
CS DJ No. 642/2018 SINGH Date:
2024.05.04
16:22:22
+0530
13. Decree sheet be prepared accordingly. File be consigned to the record room. Digitally signed by PARVEEN PARVEEN SINGH SINGH Date:
2024.05.04 16:22:30 +0530 Announced in the (PARVEEN SINGH) open court on 04.05.2024. Addl. District Judge11, Central Distt. (This judgment contains 06 pages Tis Hazari Court, Delhi. and each page bears my signature.) Page No. 6 of 6 CS DJ No. 642/2018