Delhi District Court
Dena Bank Now Bank Of Baroda vs M/S Subhankar International on 15 May, 2025
IN THE COURT OF RUBY ALKA GUPTA
DISTRICT JUDGE, (COMMERCIAL COURT)-02, EAST
DISTRICT, KARKARDOOMA COURTS, DELHI
CS (COMM.) No. 269/2019
CNR No. DLET01- 004846-2019
In the matter of:
Dena Bank (Now Bank of Baroda)
Through its authorized representative
B - 83, Near Mayur Public School,
Patparganj, Delhi - 110092 ...Plaintiff
Versus
M/s Subhankar International
Through its proprietor
1670, Parsadi Gali, Kotla Mubarakpur,
New Delhi - 110003 ...Defendant No. 1
Mr. Nikhil Dutt Sharma
Proprietor of M/s Subhankar International
RZ 2011/25, Tughlakabad Extension,
New Delhi ...Defendant No. 2
Date of institution : 28.05.2019
Date of reserving judgment : 21.12.2024
Date of judgment : 15.05.2025
JUDGMENT
1. Vide this judgment the present suit for recovery of Rs. 7,78,329/- (Rupees Seven Lakh Seventy Eight Thousand Three CS(COMM) 269/2019 Judgment dated 15.05.2025 Dena Bank Now Bank of Baroda Vs. M/s Subhankar International Page no. 1 of 7 Hundred And Twenty Nine Only) shall be disposed off. The defendant was proceeded against ex-parte. Submissions on behalf of plaintiff were heard. File has been perused.
2. Summons of the suit were issued to the defendants. Summons were served upon the defendants through ordinary process. Ld. Counsel appeared before the court on behalf of the defendants and sought time to file the written statement. WS was not filed by the defendants within 120 days. Therefore, the right of the defendants to file WS was forfeited on 21.01.2021. They were also proceeded against ex-parte on 21.01.2021 itself.
3. Issues were thus not required to be framed. The plaintiff was called upon to lead ex-parte evidence. The plaintiff examined Sh. Shambhu Kumar Jha, Branch Manager as PW1. His affidavit is Ex.PW1/A. The documents exhibited in her testimony are as follows:
S. Particulars of the document Exhibit No
No.
1. Power of Attorney Dated 14.08.2018 Ex. PW1/1
(OSR)
2. True And Correct Copy of Sanction Letter Ex. PW1/2
(OSR)
3. True And Correct Copy of Demand Promissory Ex. PW1/3 Note (OSR)
4. True And Correct Copy of Agreement of Ex. PW1/4 Hypothecation (OSR)
5. True And Correct Copy of Letter of Continuity Ex. PW1/5 CS(COMM) 269/2019 Judgment dated 15.05.2025 Dena Bank Now Bank of Baroda Vs. M/s Subhankar International Page no. 2 of 7 (OSR)
6. True And Correct Copy of Letter of Ex. PW1/6 Acknowledgment (OSR)
7. True And Correct Copy of Letter of General Lien Ex. PW1/7 and Set Off for Borrowing Arrangement from The (OSR) Borrower
8. The Statement of Account Along with Certificate Ex. PW1/8 Under Bankers Book Evidence Act & Ex. PW1/9
9. The Office Copy of Demand Notice with Original Ex. PW1/10 Postal Receipt (Colly) Averments in the plaint
4. The plaintiff is a body corporate constituted by and under the banking companies (Acquisition and Transfer of Undertakings) Act, 1970 and having its Head Office Dena Corporate Centre, C - 10, G - Block Bandra Kurla Comples Bandra (East), Mumbai - 400051, and having one of its branch at B- 83, Near Mayur Public School, Patparganj, Delhi - 110092. Now Dena Bank is amalgamated with Bank of Baroda w.e.f 01.04.2019. The plaint has been signed and verified by Mr. Manoj K. Singh, who is the Branch Manager and stated to be duly authorized to do so.
5. The defendant is stated to have approached the plaintiff bank for a Term Loan for purchasing of Plant and Machinery under Pradhan Mantri Mudra Yojana (PMMY) vide loan application dated CS(COMM) 269/2019 Judgment dated 15.05.2025 Dena Bank Now Bank of Baroda Vs. M/s Subhankar International Page no. 3 of 7 23.02.2017 for an amount of Rs.10,00,000/-. It was sanctioned on 23.02.2017 with interest @ 8.60%.
6. The amount was disbursed to the defendant on 02.03.2017. The plaintiff sanctioned the Term Loan at the rate of interest MCLR + 1.50% + 0.5% = 10.60% per annum at the time of sanction (at the time of sancation MCLR was 8.60%) vide sanction dated 23.02.2017.
7. The defendant made the last payment on 04.12.2018 of Rs. 5,000/- (Rupees Five Thousand Only) under Term Loan. The defendant did not comply with the terms and condition. The said account was declared NPA on 13.11.2018.
8. Legal notice dated 19.01.2019 was sent to the defendants. No payment was made even thereafter. The plaintiff states that the defendants rendered itself liable to pay interest @ 10.60% per annum under Term Loan.
9. The plaintiff also approached Delhi State Legal Service Authority for pre-litigation mediation on application dated 07.03.2015 and a non-starter report was issued by the authority on 02.04.2019.
10. The plaintiff therefore, seeks a decree of recovery of the amount Rs. 7,78,329/- (Rupees Seven Lakh Seventy Eight Thousand Three Hundred And Twenty Nine Only) alongwith pendente lite and future CS(COMM) 269/2019 Judgment dated 15.05.2025 Dena Bank Now Bank of Baroda Vs. M/s Subhankar International Page no. 4 of 7 interest from the date of notice till realization alongwith costs of the suit.
Contentions of the plaintiff
11. The Ld. Counsel for the plaintiff reiterated the averments contained in the plaint. He submitted that the defendant did not clear the outstanding dues. Therefore, the defendant is liable to pay the amount remaining due, as prayed. He prayed for interest to be awarded to the plaintiff at the rate sought alongwith the costs of the suit.
Observations of the Court
12. The defendants were proceeded against ex-parte. They did not file written statement nor led any evidence on their behalf. The plaintiff's witness was not even cross-examined on their behalf. The testimony of the PW1 thus remains unrebutted. There is nothing on record to lead the court to disbelieve such unrebutted testimony.
13. Yet, the court is duty bound to verify the merits of the claim as well as the following aspects:
1. Whether the suit was filed within limitation;
CS(COMM) 269/2019 Judgment dated 15.05.2025 Dena Bank Now Bank of Baroda Vs. M/s Subhankar International Page no. 5 of 7
2. Whether this Court has jurisdiction to entertain and try the present suit; and
3. Whether the plaintiff has complied with Section 12A of the Commercial Courts Act, 2015.
14. The term loan had been sanctioned on 23.02.2017. The said facility was to be repaid in 60 equal monthly installments. Statement of account shows that the defendants made the last payment on 04.12.2018. The suit was filed on 29.05.2019. The present suit thus has been filed within period of limitation.
15. The branch of the plaintiff bank from which the defendants had availed the facility situated within the jurisdiction of this court. The loan was granted and was to be repaid in the same branch. Thus, cause of action arose within the jurisdiction of this Court. This Court has the territorial jurisdiction to entertain and to try the present suit.
16. The plaintiff had approached East District Legal Authority for pre-litigation mediation. The non-starter report dated 02.04.2019 has been placed on record. The plaintiff thus complied with Section 12A of the Commercial Courts Act, 2015.
11. The defendants had availed the Term Loan facility. They failed to adhere to the agreement. The dues were not cleared by them despite legal notice being served upon her. Thus, they are liable to repay the CS(COMM) 269/2019 Judgment dated 15.05.2025 Dena Bank Now Bank of Baroda Vs. M/s Subhankar International Page no. 6 of 7 amount remaining due. Regular accounts have been maintained by the plaintiff bank.
17. Pendente lite and future interest has been sought by the plaintiff @ 10.60% per annum. However, the same is found to be excessive. Interests of justice would be served by granting pendente lite and future interest @ 8 % per annum.
18. In the light of the above discussion, the suit of the plaintiff is decreed in favor of the plaintiff and against the defendant for the amount of Rs. 7,78,329/- (Rupees Seven Lakh Seventy Eight Thousand Three Hundred And Twenty Nine Only) with interest @ 8% per annum from the date of filing of the suit (i.e. 28.05.2019) till realization of the amount. Costs of the suit are also awarded to the plaintiff.
19. Decree sheet be accordingly drawn. Copy of judgment be supplied to the Ld. Counsel for the parties in terms of Order XX Rule 1 CPC, as amended by the Commercial Courts Act, 2015.
20. File be consigned to record room thereafter.
RUBY Digitally signed
by RUBY ALKA
GUPTA
Announced in the Open Court ALKA Date:
on 15th May, 2025 GUPTA 2025.05.29
11:10:25 +0530
(RUBY ALKA GUPTA)
District Judge (Comm. Court)-02,
East District/KKD Courts/Delhi
CS(COMM) 269/2019 Judgment dated 15.05.2025
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