Delhi District Court
State Bank Of India vs Ramesh Kumar on 21 April, 2025
CNR No. DLCT010166132024
IN THE COURT OF MS. ILLA RAWAT :
DISTRICT JUDGE (COMMERCIAL COURT)-03: CENTRAL
TIS HAZARI COURTS (EXTENSION BLOCK): DELHI.
CS (COMM) No. 1153/2024
In the matter of :-
State Bank of India
A Corporation constituted under the
State Bank of India Act, 1955 having
its central office/corporate office at
State Bank Bhavan, Madam Cama Road,
Mumbai-440024,
one of its local head office at
11, Sansad Marg, New Delhi-110001
and amongst other branches at
Sector-11, Dwarka, Delhi
through its Small And Medium
Enterprises Credit Centre (SMECC),
2nd Floor, 59, Community Centre,
Near PVR Cinema,
Naraina Industrial Area, Phase-I,
New Delhi-110028. ...Plaintiff
Versus
Ramesh Kumar
Proprietor of M/s R.K. Hardware,
Paint & Electricals,
S/o Sh. Sudershan Prasad,
D2/11A, KH No.43/5, Suvidha Enclave,
Dass Garden, Baprola Vihar,
New Delhi-110043
Email : [email protected] ...Defendant
CS (COMM) No. 1153/2024 State Bank of India Vs. Ramesh Kumar Page No. 1 / 11
Digitally signed
ILLA by ILLA RAWAT
Date:
RAWAT 2025.04.21
16:16:00 +0530
Date of Institution : 19.10.2024
Judgment reserved on : 21.04.2025
Judgment passed on : 21.04.2025
SUIT FOR RECOVERY
EX-PARTE JUDGMENT
1.Vide this judgment I shall dispose off the suit for recovery of Rs. 3,54,554.65 alongwith interest filed by plaintiff against the defendant.
2. Brief facts of the 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 at Madam Cama Road, Nariman Point, Mumbai and is engaged in the business of banking. The plaintiff bank is having various local head offices including one at 11, Sansad Marg, New Delhi-110001 and has various branch offices throughout India including one Small And Medium Enterprises Credit Centre (SMECC), 2nd Floor, 59, Community Centre, Near PVR Cinema, Naraina Industrial Area, Phase-I, New Delhi-110028. Due to re-organization of set up of the State Bank of India, SMECC has been introduced/established by plaintiff bank to deal with loan accounts of linked branches of SBI situated within Delhi/New Delhi for recovery of the amounts, hence SMECC is filing the present suit in place of Sector-11, Dwarka Delhi Branch. The plaint has been signed and verified and the present suit has been instituted through Sh.Parvesh Kumar, Manager of plaintiff bank, who has been duly CS (COMM) No. 1153/2024 State Bank of India Vs. Ramesh Kumar Page No. 2 / 11 Digitally signed ILLA by ILLA RAWAT Date:
RAWAT 2025.04.21 16:16:08 +0530 authorized by way of Gazette notification published on 02.05.1987 and is competent to file, sign and verify the plaint and to institute the present suit.
3. It is averred in the plaint that defendant was proprietor of firm M/s R.K. Hardware, Paint and Electricals having its place of business and residing at D2/11A, KH No.43/5, Suvidha Enclave, Dass Garden, Baprola Village, New Delhi-110043, had approached the plaintiff bank at SMECCC located at 882, East Park Road, Karol Bagh, New Delhi-110005 for Cash Credit Limit (Hyp. Of Stocks & Book Debt) as working capital for running its business vide loan application dated 24.03.2019 covered under Pradhan Mantri Mudra Yojana. His request was accepted by the plaintiff bank and a Cash Credit Limit (Hyp of Stocks/Book Debts) for a sum of Rs.5,00,000/- was sanctioned on 10.04.2019 vide Sanction confirmation dated 10.04.2019. The defendant had executed Letter of Arrangement alongwith Annexures dated 11.04.2019, Agreement for Loan cum Hypothecation dated 11.04.2019 and affidavit dated 11.04.2019, in favour of plaintiff bank and also submitted self attested copies of his PAN Card, Aadhaar Card, Voters Card, Registration Certificate and Udyog Aadhaar Memorandum.
4. It is further averred that in term of Government of India' Emergency Credit Line Guarantee Scheme (ECLGS), Plaintiff bank offered to defendant, Guarantee Emergency Limit (GECL) by way of Working Capital Term Loan (WCTL) for a sum of Rs.98,000/- and defendant accepted the offer. On receiving the acceptance from defendant, the plaintiff bank CS (COMM) No. 1153/2024 State Bank of India Vs. Ramesh Kumar Page No. 3 / 11 Digitally signed ILLA by ILLA RAWAT Date:
RAWAT 2025.04.21 16:16:19 +0530 sanctioned the WCTL under GECL for sum of Rs.98,000/- and disbursed the same on 30.05.2020. In order to secure the plaintiff's dues, the defendant executed security documents i.e. Letter of Arrangement with annexures dated 30.05.2020 and Supplement Agreement of Loan cum Hypothecation (SME-4) dated 30.05.2020.
5. It is further averred in the plaint that the defendant agreed to repay the Demand Loan of Rs.98,000/- under GECL in 48 EMIs till the entire loan with interest per annum with monthly rests is fully repaid, as per the loan agreement, which number was subject to change depending upon changes in the rate of interest (floating rate loans). The interest on the demand loan was to be applied @ 0.75% p.a. above the EBLR raising and falling therewith, calculate at the daily balance of the loan amount. It was provided that the plaintiff bank would at any time or from time to time be entitled to change the rate of interest depending on the change in EBLR and at the current rate of interest @ 9.25% p.a. with monthly rests.
6. It is further averred that the defendant thereafter again requested to the plaintiff bank for renewal cum conversion of Cash Credit Limit (Hyp. Of Stocks & Book Debt) for sum of Rs.5 lakhs to Drop Line OD Limit of Rs.5 lakhs under PMMY Scheme to be covered under CGFMU. The plaintiff bank, after due and usual verification and considering the financial requirements of defendant, accepted the said request and reduced the renewed and converted Cash Credit Limit for sum of Rs.5 lakhs into Drop Line OD Limit of Rs.5 lakhs under PMMY CS (COMM) No. 1153/2024 State Bank of India Vs. Ramesh Kumar Page No. 4 / 11 Digitally signed by ILLA RAWAT ILLA Date:
RAWAT 2025.04.21 16:16:27 +0530 Scheme to be covered under CGFMU on 21.03.2022 vide Sanction Confirmation dated 21.03.2022. The defendant executed the following security documents in favour of plaintiff bank:-
(i) Letter of Arrangement (SME 1) and Annexures dated 28.03.2022 for sum of Rs.5.78 lakh.
(ii) Link Letter dated 28.03.2022 for sum of Rs.5.78 lakh
7. It is further averred that the defendant agreed that the interest on the Drop Line OD Limit of Rs.5 lakhs would be applied @ 3.25% spread above the MCLR/EBLR raising and falling therewith, calculate at the daily balance of the loan amount and with the current rate of interest @ 12.40% p.a. with monthly rests.
8. It is further averred that consequent upon the sanction of credit facilities to defendant comprising of Drop Line OD Limit of Rs.5 lakhs and Demand Loan of Rs.98,000/-, the loan accounts of defendant bearing No.38396183263 and 39386657571 were opened in the usual books of accounts of plaintiff bank at its Sector 11, Dwarka, Delhi Branch and after adjustments of the part payments made by the defendant, a sum of Rs.3,54,554.65 was due and outstanding against the defendant, with interest upto the date of filing of the suit.
9. It is further averred that after availing the above mentioned credit facilities, defendant failed to adhere to the financial discipline of the bank resulting in his account becoming irregular. On 28.03.2022, the defendant signed the Revival CS (COMM) No. 1153/2024 State Bank of India Vs. Ramesh Kumar Page No. 5 / 11 Digitally signed by ILLA RAWAT ILLA Date:
RAWAT 2025.04.21 16:16:35 +0530 Letter and acknowledged his loan liability to the plaintiff bank and further deposited an amount of Rs.3,300/- in his loan account lastly on 30.04.2022. Since the defendant failed to regularize the loan accounts and to repay the outstanding amount in default, the accounts of defendant were declared as Non-Performing Asset (NPA) on 05.06.2023. Thereafter, the plaintiff bank served upon defendant a legal notice dated 30.04.2022 but defendant failed to clear the outstanding amount. The Plaintiff then initiated pre-
litigation mediation proceedings on 07.06.2024 which resulted in issuance of Non-starter report dated 03.09.2024. After giving credits for all the sums of money deposited by defendant, in the loan accounts, a sum of Rs.3,54,554.65 was recoverable from the defendant as on the date of filing of the suit, details of which is given as under:-
a. Amount due including interest in Account 4,16,946.34 No.38396183263 upto 31.05.2023 b. Accrued interest but not applied in Loan Account 51,153.34 No.38396183263 of the defendant w.e.f. 01.06.2023 to 30.09.2024 c. Other charges debited in Loan Account 13,590.05 No.38396183263 of the defendant w.e.f. 01.06.2023 to 30.09.2024 d. Amount deposited by defendant in Account (-) 1,72,855.00 No.38396183263 after account declared NPA e. Amount due including interest in Account 46,924.00 No.39386657571 upto 31.05.2023 f. Accrued interest but not applied in Loan Account 5,295.71 No.39386657571 of the defendant w.e.f. 01.06.2023 to 30.09.2024 g. Amount deposited by defendant in Account No. (-) 6,500.00 39386657571 after account declared NPA TOTAL 3,54,554.65 Thus aggrieved by acts of defendant, plaintiff has filed instant suit for recovery of Rs.3,54,554.65 alongwith CS (COMM) No. 1153/2024 State Bank of India Vs. Ramesh Kumar Page No. 6 / 11 Digitally signed by ILLA RAWAT ILLA Date:
RAWAT 2025.04.21 16:16:44 +0530 pendent lite and future interest @ 12.40% per annum with monthly rests from the date of filing of the suit till realization of the total amount with interest.
10. The defendant was served with summons of suit on 16.11.2024. Since the defendant failed to appear and to file written Statement within the period stipulated under Commercial Courts Act despite service, the opportunity of defendant to file written statement was closed and he was also proceeded ex-parte vide order dated 24.03.2025.
11. The plaintiff filed an application U/s 151 CPC for substitution of AR which was allowed vide order dated 24.03.2025 and the previous AR Sh. Parvesh Kumar was permitted to be substituted by Sh. Anil Kumar Tyagi.
12. In order to prove its case, plaintiff bank has examined Sh. Anil Kumar Tyagi, AR of plaintiff bank. He reiterated the averments made in the plaint in his affidavit Ex.PW-1/A and relied upon following documents:-
S.No. Details of Documents Exhibit
1. Copies of Gazette notifications dated 27.03.1987 Mark-A published on 02.05.1987 and dated 31.08.2005 (Colly) published on 29.10.2005
2. Original loan application dated 24.03.2019 Ex.PW-1/1
3. Original Sanction Confirmation dated 10.04.2019 Ex.PW-1/2
4. Original Letter of Arrangement alongwith Ex.PW-1/3 annexures dated 11.04.2019 for a sum of Rs.5 lacs, accepted by defendant
5. Original Agreement for Loan-cum-Hypothecation Ex.PW-1/4 dated 11.04.2019, for a sum of Rs.5 lacs, executed by the defendant
6. Affidavit dated 11.04.2019, executed by the Ex.PW-1/5 CS (COMM) No. 1153/2024 State Bank of India Vs. Ramesh Kumar Page No. 7 / 11 Digitally signed by ILLA RAWAT ILLA Date:
RAWAT 2025.04.21 16:16:53 +0530 defendant
7. Copies of PAN Card, Aadhar Card, Voter Card, Mark-B Registration Certificate, Udyog Aadhar (Colly) Memorandum
8. Original Letter of Arrangement alongwith Ex.PW-1/6 annexures for a sum of Rs.5.98 lacs, dated 30.05.2020, executed by defendant
9. The original supplemental agreement of loan cum Ex.PW-1/7 hypothecation dated 30.05.2020 for a sum of Rs.5.98 lacs, executed by defendant
10. Original sanction confirmation dated 21.03.2022 Ex.PW-1/8
11. Original letter of arrangement and annexures, Ex.PW-1/9 dated 28.03.2022 for a sum of Rs.5.78 lacs, accepted by the defendant
12. The original link letter dated 28.03.2022, for a sum Ex.PW-1/10 of Rs.5.78 lacs, executed by defendant
13. The original Revival Letter dated 28.03.2022 Ex.PW-1/11
14. Office copy of legal notice dated 30.04.2024 Ex.PW-1/12 alongwith original postal receipt (Colly)
15. The printout of statement of account of defendant Ex.PW-1/13 alongwith certificate U/s 2A(B) of Banker's Book (Colly) of Evidence Act and Section 63 of Bhartiya Sakshya Adhiniyam The PW1 further deposed that the defendant made last payment of Rs.3,300/- on 30.04.2022 in loan account no.38396183263.
13. Arguments were addressed by Ms. Shalini Upadhyay, counsel for plaintiff, who has also filed written submissions summarizing the said arguments.
14. I have heard the learned counsel for plaintiff and also perused the record as well as written submissions filed on behalf of plaintiff carefully.
15. The instant case has been filed by the plaintiff for CS (COMM) No. 1153/2024 State Bank of India Vs. Ramesh Kumar Page No. 8 / 11 Digitally signed by ILLA RAWAT ILLA Date:
RAWAT 2025.04.21 16:17:02 +0530 recovery of Rs.3,54,554.65 along with pendente lite and future interest @ 12.40% p.a. with monthly rests. The PW-1 has proved his authority to depose vide Gazette notifications Mark "A" (Colly). He has deposed that he is fully conversant with the facts of the case on the basis of record maintained by the bank.
16. From the documents placed on record, which have been proved in accordance with law by PW-1 Shri Anil Kumar Tyagi, it stands proved that defendant had applied for and was sanctioned (i) a Cash Credit Limit of Rs.5,00,000/- on 10.04.2019 vide Sanction Confirmation Ex.PW1/2; (ii) Working Capital Term Loan (WCTL) facility of Rs.98,000/- on 30.05.2020 under GECL; (iii) Renewal cum conversion of Cash Credit Limit of Rs.5 lakhs to Drop Line OD Limit of Rs.5 lakhs under PMMY Scheme vide Sanction Confirmation dated 21.03.2022 Ex. PW1/8. The plaintiff/PW1 has placed on record series of documents, Ex.PW1/3 to Ex.PW1/7, Ex.PW1/9 to Ex.PW1/11, executed by defendant at the time of grant of the aforesaid loans. The said documents reflect the contract between the parties. The PW-1 has deposed that defendant has failed to make payment of due and outstanding amount despite repeated demands. The accounts of defendant were declared NPA on 05.06.2023. The statements of account of loan Accounts bearing No.38396183263 & No.39386657571 are Part of Ex.PW-1/13. As per statement of accounts, (Part of Ex.PW1/13), a total sum of Rs.3,54,554.65 is overdue towards the defendant. The statement of accounts (Part of Ex.PW-1/13), are duly supported by the Certificate U/s 63 of Bharatiya Sakshya Adhiniyam, 2023 and U/s 2A(B) of Banker's Books Evidence Act-1981 (Part of CS (COMM) No. 1153/2024 State Bank of India Vs. Ramesh Kumar Page No. 9 / 11 Digitally signed ILLA by ILLA RAWAT Date:
RAWAT 2025.04.21 16:17:11 +0530 Ex.PW-1/13), hence the same are admissible in evidence.
17. From the testimony of PW1, it is also brought out that defendant was irregular in repayment of above-mentioned loans despite repeated reminders issued by the officials of plaintiff bank. The PW-1 has further proved that plaintiff has recalled the loan accounts by sending the notice dated 30.04.2024, Ex.PW1/12, despite which defendant failed to make payment/regularize his loan accounts. The last payment was made by defendant on 30.04.2022 and the suit was filed on 21.10.2024, hence the suit of plaintiff is within the period of limitation. The PW1 also placed on record the Non-starter Report dated 20.09.2024 from which it is evident that despite issuance of notices, none on behalf of defendant participated in pre-
institution mediation proceeding.
18. The defendant has neither appeared nor filed written statement to put forth any defence to challenge the claim of the plaintiff. The testimony of PW-1 has remained unchallenged and unrebutted. There is no reason to disbelieve the testimony of PW-1 and unrebutted and unchallenged documents of both the loans placed on record and proved as such by the PW1/Assistant Manager of the plaintiff bank. Hence plaintiff bank is entitled to decree as prayed for.
19. The plaintiff has claimed pendente lite and future interests @ 12.40% per annum with monthly rests till realization of the decretal amount, however, the rate of interest claimed by plaintiff appears to be on higher side. The interest of justice CS (COMM) No. 1153/2024 State Bank of India Vs. Ramesh Kumar Page No. 10 / 11 Digitally signed ILLA by ILLA RAWAT Date:
RAWAT 2025.04.21 16:17:19 +0530 would be served if plaintiff is awarded simple interest @ 9% p.a. from the date of filing of the suit. Ordered accordingly.
R E L I E F:-
20. In view of the above, I hereby pass an ex-parte money decree in the sum of Rs.3,54,554.65 (Rupees Three Lakhs Fifty Four Thousand Five Hundred Fifty Four and Sixty Five Paise only) in favour of the plaintiff and against the defendant with simple interest @ 9% per annum from the date of filing of the suit i.e. 19.10.2024 till realization of the amount.
Costs of the suit are awarded in favour of plaintiff bank.
Decree sheet be prepared accordingly.
File be consigned to record room after due Digitally compliance. signed by ILLA ILLA RAWAT Date:
Announced in the open Court RAWAT 2025.04.21 16:17:31 on 21th April, 2025 +0530 (ILLA RAWAT) District Judge (Commercial Court-03) Central District, THC, Delhi.CS (COMM) No. 1153/2024 State Bank of India Vs. Ramesh Kumar Page No. 11 / 11