Delhi District Court
Punjab And Sind Bank vs M/S Chhavi Enterprises on 20 March, 2023
IN THE COURT OF
SH. PREM KUMAR BARTHWAL, DISTRICT JUDGE
(COMMERCIAL COURT)-01 SOUTH DISTRICT,
SAKET COURTS : NEW DELHI
CS (Comm) No. 290/2021
CNR No. DLST01-006665-2021
Punjab and Sind Bank
Having Head Office at:
Bank House, 21, Rajendra Place,
New Delhi-110008 and
Branch office at:
D-74, Ground Floor Malviya Nagar,
New Delhi-110017 ..... PLAINTIFF
Versus
1. M/s Chhavi Enterprises
THROUGH ITS PROPRIETOR
Mr. Mahesh Das
S/o Sh. Mahendra Das
R/o H. No. 2347 Gali No. 17
Chhuriya Mohalla Bengali
Colony, Tuglakabad Village
Badarpur, South Delhi-110044
2. Mr. Mahesh Das
S/o Sh. Mahendra Das
R/o H. No. 2347, Gali No. 17
Chhuriya Mohalla Bengali
Colony, Tuglakabad Village,
Badarpur, South Delhi-110044 .....DEFENDANTS
Date of Institution : 02.09.2021
Reserved for judgment : 15.03.2023
Date of Judgment : 20.03.2023
CS (Comm) : 290/2021 Punjab And Sind Bank Vs. M/s. Chhavi Enterprises Page No.: 1/7
JUDGMENT
1. The plaintiff has filed the present suit for recovery of Rs.3,43,871.05/- (Rupees Three Lakhs Forty Three Thousand Eight Hundred Seventy One and Five Paisa Only) alongwith interest.
2. Briefly stated, the plaintiff is a banking company and a corresponding new bank constituted under the provisions of the Banking companies (Acquisition and Transfer of undertaking) Act, 1980, having its Head Office at Bank House, 21 Rajendra Place, New Delhi-110017 and its branch office at D-74, Ground Floor, Malviya Nagar, New Delhi-110017 and Ms. Sadhana Yadav has been duly authorized by the plaintiff bank to institute the present suit and to sign and verify on behalf of the plaintiff bank.
3. According to the plaintiff, the defendant no.1 had approached the plaintiff bank and requested for a business loan of Rs.3,00,000/- to expand the business under MSME scheme vide loan application dated 26.10.2018 and the plaintiff bank had sanctioned and disbursed a loan of Rs.3,00,000/- (Rupees Three Lakh only) to the defendant no.1 vide Sanction Letter dated 26.10.2018. It is submitted that the defendant no.2 is the proprietor of the defendant no.1 and that the defendant no.1 had executed the following documents:
(i) Loan Application for a sum of Rs. 3,00,000/- dated 26.10.2018
(ii) Certificate of Execution of Documents in favour of the applicant bank in respect of the business loan in question. '
(iii) Form No. 14(R) dated 26.10.2018
(iv) Form No. 106 dated 26.10.2018
(v) Form No. 103/291/412 dated 26.10.2018 CS (Comm) : 290/2021 Punjab And Sind Bank Vs. M/s. Chhavi Enterprises Page No.: 2/7
(vi) Form No. 122 dated 26.10.2018
(vii) Form No. 126 dated 26.10.2018
(viii) Form No. 159 dated 26.10.2018
(ix) Form No. 199 dated 26.10.2018
(x) Form No. 200 dated 26.10.2018
(xi) Form No. 216 dated 26.10.2018
(xii) Form No. 193 dated 26.10.2018
(xiii) Loan Agreement dated 26.10.2018
(xiv) Undertaking dated 26.10.2018
(xv) Form No. 192 dated 26.10.2018
4. It is submitted that in order to secure the amount outstanding under the above said loan agreement, the defendant no.1 was required to make payment of the principal amount in accordance with the repayment schedule contained in the said Loan Agreement and the defendant was also required to pay interest and other charges at the rate mentioned the Loan Agreement. It is further submitted that the defendants have failed to maintain the financial discipline in their loan account and therefore, the account of the defendants became irregular despite the fact that officers of the plaintiff have personally requested the defendant no.2 several times apart from sending various letters to the defendants to regularize their account and, therefore, the account of the defendants was categorized as Non Performing Asset (NPA) on 31.01.2020. It is submitted that legal notice dated 06.02.2020 was also issued to the defendant but of no avail.
5. According to the plaintiff, an amount of Rs. 3,43,871.05/-
(Rupees Three Lakhs Forty Three Thousand Eight Hundred Seventy One and Five Paisa Only) is due and payable as on 31.03.2021 by the defendant alongwith future and pendente lite CS (Comm) : 290/2021 Punjab And Sind Bank Vs. M/s. Chhavi Enterprises Page No.: 3/7 interest, cost and other charges. It is submitted that the plaintiff is entitled to interest @ 9.80% p.a. on the aforesaid sum from 31.03.2021 alongwith penal interest @ 2% till payment/realization in full.
6. Summons of the suit were served upon the defendants and Sh. Sagar Mishra (Enrollment No. D/6616/2018, Mobile No. 8860535139), Advocate had also appeared on behalf of defendants on 08.03.2022 and 02.07.2022 but no written statement was filed on behalf of defendants despite opportunities. Accordingly, the defendants were proceeded ex-parte vide order dated 13.10.2022.
7. The plaintiff has examined PW-1, Sh. Amit Suri, Authorized Representative/Manager of the plaintiff bank, who tendered his evidence affidavit Ex.PW1/A and has proved the following documents :-
1) Ex.PW1/1 :Special Power of attorney dt. 28.11.2016;
2) Ex.PW1/2 :Loan application form dated 26.10.2018;
3) Ex.PW1/3 :Sanction Letter dated 26.10.2018;
4) Ex.PW1/4 :Certificate of execution of documents;
5) Ex.PW1/5 :Promissory Note/Form No. 14 (R) dt.
26.10.2018;
6) Ex.PW1/6 :Letter dt. 26.10.2018 issued by the defendant;
7) Ex.PW1/7 :Letter dt. 26.10.2018 issued by the defendant;
8) Ex.PW1/8 :Letter dt. 26.10.2018 issued by the defendant;
9) Ex.PW1/9 :Letter dt. 26.10.2018 issued by the defendant;
10) Ex.PW1/10 :Letter of continuity dt. 26.10.2018;
11) Ex. PW1/11 :Undertaking dt. 26.10.2018;
12) Ex. PW1/12 :Revised clauses pertaining to rate of interest dt. 26.10.2018 signed by the defendant;
13) Ex. PW1/13 :Letter dt. 26.10.2018 issued by the defendant;
14) Ex. PW 1/14 :Hypothication agreement dt. 26.10.2018 issued by the defendant;
15) Ex. PW1/15 :Loan Agreement dt. 26.10.2018;
16) Ex. PW1/16 :Undertaking dt. 26.10.2018 executed by the defendant;
17) Ex. PW1/17 :Hypothication agreement of immovable assets dt. 26.10.2018;
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18) Ex. PW1/18 :Photocopy of legal notice dt. 06.02.2020;
19) Ex. PW1/19 :Certificate in terms of Section 2A(b) of Bankers Book Evidence Act;
20) Ex. PW1/20 :Certificate U/s 65-B(2) of Indian Evidence Act;
21) Ex. PW1/21 :Statement of account for the period of 26.10.2018 to 14.03.2023.
Evidence of the plaintiff was closed vide statement of Sh. Amit Suri AR/Manager of the plaintiff bank, recorded on 15.03.2023.
8. I have heard the submissions of Ms. Pooja Sisodia, ld. Counsel for the plaintiff and have carefully perused the record.
9. The testimony of PW-1, Sh. Amit Suri alongwith the aforesaid documents proved on record by him have remained unrebutted and unchallenged in absence of any cross examination by the defendants and there is no reason to disbelieve the same. The documents i.e. Loan application form dated 26.10.2018; Ex.PW1/2, Sanction Letter dated 26.10.2018; Ex.PW1/3, Promissory Note/Form No. 14 (R) dt. 26.10.2018; Ex.PW1/5, Hypothication agreement dt. 26.10.2018 issued by the defendant; Ex. PW 1/14, Loan Agreement dt. 26.10.2018; Ex. PW1/15, Undertaking dt. 26.10.2018 executed by the defendant; Ex. PW1/16, Hypothication agreement of immovable assets dt. 26.10.2018; Ex. PW1/17 and Statement of account for the period of 26.10.2018 to 14.03.2023, Ex. PW1/21, relied upon by the plaintiff have been duly proved on record by the plaintiff's witness, PW-1. On the basis of oral and documentary evidence proved on record and particularly the Statement of account for the period of 26.10.2018 to 14.03.2023, i.e. Ex.PW1/21; Certificate in terms of Section 2A(b) of Bankers Book Evidence Act; Ex. PW1/19, Certificate U/s 65-B(2) of Indian Evidence CS (Comm) : 290/2021 Punjab And Sind Bank Vs. M/s. Chhavi Enterprises Page No.: 5/7 Act; Ex. PW1/20, this court is satisfied that the plaintiff has proved its case in respect of the due amount of Rs.3,43,871.05/- (Rupees Three Lakhs Forty Three Thousand Eight Hundred Seventy One and Five Paisa Only) on the scale of preponderance of probabilities and the plaintiff is entitled for recovery of the same. Further, the suit is well within limitation.
10. In view of forgoing discussion and unchallenged testimony of PW-1 and evidence brought on record, suit of the plaintiff is decreed for a total amount of Rs.3,43,871.05/- (Rupees Three Lakhs Forty Three Thousand Eight Hundred Seventy One and Five Paisa Only) in favour of the plaintiff bank and against the defendants. The defendants are liable to pay the said amount jointly and severally. The plaintiff has claimed pendente-lite and future interest @ 11.80% p.a. till realization but in the considered opinion of this court, the ends of justice would be met if pendente lite and future interest is granted @ 9% p.a in view of the banking norms and the prevailing rate of interest. Accordingly, the future interest @ 9% per annum is hereby awarded in favour of the plaintiff on the suit amount from the date of institution till its realization.
11. The plaintiff has also claimed the costs of the suit. Keeping in view Section 35 and 35A of CPC and particularly when the defendants have not contested the claims of the plaintiff and are themselves responsible for the litigation, they are held to be liable to bear the costs to the extent of court fees etc. Accordingly, the plaintiff is entitled for the costs of litigation. The advocate fee is assessed to be Rs.15,000/- only and same is hereby awarded in favour of the plaintiff. Cost of the suit i.e. court fee etc. are also awarded in favour of plaintiff. Decree sheet be prepared accordingly.
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12. File be consigned to Record Room after necessary compliance.
Announced in the open Court
on 20th Day of March 2023
Digitally signed
PREM by PREM (Prem Kumar Barthwal)
KUMAR
KUMAR BARTHWAL District Judge (Commercial Court)-01,
BARTHWAL Date: 2023.03.20 South District, Saket Courts,
16:58:02 +0530
New Delhi.
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CS (COMM)290/21
PUNJAB AND SIND BANK Vs. M/S CHHAVI ENTERPRISES 20.03.2023 Present : Ld. Counsel for the plaintiff.
The defendants is already ex-parte vide order dated 13.10.2022.
Vide separate judgment dictated, typed and announced in the open court today, the suit of the plaintiff stands decreed alongwith costs.
Decree-sheet be prepared accordingly. File be consigned to Record Room after necessary compliance.
(Prem Kumar Barthwal) District Judge (Commercial Court)-01 (South)/Saket Courts, New Delhi/20.03.2023 CS (Comm) : 290/2021 Punjab And Sind Bank Vs. M/s. Chhavi Enterprises Page No.: 8/7