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[Cites 2, Cited by 0]

Delhi District Court

Union Bank Of India vs Shri Krishna Batteries And Inverter on 25 September, 2023

DLCT010055592022




IN THE COURT OF SH. SANJEEV KUMAR AGGARWAL : DISTRICT
   JUDGE (COMM.) ­01 : CENTRAL, TIS HAZARI COURTS DELHI

CS (Com.) No. 972/2022

Union Bank of India,
Having its Registered Head Office at :
Union Bank Bhawan, 239, Vidhan Bhawan Marg,
Nariman Point, Mumbai­400021
Maharastra, Indian
Also having its Branch Office at
At 6117, Qutab Road Corner, Sadar Bazar,
Delhi­110006.
Through its AR.                                                 ....    Plaintiff.


                                     Versus

1. M/s. Shri Krishna Batteries and Inverter
Through its proprietor Mr. Suresh Sharma,
R/o.103, Block GT Huts,
Dalit Camps, Dakshinpuri
Delhi­110062.




Suit (Com.) No. 972/2022                                             Page No. 1 of 9
         Union Bank of India Vs. Shri Krishna Batteries and Inverter & anr.
 2. Mr. Suresh Sharma
S/o. Mr. Ramesh Chand Sharma,
R/o. House No.1/10925 - A, 2nd Floor,
Gali No. 6, Subhash Park, Shahdara,
North East Delhi, Delhi­110032.


Also at :
Sh. Suresh Sharma,
S/o Sh. Ramesh Chand Sharma,
R/o Plot No. 103, Dakshinpuri,
Sector­5, Saket, Delhi - 110021.                             ....   Defendants.


      SUIT FOR RECOVERY OF RS. 7,45,527/­ & Rs. 1,32,036/­.


Date of Institution                               :      30.03.2022
Date of reserving Judgment                        :      02.06.2023
Date of pronouncement                             :      25.09.2023


JUDGMENT

Vide this Judgment, I shall decide the suit filed by plaintiff for recovery of sum of Rs. 7,45,527/­ & Rs. 1,32,036/­ alongwith interest.

2. Brief facts as stated in the plaint are that the plaintiff is a bank and present suit has been filed through its Chief Manager, Sadar Bazar branch, Delhi. It is further stated that on 19.06.2019, the Suit (Com.) No. 972/2022 Page No. 2 of 9 Union Bank of India Vs. Shri Krishna Batteries and Inverter & anr. defendant has approached and applied the plaintiff bank for loan facility of Rs. 7,00,000/­ under Pradhan Mantri Mudra Yojna (PMMY) with intention to start a new business in the name of Shri Krishna Batteries & Inverter.

3. The plaintiff bank considered the request of defendant and sanctioned the said loan on 05.06.2020. Defendant executed various loan documents in favour of the plaintiff bank, which are as follows :

(a) Demand Promissory Note.
(b) Hypothecation agreement of good and debts form SD­ 06 dated 29.06.2019 duly executed by defendant.

(c) Letter of undertaking.

(d) Form AD­02 executed by borrower.

(e) Interest Agreement dated 29.06.2019 executed by defendant in favour of the applicant bank.

(f) Letter of continuity dated 29.06.2019 duly executed by defendant.

4. It is further stated that defendant was most irregular in repayment of said loan amount and despite request, failed to clear the outstanding liability and therefore account of defendant was declared NPA on 31.03.2021 and loan was recalled vide order dated 03.04.2021. Plaintiff bank also issued notice under Sub­section (2) of Section 13 of the SARFAESI Act 2002 on 16.07.2021 but of no avail. Hence, plaintiff has no option except to file the present suit for recovery of the amount of Suit (Com.) No. 972/2022 Page No. 3 of 9 Union Bank of India Vs. Shri Krishna Batteries and Inverter & anr. Rs. 8,77,564.29/­ which include Rs. 7,45,527.64/­ as principal amount and Rs. 1,32,036.65/­ as interest @ 8.55 per annum with monthly rest plus @2% penal interest. Plaintiff has also claimed pendentlite and future interest from 28.02.2022 till realization @ 7.50% per annum with monthly rests plus @ 2% penal interest.

5. Summons of the suit were sent to defendant and Sh. Manish Sharma, brother of defendant no. 2 appeared and sought time to file written statement but despite seeking time neither WS was filed nor anybody appeared on behalf of defendant after 06.09.2022, therefore, defendant was proceeded ex­parte. Since there was no WS filed, no issues were framed and case was fixed for PE.

6. In order to prove its case, plaintiff has examined Ms. Mukta Kumari, Chief Manager, Union Bank of India, Sadar Bazar branch, Delhi as PW­1, who lead her evidence by way of affidavit as Ex. PW1/A. She also relied upon the documents Ex. PW1/1 to Ex. PW1/13.

7. Arguments were heard from Sh. Deepak Sharma, Ld. Counsel for plaintiff. I have heard arguments and gone through the record.

8. Onus is upon the plaintiff to prove that it has granted loan to the defendant and defendant has failed to make the payment as per schedule and thus plaintiff is entitled to the suit amount. As stated, in order to prove the same, plaintiff has only examined one witness Ms. Mukta Kumari, Chief Manager, Union Bank of India, Sadar Bazar branch, Delhi as PW­1, who lead her evidence by way of affidavit as Ex. PW1/A. She has deposed that on 19.06.2019, defendant had Suit (Com.) No. 972/2022 Page No. 4 of 9 Union Bank of India Vs. Shri Krishna Batteries and Inverter & anr. approached to the plaintiff bank for loan facility of Rs. 7,00,000/­ under Pradhan Mantri Mudra Yojna (PMMY) with intention to start a new business in the name of Shri Krishna Batteries & Inverter. Defendant submitted the KYC documents i.e. photocopy of Aadhar Card bearing no. 283568974673, photocopy of PAN Card bearing no. FUZPS3957J, photocopy of ITR of Assessment year 2019­2020, 2018­2019 and CIBIL report of the defendant dated 18.06.2019 and executed the documents i.e. Demand Promissory Note, Hypothecation agreement of good and debts form SD­06 dated 29.06.2019 duly executed by defendant, Letter of undertaking (Annexure­A executed by defendant), Form AD­02 executed by borrower, Interest Agreement dated 29.06.2019 executed by defendant in favour of the applicant bank, Letter of continuity dated 29.06.2019 duly executed by defendant. On 05.06.2020, defendant requested the plaintiff bank for emergency loan facility during the Covid period under the scheme of UCECL of Rs. 1,20,000/­ and after considering the situation and conduct of the defendant, the plaintiff bank has sanctioned the loan facility on same date i.e. 05.06.2020. The defendant executed the following documents :

a) Demand Promissory Note for Rs. 1,20,000/­ dated 05.06.2020 with interest thereon rate of the bank i.e. @7.50% per annum with monthly rests duly executed by defendant.

b) Letter of continuity dated 05.06.2020 duly executed by defendant.

Suit (Com.) No. 972/2022 Page No. 5 of 9

Union Bank of India Vs. Shri Krishna Batteries and Inverter & anr.

c) Interest Agreement dated 05.06.2020 executed by defendant in favour of the applicant bank.

d) General Term Loan Agreement dated 05.06.2020 executed by defendant.

e) Composite Hypothecation Deed dated 05.06.2020 executed by defendant.

f) Letter of undertaking from the borrowers dated 05.06.2020 executed by defendant.

Therefore, plaintiff bank has sanctioned the loan of Rs. 1,20,000/­. It is further deposed that despite demand, defendant failed to pay outstanding liability. Hence, account of the defendant was declared NPA on 31.03.2021 and plaintiff bank issued the recall notice dated 03.04.2021. Plaintiff bank also issued notice under Sub­section (2) of Section 13 of the SARFAESI Act 2002 on 16.07.2021, but to no avail. Plaintiff bank also served legal notice to the defendant on 17.07.2021 through Advocate Ms. Sunita Sharma but the defendant did not take heed and failed to repay the loan amount. Hence, the present suit for recovery of Rs. 8,77,564.29/­ is filed.

9. The plaintiff has relied/proved the following documents :

1. GPA dated 28.10.2020 as Mark B (mentioned in my affidavit as Ex. PW1/I).
2. Copy of application form as Ex. PW1/II (OSR).
3. Sanction letter dated 1.7.2019.
Suit (Com.) No. 972/2022 Page No. 6 of 9
Union Bank of India Vs. Shri Krishna Batteries and Inverter & anr.
4. Copies of ID cards of defendant, copy of ITR of assessment year 2019­2020, 2018­19 and CIBIL report of defendant dated 18.6.2019 as Mark A (Colly.).
5. Copy of demand promissory note, hypothecation agreement, letter of undertaking, Form AD­02, interest agreement dated 29.6.2019 and letter of continuity dated 29.6.2019 as Ex. PW1/IV (Colly.) (OSR).
6. Copy of sanction letter dated 5.6.2020 as Ex. PW1/V (OSR).
7. Copy of demand promissory note for Rs. 1,20,000/­, letter of continuity dated 5.6.2020, interest agreement dated 5.6.2020, general term loan agreement, composite hypothecation deed dated 5.6.2020 and letter of undertaking dated 5.6.2020 as Ex. PW1/VI (Colly.) (OSR).

8. Copy of overdue notices dated 3.12.2020, 6.1.2021 and 20.2.2021 as Ex. PW1/VII (Colly.) (OSR).

9. Copy of recall notice dated 3.4.2021 as Ex. PW1/VIII (OSR).

10. Letter / notice dated 16.7.2021 as Ex. PW1/IX (OSR).

11. Copy of legal notice dated 17.7.2021 along with postal receipt as Ex. PW1/X (Colly.).

12. Statement of account as Ex. PW1/XI.

Suit (Com.) No. 972/2022 Page No. 7 of 9

Union Bank of India Vs. Shri Krishna Batteries and Inverter & anr.

13. Affidavit under Section 65B of the Indian Evidence Act as Ex. PW1/XII.

14. Non Starter report as Ex. PW1/XIII.

10. Defendant was ex­parte, therefore, PW1 was not cross­examined and hence, testimony was unrebutted and unchallenged. Plaintiff has able to prove that defendant Suresh Sharma as proprietor of defendant No. 1, applied for loan under Pradhan Mantri Mudra Yojna (PMMY) with intention to start a new business in the name of Shri Krishna Batteries & Inverter. PW1 has relied upon the copy of application Ex. PW1/II and copy of demand promissory note, hypothcation agreement, letter of undertaking, Form AD­02, interest agreement dated 29.06.2019 and letter of continuity dated 29.06.2019 as Ex. PW1/IV. PW2 has deposed that after considering the said documents, loan of Rs. 7,00,000/­ was sanctioned but plaintiff did not produce the sanction letter dated 01.04.2019 during evidence. Further, PW1 has proved that plaintiff has also sanctioned Rs. 1,20,000/­ under Scheme of UGECL. Plaintiff has proved the demand promissory note for Rs. 1,20,000/­, letter of continuity dated 5.6.2020, interest agreement dated 5.6.2020, general term loan agreement, composite hypothecation deed dated 5.6.2020 and letter of undertaking dated 5.6.2020 as Ex. PW1/VI (Colly). Hence, I held that plaintiff is able to prove that plaintiff has sanctioned Rs. 7,00,000/­ and Rs. 1,20,000/­ to the defendant. Plaintiff bank has further proved the statement of account Ex. PW1/XI, which consist of two loan accounts i.e. bearing nos.307506170000001 and 307506990000003, which appear to the loan of Rs. 7,00,000/­ and Rs.

Suit (Com.) No. 972/2022 Page No. 8 of 9

Union Bank of India Vs. Shri Krishna Batteries and Inverter & anr. 1,20,000/­. From said statements, it is evident that in first loan, there is due of Rs. 7,45,527/­ and in second loan, there is due of Rs. 1,32,036/­, Therefore, I held that plaintiff through the testimony of PW1 and documents is able to prove that it is entitled to recovery for a sum of Rs. 7,45,527/­ and Rs. 1,32,036/­ which comes to total Rs. 8,77,563/­.

11. RELIEF.

In view of the aforesaid discussion, I pass decree of Rs. 8,77,563/­ (Rupees eight lacs seventy seven thousand five hundred sixty three only) in favour of plaintiff and against the defendant and further held that plaintiff is entitled to interest @ 9.50% on the said amount from date of filing of suit till date of decree and thereafter till its realization. Decree sheet be prepared accordingly. File be consigned to record room.



Announced in the open court                       (Sanjeev Kumar Aggarwal)
on 25.09.2023                                    DJ (Commercial)­01, Central,
                                                    THC/Delhi / 25.09.2023




Suit (Com.) No. 972/2022                                             Page No. 9 of 9

Union Bank of India Vs. Shri Krishna Batteries and Inverter & anr.