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a) D.P. Note date 20.06.2020
b) Composite Hypothecation Agreement
c) General Undertaking
d) Letter of Sole Proprietorship and
e) Letter of Continuing Security.

The defendant also submitted Certificate of Importer-Exporter Code (IEC) issued by the office of Zonal Director General of Foreign Trade, Govt. of India in support of Loan application. The plaintiff disbursed the loan amount by opening the loan account in the name of the defendant at its branch vide account no. 410806000001077 and the same was credited in the loan account of the defendant. On the request of the defendant, the loan account was re-structured through an application for restructuring of loan account signed by the defendant on 08.03.2021. The defendant undertook to make the repayment of loan amount in respect of aforesaid credit facility alongwith interest @ 8.35% p.a. The defendant also agreed to pay penal interest @ 2% p.a. above the rate of interest that is charged in the defendant's account, in the event of any default in payment of any installment. The plaintiff further averred that after availing the credit facilities, the defendant became very irregular in making the payment. Notice dated 30.12.2022 was served upon the defendant. Due to non payment of EMIs, the CS(COMM) 15/2025 Bank of Baroda Vs Hemant Verma Page No. 3 of 13 account of the defendant was classified as Non Performing Assets (NPA) on 02.11.2023. As per the plaint, a sum of Rs.13,32,524.47/- is due towards the defendant as on 30.11.2022. The plaintiff has also claimed interest @ 18% p.a. from 01.12.2022 till payment inclusive of 2% penal interest.

CS(COMM) 15/2025 Bank of Baroda Vs Hemant Verma Page No. 5 of 13

9. In evidence, plaintiff produced Sh Arun Gupta, Manager of the plaintiff bank as PW1. This witness filed affidavit on the lines of the plaint and proved True copy of General Power of Attorney as Ex. PW-1/1, Copy of sanction letter dated 20.06.2020 as Ex. PW-1/2, Copy of D.P. note dted 20.06.2020 as Ex. PW-1/3 (colly), Copy of Composite Hypothecation Agreement as Ex. PW-1/4 (colly), Copy of General Undertaking as Ex. PW-1/5 (Colly), Copy of letter of Sole Proprietorship as Ex. PW-1/6 (colly), Copy of letter of continuing security as Ex. PW-1/7 (colly), Copy of certificate of Importer-exporter Code (IEC) as Ex. PW-1/8 (colly), Copy of the application for restructuring of loan account as Ex. PW-1/9 (colly), the copy of notice of demand dated 30.12.2022 as Ex. PW-1/10 (colly), Copy of statement of account of the defendant duly certified under the Banker's Book Evidence Act as Ex. PW-1/11 (colly), Copy of ID as Ex. PW-1/12 and Copy of designation letter as Ex. PW-1/13 (colly).

12. I have heard Ld. Counsel for the parties and perused the record carefully. Written arguments also filed on behalf of the plaintiff. My issue wise findings are as under:

Issue No. 1.
(i) Whether the plaintiff is entitled for recovery of Rs.13,32,524.47/- ? (OPP)

13. The burden to prove this issue is on the plaintiff. To prove this issue, plaintiff has produced its Manager Sh Arun Gupta as PW1. This witness proved the sanction letter dated 20.06.2020 as Ex. PW-1/2, Copy of D.P. note dated 20.06.2020 as Ex. PW-1/3 (colly), Copy of Composite Hypothecation Agreement as Ex. PW-1/4 (colly) and Copy of General Undertaking as Ex. PW-1/5 (Colly). I have gone through these documents. The Sanction letter dated 20.06.2020 shows that the credit facility was sanctioned by the plaintiff bank on 20.06.2020. The D.P. Note dated 20.06.2020 is signed by the defendant. The Composite Hypothecation Agreement is also signed by the defendant. The general undertaking is also signed by the defendant. Likewise, letter of continuing security dated 20.06.2020 is also signed by the defendant. The copy of CS(COMM) 15/2025 Bank of Baroda Vs Hemant Verma Page No. 8 of 13 certificate of Importer-Exporter Code (IEC) is also placed on record by the plaintiff. It is proved on record as ExPW1/8. The copy of the application for restructuring of loan account dated 08.03.2021 is proved as Ex. PW-1/9 (colly).The defendant has not denied to sign these documents. In the written statement in para 5 of reply on merits, it is specifically mentioned by the defendant that "The requested credit facility of Rs.15,00,000/- (Fifteen Lacs Only) was sanctioned by the plaintiff bank on 20.06.2020 against the Hypothecation of Stocks and book debts......... However, the plaintiff bank took signatures of the defendant upon certain documents and only documentation was done." In para 6, it is mentioned by the defendant that " the defendant was made to sign certain blank papers, on the pretext of transferring some loan, in fact, no loan was granted to the defendant on 20.06.2020". It is also mentioned in para 7 that " all the documents were already in power and possession of the plaintiff bank, as the defendant had earlier availed the loan facility from the plaintiff and the plaintiff had misused the said documents, for their own personal gain and benefit ." Thus the defendant has admitted that he has taken loan from the plaintiff bank. He also admitted that official of plaintiff has taken his signatures on blank papers. When the defendant came in the witness box as DW1, he admitted that he had signed bunch of blank papers of the plaintiff bank. DW1 also stated that he used to sign the documents at the time of renewal of the CC Limit. Thus, it is admitted by the defendant that he had signed the documents and he used to sign the documents at the time of renewal of the CC Limit every year. DW1 also admitted that he had earlier taken a loan from Vijaya Bank in the year 2013 and CS(COMM) 15/2025 Bank of Baroda Vs Hemant Verma Page No. 9 of 13 he had admitted that he had almost made the payment of this loan. Thus, the defendant has also admitted to have taken from from the plaintiff bank but it is submitted that he had made the payment but no document has been placed on record to show that he has cleared the loan of the plaintiff bank. DW1 also admitted his signatures on document ExPW1/8. He admitted his photograph at point A on ExPW1/8. He also admitted that certificate was issued to him. However, the defendant is not able to clarify as to how document ExPW1/8 came in possession of the plaintiff. Thus, it is proved that defendant has availed the cash credit facility from the plaintiff bank and thereafter defaulted in making the payment of installments.