SH. RAVI KUMAR JAIN S/o Shree Pal Jain, Proprietor of M/s S.P. Jain & Sons, R/o House No. F12/30, Krishna Nagar, Delhi110 051. Also At : I/536B/2, Gali No. 4A, Hans Raj Compound, Friends Industrial Area, Shahdara, Delhi110 032. ......Defendant Date of Registration : 15.11.2022 Date of final arguments : 05.08.2024 Date of Judgment : 07.09.2024 JUDGMENT 1. The present commercial suit for recovery of a sum of Rs.15,85,343.83p (Rs. Fifteen Lakhs Eighty Five Thousand Three Hundred Forty Three and Paise Eighty Three Only), alongwith pendentelite and future interest @9.15% per annum, has been filed on behalf of the plaintiff bank. CS (Comm.) 634/2022 page 1 of 27 D.J.(Commercial)01/Shahdara/KKD/Delhi 2. In the plaint, it is stated that the plaintiff is a Body Corporate duly Constituted under the Banking Companies Act, having its head office at Bangalore, Karnataka, and branch office at 177, Saini Enclave, Karkardooma, Delhi110092. 3. It is further stated in the plaint that the defendant Ravi Kumar Jain is the proprietor of M/s S. P. Jain & Sons, and he approached the plaintiff bank for grant of OCC Limit of Rs.15 Lakhs under CGTMSE Scheme, vide loan application dated 20.06.2014, and after considering and examining the request of the defendant, the plaintiff bank sanctioned OCC Limit of Rs.15 Lakhs, vide loan account No. 3333261000027, vide sanction letter dated 20.06.2014. It is further stated that to secure the repayment of the amount and interest and other charges, the defendant also executed the necessary documents, in favour of the plaintiff bank on 21.06.2014. 4. It is further stated in the plaint that the defendant again approached the plaintiff bank for enhancement of OCC Limit, from Rs.15 Lakhs to Rs.30 Lakhs, and accordingly, after considering and examining the request of the defendant, the OCC Limit was enhanced from Rs.15 Lakhs to Rs.30 Lakhs, vide link letter, dated 28.07.2015. 5. It is further stated in the plaint that the defendant again approached the plaintiff bank for enhancement of OCC Limit, from Rs.30 Lakhs to Rs.35 Lakhs, vide loan application dated 26.10.2016 and after considering and examining the request of the defendant, the OCC Limit was enhanced from Rs.30 Lakhs to Rs.35 Lakhs, vide sanction letter, dated 04.03.2017. CS (Comm.) 634/2022 page 2 of 27 D.J.(Commercial)01/Shahdara/KKD/Delhi Accordingly, the defendant executed the necessary documents on 04.03.2017. 6. It is further stated in the plaint that the defendant again applied for renewal of the aforesaid loan facility, vide loan application dated 10.04.2019, and accordingly, the plaintiff bank renewed the aforesaid loan facility, on 10.04.2019, and the defendant executed all the necessary loan and security documents on 10.04.2019. 7. It is further stated in the plaint that the defendant again approached the plaintiff bank for renewal of the aforesaid loan facility on 05.04.2021, and after considering the request of the defendant, the OCC Limit was decreased from Rs.35 Lakhs to Rs.30 Lakhs, vide sanction letter dated 05.04.2021. Thereafter, the defendant executed all the necessary documents on 05.04.2021. 8. It is further stated in the plaint that the defendant duly enjoyed the loan facility and acknowledged his debt and security on 03.07.2021, and executed the Acknowledgment of Debt and Security, dated 03.07.2021. 9. It is further stated in the plaint that due to nonsufficient business transactions through the loan account, the plaintiff bank was unable to continue the said limit, and therefore, the aforesaid account of the defendant was declared as 'NPA', on 09.05.2022. 10. It is further stated in the plaint that the defendant had made the last payment of Rs.5,00,000/ on 23.06.2022, and therefore, the plaintiff bank sent a legal notice, dated 16.08.2022, whereby, CS (Comm.) 634/2022 page 3 of 27 D.J.(Commercial)01/Shahdara/KKD/Delhi the defendant was asked to make the payment of total outstanding amount of Rs.15,18,322.83p., within seven days of receipt of the said notice. But, the defendant had failed to make any payment, and hence, the present suit. It has been pra