Sh. Satish S/o Sh. Suresh R/o House no. K1/18/350 Hanuman Mandir, Sanagam Vihar Delhi 110080 ................. Defendant Date of Institution : 22.03.2022 Date of Arguments: 01.07.2024 Date of Judgment : 06.07.2024 JUDGMENT 1. This is suit for recovery of Rs. 7,38,483.09/ (Rs. Seven Lacs Thirty Eight Thousand Four Hundred Eighty Three and Nine Paisa only) filed by plaintiff against the defendant on the CS (Comm) No. : 197/2022 1/14 facts that defendant had availed credit facilities from Syndicate Bank. Pursuant to gazette notification no. CGDLE04032020 216535 dated 04.03.2022, Syndicate Bank had been amalgamated with Canara Bank under section 9 of the Banking Companies Act. 2. As stated, on 03.02.2016, defendant approached the plaintiff bank for availing loan facility under MSME for sum of Rs. 5,99,000/ to purchase a vehicle for taxi purpose, which was sanctioned in favour of defendant. Requisite documents were executed between the parties. Pursuant to execution of documents, plaintiff bank disbursed the loan amount in favour of defendant which was to be repaid in monthly installments as per the terms and conditions set out in the Loan Agreement. However, due to financial indiscipline, account of defendant slipped to NPA on 30.06.2017 and despite vigorous follow up and persuasion, regularization of account could not be affected on the part of defendant. 3. On 19.01.2019, defendant visited the bank and provided a signed Acknowledgment of Debt dated 19.01.2019 and made false promise to regulate his acocunt thereafter. However, due to repeated failure in payment by defendant, plaintiff bank was left with no choice other than taking possession of the vehicle, which was thereafter auctioned and sold to one Mr. Sanjay on 03.02.2020 by issuing NOC and Letter of handing over of vehicle. Amount received after auction was adjusted in the account of defendant on 26.11.2020 for Rs. 87,782.20/, which was partial to the total liability of the defendant. Even after adjustment of said amount of Rs. 87,782.20/, as on 31.10.2021, loan account of defendant showed debit balance of Rs. CS (Comm) No. : 197/2022 2/14 7,38,483.09/ which defendant failed to clear despite repeated requests and reminders. 4. Plaintiff initiated "PreInstitution Mediation" proceedings and filed an application for Mediation before the competent authority under Rule 2 (c) of The Commercial Courts (Pre Institution) Mediation and Settlement Rules, 2018 wherein Non Starter Report dated 29.09.2020 was issued by the concerned authority and the plaintiff was constrained to file the instant suit. 5. In written statement filed on behalf of defendant, it was stated that defendant had taken loan of Rs. 5,45,000/for purchase of Taxi car under " Pradhan Mantri Mudra Yojana" from Syndicate Bank (now Canara Bank)/Plaintiff Bank. The above mentioned loan was taken to purchase a taxi which was the main machine/tool/equipment for running the business of the defendant as Taxi Driver. Due to some personal family difficulties, some of the monthly installments were not paid on time but defendant tried to make payments as per his financial capabilities from time to time. Slowly and gradually when things started improving, due to Covid19 situation nationwide, business of defendant was badly impacted as his source of income was dependent on running the said vehicle on rent from the passengers. Due to covid19 Lockdown, there was hardly any passenger on the road because of strict government guidelines. Hence, defendant defaulted in making timely payments during the lockdown period. 6. It was further stated that despite benevolent scheme for MSME under Pradhan Mantri Mudra Yojana, plaintiff acted really unprofessional and rude that within almost one year, defendant's account was declared NPA on 30.06.2017 which CS (Comm) No. : 197/2022 3/14 came as an additional blow on the mind of defendant whose business was going low due to personal family difficulties. Plaintiff bank further by way of forged and fabricated Acknowledgment of Debt dated 19.01.2019, sent a notice dated 24.01.2019 for immediate Seizure of the vehicle and thereafter sold the said v