Delhi District Court Canara Bank vs Rajinder Kaur on 1 May, 2025 IN THE COURT OF SH. SANJAY SHARMAII : DJ (COMMERCIAL COURT)03 (SHAHDARA): KARKARDOOMA COURTS, DELHI CS (Comm.) No. 135/2024 CNR No.: DLSH010011182024 Canara Bank Branch Office: SME Vivek Vihar Jhilmil, Delhi Through its Manager: Mr. Deepak Pandey ..... Plaintiff VERSUS Smt. Rajinder Kaur W/o Late Jatinder Singh R/o C272, Extn. II, Shalimar Garden Sahibabad, Ghaziabad, U.P.201 005 Also at: M/s. Guru Electronics F336 337 GF, BlockF Old Seemapuri, Delhi110095 ..... Defendant Date of Institution : 22.02.2024 Date of Arguments : 21.04.2025 Date of Judgment : 01.05.2025 JUDGMENT THE SUIT: 1. The plaintiff, through Mr. Deepak Pandey, Manager / Authorized Representative, instituted a suit for a decree for recovery of Rs. 10,98,083.59/ alongwith interest @ 11.40% per annum and penal interest @ 2% per annum w.e.f. 10.07.2023 till Digitally signed realization against the defendant. by SANJAY SHARMA SANJAY Date: SHARMA 2025.05.02 16:01:52 +0530 CS (Comm.) No. 135/2024 Canara Bank vs. Smt. Rajinder Kaur Page No. 1 of 19 THE PLAINT: 2. The case of the plaintiff is that on 30.11.2021, Mr. Jatinder Singh (now deceased), proprietor of 'M/s. Guru Electronics', applied for 'Overdraft Facility' in the sum of Rs. 10,00,000/ for 'business expansion'. Pursuant thereto, the plaintiff sanctioned an overdraft facility to Mr. Jatinder Singh in the sum of Rs. 10,00,000/ on interest @ 8.9% per annum. In that regard, Mr. Jatinder Singh executed the documents, as under: (a) Cash Credit Agreement dated 30.11.2021; (b) Request for overdraft facilities; (c) Agreement Re: Advanced Against Book Debts as Prime Security dated 30.11.2021; (d) Letter of Undertaking dated 30.11.2021; (e) Pronote dated 30.11.2021; and (f) Letter of Proprietorship dated 30.11.2021. 3. Mr. Jatinder Singh availed the said overdraft facility. 4. On 31.12.2022, Mr. Jatinder Singh applied for renewal of the said overdraft facility, vide application. The plaintiff renewed the said overdraft facility for a period of one year on interest @ 11.15% per annum, vide 'Sanction Letter' dated 07.01.2023. Mr. Jatinder Singh executed documents, as under: (a) Letter of Renewal; (b) Sanction Letter; (c) Letter of Undertaking; (d) Letter of Proprietorship; (e) Request for overdraft facilities; and (f) Acknowledgment of Debt and Security. 5. Mr. Jatinder Singh expired on 17.04.2023. After death of Mr. Jatinder Singh, the defendant acknowledged the debt, vide Acknowledgment of Debt dated 29.04.2023. Legal Heirs of Mr. Jatinder Singh succeeded to his business and inherited his estate. The defendant failed to regularize the said loan account. Digitally signed by SANJAY SANJAY SHARMA SHARMA Date: 2025.05.02 16:02:05 +0530 CS (Comm.) No. 135/2024 Canara Bank vs. Smt. Rajinder Kaur Page No. 2 of 19 6. The plaintiff declared the said account as 'Non Performing Assets' (NPA) on 09.07.2023. The plaintiff sent demand notice dated 04.09.2023 and corrigendum dated 05.10.2023 to the defendant, through speed post. However, the defendant did not clear the outstanding amount. As on 10.07.2023, an amount of Rs. 10,98,083.59/ was outstanding against the defendant. Thus, the plaintiff filed this suit for recovery against the defendant. IMPLEADMENT OF OTHER LRs OF MR. JATINDER SINGH: 7. On the application of the plaintiff, the defendant disclosed the other legal heirs of Mr. Jatinder Singh, as under: "1. Smt. Rajinder Kaur (wife) W/o Late Sh. Jatinder Singh 2. Ms. Harleen Kaur (major daughter) 3. Ms. Prabhleen Kaur (major daughter) Both D/o Late Sh. Jatinder Singh