Delhi District Court Canara Bank vs Soma Engineering on 19 March, 2025 IN THE COURT OF SH. SANJAY SHARMAII : DJ (COMMERCIAL COURT)03 (SHAHDARA): KARKARDOOMA COURTS, DELHI CS (Comm.) No. 696/2022 CNR No.: DLSH010079842022 Canara Bank (Earlier: Syndicate Bank) Branch Office : GF01, Ground Floor Parsav Nath Metro Tower Opposite Shahdara Metro Station Delhi110032 Through its Senior Manager : Mr. Anand Kumar Jaiswal ..... Plaintiff VERSUS M/s. Soma Engineering Proprietor : Mr. Babu Bank S/o Mr. Sukanto Bank 1/3399, Ram Nagar, Mandoli Road, Gali No. 6, Shahdara, Delhi110032 Also at: 1st Floor, H. No. 299, Vill. Gokul Pur, Delhi110094 ..... Defendant Date of Institution : 15.12.2022 Date of Arguments : 07.02.2025 Date of Judgment : 19.03.2025 JUDGMENT THE SUIT: 1. The plaintiff, through Mr. Anand Kumar Jaiswal, Branch Manager / Authorized Representative, instituted a suit for a decree for recovery of Rs. 7,77,670.38/ alongwith pendentelite and future interest @ 8.55% per annum against the defendant. CS (Comm.) No. 696/2022 Canara Bank vs. M/s. Soma Engineering Page No. 1 of 23 THE PLAINT: 2. The case of the plaintiff is that on 01.11.2019, the defendant applied for 'Credit Facility' in the sum of Rs. 6,50,000/. 3. On 13.11.2019, the plaintiff sanctioned a credit facility to the defendant in the sum of Rs. 6,50,000/ on interest @ 10.75% per annum for a period of one year, vide Loan A/c. No. '90101400000846'. The defendant executed 'Composite Hypothecation Agreement', 'Letter of Indemnity', 'Power of Attorney for collection of Bills, Book Debts and Other Receivables' and 'Charge and Hypothecation of Debts Agreement'. The defendant availed the said credit facility. 4. The plaintiff renewed the said credit facility for a period of one year on interest @ 8.55% per annum, vide 'Sanction Letter' dated 08.12.2021. The defendant executed ' AgreementCum Deed of Hypothecation', 'Cash Credit Agreement', 'Letter of Undertaking', 'Letter of Proprietorship' and 'Letter of Renewal'. The defendant has also submitted his Aadhar Card, PAN Card, Voter ICard and GST Registration. 5. The plaintiff sanctioned and disbursed an amount of Rs. 32,309/ to the defendant on 30.08.2020, vide Loan A/c. No. '90107100000122. 6. The defendant availed the said credit facility. The defendant made last payment in the sum of Rs. 30,000/ qua Loan A/c. No. '90101400000846 and Rs. 238.55/ qua Loan A/c. No. '90107100000122'. 7. The defendant failed to regularize the said loan account. The plaintiff declared the said accounts as ' Non Performing Assets' (NPA) on 26.03.2022. The plaintiff sent demand notice dated 22.08.2022 to the defendant. CS (Comm.) No. 696/2022 Canara Bank vs. M/s. Soma Engineering Page No. 2 of 23 8. An amount of Rs. 7,44,722.89/ was outstanding qua Loan A/c. No. 90101400000846 and an amount of Rs. 32,947.49/ was outstanding qua Loan A/c. No. 90107100000122, as on 05.12.2022. Thus, the plaintiff filed this suit for recovery against the defendant. WRITTEN STATEMENT: 9. In the written statement, the defendant contended that the plaintiff has not disclosed the entire facts and concealed material facts. He contended that his father had obtained credit facility before 10 years. The plaintiff had provided documents pertaining to the said credit facility availed by his father while the defendant closed the said loan account after making payment of Rs. 50,000/. The defendant's father expired in the year 2017 and thereafter, the plaintiff's officials called him and informed that an amount of Rs. 50,000/ was outstanding against loan account of his father and the defendant can settle the said amount by making payment of the said amount. Thereafter, the defendant paid an amount of Rs. 50,000/ and the bank officials obtained his signatures on ' some printed documents' on the pretext of settlement of the said loan account. Thereafter, the plaintiff never approached the defendant for payment of any installment or credit facility, as outstanding against him or his father. The defendant received a demand notice from the plaintiff for payment of balance amount pertaining to the said loan account without any information pertaining to ' unpaid installments'. Thereafter, the defendant visited the plaintiff several times. However, the plaintiff did not provide any reason for issuance of said notice. The plaintiff has filed statement of account for the period w.e.f. 19.02.2022 to 18.02.2023. However, the plaintiff did not file statement of account for the preceding year. He contended that according to statement of account, an amount of Rs. 3,93,525.75/