Delhi District Court Punjab National Bank vs Siyaram Creations Through Proprietor ... on 6 June, 2024 IN THE COURT OF MS. KIRAN BANSAL DISTRICT JUDGE (COMMERCIAL COURT02) SHAHDARA DISTRICT KARKARDOOMA COURTS : DELHI Civil Suit (Comm) No. 37/2024 PUNJAB NATIONAL BANK Having its Head Office at Plot No.4, Sector10, Dwarka, New Delhi110075 Branch At: Ground Floor, North Tower, Scope Tower, Laxmi Nagar, Delhi110091. ....Plaintiff VERSUS M/S SIYARAM CREATION THROUGH PROPRIETOR, SHRI DEEPAK KUMAR S/O SH. SHIV KANT DIXIT H.No.28B, Ground Floor, Gali No.2, East Azad Nagar, Near Hanuman Mandir, Krishna Nagar, Delhi110051. .... Defendant Date of Institution : 12.01.2024 Date of Final Arguments : 22.05.2023 Date of pronouncement : 06.06.2024 CS (COMM) No.37/2024 Punjab National Bank vs. Siyaram Creations Page No. 1 of 31 JUDGMENT 1. Vide this judgment, this Court shall dispose off the present commercial suit filed by the plaintiff Bank for recovery of an amount of Rs.10,30,995.81/ as on 28.07.2023 along with pendente lite and future interest @10.20% per annum from the date of filing of the suit till its realization. 2. Shorn off unnecessary details, the case of the plaintiff is that the plaintiff Bank i.e. Punjab National Bank is constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and the plaintiff Bank is acting through one of the branches situated at Punjab National Bank, Ground Floor, North Tower, Scope Tower, Laxmi Nagar, Delhi110091. 3. It is stated that the suit is being instituted, filed, signed and verified by Mr. Ashok Kumar Yadav, Chief Manager, who has been duly authorized to represent the Bank vide POA/Authority Letter dated 22.06.2016 executed by plaintiff Bank in his favour to depose on behalf of the plaintiff Bank and to sign, verify, institute the present suit, etc. It is further stated that Mr. Ashok Kumar Yadav is also fully conversant with the facts of the case as per the records and thus, is competent to sign and verify the present suit and other pleadings for and on behalf of the plaintiff Bank. CS (COMM) No.37/2024 Punjab National Bank vs. Siyaram Creations Page No. 2 of 31 4. It is stated that the defendant is running business of manufacturing men and women wearing apparels in the name and style of "M/s. Siyaram Creation", a proprietorship firm and Mr. Deepak Kumar is sole proprietor of the proprietorship firm. It is further stated that the defendant approached plaintiff Bank for a Cash Credit Facility for his working capital requirement having credit limit of Rs.6,50,000/ and Term Loan facility of Rs.2,50,000/ for the purchase of sewing machine for his business purpose under Mudra Yojana. The plaintiff bank after due consideration, sanctioned the Cash Credit facility of Rs.6,50,000/ and Term Loan facility of Rs.2,50,000/ to the defendant Firm on 17.08.2021 and accounts were opened on 23.08.2021 in firm's name vide A/c No. 4200008700000430 and 420000SG00000022, and the rate of interest was fixed for 8.20% per annum. It is stated that the defendant also agreed to a penal interest @2% per annum payable by him over and above the normal rate on overdue portion of abovesaid CC facility and Term Loan facility and the defendant agreed to the terms and conditions of the sanction and thereafter, the facility was granted. It is further stated that the defendant executed master agreement and hypothecation of movable assets on 18.08.2021 in favour of plaintiff Bank and also executed hypothecation of current assets and hypothecation of goods and book debts to secure abovesaid loan facilities. 5. It is stated that after sanctioning of the abovesaid CC and Term Loan facilities, on 23.08.2021, defendant requested CS (COMM) No.37/2024 Punjab National Bank vs. Siyaram Creations Page No. 3 of 31 plaintiff Bank through a letter for release of term loan amounting Rs.2,50,000/ as per proforma invoice of value of Rs.2,96,050/ dated 02.08.2021 as he has already paid an amount of Rs.46,050/ to the dealer M/s Samson Sewing Machines Co. through cheque No.000042 dated 05.08.2021 of UCO Bank as advance or margin money. It is also stated that the plaintiff Bank then, disbursed the amount of Term Loan in favour of M/s Samson Sewing Machines Co. through fund transfer on 27.08.2021 vide UTR no.PUNBR52021082714119527 and issued advice v