Satish Kumar Sharma S/o Sh. Lala Ram Sharma R/o F3/813 B, Block F3 Sangam Vihar, Delhi 110062 ................. Defendant Date of Institution : 10.03.2022 Date of Arguments : 24.04.2024 Date of Judgment : 15.05.2024 JUDGMENT 1. This is suit for recovery of Rs. 6,12,417.22/ (Rs. Six Lacs Twelve Thousand Four Hundred Seventeen and Twenty Two Paisa only) filed by plaintiff against the defendant on the facts CS (Comm) No. : 192/2022 1/11 that defendant had availed credit facilities from Syndicate Bank. Pursuant to gazette notification no. CGDLE04032020216535 dated 04.03.2022, Syndicate Bank had been amalgamated with Canara Bank under section 9 of the Banking Companies Act. 2. As stated, on 08.10.2015, defendant approached the plaintiff bank for availing loan facility under MSME for sum of Rs. 5,27,000/ to purchase a vehicle for taxi purpose, which was sanctioned vide sanction letter dated 28.10.2015. Requisite documents i.e. receipt of payment, composite hypothecation of vehicle etc. 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 29.06.2017 and despite vigorous follow up and persuasion, regularization of account could not be affected on the part of defendant. On 21.01.2019, defendant visited the bank and provided a signed Acknowledgment of Debt dated 21.01.2019 and made false promise to regulate his acocunt thereafter. However, due to repeated failure in payment by defendant, plaintiff bank left with no choice reposessed the vehicle, which was thereafter auctioned and sold on 22.01.2020 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. 73,154/. Even` after adjustment of said amount of Rs. 73,154/, as on 31.10.2021, loan account of defendant showed debit balance of Rs. 6,12,417.22, which defendant failed to clear despite repeated requests and reminders. CS (Comm) No. : 192/2022 2/11 3. 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. 4. In written statement filed on behalf of defendant, it was stated that defendant had taken loan of Rs. 5,27,000/ from the plaintiff for purchase of a vehicle for taxi purpose and after sanction of the said loan, defendant was regularly paying the monthly installments to the plaintiff and had deposited approximately half of the loan amount i.e. Rs. 2,50,000/ but due to Pandemic of covid19, defendant was facing financial crisis and due to the same, he was unable to pay regularly monthly installments to the plaintiff. Plaintiff through their agents forcibly took the vehicle and thereafter, after conversation between the parties, plaintiff provided 'No Objection Certificate' to defendant on 22.01.2020. It was further submitted that after receipt of 'No objection Certificate', plaintiff sold the said vehicle to third party without consent and prior intimation/information to the defendant. Defendant was informed that plaintiff has recovered the balance loan amount by selling the said vehicle but thereafter defendant was shocked to know that plaintiff has filed the instant suit against him. 5. In replication, contents of written statement were denied and those of plaint were reiterated and reaffirmed. 6. Following issues were framed vide order dated 07.03.2023: (1) Whether the plaintiff is entitled for recovery of suit amount, as prayed for? OPP CS (Comm) No. : 192/2022 3/11 (2) Whether plaintiff is entitled to the interest? If so, at what rate and for which period? OPP (3) Relief 7. In support of its case plaintiff examined its AR/Man