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JUDGMENT
1. The plaintiff bank has filed this suit under the provisions of
Order XXXVII of the Code of Civil Procedure, 1908 ("CPC") on the basis
of demand promissory note dated 19.09.2015 and loan acceptance letter Civil Suit No. 883/2017
IDBI Bank Ltd. v Umesh Prakash Page No. 1 of 6 dated 19.09.2015, executed between the
plaintiff bank and the defendant. It is prayed in plaint of this suit that a decree be passed in favour
of the plaintiff bank and against the defendant for a sum of Rs.17,900/-
along with costs, pendentelite interest and future interest at the rate of 18% per annum.
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12/25/2018 Idbi Bank Limited vs Sh. Umesh Prakash on 3 August, 2018
Companies Act, 1956; that the plaintiff bank is a banking company within the meaning of Section
5(C) of the Banking Regulations Act, 1949
having its registered office at IDBI Tower, WTC Complex, Cuffe Parade, Mumbai-
400005 and branch office at C3536, Acharya Niketan, Mayur Vihar1, New Delhi-
110091; that this suit has been filed by the plaintiff
bank through Sh. Sudhir Kumar, who is duly authorized to institute, sign and verify this suit on
behalf of the plaintiff bank as per the revised
Delegation of Powers, issued by the plaintiff bank w.e.f. March 2016; that
at the request of the defendant, the plaintiff bank had granted a Rupee
Term Loan/Financial Assistance of Rs.50,000/ to the defendant for the purpose of working capital
under Mudra Loan Scheme of the plaintiff
bank; that in consideration of sanctioning of the aforesaid loan/financial assistance, the defendant
had interalia executed demand promissory
note dated 19.09.2015 and loan acceptance letter dated 19.09.2015 in
favour of the plaintiff bank; that as per the terms of demand promissory
note and the loan acceptance letter dated 19.09.2015, it was interalia
agreed between the plaintiff bank and the defendant that the interest rate Civil Suit No. 883/2017
IDBI Bank Ltd. v Umesh Prakash Page No. 2 of 6
payable by the defendant on the loan/financial assistance amount would
be 11.75% per annum; that upon availing the loan/financial assistance amount of Rs.50,000/, the
defendant had defaulted in repaying the
loan/financial assistance amount, as per agreed terms and conditions; that as on 19.09.2017, a
sum of Rs.17,540/ was payable by the
defendant to the plaintiff bank; that the plaintiff bank had served legal notice dated 16.10.2017
upon the defendant, seeking payment of Rs.17,540/-
along with interest to the plaintiff bank; that despite service
of legal notice dated 16.10.2017, the defendant had not paid Rs.17,540/-
along with interest to the plaintiff bank and that as such, the plaintiff bank is entitled to recover
from the defendant, the principal amount of Rs.17,540/, pre-
litigation interest of Rs.360/, calculated at the rate of
18% per annum, on the principal amount of Rs.17,540/, for the period,
20.09.2017 to 31.10.2017 as well as pendentelite and future interest.
4. I had heard Sh. Parthiv J. Mehta, Ld. Advocate for the Civil Suit No. 883/2017
IDBI Bank Ltd. v Umesh Prakash Page No. 3 of 6 plaintiff bank, on 20.02.2018 and 16.07.2018.
During the hearing on 20.02.2018, the Ld. Advocate for the plaintiff bank had submitted that in
terms of provisions of Order XXXVII, Rule 2(3) of CPC, since no
appearance has been filed by the defendant, the allegations made in the plaint should be deemed
to be admitted by the defendant and the
plaintiff bank should be granted a favourable judgment, forthwith. During
the hearing on 16.07.2018, the Ld. Advocate for the plaintiff bank had abandoned the claim of pre-
litigation interest of Rs.360/.
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12/25/2018 Idbi Bank Limited vs Sh. Umesh Prakash on 3 August, 2018
5. After considering the submissions made by the Ld. Advocate for the
plaintiff bank on 20.02.2018 and 16.07.2018 and perusing the
record of the Court file, I find that this suit has been filed within the period
of limitation against the defendant as the demand promissory note and
loan acceptance letter were executed by the defendant in favour of the plaintiff bank, on 19.09.2015
and this suit has been filed within three
years from 19.09.2015 i.e. on 03.11.2017. Further, I find that this Court has territorial jurisdiction
to entertain this suit because the demand promissory note dated 19.09.2015 and loan
acceptance letter dated 19.09.2015 were executed by the defendant in favour of the
plaintiff bank, within the territorial jurisdiction of this Court. Lastly, I find that the submission made
by the Ld. Advocate for the plaintiff bank on
20.02.2018 is in conformity with the provisions of Order XXXVII, Rule
2(3) of CPC. Order XXXVII, Rule 2(3) of CPC reads as under:
"(3) The defendant shall not defend the suit referred to in subrule (1) unless
he enters an appearance and in default of his entering an
Civil Suit No. 883/2017 IDBI Bank Ltd. v Umesh Prakash Page No. 4 of 6
appearance the allegations in the plaint shall be
deemed to be admitted and the plaintiff shall be
entitled to a decree for any sum, not exceeding the sum mentioned in the summons,
together with interest at the rate specified, if any, up to the date
of the decree and such sum for costs as may be
determined by the High Court from time to time by
rules made in that behalf and such decree may be executed forthwith."
7. In the prayer clause of the plaint of this suit, the plaintiff bank has claimed pendentelite and
future interest at the rate of 18% per annum. In view of the loan acceptance letter
dated 19.09.2015, the plaintiff bank is granted pendentelite interest at the rate of 11.75% per
annum. Further, in view of Order XXXVII Rule 2(3) of CPC, 1908, the
prayer for grant of future interest is declined. Thus, it is ordered that the
plaintiff bank shall only be entitled to pendentelite interest at the rate of 11.75% per annum on the
sum of Rs.17,540/ (Rupees Seventeen Thousand Five Hundred forty Only), from the defendant.
Civil Suit No. 883/2017 IDBI Bank Ltd. v Umesh Prakash Page No. 5 of 6
8. After preparation of decree sheet by the Reader, file shall be consigned to the record room.
JAY
THAREJA
Digitally signed by JAY
THAREJA
Location: East District
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12/25/2018 Idbi Bank Limited vs Sh. Umesh Prakash on 3 August, 2018
Karkardooma Courts, Delhi
Date: 2018.08.03 16:35:44
+0530
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