Hearing the writ petition seeking direction to a bank to disburse a Rs. 50 lakh loan under the MSME scheme, the court held that since the account is declared NPA, the bank is not bound to sanction, and the petition is dismissed.
Petitioner not entitled to mandamus; loan sanction/disbursement not ordered.
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 8TH DAY OF DECEMBER, 2023
BEFORE
THE HON'BLE MR. JUSTICE K. V. ARAVIND
WRIT PETITION NO. 13058 OF 2021 (GM-RES)
BETWEEN:
D.NO.12/22, JUMMA MASJID STREET, BELLARY - 583 101.
…PETITIONER
(BY SRI. M. M. ASHOKA., ADVOCATE)
AND:
Digitally signed by VINUTHA B S Location: High Court of Karnataka
…RESPONDENTS
(BY SRI POOJAPPA J., ADVOCATE FOR R1; SRI C. VINAY SWAMY, ADVOCATE FOR R2; R3 SERVED)
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT R2 TO DISBURSE THE LOAN TO THE PETITIONER AS PER ANNEXURED.
THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
The petitioner has preferred this petition seeking direction to respondent No.2 to disburse loan of Rs.50.00 lakhs in terms of Annexure-D.
NPA. The petitioner is not entitled for any additional loan. Learned counsel further submits that the writ petition is not maintainable against respondent No.2 that too for sanction and disbursement of loan, which is subject to compliance of certain conditions.
any mandamus as sought for. Hence, writ petition is dismissed.
MV, List No.: 1 Sl No.: 27
Sd/JUDGE
1 issue framed by the court
Whether a bank is bound to issue a writ of mandamus to sanction and disburse an additional loan under the MSME scheme when the borrower's account is declared NPA.
M/s Sangamesha Denim Point
Union of India, Ministry of Finance
City Union Bank
Reserve Bank of India
K. V. Aravind
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
