Disposed

Sri Gundu Rao D a v. State Bank of India

Karnataka HC13 Oct 2023WP/489/2023

Case brief

AI extract

What is this about?

Banking dispute where petitioners borrowed funds and fully repaid the loan with interest during proceedings. The court held a closed loan does not justify further charges, dismissing the bank's demand for recovery commission and ordering return of title documents.

What did the court decide?

Disposal of writ petition with direction to respondent bank to hand over original title documents within two weeks.

Sri Gundu Rao D a Vs State Bank of India — Contract and Commercial Disputes | Karnataka HC (2023)

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NC: 2023:KHC:37500 WP No. 489 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 13^TH DAY OF OCTOBER, 2023

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BEFORE

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THE HON'BLE MR JUSTICE R DEVDAS WRIT PETITION NO. 489 OF 2023 (GM-RES)

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BETWEEN:

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SRI GUNDU RAO D A S/O LATE D V AHOBALA RAO AGED ABOUT 75 YEARS

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SMT B G SHOBHA KIRAN W/O D A GUNDU RAO AGED ABOUT 70 YEARS

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SRI ASHWINI G DESHPANDE S/O D A GUNDU RAO AGED ABOUT 36 YEARS

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Digitally signed by JUANITA THEJESWINI Location: HIGH COURT OF KARNATAKA

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ALL ARE RESIDING AT NO 22/7 M G K MURHTY LAYOUT CHAMRAJAPET, BENGALURU - 560018

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…PETITIONERS (BY SRI. ANAND M SHOLAPURMATH, ADVOCATE)

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AND:

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STATE BANK OF INDIA (ERSTWHILE STATE BANK OF MYSORE) RETAIL ASSETS CENTRAL PROCESSING CENTRE- 1 NO 13/1, BULL TEMPLE ROAD

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NC: 2023:KHC:37500 WP No. 489 of 2023

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OPP RAMAKRISHNA ASHRAM BASAVANAGUDI BENGALURU - 560004 REP BY ITS AUTHORIZED OFFICER

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…RESPONDENT

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(BY SRI. B.N.TULSI KUMAR, ADVOCATE)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE DATED 29.12.2022 VIDE ANNEXURE -J, ISSUED BY THE RESPONDENT AND DISCHARGE THE LOAN AMOUNT DUE TO THE RESPONDENT BANK AND ETC.,

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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R.DEVDAS J., (ORAL)

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The petitioners who had borrowed a sum of Rs.14,83,000/- from the respondent Bank on 06.08.2011 and two other loan, in all borrowed a sum of Rs.56,83,000/- and repaid the entire loan amount along with accrued interest to the respondent bank during the course of these proceedings. However, after repayment of the entire loan amount along with accrued interest, the respondent has once again called upon the petitioner to pay 5% interest as commission for recovery of the amount

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NC: 2023:KHC:37500 WP No. 489 of 2023

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and towards the expenses incurred by the respondent bank for initiating proceedings against the petitioners in all a sum of Rs.2,89,400/- is required to be paid by the petitioners for that purpose.

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Learned counsel for the petitioners has drawn the attention of this court to a communication dated 03.04.2023 made by the Chief Manager of the respondent Bank clearly stating that the home loan account of the petitioners have been fully recovered and closed with upto-date interest on 03.04.2023. Therefore, the learned counsel submits that the respondent bank should be directed to release the original documents tendered by the petitioners while not insisting upon the payment of the commission or interest on commission as sought for by the respondent bank.

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The submission of the learned counsel is accepted. When once the loan account of the petitioners has been duly closed after receipt of the entire outstanding loan amount along with accrued interest, the respondent bank cannot call upon the petitioners to pay other charges

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NC: 2023:KHC:37500 WP No. 489 of 2023

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incurred towards the expenses for initiating proceedings against the petitioners.

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With these observations, the writ petition stands disposed of while directing the respondent bank to hand over the original documents of title tendered by the petitioners towards the loan account borrowed by the petitioners in view of the closure of the loan account. The time for compliance is two weeks.

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Ordered accordingly.

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Sd/JUDGE

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KLY CT: JL

Sri Gundu Rao D a v. State Bank of India

Case brief

What is this about?

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Sri Gundu Rao D a v. State Bank of India

Case brief

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