Allowed¶48

Kingwood Industries Private Limited v. Canara Bank

Karnataka HC24 Jun 2026WP/25962/2025

Case brief

AI extract

What is this about?

Duty of bank to consider customer representation and pass reasoned orders within reasonable time; penal charges/penalty debits in overdraft (OD) account; moulding of reliefs in writ jurisdiction; Canara Bank; Reserve Bank of India; representation dated 11.07.2025 (Annexure-M); four-week timeline for bank's decision; rejection order must carry reasons; matter covered by WP No.25942/2025 (decided 28.10.2025); Kingwood Industries Private Limited; Rs.64,15,521.16; OD Account No.125005337660; Sanction Letter dated 23.01.2024; Karnataka HC Bengaluru; Justice Suraj Govindaraj; writ of certiorari and mandamus.

What did the court decide?

Reliefs moulded: Respondent No.1 directed to consider the representation dated 11.07.2025 at Annexure-M and pass necessary orders within four weeks from the date of receipt of a copy of the order. ¶48

Kingwood Industries Private Limited Vs Canara Bank — Company and Corporate | Karnataka HC (2026)

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NC: 2026:KHC:31621 WP No. 25962 of 2025

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24^TH DAY OF JUNE, 2026

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BEFORE

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THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 25962 OF 2025 (GM-RES)

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BETWEEN:

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Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA

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KINGWOOD INDUSTRIES PRIVATE LIMITED A COMPANY INCORPORATED AND REGISTERED UNDER THE PROVISIONS OF COMPANIES ACT, 2013 CIN:20200KA2013PTC071185 HAVING ITS REGISTERED OFFICE AT: NO.70/1, PRIZM GREYSTONE, UNIT NO.4, MILLERS ROAD, BENGALURU - 560 001 REPRESENTED BY ITS DIRECTOR AND AUTHORISED SIGNATORY MRS. MUBEENA AGED ABOUT 50 YEARS W/O MR FAROOQ ALI KHAN [email protected]

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…PETITIONER

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(BY SRI. SIVARAMAKRISHNAN M. S., ADVOCATE)

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AND:

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CANARA BANK

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(A GOVERNMENT OF INDIA UNDERTAKING) A BANKING COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 AND GOVERNED UNDER THE PROVISIONS OF THE BANKING REGULATIONS ACT, 1949 HAVING ITS BRANCH OFFICE AT:

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2 - NC: 2026:KHC:31621 WP No. 25962 of 2025

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HC-KAR

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NO.86, SPENCERS TOWER, M.G.ROAD, CANTONMENT BRANCH, BENGALURU - 560 001 REPRESENTED BY ITS CHIEF MANAGER [email protected].

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RESERVE BANK OF INDIA A STATUTORY AUTHORITY ESTABLISHED UNDER THE PROVISIONS OF THE RESERVE BANK OF INDIA ACT, 1934 HAVING ITS REGIONAL OFFICE AT: NRUPATHUNGA ROAD, BENGALURU - 560 001 REPRESENTED BY ITS REGIONAL DIRECTOR [email protected].

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…RESPONDENTS

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(BY SRI. VIGNESH S. SHETTY, ADVOCATE FOR R1)

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THIS WP IS FILED PRAYING TO ISSUE A WRIT OF CERTIORARI, ANY OTHER WRIT(S), ORDER(S), RULE(S) OR DIRECTION(S), FOR THE PURPOSE OF QUASHING THE UNAUTHORISED AND ERRONEOUS DEBIT OF PENALTIES, AMOUNTING TO THE SUM OF RS.64,15,521.16 (RUPEES SIXTY FOUR LAKHS FIFTEEN THOUSAND FIVE HUNDRED TWENTY ONE AND SIXTEEN PAISA ONLY), FROM THE PETITIONER'S OD ACCOUNT NO.125005337660 BY RESPONDENT NO.1, CANARA BANK AND ECT.

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING

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'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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3 - NC: 2026:KHC:31621 WP No. 25962 of 2025

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HC-KAR

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CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

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ORAL ORDER

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Petitioner is before this Court seeking for the following

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reliefs:

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" 1. Issue a Writ of Certiorari, any other writ(s), order(s), rule(s) or direction(s), for the purpose of quashing the unauthorised and erroneous debit of penalties, amounting to the sum of Rs.64,15,521.16 (Rupees Sixty Four Lakhs Fifteen Thousand Five Hundred Twenty One and Sixteen Paisa Only), from the Petitioner's OD Account No. 125005337660 by Respondent No.1, Canara Bank;

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2. Issue a Writ of Mandamus, or any other writ(s), order(s), rule(s) or direction(s), directing the Respondent No.1, Canara Bank, to forthwith reverse and refund the sum of Rs.64,15,521.16 (Rupees Sixty Four Lakhs Fifteen Thousand Five Hundred Twenty One and Sixteen Paisa Only) to the Petitioner's OD Account No.125005337660, accompanied by interest at such rate as this Hon'ble Court may, in its judicious discretion, deem fit, commencing from the date of wrongful debit until the date of actual restitution.

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3. Issue a Writ of Mandamus, or any other writ(s), order(s), rule(s) or direction(s), directing Respondent No.1, Canara Bank, to reinstate the full drawing power and operational status of OD Account No.125005337660, in strict adherence to the original Sanction Letter dated 23.01.2024, until such time as any valid and legally permissible alterations are duly communicated and formally assented to;

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4. Issue a Writ of Mandamus, or any other writ(s), order(s), rule(s) or direction(s), directing the Respondent No. 2 / Reserve Bank of India to

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4 - NC: 2026:KHC:31621 WP No. 25962 of 2025

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HC-KAR

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initiate appropriate actions and / or proceedings qua the Respondent No. 1 including but not limited to imposing penalties against the Respondent No.1 for the arbitrary actions in levying the penal charges without any advance notice or intimation to the Petitioner and for violating its own policies and frameworks.

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5. Issue any other appropriate Writ, order, or direction as this Hon'ble Court may deem just and proper in the prevailing facts and circumstances of the instant case, in furtherance of the interests of justice and equity."

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The submission of the learned counsel for the petitioner is that the above matter is covered by the decision dated 28.10.2025 in WP No.25942/2025 and that though there are several reliefs which are sought for in the present petition, the petitioner's interest would be safeguarded if the representation of the petitioner dated 11.07.2025 at Annexure - M is considered by respondent No.1.

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His submission is that the said representation has been submitted, but no orders have been passed. In that view of the matter, being of the opinion that whenever any representation is submitted to a bank, it is required for the bank to consider the same and pass

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5 - NC: 2026:KHC:31621 WP No. 25962 of 2025

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HC-KAR

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necessary orders either accepting the representation or rejecting the same within a reasonable period of time.

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Needless to say, if an order of rejection were to be passed, such order would have to be accompanied by reasons.

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This Court passes the following:

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ORDER

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i. Writ petition is allowed .

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ii. The reliefs sought for are moulded.

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iii. Respondent No.1 is directed to consider the representation dated 11.07.2025 at Annexure-M and pass necessary orders within four weeks from the date of receipt of a copy of this order.

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Sd/(SURAJ GOVINDARAJ) JUDGE

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TMP, List No.: 1 Sl No.: 38

Kingwood Industries Private Limited v. Canara Bank

Case brief

What is this about?

What did the court decide?

Kingwood Industries Private Limited v. Canara Bank

Case brief

What is this about?

What did the court decide?

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