Allowed

Shajimon George. v. the Branch Manager South Indian Bank.

Kerala HC18 Dec 2023WP(C)/17908/2023

Case brief

AI extract

What is this about?

The court allowed this petition regarding a gold loan where the bank refused release of pledged ornaments due to a general lien for another overdue loan. The court mandated valuation of the gold and release upon payment of the ascertained value less prior interim payments.

What did the court decide?

Petitioner granted liberty to obtain gold valuation, remit the ascertained value less Rs.70,000/- paid, and obtain release of pledged gold ornaments.

Shajimon George. Vs the Branch Manager South… — Contract and Commercial Disputes | Kerala HC (2023)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN

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MONDAY, THE 18^TH DAY OF DECEMBER 2023 / 27TH AGRAHAYANA, 1945 WP(C) NO. 17908 OF 2023

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PETITIONER:

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SHAJIMON GEORGE, AGED 52 YEARS S/O GEORGE MANNARAKATTU HOUSE EDAPPADY POST BHARANANGANAM KOTTAYAM., PIN - 686578

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BY ADV JOSEPH T.JOHN

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RESPONDENT:

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THE BRANCH MANAGER SOUTH INDIAN BANK, BHARANANGANAM BRANCH BHARANANGANAM KOTTAYAM DISTRICT- 686578.

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BY ADV P.A.AUGUSTINE(AREEKATTEL)

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 17908 OF 2023

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JUDGMENT

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The petitioner concedes that he had availed of a gold loan from the respondent - Bank and that some amounts are due therein. He says that he is willing to pay off the said amounts and seeks that the pledged gold ornaments be directed to be returned to him; but points out that this has already been refused by the Bank by issuing Ext.P4, asking him to pay a further amount of Rs.1,25,196.50. He asserts that this is illegal and unlawful; and therefore, prays that Ext.P4 be quashed and the Bank be directed to allow him to pay the balance amount in the loan and get back the pledged gold ornaments.

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However, in response to the afore submissions of the petitioner, as made by his learned counsel - Sri.Joseph T.John, the learned standing counsel for the Bank – Sri.P.A.Augustine, submitted that, though the balance in the loan account is merely Rs.77,493/-, out of which Rs.70,000/- has already been paid by the petitioner under the earlier interim orders of this Court, the pledged gold ornaments cannot be released to him, even if the said account is to be closed by payment of the

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WP(C) NO. 17908 OF 2023

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balance Rs.7,493/-, as available today, because the Bank has registered a general lien, under Section 171 of the Contract Act, over it on account of another loan availed of by the petitioner, in which there is a total overdue of Rs.19,28,392/-, as on 12.12.2023. He, however, offered that if the petitioner is willing to pay the market value of the gold, the same can be released to him, after reducing the amount of Rs.70,000/-, which have already been paid by the petitioner, as per the interim order of this Court.

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Sri.Joseph T.John acceded to the afore suggestion of Sri.P.A.Augustine.

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In the afore circumstances, this writ petition is allowed in the following manner:

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(a) The petitioner is granted liberty to approach the Bank and obtain the valuation of the pledged gold. If this is done within a period of one week from the date of receipt of a copy of this judgment, the same shall be intimated to him by the Bank within a period of two days thereafter.

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(b) The petitioner will, thereupon, be at liberty to remit the value so ascertained by the Bank, after reducing

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WP(C) NO. 17908 OF 2023

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Rs.70,000/- which he has already paid under the orders of this Court, within a period of two days thereafter.

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the pledged gold ornaments to the petitioner, on proper receipt.

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Needless to say, if the petitioner is to default payment, or refuse/fail in compliance of the afore directions, then the Bank will be at full liberty to initiate such recovery action as may be available to them in terms of law, without having to obtain further orders from this Court.

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Sd/- DEVAN RAMACHANDRAN

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JUDGE

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stu

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WP(C) NO. 17908 OF 2023

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APPENDIX OF WP(C) 17908/2023

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PETITIONER EXHIBITS

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Exhibit-P1 A TRUE COPY OF THE GOLD LOAN RECEIPT DATED 18.03.2021 Exhibit-P2 A TRUE COPY OF THE NOTICE ISSUED BY THE RESPONDENT TO THE PETITIONER DATED 06.05.2023 Exhibit3 A TRUE COPY OF THE LETTER DATED 12.05.2023 FILED BY THE PETITIONER TO THE RESPONDENT Exhibit-P4 A TRUE COPY OF THE REPLY DATED 15-5-2023 ISSUED BY THE RESPONDENT TO THE PETITIONER

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RESPONDENT EXHIBITS

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Exhibit R-1(a) Relevant pages of the circular dtd. 0104-2023 issued by the Reserve Bank of India. Exhibit R-1(b) Gold Loan Agreement dtd. 18-03-2021 executed by the Petitioner.

Shajimon George. v. the Branch Manager South Indian Bank.

Case brief

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Shajimon George. v. the Branch Manager South Indian Bank.

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