Partly allowed

Gsnesan Builders Private Limited v. Bank of Baroda

Madras HC21 Dec 2024C.S(COMM DIV)/106/2022

Case brief

AI extract

What is this about?

Suit by a builder against its bank challenging appropriation of Rs.32,71,412/- from fixed deposit proceeds towards refund of concessional interest after it shifted accounts to another bank. The court held the bank could not unilaterally revise sanction terms without breach, decreed refund with 12% interest and costs of Rs.3,50,000, but rejected the damages claim.

What did the court decide?

Refund of Rs.32,71,412 with 12% per annum interest from date of plaint till realisation and costs of Rs.3,50,000.

Gsnesan Builders Private Limited Vs Bank of… — Contract and Commercial Disputes | Madras HC (2024)

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2024:MHC:4212

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C.S.(Comm.Div.) No.106 of 2022

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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Judgment Reserved on 01.10.2024 Judgment Pronounced on 21.12.2024

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CORAM

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THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY C.S(Comm. Div.)No.106 of 2022

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Ganesan Builders Private Limited, Represented by its Director, R.Karthik Narayanan, No.46-A, C P Ramaswamy Road, Abhiramapuram, Chennai-600 018. (Amended as per order dated 26.04.2023 in A.No.2507/2023) ... Plaintiff

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vs.

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Bank of Baroda, Represented by its Branch Manager, Mylapore Branch, No.101, Luz Church Road, Chennai-600 004. ... Defendant 1/30

*Exhibits*	*Document*	s
Ex.P1	The photocopy of the R No.IECD/5/08.12.01/2000-01 (Admitted bythe defendant)	BI circular bearing dated 16.10.2000.
Ex.P2	The printout of the letter re from the defendant sanctio credit facility limit of the plai (Admitted bythe defendant)	ceived through email ning the increase in ntiff dated 04.04.2018.
Ex.P3	The photocopy of the letter plaintiff dated 09.04.2019.(Co	from ICICI bank to mpared with original)
Ex.P4	The photocopy of the letter plaintiff dated 16.05.2019. defendant)	from ICICI bank to (Admitted by the
Ex.P5	The photocopy of the renewal defendant to the plaintif	sanction letter by the f dated 27.05.2019.

*Exhibits*	*Documents*
	(Admitted bythe defendant)
Ex.P6	The photocopy of the letter from 1CICI bank to plaintiff dated 19.06.2019.(Compared with original)
Ex.P7	The photocopy of the letter from the plaintiff to the defendant regarding closure of credit limits dated 13.11.2019.(Admitted bythe defendant)
Ex.P8	The photocopy of the letter dated 12.07.2019 duly received from the defendant to the plaintiff regarding sanction of concession dated 21.11.2019. (The counsel for the defendant has admitted the execution but denied the date of receipt)
Ex.P9	The photocopy of the letter from the defendant to the plaintiff regarding withdrawal of concession and refund of concession granted dated 02.12.2019. (Admitted bythe defendant)
Ex.P10	The photocopy of the reply letter from the plaintiff to the defendant's letter dated 02.12.2019 regarding refund of concession dated 03.12.2019. (Admitted bythe defendant)
Ex.P11	The photocopy of the letter from the plaintiff to the defendant requesting to release the company's property documents held as collateral dated 05.12.2019.(Admitted bythe defendant)
Ex.P12	The photocopy of the reply letter from the defendant to the plaintiff requesting to provide FDR for the concession granted for release of property documents dated 17.12.2019. (Admitted bythe defendant)
Ex.P13	The photocopy of the letter from the plaintiff to the defendant requestingto release theplaintiff

*Exhibits*	*Documents*
	company's property documents held as collateral dated 18.12.2019. (The learned counsel for the defendant has objected to mark on the ground that it is a photocopy document and agreed to mark subject toproof and relevancy)
Ex.P14	The photocopy of the letter from the defendant stating No objection regarding taking over by ICICI bank dated 31.12.2019.(Admitted bythe defendant)
Ex.P15	The photocopy of the letter from the defendant to ICICI bank regarding release of 2 out of 4 title deeds dated 07.01.2020. (Admitted by the defendant)
Ex.P16	The photocopy of the letter from the defendant to the plaintiff regarding refund of concessions dated 28.01.2020. (The learned counsel for the defendant has admitted the execution and denied the date of receipt.)
Ex.P17	The photocopy of the letter from the plaintiff to the defendant regarding release of rest of the 2 properties dated 29.01.2020. (Admitted by the defendant)
Ex.P18	The photocopy of the letter from the plaintiff to the defendant regarding release of rest of the 2 properties dated 04.02.2020. (Admitted by the defendant)
Ex.P19	The photocopy of the letter dated 19.02.2020 from the plaintiff to the defendant regarding improper recovery & release of the two properties and canceling the existing mortgage of the four properties dated 07.02.2020.(Learned counsel for

*Exhibits*	*Documents*
	the defendant has objected to mark but agreed to mark, subject toproof and relevancy)
Ex.P20	The photocopy of the reply letter from the defendant to the plaintiffs letter dated 07.02.2019. (Admitted bythe defendant)
Ex.P21	The photocopy of the letter from the plaintiff to the defendant's compliance office regarding lifting of lien over deposits to the extent of Rs.32,71,412/- dated 07.05.2020. (Learned counsel for the defendant has objected to mark and agreed to mark, subject toproof and relevancy)
Ex.P22	The photocopy of the reply letter received through email from the defendant to the plaintiff for email dated 14.05.2020.(Admitted bythe defendant)
Ex.P23	The photocopy of the reply letter by the defendant to the plaintiff for letters dated 07.05.2020 and 14.05.2020 sent on 04.07.2020. (Admitted by the defendant)
Ex.P24	The photocopy of the reply letter from the defendant to the plaintiff dated 09.07.2020. (Admitted bythe defendant)
Ex.P25	The photocopy of the complaint filed by the plaintiff against the defendant to the banking ombudsman dated 26.10.2020. (Admitted by the defendant)
Ex.P26	The printout of the email from Reserve Bank of India to the plaintiff regarding acknowledgment of the complaint dated 05.11.2020. (Admitted by the defendant)
Ex.P27	Theprintout of the email from theplaintiff to

*Exhibits*	*Documents*
	Reserve Bank of India regarding status of the complaint dated 02.01.2021. (Admitted by the defendant)
Ex.P28	The printout of the email regarding rejection of the complaint from Banking ombudsman to the plaintiff dated 22.04.2021. (Admitted by the defendant)
Ex.P29	The office copy of the application No.PIMS4 of 2022 filed before Tamil Nadu State Legal Services Authority dated 04.02.2022. (Admitted by the defendant)
Ex.P30	The original Non - Starter Report issued by Tamil Nadu State Legal Services Authority. (Admitted by the defendant)
Ex.P31	The printout of the certificate of Incorporation of plaintiff company dated 25.03.2022. (Admitted by the defendant) (65B affidavit is filed for Ex.P2, Ex.P26, Ex.P27, Ex.P28 and Ex.P31)

*Exhibits*	*Documents*
Ex.D1	The copyof the letter dated 12.07.2019.
Ex.D2	The copyof the communication dated 27.02.2020.
Ex.D3	The photocopy of the sanction letter for renewal dated 27.05.2019. (The counsel for the plaintiff has agreed to mark this document)

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What did the court decide?

What is this about?

What did the court decide?

What the court decided

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