Petitioner challenged loan term alterations by housing finance company under Article 226. Court dismissed petition holding loan repayment a matter of contract beyond judicial review. Court directed petitioner to seek redress from RBI or DRT.
Petitioner directed to approach Reserve Bank of India or Debt Recovery Tribunal for redressal.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
W.P(MD)No.19277 of 2023
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 28.08.2024
CORAM :
THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN and THE HONOURABLE MRS.JUSTICE L.VICTORIA GOWRI
W.P(MD)No.19277 of 2023 and
WMP(MD)No.15973 of 2023
A.Jayalakshmi
... Petitioner
vs.
India Bulls Housing Finance Ltd., 16 & 17, Shop No.A2, 3rd Floor, KRV Arcade, AR Plaza, Northveli Street, Madurai-625001.
Page No.1 of 5
W.P(MD)No.19277 of 2023
(R3 is suo motu impleaded vide Court order dated 11.09.2023 in WP(MD)No.19277/23)
... Respondents
Prayer : Petition filed under Article 226 of the Constitution of India, to issue a Writ of Mandamus, directing the 1st respondent to Reschedule the Repayment Schedule in respect of Housing Loan Account Number HHETRI00397267 according to the RBI Guidelines with regard to Rate of Interest and Tenure.
For Petitioner : Mr.N.Mohan For R1 : Mr.N.Dilip Kumar For R2 : Mr.K.R.Laxman
ORDER
( Order of the Court was made by R.SUBRAMANIAN, J.)
It is the grievance of the petitioner that the 1st respondent which is a non banking financial institution, has altered the terms of the loan agreement without notice and has extended the period of loan apart from increasing the equated monthly instalments.
respondent financial institution would submit that the increase in the interest rate as well as the EMI is due to the fact that the petitioner has opted for
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W.P(MD)No.19277 of 2023
floating rate of interest which changes according to the basic lending rate prescribed by the Reserve Bank of India. Once the interest rate increases, there is bound to be an increase in the EMI as well as an enlargement of the repayment time. The enlargement of the repayment time is essentially a consequence of the increase in the rate of interest. He would also submit that these are matters of contract and the same cannot very conveniently be adjudicated upon under Article 226 of the Constitution of India.
enter upon the said controversy. Repayment of loan is essentially a matter of contract and once the petitioner agrees or opts for fluctuating rate of interest, as rightly pointed out by the learned counsel for the financial institution, the interest is bound to increase or decrease.
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W.P(MD)No.19277 of 2023
ground that the controversy is beyond the judicial review under Article 226 of the Constitution of India. We leave it open to the petitioner to approach the appropriate authority namely, the Reserve Bank of India or the concerned Debts Recovery Tribunal seeking redressal of his grievances. We make it clear that we have not dealt with the controversy on merits and whatever the facts we have stated herein, are only submissions of the counsels on either side. No costs. Consequently, connected miscellaneous petition is closed.
(R.S.M, J.) (L.V.G, J.) 28.08.2024
Index : Yes / No Neutral Citation : Yes / No bala
To
The Reserve Bank of India, Fort Glacis, 16, Rajaji Road, Fort St.George, Chennai, Tamil Nadu-600 001.
Page No.4 of 5
W.P(MD)No.19277 of 2023
R.SUBRAMANIAN, J. and L.VICTORIA GOWRI, J.
bala
ORDER MADE IN W.P(MD)No.19277 of 2023 DATED : 28.08.2024
https://www.mhc.tn.gov.in/judis Page No.5 of 5
1 issue framed by the court
Whether the court can exercise jurisdiction under Article 226 of the Constitution to adjudicate upon a private banking contract dispute regarding interest rates and loan terms.
A.Jayalakshmi
The Branch Manager, India Bulls Housing Finance Ltd.
Reliance General Insurance Company Limited
The Reserve Bank of India
R.Subramanian
L.Victoria Gowri
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
