Dismissed¶33

P.M.Ganesan, v. The Branch Manager

Madras HC4 Mar 2025WA(MD)/1437/2022

Case brief

AI extract

What is this about?

Pandiyan Grama Bank; jewel loan; pledge redemption; retention of pledged jewels; general lien; agricultural loan default; auction of pledged jewels; writ appeal dismissed; no costs; W.A.(MD)No.1437 of 2022; C.M.P.(MD)No.11565 of 2022; Clause XV Letters Patent; Article 226 Constitution of India; Madurai Bench of Madras High Court; G.R.Swaminathan J.; M.Jothiraman J.; 04.03.2025; Sivagangai District; Thiruppuvanam Branch.

What did the court decide?

None; writ appeal dismissed with no costs and the connected miscellaneous petition (C.M.P.(MD)No.11565 of 2022) closed. ¶33

P.M.Ganesan, Vs The Branch Manager — Writ and Judicial Review | Madras HC (2025)

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W.A.(MD)No.1437 of 2022

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED : 04.03.2025

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CORAM

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THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN and THE HONOURABLE MR.JUSTICE M.JOTHIRAMAN

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W.A.(MD)No.1437 of 2022 and C.M.P.(MD)No.11565 of 2022

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P.M.Ganesan ... Appellant / Petitioner

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Vs.

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The Branch Manager,, Pandiyan Grama Bank, Thiruppuvanam Branch, Sivagangai District.

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... Respondent / Respondent

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Prayer : Writ Appeal filed under Clause XV of Letters Patent, to allow the writ appeal and set aside the order dated 01-11-2022 in W.P.(MD).No.1598 of 2016 on the file of this Court.

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For Appellant : Mr.T.Palanisamy

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For Respondent : Mr.N.Dilip Kumar, Standing Counsel.

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1/5

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https://www.mhc.tn.gov.in/judis

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W.A.(MD)No.1437 of 2022

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JUDGMENT (Judgment of the court was delivered by G.R.Swaminathan, J.)

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Heard both sides.

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2.The appellant had three transactions with the respondent bank. Two were agricultural loan accounts while the third one was jewel loan account. Admittedly, the appellant was a defaulter in respect of the agricultural loan accounts. He wanted to redeem the jewels alone. The bank informed the appellant that he has to clear all the loans. While the appellant was welcome to clear the jewel loan account, the pledged items will not be returned. In other words, the bank stated that they would have lien over the jewels pledged by the appellant. Subsequently, the jewels were brought to auction. Challenging the same, the appellant filed W.P.(MD)No.1598 of 2016. The writ petition was dismissed on

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01.11.2022 in the following terms:-

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“8.Even as per the admitted case of the writ petitioner, the petitioner has borrowed two agricultural loans and the loan in dispute namely the jewel loan. As rightly contended by the learned counsel for the respondent Bank, the Bank is entitled to

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2/5

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https://www.mhc.tn.gov.in/judis

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W.A.(MD)No.1437 of 2022

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have a general lien over the jewels that were pledged by the writ petitioner not only for the payment of the jewel loan but also for the other loans borrowed from the same Bank. Hence, in view of the said legal submission, this Court is of the opinion that even if the jewel loan is repaid by the writ petitioner, the respondent Bank would be entitled to retain the jewels as a security unless and until the other two loans are settled by the writ petitioner. The notice impugned in the writ petition just informed the petitioner that he has to pay the principal and interest within a period of 7 days in order to redeem the jewel. This Court does not find any illegality or infirmity in the said notice issued by the respondent Bank. Since the petitioner has not paid the jewel loan, the respondent Bank is legally entitled to issue such a notice.

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9.In view of the above said legal position and non payment of jewel loan, the order impugned in the writ petition is perfectly legal and no grounds have been made out by the writ petitioner for interference by this Court under Article 226 of Constitution of India.”

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Questioning the same, this writ appeal came to be filed.

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3.When the matter was taken up for hearing, the learned standing counsel for the bank submitted that the auction was held on 29.11.2022

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https://www.mhc.tn.gov.in/judis

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3/5

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W.A.(MD)No.1437 of 2022

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and that the jewels pleaded by the appellant have since been sold in auction. Therefore, nothing survives for further adjudication in this writ appeal.

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4.We also have to observe that the reasons assigned by the learned Single Judge are sound in law. Interference is not warranted. The writ appeal is dismissed. No costs. Consequently, connected miscellaneous petition is closed.

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(G.R.S. J.,) & (M.J.R. J.,) 04.03.2025

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NCC : Yes/No Index : Yes / No Internet : Yes/ No ias

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4/5

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https://www.mhc.tn.gov.in/judis

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W.A.(MD)No.1437 of 2022

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G.R.SWAMINATHAN, J. and M.JOTHIRAMAN, J.