Partly allowed

Ajay Kumar Mohanty v. Citicorp Finance India Ltd.,Bm,Bbsr

Orissa HC11 Apr 2023WP(C)/3766/2018

Case brief

AI extract

What is this about?

Petitioner challenged the failure of Citicorp Finance to issue a No Objection Certificate despite full repayment. The Court directed the petitioner to pay Rs. 50,000 as overdue charges, after which the finance company must issue the certificate.

What did the court decide?

Petitioner directed to pay Rs. 50,000 as overdue amount within one week; upon payment, opposite party must issue 'No Objection Certificate' for loan closure.

Ajay Kumar Mohanty Vs Citicorp Finance India… — Contract and Commercial Disputes | Orissa HC (2023)

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IN THE HIGH COURT OF ORISSA AT CUTTACK W.P(C) No.3766 of 2018

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Ajay Kumar Mohanty

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…. Petitioner Mr.S.K.Rout, Adv.

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-versus-

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…. Citicorp Finance India Ltd. Opposite Party B.M., BBSR & Another. Mr.R.K.Mohapatra, Adv. for Bank

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CORAM:

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DR. JUSTICE S.K. PANIGRAHI

Order No.

ORDER

11.04.2023

1 . This matter is taken up through hybrid arrangement.

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2. Heard learned counsel for the petitioner and learned counsel for the Bank.

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3. The petitioner has filed this writ petition challenging the action of the opposite party/Finance Company in not issuing the No Objection Certificate even after payment of all installments.

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4. Learned counsel for the petitioner submits that the petitioner had availed a loan of Rs.9,75,000/- at the rate of interest 15.01% and EMI was fixed at Rs. 27563/- per month. The loan amount was to be paid of Rs.12,95,461/by way of 47 monthly EMIs. /- However, due to failure in business and ill health of the family members of the petitioner, the petitioner paid all installments in total of

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Rs.12,95,589/but delay in making payment of instalment, the opposite party No.1/Finance Company charged additional charges of Rs.1,18,701/- and not issuing the “No Objection Certificate” for closure of the loan account which is illegal. Hence, the petitioner has been constrained to approach this Court for the aforesaid relief.

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5. Learned counsel for the opposite party No.1/Finance Company submits that the company is dealing with public service within the meaning of the Banking Regulation Act and directly under the supervision of the Reserve Bank of India/opposite party No.2. As per statement of the loan amount as reflected in Annexure-2 has been overdue amount of Rs. Rs.1,18,701. 63 Paise as on 1^st April, 2017. Due to non-payment of such amount, the opposite party No.1 has not issued “No Objection Certificate” in favour of the petitioner showing the closure of the loan account.

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6. However, as per instruction, learned counsel appearing for the opposite party No.1 submits that the Finance Company has agreed to waive some part of the overdue charges. On the other hand, the petitioner is also agreed to pay Rs.50,000/- as overdue charges.

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7. Taking into the above facts and submissions made, the petitioner is directed to pay Rs.50,000/-(rupees fifty

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thousand)only as overdue amount within one week hence and upon payment of the said amount, the opposite party No.1/Citicorp Finance India Limited shall issue “No Objection Certificate” in respect of the above loan.

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8. With the above observation, the writ petition(civil) stands disposed of.

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9. Issue urgent certified copy of the order as per Rules.

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(Dr. S.K. Panigrahi)
Judge
LB

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Ajay Kumar Mohanty v. Citicorp Finance India Ltd.,Bm,Bbsr

Case brief

What is this about?

What did the court decide?

Ajay Kumar Mohanty v. Citicorp Finance India Ltd.,Bm,Bbsr

Case brief

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What did the court decide?

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