Disposed

Ramkrit Ram v. The State Bank Of India Through The General Manager and Ors.

Patna HC9 Dec 2013CWJC/13539/2012

Case brief

AI extract

What is this about?

Petitioner challenged default in insuring his deceased wife's loan with SBI via writ. Court found no liability unless contract mandated it. Directs bank to agree on easy installments if petitioners gives undertaking; bank to pay back interest wrongly debited for failed premium.

What did the court decide?

Bank advised to fix easy installments for liquidation; no coercive action on default of such installments; 10% interest on debited premium to be paid back.

Ramkrit Ram Vs The State Bank Of India… — Contract and Commercial Disputes | Patna HC (2013)

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IN THE HIGH COURT OF JUDICATURE AT PATNA

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Civil Writ Jurisdiction Case No.13539 of 2012

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====================================================== Ramkrit Ram, Son of Late Bindeshwar Paswan, Resident of Mohalla Shekhpura, Police Station Sherghati, District Gaya .... .... Petitioner Versus 1. The State Bank of India through the General Manager (Network), S.B.I. Local Head Office, West Gandhi Maidan, Patna-800001 2. The Regional Manager, State Bank of India, Regional Business Office, Gaya Main Branch Building (Third Floor), Gaya-823001 3. The Branch Manager, State Bank of India, Sherghati Branch, District Gaya. 4. The Branch Manager, State Bank of India Life Insurance, Sherghati, Gaya. 5. The Branch Manager, State Bank of India Life Insurance, New Dak Bungalow Road, Patna-1 .... .... Respondents ====================================================== Appearance : For the Petitioner : Mr. Prashant Kashyap, Advocate For Respondent-SBI : Mr. Kaushlendra Kumar Sinha Mr. Anjani Kumar Mishra, Advocates For S.B.I. Life Insurance: Mr. Anil Kumar Singh No.6, Advocate ====================================================== CORAM: HONOURABLE MR. JUSTICE JAYANANDAN SINGH ORAL ORDER

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5 09-12-2013 Learned counsel for the petitioner submits that the loanee i.e. wife of petitioner died after taking loan from the State Bank of India. At the time of sanctioning of loan, she was made to understand by some personnel of the Bank that she will be insured with the State Bank of India Life Insurance Company for which signature of the loanee was also obtained on some papers. He submits that at one point of time amount of one time premium for the insurance was also debited from the loan account. However, later on it transpired that insurance papers were not sent to the Insurance Company and the amount was credited back in

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Patna High Court CWJC No.13539 of 2012 (5) dt.09-12-2013

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the account.

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Leaned counsel for the petitioner submits that had the loanee been insured, on her death, petitioner would have got some amount, from which he could liquidate the loan of the bank. However, he submits that after receiving notice under Section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, petitioner has deposited some amount of the loan and he is ready to liquidate the remaining dues without prejudice to the petitioner to take appropriate steps in accordance with law for fault on the part of the concerned personnel who defaulted in getting the deceased insured in time.

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It may be a hard case but unless there was any clause in the agreement fastening responsibility on the Bank to get the loanee insured, this Court is not in a position to issue any writ to the Bank in the matter. Since petitioner is now ready to liquidate the remaining dues of the Bank, considering facts and circumstances of the case, Bank is advised to fix up easy instalment for the petitioner to liquidate its dues. For this, petitioner shall approach the concerned Branch Manager of the Bank within two weeks, upon which instalments shall be fixed for liquidating the remaining dues and, if petitioner gives undertaking

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Patna High Court CWJC No.13539 of 2012 (5) dt.09-12-2013

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in writing to pay the instalments in time, Bank shall not take any coercive action till he defaults in payment of the instalments. This will also be without prejudice to the right of petitioner to take steps in accordance with law for alleged default by the Bank in getting wife of petitioner insured and also without prejudice to his right to file an application for getting the matter referred for arbitration in terms of clauses (i) and (n) of the Memorandum of Term Loan Agreement, as contained in Annexure-C with the counter affidavit of respondent nos.2 and 3. However, the Bank shall pay interest at the rate of 10% per annum on the amount debited from the account of petitioner for payment of one time premium to the Insurance Company till it was credited back, which is said to have credited in account after two years.

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This application is disposed of with the aforesaid observations and directions.

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(Jayanandan Singh, J)

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B.T/-

Ramkrit Ram v. The State Bank Of India Through The General Manager and Ors.

Case brief

What is this about?

What did the court decide?

Ramkrit Ram v. The State Bank Of India Through The General Manager and Ors.

Case brief

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What did the court decide?

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