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IN THE HIGH COURT OF KERALA AT ERNAKULAM
M.A.ABDUL HAKHIM
K.H. Faisal S/o K.K.Haneefa – Appellant
Versus
Regional Manager, Bank Of Baroda, Regional Office, Thrissur – Respondent
| Table of Content |
|---|
| 1. facts related to the loan and closure. (Para 1 , 2) |
| 2. arguments regarding loan terms and rbi guidelines. (Para 6 , 7 , 10) |
| 3. court's observation on financial implications and loan security. (Para 8 , 9 , 12) |
| 4. final decision on allowing loan closure and issuing noc. (Para 11) |
JUDGMENT :
M.A.Abdul Hakhim, J.
1. The Petitioners, who are two in number, have filed this Writ Petition seeking direction to the Respondent/Bank to close the loan account of a private limited company by the name, M/s. Messwaala Enterprise Private Limited, which is sanctioned as per Ext.P3, after accepting the outstanding amount, and to issue NOC to HDFC Bank, which has sanctioned a new loan of Rs.2.20 Crores to the said Company as per Ext.P4. The Petitioners claim that Messwaala Enterprise Private Limited is a startup company promoted by them, and they are the directors of the said company.
2. The case of the Petitioners is that Messwaala Enterprise Private Limited availed a Term Loan of Rs.60,00,000/- and an Overdraft facility of Rs.40,00,000/- from the Respondent/Bank. They are the guarantors of the said loans. When they required an additional loan for the expansion of their business, they ap
The bank cannot unjustifiably refuse loan closure when it does not prejudice its security interests.
Court dismissed petition due to closure of loan account, rendering proceedings moot.
A writ petition is rendered moot when the issues no longer exist due to the closure of the loan account.
Closure of the loan account renders the writ petition moot and unmaintainable.
Bank must close loan account within 20 working days upon encashment of closure demand draft.
Once a loan is repaid or closed, the underlying writ petition becomes unnecessary and is disposed of without further orders.
Writ petition dismissed as infructuous due to clearance of loan obligations.
Writ petition closed upon confirmation of loan repayment by respondent bank.
Writ petition closed upon counsel's statement of full loan account settlement.
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