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IN THE HIGH COURT OF JUDICATURE AT MADRAS
Mr.JUSTICE D.BHARATHA CHAKRAVARTHY, J
H.Banumathi – Appellant
Versus
General Manager and Zonal Head Bank of Baroda – Respondent
ORDER :
D.Bharatha Chakravarthy, J
This Writ Petition is filed to direct the respondents to consider the petitioner's representations dated 10.04.2024 and 23.04.2024, close the loan account after accepting the payment made by the petitioner and return the documents mortgaged with the Bank, and pass any further or other orders.
2. The brief factual matrix in which the Writ Petition arises is that the petitioner's husband mortgaged a property and secured a loan of Rs.4,60,000/-. However, it appears that he has not repaid the loan, and the account was classified as a Non-Performing Asset long ago, in 2005. In 2023, when the respondent Bank took up the recovery by issuing a notice to come for pre-litigation settlement through Lok Adalat. Upon receiving the notice, the petitioner approached the Bank. The Bank demanded a total sum of Rs.16,30,000/-, which the petitioner also paid. Subsequently, when the petitioner sought the release of documents and NOC, the Bank communicated that the previously quoted amount, accepted by the Bank, was based on a miscalculation. In addition to the Rs.16,30,000/- paid by the petitioner, she must pay an additional Rs.32,64,518/-. Only upon receiving this amou
A bank cannot demand additional payments after accepting a settlement amount, emphasizing fairness in contractual obligations.
The main legal point established in the judgment is that the petitioner fulfilled the conditions mentioned and directed the Bank to furnish the information and basis of calculation of 10% per annum i....
Borrowers cannot demand specific benefits under One Time Settlement schemes if they fail to properly engage in the process; such benefits are discretionary and not a right.
Agreement by mistake of fact - As the parties were under a mutual mistake with respect to their respective rights, the agreement is liable to be set aside as having been proceeded upon a common mista....
The Reserve Bank of India mandates banks to remove charges on fully repaid mortgages within 30 days, entitling borrowers to compensation for delays.
Disputed questions of fact in loan agreements cannot be resolved in writ jurisdiction; such matters require civil adjudication based on evidence rather than legal interpretations alone.
The duty of a litigant to disclose all material facts and the bank's right to protect its recovery were the central legal points established in the judgment.
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