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IN THE HIGH COURT OF ORISSA AT CUTTACK
S.K. PANIGRAHI
Chittaranjan Tripathy – Appellant
Versus
Indian Overseas Bank, Bhubaneshwar – Respondent
JUDGMENT :
S.K. Panigrahi, J.
1. The Petitioner has filed the present Writ Petition seeking a direction from this Court towards the Opposite Parties to remove the charge over the mortgaged property registered with Sub-Registrar, Nayagarh.
2. The Petitioner further seeks a direction to the Opposite Parties to pay the Petitioner Rs.5000/- per day from 01.12.2023 till removal of charge over the mortgaged property registered with Sub-Registrar, Nayagarh as per Circular of the Reserve Bank of India bearing No.RBI/2023-24/60DoR.MCS.REC.38/01.01.001/2023-24 dated 13.09.2023.
3. The Petitioner also seeks a direction to the Opposite Parties to pay the Petitioner interest at the rate of 18% per annum on the sum computed as per Prayer No. (ii) (iii);
I. FACTUAL MATRIX OF THE CASE
4. Succinctly put, the facts of the case are as follows:
(i). The Petitioner being the sole proprietor of M/s Veena House, Nayagarh had availed a cash credit loan facility (bearing account No. 143402000005101) from the Opposite Party No.2 in order to further his business of consumer durables. With increase in business and requirement of capital, the sanctioned loan amount was duly increased to Rs. 85 lakhs over time by Oppo
The Reserve Bank of India mandates banks to remove charges on fully repaid mortgages within 30 days, entitling borrowers to compensation for delays.
A bank cannot demand additional payments after accepting a settlement amount, emphasizing fairness in contractual obligations.
A bank cannot exercise a general lien to retain title deeds for debts where the mortgagor is not a borrower and has cleared the outstanding loan.
The court affirmed the authority to award liquidated damages under Reserve Bank of India guidelines for delays in document release, emphasizing the inadequacy of initial compensation.
A bank can revise interest rates based on internal ratings without prior notice if contractually permitted, but parties may contest such revisions in appropriate proceedings.
The petitioner is liable for his wife's loan as per the Guarantee Agreement and cannot contest the attachment of his property, which is valid under the law.
Lenders must adhere to RBI guidelines regarding loan terms disclosure and communication to borrowers; changes without notice violate borrowers' rights.
Banks must ensure fair market valuations in auctions of mortgaged properties to protect borrowers' rights, and not depress values arbitrarily which would lead to undue prejudice.
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