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2025:BHC-AS:57872

28-WP-4445-2015 (C).doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

CIVIL APPELLATE JURISDICTION

WRIT PETITION NO. 4445 OF 2015

M/s Railroad Logistics India Pvt. Ltd.

Through Its Director, Mrs. Sahana N. Shetty ...Petitioner

Versus

The Branch Manager, Shamrao Vithal

Co-operative Bank Ltd. And Ors ...Respondents

__________

Mr. Mihir S. Raje, for the Petitioner.

Adv. Nikhil Rajani, a/w Adv. Ajay Deshmane, i/by V. Deshpande &

Co. for Respondent No.1.

__________

CORAM : ADVAIT M. SETHNA, J.

DATE : 23 DECEMBER 2025

Oral Order :

1. This Petition is filed under Article 226 of the Constitution of

India calling upon this Court to quash and/or set aside the order

dated 2 December 2012 in Complaint No.2028/LSK/10-11 passed

by the Banking Ombudsman, under the Banking Ombudsman

Scheme, 2006.

2. Heard learned counsel for the parties and with their

assistance this Court has perused the record.

3. Rule. The Rule is made returnable forthwith with the consent

of the parties.

4. The petition is arising out of the impugned order passed by

the banking Ombudsman dated 2 February 2012 (“Impugned

Order”). The petitioner in light of the several grounds raised in this

petition seeks to quash and set aside this order, for which the

present writ petition is preferred before this Court.

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5. At the outset the Impugned Order dated 2 February 2012

passed by the banking Ombudsman reads thus :-

“Shri Vijaykumar Rai

For Railroad Logistics (India) Pvt. Ltd.

C/o Metal Trim, Gala No.1

Tankiwala Indl. Estate

Steel Made Compound

Marol-Maroshi Road

Marol, Andheri (E), Mumbai - 400 059

Dear Sir,

Banking Ombudsman Scheme 2006 (BOS-2006)

Complaint No.: 2028/LSK/10-11

Bank : Shamrao Vithal co-op. Bank Ltd.

Please refer to your complaint dated September 12,

2011against captioned bank addressed to Banking

Ombudsman of Karnataka, Bangalore,

2. In this regard we have to state that the bank has shown

the documentary evidence that preclosure charges have

been agreed to you as per the sanction letter/agreement.

Processing charges are levied every year and in the earlier

years, you have paid them as per the agreement/sanction

letter. In this case the processing charges were levied on the

company for the renewal of the facilities/ The processing

was done and facilities to the extent of eligibility were

sanctioned. The bank incurred charges for processing the

renewal of facilities It is another matter that you have not

accepted it. Irrespective of acceptance you have to pay the

charges having applied for renewal and not withdrawn the

application.

3. In view of the above we have rejected the complaint in

terms of clause 13 (a) of BOS-2006 as not on the grounds

of complaint referred to in clause 8 of BOS-2006.

4. This is issues according to the direction of the Banking

Ombudsman/

Yours faithfully,

(L.S.Kore) Asst. Secretary”

6. On hearing the parties for sometime, it appears that the

transaction between the parties is in the nature of a contract which

governs the relationship between the parties. The dispute arises out

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of payment of processing charges which were levied on the

Petitioner for renewal of the facilities. The Petitioner has also

challenged the impugned order on the ground of foreclosure

charges levied which according to the Petitioner are contrary to

law.

7. Upon hearing the learned counsel for the parties and

perusing the record, it appears that the matter raises substantial

disputed issues/questions of fact. These are summarised below:-

(a) The relationship between the parties is contractual in

nature. As averred in the Petition, the Petitioner was

a customer of Respondent No.1 – Bank since the year

1992 for the purpose of availing cash credit facility

and term loans. The tenure of the said facility

commenced from April to March of every financial

year.

(b) It is out of such relationship