JUDGMENT

(Dated this the 28^th day of January, 2026)

The petitioner is a partnership firm engaged in the manufacture of rubber latex and other rubber products and is registered as a Medium Enterprises under the Micro, Small and Medium Enterprises Development Act , 2006. The petitioner availed a cash credit and term loan facilities from the 3^rd respondent Bank in the year 2023, with an overall credit limit of 14.23 Crores, which were sanctioned as per the sanction letter dated 28.07.2023. Clause 14 of the Sanction letter deals with prepayment charges, stipulating that prepayment within 12 months attracts 4% plus applicable taxes, between 12 and 24 months attracts 3% plus applicable taxes, and beyond 24 months attracts 2%.

2. Being dissatisfied with the services of the Bank, the petitioner decided to close the loan account and shift to another Bank, and accordingly requested closure in terms of the sanction conditions. However, the petitioner found that an amount of Rs.16,20,020/- was debited from its account on 07.10.2024 towards pre-closure charges, calculated at 4% in terms of Clause 14(B) of Ext.P2. The petitioner, on coming to know of this, submitted a representation as Ext.P5 to