MAA TARINI POULTRIES PVT.LTD. GANJAM vs INDIAN BANK MAIN BRANCH BERHAMPUR

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2025 Supreme(Online)(Ori) 6604

ORISSA HIGH COURT
MAA TARINI POULTRIES PVT.LTD. GANJAM – Appellant
Versus
INDIAN BANK MAIN BRANCH BERHAMPUR – Respondent

Judgement Key Points

Question 1? What is the binding effect of RBI foreclosure/pre-payment directives on MSME floating-rate loans in the contractual loan arrangements? Question 2? What is the court’s ruling on the legality of foreclosure/takeover charges (4%) levied by the bank after full repayment and takeover by another bank? Question 3? What are the rights of a borrower to have original title deeds and collateral documents released upon full repayment, and are banks required to return them promptly?

Key Points: - (!) - (!) - (!) - (!) - (!) - (!) - (!)

Question 1?

What is the binding effect of RBI foreclosure/pre-payment directives on MSME floating-rate loans in the contractual loan arrangements?

Question 2?

What is the court’s ruling on the legality of foreclosure/takeover charges (4%) levied by the bank after full repayment and takeover by another bank?

Question 3?

What are the rights of a borrower to have original title deeds and collateral documents released upon full repayment, and are banks required to return them promptly?

Location: ORISSA HIGH COURT, CUTTACK

Date: 04-Dec-2025 18:50:39

IN THE HIGH COURT OF ORISSA AT CUTTACK

W.P.(C) No.23022 of 2025

(In the matter of a petition under Articles 226 and 227 of the

Constitution of India, 1950).

Maa Tarini Poultries Pvt. Ltd., …. Petitioner (s)

Ganjam -versus-

Indian Bank, Main Branch, Berhampur …. Opposite Party(s)

& Ors.

Advocates appeared in the case through Hybrid Mode:

For Petitioner (s) : Mr. Meru Sagar Samantaray, Adv.

Mr. Debasish Samal, Adv.

-versus-

For Opp. Party(s) : Mr. Tuna Sahu, Adv. (for Indian Bank),

Mr. R.Roy, Adv. (for RBI).

CORAM:

DR. JUSTICE SANJEEB K PANIGRAHI

DATES OF HEARING:- 19.11.2025 DATE OF JUDGMENT:- 29.11.2025

Dr. Sanjeeb K Panigrahi, J.

1. When discretion hardens into exaction, it ceases to be banking and

becomes expropriation. The levy of pre-payment or foreclosure charges on floating-rate credit facilities, prohibited as it is by the RBI’s binding directives, exemplifies such an impermissible transformation. A bank cannot convert a borrower’s right to mobility into a chargeable