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IN THE HIGH COURT OF ORISSA AT CUTTACK

WP(C) No.21558 of 2021

(Through Hybrid mode)

M/s. KCS Private Ltd.

….

Petitioner

Mr. Bibekananda Bhuyan, Advocate

-versus-

Banking Ombudsman,

Bhubaneswar and another

….

Opposite Parties

None

CORAM: JUSTICE ARINDAM SINHA

Order No.

ORDER

08.08.2022

04.

1.

Mr. Bhuyan, learned advocate appears on behalf of

petitioner and submits, his client is aggrieved by the Banking

Ombudsman

having

rejecting

the

complaint

as

not

maintainable in view of previous proceedings on two

complaints earlier lodged. He submits, the Reserve Bank of

India (RBI) by circular dated 6^th August, 2020 issued

instructions on opening of current account by banks and need

of discipline. Pursuant to the instructions ICICI bank issued

mail dated 8^th January, 2021 directing his client to indicate

account details for transfer of fund to his current/over draft

account maintained in other bank. He submits, by reason of

recovery proceedings between the housing finance company

and his client, the latter’s other current/over draft account in

UCO bank stands frozen. As such, his client could not provide

information for transfer of the funds. His client has obtained

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One Time Settlement (OTS) facility with the housing finance

company. He seeks appropriate direction for operation of the

closed account for purpose of availing the OTS facility.

2.

In spite of service, none appears on behalf of opposite

parties, who are the banking ombudsman and ICICI bank.

3.

On perusal of materials on record, it is clear that

opposite party no.2 required petitioner to give information for

transfer of money in its account with said bank to the bank,

where petitioner is enjoying credit facilities. On petitioner not

being able to comply, the account was closed. Petitioner is

aggrieved because, according to it, the RBI guideline was

informed by circular dated 6^th August, 2020 but the current

account in ICICI bank had been opened prior to that.

Petitioner’s contention is that directions by the guideline are

prospective and cannot have affected operation of existing

current account.

4.

Text of impugned order dated 16^th July, 2001 is

reproduced below.

“Please refer to your complaint on the

above subject. It has been registered with us vide

the complaint number as mentioned above. In this

connection, we advise that since your complaint is

in respect of the same cause of action which is

being dealt with on merits by the Banking

Ombudsman

in

your

previous

proceedings

(Complaint numbers : 202122003002531 and

202122003002533), your complaint is treated as

non-maintainable under clause 9(3)(c) read with

13(b) of the Banking Ombudsman Scheme, 2006.

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2.

This is issued as per the orders of the

Hon’ble Banking Ombudsman for Odisha after

perusal of your complaint.”

5.

Petitioner’s contention is that guideline dated 6^th

August, 2020 issued by RBI is regarding opening of new

current account. Petitioner had existing current account with

opposite party no.2. Said opposite party, referring to aforesaid

RBI circular dated 6^th August, 2020 required particulars of

petitioner’s account in the other bank, from where it is

enjoying credit facility, for closure of the current account and

transfer therein. Relevant text of requisition dated 8^th January,

2021 made by opposite party no.2 on petitioner is reproduced

below.

“Dear Customer,

We refer to the RBI circular dated Aug 06, 2020 on

“Opening of Current Accounts by Banks – Need for

Discipline”, wherein it mentions, No bank shall

open Current Accounts for customers who have

availed of credit facilities in the form of Cash

Credit (CC)/Overdraft (OD) from the banking

system and all transactions shall be routed through

the CC/OD Account.

As per the Credit Information Compan