Kerala High Court
M/S. Kamlas Mart Private Limited vs Banking Ombudsman on 6 February, 2024
Author: Devan Ramachandran
Bench: Devan Ramachandran
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
TUESDAY, THE 6TH DAY OF FEBRUARY 2024 / 17TH MAGHA, 1945
WP(C) NO. 20285 OF 2023
PETITIONER:
M/S. KAMLAS MART PRIVATE LIMITED.,
KAMLAS TOWER, MC ROAD, CHENGANNUR, ALAPPUZHA,
KERALA,689 121, REPRESENTED BY ITS MANAGING DIRECTOR
MR.AJAY GOPINATHAN, AGED 44 YEARS, S/O. M.GOPINATHAN,
RESIDING AT PRAKRITHI, KAMALA NIVAS, THITTAMEL,
CHENGANNUR, PIN - 689121.
BY ADVS.
JOMON J. MALIEKAL
JOSEPH P P
KIROSH RAJAN PONNAMBIL
RESPONDENTS:
1 BANKING OMBUDSMAN, RESERVE BANK OF INDIA,
OFFICE OF THE BANKING OMBUDSMAN,
KERALA AND LAKSHADWEEP, BAKERY JUNCTION,
TRIVANDRUM, PIN - 695014.
2 RESERVE BANK OF INDIA,
REPRESENTED BY ITS GENERAL MANAGER,
DEPARTMENT OF BANKING SUPERVISION,
REGIONAL OFFICE, BAKERY JUNCTION,
THIRUVANANTHAPURAM, PIN - 695014.
3 KOTAK MAHINDRA BANK LTD,
2ND FLOOR, PARAILLIL ARCADE, MANORAMA JUNCTION,
PANAMPILLY NAGAR, KOCHI, PIN - 682306.
SRI. MATHEWS J.NEDUMPARA, SC
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
06.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 20285 OF 2023
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JUDGMENT
The petitioner assails Ext.P11 order of the 1st respondent - Banking Ombudsman, on various grounds, particularly that it is a non-speaking one, which does not contain any reason for the decision recorded therein, that the foreclosure charges are leviable by the 3rd respondent - Kotak Mahindra Bank Ltd. ('Bank', for short).
2. Sri.Jomon J.Maliekal - learned counsel for the petitioner, submitted that Ext.P11 order has been issued in blatant disregard to Exts.P1 and P2 sanction letters, as also Ext.P7 Master Direction and the 'BCSBI Codes'; and therefore, that his client has been constrained to approach this Court assailing the same as being illegal and unlawful. He thus reiterated that the reliefs sought for in this writ petition be granted.
3. I notice from the files that, even WP(C) NO. 20285 OF 2023 -3- though summons from this Court has been validly served on the 3rd respondent - Bank, they have chosen not to be present in person or to be represented through counsel; thus inferentially guiding me to the impression that they have nothing to offer in opposition to the various allegations of the petitioner in this writ petition.
4. When I examine Ext.P11, I find force in the afore submissions of the petitioner that, apart from saying that "As per the terms and conditions agreed by the complainant, foreclosure charges are leviable. No service deficiency can be attributed to the bank on the basis of available documents." (sic), the 1st respondent - Ombudsman has not cited any reason in justification of such conclusion. Therefore, this Court is persuaded to accept the contentions of the petitioner that Ext.P11 has WP(C) NO. 20285 OF 2023 -4- been issued by the Ombudsman, merely accepting the version of the Bank in toto; but without assessing or evaluating it, based on the other relevant documents and inputs that had been made available by him.
5. In the above view, I am certain that this matter will require to be reconsidered by the Ombudsman because, Ext.P11, from any angle it is evaluated from, comes across as one issued without citing any germane reason, for the conclusions therein.
In the afore circumstances, I order this writ petition and set aside Ext.P11; with a consequential direction to the 1st respondent to reconsider Ext.P10 complaint of the petitioner, adverting to Exts.P1, P2 and Ext.P7 Master Direction and BCSBI Codes, after affording necessary opportunity of being heard to the parties; thus culminating in an appropriate WP(C) NO. 20285 OF 2023 -5- order and necessary action thereon, as expeditiously as is possible, but not later than three months from the date of receipt of a copy of this judgment.
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DEVAN RAMACHANDRAN JUDGE akv WP(C) NO. 20285 OF 2023 -6- APPENDIX OF WP(C) 20285/2023 PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF UDYAM REGISTRATION NUMBER UDYAM-KL-01-0007142 DATED 19.08.2021 OBTAINED BY THE PETITIONER EXHIBIT P2 THE TRUE COPY OF SANCTION LETTER DATED 14.01.2022 BEARING NO BBA-
WC/9287/F/455595886/1/2021-22 EXHIBIT P3 THE TRUE COPY OF THE EMAIL DATED 06.04.2022 EXHIBIT P4 TRUE COPY OF THE CONSOLIDATED STATEMENT OF PREPAYMENT PENALTY AND OTHER CHARGES EXHIBIT P4(A) THE TRUE COPY OF ACCOUNT STATEMENT OF THE LOAN ACCOUNT BEARING NO.9287TL0100000008 FOR THE PERIOD OF 01.01.2022 TO 23.05.2022 EXHIBIT P4(B) THE TRUE COPY OF ACCOUNT STATEMENT OF THE LOAN ACCOUNT BEARING NO.9287TL0100000015 FOR THE PERIOD OF 03.03.2022 TO 23.05.2022 EXHIBIT P4(C) THE TRUE COPY OF ACCOUNT STATEMENT OF THE LOAN ACCOUNT BEARING NO.9287TL0100000002 FOR THE PERIOD OF 01.04.2022 TO 30.06.2022 EXHIBIT P4(D) THE TRUE COPY OF ACCOUNT STATEMENT OF THE LOAN ACCOUNT BEARING NO.9287TL0100000003 FOR THE PERIOD OF 01.01.2022 TO 23.05.2022 EXHIBIT P4(E) THE TRUE COPY OF ACCOUNT STATEMENT OF THE LOAN ACCOUNT BEARING NO.9287TL0100000009 FOR THE PERIOD OF WP(C) NO. 20285 OF 2023 -7- 01.01.2022 TO 23.05.2022 EXHIBIT P4(F) THE TRUE COPY OF ACCOUNT STATEMENT OF THE LOAN ACCOUNT BEARING NO.
5545763441 FOR THE PERIOD OF 01.04.2022 TO 30.06.2022 EXHIBIT P4(G) THE TRUE COPY OF ACCOUNT STATEMENT OF THE LOAN ACCOUNT BEARING NO.
5545456350 FOR THE PERIOD OF 01.04.2022 TO 31.05.2022 EXHIBIT P5 TRUE COPY OF THE PETITIONER'S PROFIT AND LOSS ACCOUNT DATED 09.12.2022 FOR THE PERIOD ENDED 31ST MARCH 2022 . EXHIBIT P5A TRUE COPY OF PETITIONER'S BALANCE STATEMENT FOR THE PERIOD ENDED 31ST MARCH 2022 DATED 09.12.2022 EXHIBIT P6 TRUE COPY OF THE GAZETTE NOTIFICATION DATED 01.06.2020 BEARING NO. S.O.1702(E) EXHIBIT P7 TRUE COPY OF THE RELEVANT EXTRACT OF THE CIRCULAR DATED 24.07.2017 UPDATED AS ON 29.07.2022 BEARING NO.
RBI/FIDD/2017-18/56 EXHIBIT P8 TRUE COPY OF THE CIRCULAR DATED 25.11.2008 BEARING NO RBI / 2008-09 / 296 DBOD.NO.LEG.BC.86/09.07.005/2008- 09 ISSUED BY THE RESERVE BANK OF INDIA EXHIBIT P9 TRUE COPY OF LETTER DATED 29.03.2023 ISSUED BY THE NODAL OFFICER EXHIBIT P10 TRUE COPY OF THE COMPLAINT DATED 03.03.2023 SUBMITTED BEFORE THE 1ST RESPONDENT EXHIBIT P11 TRUE COPY OF THE NON-APPEALABLE ORDER DATED 27.03.2023 BEARING REFERENCE WP(C) NO. 20285 OF 2023 -8- NUMBER RBI/CMS/N202223023457968 OF THE 1ST RESPONDENT AUTHORITY