R LAKSHMANAN Vs. INDIAN OVERSEAS BANK NUNGAMBAKKAM BRANCH

JUDGEMENT

(1.) SINCE the issue involved in these writ petitions are common they are taken up together for disposal.

(2.) THE matter pertains to an award passed by the Banking Ombudsman in exercise of his powers conferred under the Banking Ombudsman Scheme 1995.

(3.) THE Ombudsman took up the matter and since the complaint remained unsettled by agreement, in exercise of his powers under Clause 20 of the Scheme proposed to pass award. THE Ombudsman by award dated 26.2.1998 issued two directions as hereunder: (i) directing the bank to refund the sum of Rs.3,00,000/- with interest at 21% p.a to M/s.Paapu Benefit Fund Limited with instruction to credit to the loan account of Mr.R.Lakshmanan or to refund to him by M/s.Paapu Benefit Fund Ltd., if he had repaid the loan either wholly or in part. (ii) bank should pay the compensation of Rs.1,000/- to the complainant Mr.R.Lakshmanan for the expenses incurred by him in prosecuting his claim.