DEVENDRA SURANA Vs. BANK OF BARODA & ORS

JUDGEMENT

(1.) The petitioners have sought for a direction upon the bank to release collateral securities and issue a 'no due' certificate in favour of the petitioner without imposing any foreclosure/prepayment charges and/or penalties.

(2.) Learned Advocate appearing for the petitioner has submitted that, the petitioner as the sole proprietor is carrying on business under the name and style of Magnum Industries. The petitioner had obtained credit facilities from the respondent no. 1 in terms of the sanction letter dated January 15, 2016. The petitioner had foreclosed the credit facilities. Upon such foreclosure being sought to be made, the bank had unjustifiably claimed foreclosure charges. The industrial unit of the petitioner being classified as small scale by the State of Assam and the petitioner being an individual borrower under the relevant guidelines issued by the Reserve Bank of India, the respondent no. 1 is not entitled to levy any foreclosure charges. In support of such contention learned Advocate for the petitioner has relied upon a Circular dated May 7, 2014 issued by the Reserve Bank of India.

(3.) Learned Advocate for the petitioner, in his usual fairness has drawn the attention of the Court to (M/s. SPPL Hotels Pvt. Ltd. & Anr. v. Allahabad Bank & Ors., 2018 AIR(Cal) 185) and has submitted that, the decision of rejection of the writ petition therein assailing the imposition of prepayment charges on such petitioner prepaying the credit facilities, is not attracted in the facts of the present case. The terms and conditions of the sanctioned credit facilities obtaining in the present writ petitioner are different to that obtaining in M/s. SPPL Hotels Pvt. Ltd. (supra). Relying upon (Gangotri Enterprises Limited v. Union of India & Ors., 2016 11 SCC 720) he has submitted that, the unadjudicated claim for damages, for breach of contract does not amount to money due until adjudicated and ordered by a Court. Therefore, the bank cannot act as the claimant, adjudicating authority as also the executing authority in respect of any claim that the bank may have on a borrower. He has drawn the attention of the Court to the subsisting interim order dated March 17, 2017 and has submitted that, if the Court is please to grant the relief as prayed for in prayer a of the writ petition, then, the bank should also be directed to refund the sum of Rs. 13.35 lakhs kept in deposit by the petitioner with the bank in terms of such interim order along with interest accruing on such deposit. He has submitted that, the petitioner be granted the reliefs as sought for.