KOTAK MAHINDRA BANK Vs. SALINDER SINGH AND ANOTHER

JUDGEMENT

(1.) The present writ petition has been filed by Kotak Mahindra Bank seeking quashing of order annexure P-2 dated March 14, 2016 passed by Permanent Lok Adalat for Public Utility Services directing the petitioner Bank to issue No Objection Certificate to the respondent within a period of one month pertaining to the loan agreement No.TFE269776 besides imposing a cost of Rs.5000/- as compensation for harassment.

(2.) Respondent No.1 had filed a complaint pleading that he intended to purchase a Tractor as such the petitioner Bank had offered to finance the same. Respondent No.1 took a loan of Rs.3,32,181/- for purchase of Tractor from petitioner Bank on installments after completion of all the formalities and documents. Respondent No.1 claimed that he paid all the installments as per the schedule. Though admittedly there were certain delays in some installments but the petitioner and respondent No.1 sat across the table for one time settlement. Overdue interest was calculated by the petitioner Bank and full and final payment of Rs.105000/- was paid towards all the dues and a receipt was issued on March 14, 2013. Respondent No.1 was asked to collect the NOC after a week which was promised to be issued by the petitioner bank after it is issued by the Headquarter but when respondent No.1 approached the petitioner to collect the NOC for getting the entry of hypothecation removed from the registration certificate, petitioner Bank put off the matter on one pretext or another and ultimately instead of issuing the NOC, asked respondent No.1 to deposit another sum of Rs.50000/-.

(3.) The petitioner Bank contested the application under Section 22- C of the Legal Services Authority Act. The execution of the hire-purchase agreement was admitted. The factum of receipt of Rs.105000/- has also been admitted but it has been claimed that on account of the interest due, the amount demanded by the Bank was payable being outstanding. Since no conciliation could be arrived at, the Permanent Lok Adalat seems to have exercised the powers under Section 22-C (8) of the Legal Services Authority Act and passed the following order:-