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Madras High CourtWP/9189/2021disposed of

Dr.Shanmugagani v. The General Manager

2021-08-23Honourable Mr Justice R. Mahadevan3 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 23.08.2021

CORAM

THE HON'BLE MR. JUSTICE R. MAHADEVAN Writ Petition No.9189 of 2021 & WMP No. 9726 of 2021 Dr. Shanmugagani ..Petitioner

Versus

1. The General Manager, Indian Overseas Bank, Central Office, Anna Salai, Chennai 600 002.

2. The Assistant General Manager, Indian Overseas Bank, Regional Office, 100 Feet Road, Puducherry.

3. The Branch Manager, Indian Overseas Bank, Manjakuppam Branch, 165, Netaji Road, Manjakuppam, Cuddalore District 607 001.

..Respondents Writ Petition under Article 226 of the Constitution of India praying for a Writ of Mandamus directing the respondents to close the Housing Loan account No.135503350500009 by accepting the balance 8 installments at the rate of Rs.14,335 from April 2021 to November 2021 on the petitioner's representation dated 04.01.2021 and return the original documents to the petitioner pertaining to the petitioner's property situated at No.2, Hospital Road, Cuddalore District.

For Petitioner :

Mr. K.R. Krishnan For Respondents :

Mr. Ananda Gomathy

ORDER

The petitioner has come up with this Writ Petition for issuance of a Writ of Mandamus directing the respondents to close the Housing Loan Account by accepting the balance 8 installments from April 2021 to November 2021 based on the

petitioner's representation dated 04.01.2021 and return the original documents to the petitioner pertaining to the petitioner's property.

2. According to the petitioner, she availed a housing loan to the tune of Rs.15,00,000/- from the 3rd respondent Bank for the purpose of constructing a new house during April 2005 at the floating rate of interest @ 8%. As per the loan agreement, the tenure of loan is for a period of 180 months starting from 5.10.2006. So far she has paid 172 monthly instalments and she has to pay for eight instalments commencing from April 2021 to November 2021. The petitioner, on noticing that there was so much difference in fixation of interest rates between the rate prevailing and the rate charged to the petitioner, filed a complaint before the Banking Ombudsman in the year 2016, thereafter the 3rd respondent sent a letter dated 20.10.2017 along with a statement showing rate of interest charged from 17.3.2007 to 05.11.

2005, which itself shows that instead of charging reduced floating rate of interest, the Bank had uniformly adopted a rate @ 9.5, 9, 11 and 11.75% which is much more than the bank's prevailing interest rates. While so, when the petitioner has requested the bank to accept the balance of instalments and return the original documents, the 3rd respondent bank sent a letter dated 21.12.2020 demanding the petitioner to pay excess amount of Rs.9,83,664 to close her loan account.

3. It is the grievance of the petitioner that the bank is refusing to recalculate the interest rates and has unfairly levied interest on her housing loan @ 11.75% from December 2011 to March 2016 and also levied excess 2 percent interest on excess drawing power from 17.3.2007 onwards, which created gross miscalculations and mental agony to petitioner. Hence the petitioner sent a representation on 04.01.2021 to the 3rd respondent Bank, but the same was not considered till date, hence, this writ petition is filed.

4. Heard Mr. K.R.Krishnan, learned counsel appearing for the petitioner and Mr. Ananda Gomathy, learned counsel appearing for the respondents.

5. Learned counsel for the petitioner would submit that the petitioner is willing to settle the remaining installments for 8 months commencing from April 2021 to November 2021 in one lump sum thereby settling the entire loan account.

6. Having regard to the submissions made on either side, the third respondent is directed to consider the petitioner's representation 04.01.2021 with details related to the payment of instalments so far made, after affording an opportunity of personal hearing to the petitioner and thereafter pass necessary

orders with regard to the balance payments to be effected by the petitioner, if any. Such an exercise shall be completed by the third respondent within a period of six weeks from the date of receipt of a copy of this order.

7. The Writ Petition is disposed of accordingly. Consequently, the connected miscellaneous petition is closed. No costs.

s/d- Assistant Registrar(CO) True Copy Sub-Assistant Registrar msr/rsh To 1.The General Manager, Indian Overseas Bank, Central Office, Anna Salai, Chennai 600 002.

2. The Assistant General Manager, Indian Overseas Bank, Regional Office, 100 Feet Road, Puducherry.

3. The Branch Manager, Indian Overseas Bank, Manjakuppam Branch, 165, Netaji Road, Manjakuppam, Cuddalore District 607 001.

+1 CC to Mr.K.R. Krishnan, Advocate sr 42163. WP No. 9189 of 2021 SJ(CO) SP(20/09/2021)