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
-2-
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
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
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
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.
Sd/-
DEVAN RAMACHANDRAN
JUDGE
akv
WP(C) NO. 20285 OF 2023
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
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 /
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
NUMBER RBI/CMS/N202223023457968 OF THE
1ST RESPONDENT AUTHORITY
