Madras High Court
J.Megala vs The Canara Bank on 31 August, 2021
W.P(MD)No.15350 of 2021
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 31.08.2021
CORAM
THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY
W.P(MD)No.15350 of 2021
and
W.M.P.(MD).No.12257 of 2021
1. J.Megala
2. N.Sanjay
3. N.Nivetha Priya ... Petitioners
Vs.
The Canara Bank
Rep. by its Branch Manager,
Inamkulathur Branch,
Asari Street, Inamkulathur,
Trichy District,
Tamil Nadu – 620 009. ... Respondents
Prayer : Writ Petition filed under Article 226 of the Constitution of India,
praying this Court to issue a Writ of Mandamus, forbearing the respondent from
in anyway auctioning or alienating the gold jewels of the petitioners pledged in
loan account numbers 1505842055174, 1505842055478, 1505842058231,
1505836000583, 1505842058230 and 1505842058990 in the Respondent bank
at any future date and consequently direct the Respondent Bank to receive the
repayment of the outstanding loan amount with interest from the Petitioners and
release the petitioners' gold jewels pledged in the said loan account numbers.
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W.P(MD)No.15350 of 2021
For Petitioners : Mr.Arul Vadivel @ Sekar
For M/s.Wilson Associates
For Respondent : Mr.C.Karthick,
Standing Counsel.
ORDER
The petitioners seek a direction to restrain the respondent from
auctioning or alienating the gold jewels pledged under six (6) loan accounts of
the petitioners. The first petitioner states that her husband Mr.B.Nirmal Kumar
was a former employee of the Canara Bank, who was dismissed from service on
28.07.2020. The challenge to the order of dismissal is said to be pending
before this Court in W.P.(MD).No.13818 of 2021.
2. The petitioners state that they had availed of gold loans from the
Canara Bank under six (6) loan accounts which are detailed in Paragraph No.3
of the affidavit. When the first petitioner took steps to redeem the pledged
jewels, it is stated that the bank refused to permit such redemption on the basis
of the pending disciplinary proceedings against her husband. The petitioners
have also submitted request letters in this connection, including a request letter
dated 04.01.2021.
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W.P(MD)No.15350 of 2021
3. Learned counsel for the petitioners refers to and relies upon
three (3) judgments of this Court. The judgment in Latha Vs. The Regional
Manager Syndicate Bank and others 2016 SCC Online MAD 28343 is cited
to contend that the jewels are liable to be returned as long as the borrower is
willing to repay the loan amount with contractual interest. Likewise, the
Division Bench judgment of this Court in M.Santhi Vs Bank of Baroda in
W.P.(MD).No.12613 of 2016 is relied upon. By referring to this judgment, it is
contended that a mortgagor is entitled to redeem the mortgage by paying
amounts due and payable to the bank concerned. Likewise, the said judgment
is also relied upon for the proposition that a lien cannot be exercised by the
bank in relation to an independent loan transaction when the borrower is
willing to discharge the entire liability as regards the relevant loan transaction.
4. Mr.C.Karthick, learned Standing Counsel, accepts notice on
behalf of the respondent bank. He submits that the husband of the first
petitioner was an employee of the bank. On instructions, he submits that such
employee had unlawfully and fraudulently sanctioned fake loans and credited
the loan proceeds to the accounts of his wife and his children. Therefore, he
states that the petitioners are not entitled to the relief claimed in this writ
petition.
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W.P(MD)No.15350 of 2021
5. In exercise of extraordinary jurisdiction under Article 226 of the
Constitution, ordinarily, the Court does not exercise discretionary jurisdiction
in matters relating to loan transactions between a borrower and lender. The
reason for such non-interference is that such loan transactions would depend
on the terms and conditions of the respective loan agreement, the liabilities
under the aforesaid loan accounts, the securities furnished in relation thereto,
including the terms and conditions under which such securities were furnished.
Consequently, such disputes often involve disputed questions of fact which
cannot be conveniently or appropriately addressed by affidavit evidence.
6. In the case at hand, there is an additional layer of complexity
inasmuch as the husband of the first petitioner was an employee of the bank
concerned. While functioning as an employee of the bank, the bank's
allegation is that he sanctioned and disbursed bogus loans and credited the
proceeds thereof to the accounts of the petitioners herein. Therefore, the
disputed questions of fact in the case at hand are greater and more complex
than in a typical dispute between a borrower and lender. Although learned
Standing Counsel for the petitioners cited two (2) judgments, including a
judgment of the Division Bench of this Court, in exercise of discretionary
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W.P(MD)No.15350 of 2021
jurisdiction, I am not inclined to entertain a dispute of this nature. There is no
doubt that the petitioners are entitled to rely upon the principles relating to
redemption of a pledge in appropriate proceedings before a competent civil
court.
7. With the above observations, W.P.(MD).No.15350 of 2021 is
disposed of by leaving it open to the petitioners to institute proceedings before
an appropriate civil court seeking the relief sought herein. There will be no
order as to costs. Consequently, connected W.M.P.(MD).No.12257 of 2021 is
closed.
31.08.2021
Index : Yes / No
Internet : Yes/ No
tsg
Note : In view of the present lock down owing to COVID-19
pandemic, a web copy of the order may be utilized for official
purposes, but, ensuring that the copy of the order that is
presented is the correct copy, shall be the responsibility of the
advocate/litigant concerned.
To
The Canara Bank
Rep. by its Branch Manager,
Inamkulathur Branch,
Asari Street, Inamkulathur,
Trichy District,
Tamil Nadu – 620 009.
https://www.mhc.tn.gov.in/judis/
W.P(MD)No.15350 of 2021
SENTHILKUMAR RAMAMOORTHY, J.
tsg
W.P(MD)No.15350 of 2021
31.08.2021
https://www.mhc.tn.gov.in/judis/
