Madras High Court

Monotech Systems Ltd vs Standard Chartered Bank Of India on 21 November, 2025

Author: S.M.Subramaniam

Bench: S.M.Subramaniam

                                                                                        W.A.No.1293 of 2023
                                                                                       ----------------------------
                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                 DATED: 21.11.2025

                                                         CORAM:

                                  THE HONOURABLE MR.JUSTICE S.M.SUBRAMANIAM
                                                    AND
                                    THE HONOURABLE MR.JUSTICE P.DHANABAL

                                               W.A.No.1293 of 2023

                Monotech Systems Ltd.,
                Rep. by Senior Manager Accounts,
                Mr.A.Sukumar
                Formerly at:
                 rd
                3 Floor, City Centre, No.66, Thirumalai Road,
                T.Nagar, Chennai – 600 017.
                Now at:
                 th
                8 Floor, “Chaitanya Exotica” No.24,
                Venkatnarayana Road, T.Nagar,
                Chennai – 600 017.                                                     ...Appellant



                                                              Vs.

                1.Standard Chartered Bank of India,
                 Rep. by its Business Head,
                 SME Division, I Floor,
                 Sagar Amar Court, 59, G.N.Chetty Road,
                 T.Nagar, Chennai – 600 017.

                2.Standard Chartered Bank,
                                   nd
                 SME Banking, 2 Floor,
                 19, Rajaji Salai,

                1/11


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                                                                                             W.A.No.1293 of 2023
                                                                                            ----------------------------
                  Chennai – 600 001.

                3.The Chief Operative Officer,
                 Standard Chartered Bank,
                 Cresenzo, C38/39, G Block,
                 Cresent Association Club,
                 Bandra Curla Complex,
                 Bandra East, Mumbai – 400 051.



                4.The Chief General Manager in Charge,
                  Department of Supervision,
                  Reserve Bank of India,
                  Centre India,
                  World Trade Centre,
                  Cuff Parade, Mumbai – 400 005.

                5.Banking Ombudsman,
                 Reserve Bank of India Building,
                 No.16, Rajaji Salai,
                 Chennai – 600 001.                                                         ...Respondents


                PRAYER: Writ Appeal filed under clause 15 of Letters Patent praying to set

                aside the impugned order dated 02.02.2023 in W.P.No.3077 of 2015 and

                consequently allow the W.P.No.3077 of 2015.

                                  For Appellant          : Mr.M.Abdul Razack
                                  For Respondents : Ms.V.Aishwarya,
                                                           For Mr.R and P Partners for R1 to R3
                                                           Mr.T.Poornam for R4 and R5
                                                                  *****


                2/11


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                                                                                            W.A.No.1293 of 2023
                                                                                           ----------------------------
                                                  JUDGMENT

(Judgment of the Court was delivered by S.M.SUBRAMANIAM, J.)

The writ order dated 02.02.2023 in W.P.No.3077 of 2015 is under

challenge in the present intra-Court appeal instituted under Clause 15 of the

Letters Patent.

2. The writ petitioner is the appellant. The Writ Petition has been

instituted seeking refund of the allegedly deducted amount towards renewal

charges, foreclosure charges in a banking transaction. Admittedly, it is a

commercial transaction and contractual in nature. In view of the fact that the

dispute raised in the present lis related to commercial transaction based on

contractual obligation,such disputes are to be resolved by approaching the

Banking Ombudsman or competent civil Court of law. However, the writ Court

cannot adjudicate disputed facts of this nature. Thus the Writ Petition per se

is not maintainable. The legal principles regarding maintainability of a Writ

Petition under Article 226 of the Constitution of India has been considered by

the Hon'ble Supreme Court of India in S.Shobha Vs. Muthoot Finance Ltd.

reported in 2025 INSC 117 and the principles laid down reads as under:

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(1) For issuing writ against a legal entity, it would have to

be an instrumentality or agency of a State or should have been

entrusted with such functions as are Government or closely

associated therewith by being of public importance or being

fundamental to the life of the people and hence Governmental.

(2) A Writ Petition under Article 226 of the Constitution of

India may be maintainable against (i) the State Government; (ii)

Authority; (iii) a statutory body; (iv) an instrumentality or agency

of the State; (v) a company which is financed and owned by the

State; (vi) a private body run substantially on State funding; (vii)

a private body discharging public duty or positive obligation of

public nature; and (viii) a person or a body under liability to

discharge any function under any Statute, to compel it to

perform such a statutory function.

(3) Although a non-banking finance company like the

Muthoot Finance Ltd. with which we are concerned is duty

bound to follow and abide by the guidelines provided by the

Reserve Bank of India for smooth conduct of its affairs in

carrying on its business, yet those are of regulatory measures

to keep a check and provide guideline and not a participatory

dominance or control over the affairs of the company.

(4) A private company carrying on banking business

as a Scheduled bank cannot be termed as a company

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carrying on any public function or public duty.

(5) Normally, mandamus is issued to a public body or

authority to compel to to perform some public duty cast upon it

by some statute or statutory rule. In exceptional cases a writ of

mandamus or a writ in the nature of mandamus may issue to a

private body, but only where a public duty is cast upon such

private body by a statute or statutory rule and only to compel

such body to perform its public duty.

(6) Merely because a statute or a rule having the force of

a statute requires a company or some other body to do a

particular thing, it does not possess the attribute of a statutory

body.

(7) If a private body is discharging a public function and

the denial of any rights is in connection with the public duty

imposed on such body, the public law remedy can be enforced.

The duty cast on the public body may be either statutory or

otherwise and the source of such power is immaterial but,

nevertheless, there must be the public law element in such

action.

rd (8) According to Halsbury's Laws of England, 3 Ed.

Vol.30, P.682, “a public authority is a body not necessarily a

country council, municipal corporation or other local authority

which has public statutory duties to perform, and which perform

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the duties and carries out its transactions for the benefit of the

public and not for private profit” . There cannot be any general

definition of public authority or public action. The facts of each

case decide the point.

3. The present case would fall under clause (4) and that being the

factum, the writ order is in conformity with the legal position settled.

4. Accordingly, the order passed in the Writ Petition is confirmed and

consequently, this Writ Appeal stands dismissed, granting liberty to the

appellant to approach the competent civil Court of law. However, the period

during which the Writ Petition and Writ Appeal were pending before the High

Court is to be taken into consideration for the purpose of condoning the period

of limitation in the event of institution of any suit by the appellant. No costs.

                                                                             (S.M.S., J.)       (P.D.B., J.)
                                                                                       21.11.2025
                dsa





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                Internet           :Yes

                Index              :Yes/No

                Neutral Citation   :Yes/No

                Speaking/Non-speaking order







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                                                                                   ----------------------------
                To

                1.Senior Manager Accounts,
                 Monotech Systems Ltd.,
                 Mr.A.Sukumar
                 Formerly at:
                  rd

3 Floor, City Centre, No.66, Thirumalai Road, T.Nagar, Chennai – 600 017.

Now at:

th 8 Floor, “Chaitanya Exotica” No.24, Venkatnarayana Road, T.Nagar, Chennai – 600 017.

2.Business Head, Standard Chartered Bank of India, SME Division, I Floor, Sagar Amar Court, 59, G.N.Chetty Road, T.Nagar, Chennai – 600 017.

3.Standard Chartered Bank, nd SME Banking, 2 Floor, 19, Rajaji Salai, Chennai – 600 001.

4.The Chief Operative Officer, Standard Chartered Bank, Cresenzo, C38/39, G Block, Cresent Association Club, Bandra Curla Complex, Bandra East, Mumbai – 400 051.

5.The Chief General Manager in Charge, Department of Supervision, Reserve Bank of India,

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