IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN MONDAY, THE 13TH JUNE 2011 / 23RD JYAISHTA 1933 WP(C).No. 14271 of 2011(H) --------------------------------------- PETITIONER(S): ------------------------ V.HASSAN, S/O.MOOSA HAJI, VAKKAYIL HOUSE, KIZHAKKUMPADAM, MELATOOR P.O., MALAPPURAM DISTRICT. BY ADV. SRI.K.MOHAMMED SALAHUDHEEN RESPONDENT(S): -------------------------- 1. THE MALAPPURAM DISTRICT CO-OP. BANK LTD., P.B.NO.8, MALAPPURAM-676 505, REP. BY ITS GENERAL MANAGER. 2. THE MANAGER, THE MALAPPURAM DISTRICT CO-OP. BANK LTD., MELATOOR BRANCH, MELATOOR P.O., PIN-676 326 3. THE RESERVE BANK OF INDIA, REP. BY ITS CHAIRMAN, MUMBAI.PIN- 400 001 R1 & R2 BY ADV.SRI.V. KRISHNA MENON THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 13/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts 2/- -2- WP(C)NO.14271/2011 APPENDIX PETITIONER'S EXHIBITS: P1 COPY OF THE STATEMENTS OF ACCOUNTS OF THE RESPECTIVE LOAN ACCOUNTS. P2 COPY OF THE COMMUNICATION ISSUED TO THE PETITIONER BY THE 1ST RESPONDENT DATED 25/04/2011. RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.A.TO.JUDGE sts P.N.RAVINDRAN, J. ------------------------------- W.P.(C)No. 14271 OF 2011 --------------------------------------------- Dated this the 13th day of June, 2011 JUDGMENT Ext.P2 letter dated 25.04.2011 sent by the General Manager of the first respondent bank to the petitioner informing him that unless he pays the sum of Rs.7,00,000/- on or before 18.05.2011 for closing the loan account, steps will be taken to recover the amount due from him by recourse to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), is under challenge in this writ petition. 2. The main grounds raised by the petitioner are that the bank has charged interest at the rate of 21%, that it is against the guidelines issued by the Reserve Bank of India and that the attempt of the respondents is to unjustly enrich themselves. On these grounds, the petitioner has prayed for the following reliefs:- “(i) issue a writ of certiorari or any other appropriate direction or order calling for the records preceding and leading to Ext.P2 communication of the W.P.(C).No. 14271 OF 2011 2 first respondent and quashing the same to the extend it directs the petitioner to remit an amount of Rs.7 lakhs to close the loan account covered by Ext.P1. (ii) issue a writ of mandamus or other appropriate writ, direction or order commanding the respondents 1 and 2 to permit the petitioner to close the loan covered Ext.P1 statement of accounts by applying the rate of interest fixed by the Reserve Bank of India, on the entire loan account and after debiting the previous payments made by the petitioner.” 3. Apart from stating that nationalised banks are charging only interest at the rate of 9 to 12% on cash credit facilities and that as per the guidelines issued by the Reserve Bank of India, the interest charged by the first respondent bank is exorbitant, the petitioner has not produced any material to substantiate the said contention. A reading of Ext.P2 letter indicates that based on the petitioner's request dated 07.04.2011, the Board of Directors of the first respondent bank that met on 18.04.2011, resolved to grant him certain concessions and that pursuant to the said decision he was called upon to remit the sum of Rs.7,00,000/- in full and final settlement of the loan. The letter also makes it clear that the balance amount due from the petitioner was waived. That apart, W.P.(C).No. 14271 OF 2011 3 if the petitioner is aggrieved by Ext.P2, his remedy lies in moving the arbitrator under section 69 of the Kerala Co-operative Societies Act. I therefore find no grounds to entertain the writ petition. The writ petition fails and is accordingly dismissed. P.N.RAVINDRAN, JUDGE dmb