IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR WEDNESDAY, THE 17TH MARCH 2010 / 26TH PHALGUNA 1931 WP(C).No. 31020 of 2009(V) -------------------------- PETITIONER: --------------- K.BEERANKUTTY, AGED 65 YEARS, S/O.HASSAN MOIDU, KAMBATHU HOUSE, MONGAM-PO, ERNAD TALUK, MALAPPURAM DISTRICT. BY ADV. SRI.P.VIJAYA BHANU SRI.P.VENUGOPAL (1086/92) RESPONDENT(S): --------------- 1. SOUTH MALABAR GRAMIN BANK, UP HILL-PO, MALAPPURAM, REPRESENTED BY ITS GENERAL MANAGER. 2. BRANCH MANAGER, SOUTH MALABAR GRAMIN BANK, MORAYUR BRANCH, MORAYUR P.O., MALAPPURAM. 3. C.BEERAN HAJI, S/O.KUNHALI, KAZHUNGUMCHOLA HOUSE, CHERUPUTHUR P.O., MONGAM, ERNAD TALUK, MALAPPURAM DISTRICT. ADV. SRI.T.R.RAVI FOR R2 (SC) SRI.P.GIRISH KUMAR FOR R3 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 17/03/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX IN W.P.(C)No.31020/09 PETIITONER'S EXTS: EXT.P1: TRUE COPY OF THE RECIEPTS ISSUED BY THE 2ND RESPONDENT FOR HAVING RECEIVED THE PAYMENTS TOWARDS THE GOLD LOAN ACCOUNT. EXT.P2: TRUE COPY OF THE PLAINT IN O.S.No. 181/09 ON THE FILE OF THE MUNSIFF COURT, MANJERI. EXT.P3: TRUE COPY OF THE INTERLOCUTORY APPLICATION VIDE I.A.No. 1619/09 ALONG WITH THE ACCOMPANYING AFFIDAVIT AND SCHEDULE OF THE PROPERTY. EXT.P4: TRUE COPY OF THE ATTACHMENT ORDER DATED 13.8.09 PASSED BY THE MUNSIFF COURT, MANJERI IN I.A.No.1619/09 EXT.P5: TRUE COPY OF THE NOTICE ISSUED BY THE PETITIONER THROUGH HIS COUNSEL DATED 29.8.09. EXT.P6: TRUE COPY OF THE REPLY NOTICE SEND BY THE 2ND RESPONDENT THROUGH THEIR COUNSEL ON 22.9.09. TRUE COPY T.R.RAMACHANDRAN NAIR, J. ---------------------------------------------- W.P.(C)No.31020 OF 2009 ----------------------------------------------------- DATED THIS THE 17th DAY OF MARCH, 2010 J U D G M E N T The petitioner, who was granted a gold loan, OM GL 37/09 dated 8.5.2009 has received Rs.1,30,000/- from the 2nd respondent pledging various gold ornaments. 2. The petitioner has repaid the entire amount covered by the gold loan and the last payment was made and the said account was closed on 8.8.2009. The petitioner, even though sought for release of the gold ornaments, the 2nd respondent did not acceded to the same and hence he has approached this Court by filing this Writ Petition. 3. It is submitted by the petitioner that there is another loan account remaining to be cleared, where the 3rd respondent has availed a loan of Rs.1,20,000/- and the petitioner stood as a guarantor to him. It is pointed out that the O.S.No.181/09 was filed by the 2nd respondent before the Munsiff Court, Manjeri wherein the court had ordered attachment against the residential property of the petitioner having an extent of 14 cents in W.P.(C)No.31020/09 -2- R.S.No.416/3 of Morayur Village, Malappuram District. The total claim by the bank in the said suit is for a sum of Rs.1,63,276/- as on 10.8.2009. 4. It is the case of the petitioner that in these circumstances, there is no justification for the bank to retain the gold ornaments as there is sufficient security to satisfy the decree debt also. 5. As directed by this Court, bank has filed a statement pointing out that at the time of pledging of the gold, the petitioner as per Annexure I has declared that the bank is entitled to hold the pledged ornaments as security for the loan as well as for any other liability/liabilities on any account payable by the petitioner to the bank at any office of the bank whether solely or jointly with others and whether as principal debtor surety. 6. It is therefore contended that there is a contract in that regard which alone is being enforced by the bank. The learned counsel for the petitioner submitted that in the light of Section 174 of the Contract Act, the said provision in Annexure I cannot have any application. W.P.(C)No.31020/09 -3- 7. The matter requires detailed examination of the documents executed at the time of issuance of the loan and the liability arising under Exhibit P1. It is upto the petitioner to file an application before the Banking Ombudsman who is competent to go into the various details and to pass orders on the same. The pleas raised by the petitioner will be considered with notice to the Bank and appropriate decision will be taken without delay. The Writ Petition is disposed of as above. T.R.RAMACHANDRAN NAIR, JUDGE dsn