IN THE HIGH couacr or KARNATAKA AT BANGAL¢§,iE_
DATED THIS THE 25*" DAY OF MAY 2{l_Ci9-- I A' %
PRESENT
THE HoN'3LE MR. 9.0. oINAI
under the Indian Trust Act, having its reglsterw ofltitoat
Mangaiore. The first Opposite Party is 5
registered under the Companies 1" V
the purpose of Housing and Urban
registered office at New DeihE'.:__'T3je
is the regionai office of the First
and second Opposite éstobiished for the
purpose of advanoing :..hoog;g§--. = fiorrowm for
construction." the Bank which
stood as or: Party in a tripartite
agreemzont __ hottveeo.'tho.'_':'oo:np£alnant and the Opposfie
Parties.
. averred that during the year 2000,
itho-.oomof3{1jéh't.opproached the second opposite party -
_ Re§Eona£..__v'Gff§to for availing loan for construction of
.1"""'=uY'€!nepo'..ya.--iwedicai and Dental College at Mangalore. After
A ithegotiofion, the second Opposite Party sanctioned a loan
"j of..§%s.1S Crores on 28.06.2000 under Scheme No.16984.
«:~V'Further, on 13.02.2002, the second Opposite Party
sanctioned a ioan of Rs.500 Lakhs under Scheme
xx/'
No.17432 to the compialnant. Thus, under the above said
two schema, a total sum of R520 Crores flnenciel
assistance was provided to the complainant _
interest at 14.5% and 13.5% respectively. " 2
Opposite Party at the request of=:A_t11e.:.'¢oniptés§nent~.efietnv
sanctioned Scan of R5300 Lathe
on 23.12.2002, repayable per
annum, subject to the'taeérmsvteno_it:ons mentioned In
the loan sanctioned --'th:§v--'.ij'j;;en ag-remnant
executed in tn-;1t'ts;ej1atr.ttA ?:fo"}a¢i:itateare§5ayrnent and asso
to adh'ere._ of repayment, a tripartite
agreementv--.nameiy. was entered into
between the "'cotnp!ainant, Opposite Party No.1 and
No.3. As per the Escrow Agreement,
Athro§:_gh"'v't§_;.g§§___ opposéte Party mow Sanka', an
_ arra§ti--gem:ent':"9§as made for repayment of the sum of $15.27
2 W H 1 4." ' --~ .VofC:ro.res vtith lnterat.
2.2 It is further averred that a request was made
2' oh" oy the complainant to the second Opposite Party to rwuce
the rate of Interest for the ioan of Rs.2'0 Crorm covered by
\J
Scheme Nos.16984 and H432 from 14.5% and 13.5%
respectively to 12.75%. The second Opposite '
considering the said request, directed the K
remit a sum of Rs.4.5 Iakhs as chargg
the rate of interest on 2s.12,..2oo2%'ana_rzs.4.t5r Lamas
remitted by the compiainant 'toy:§ierde.re.setA.cE1aArgé.'V1'he V
second Opposite Partgf by l_t$M_!fetter"'r'deted'V20;§1'.2O03,
intimated the comp|alhen't_ of Interest
chargeable on.~tt';Ae.VLg'§rinr;=Ai__Apa1!t is 12.75%
under the that review interest
would . O3..07.2003. However, the
second A'Gp|:)osite'=-- to charge 14.5% and
interest._ the "loan amount contrary to their
reducethe rate of interest from 14.5% and
I and immediately, in March 2003, the
sa%d'4--.fact'we§s brought to the notice of the second Opposite
:j'P.arty.xsuhsequently, the second Opposite Party addwessed
at dated 01.09.2004 to the compialnant assuring that
-they would reset the rate of interea at 10.2§% on the
ht entire loan racmty with effect from e1.o7.2oo3 provided
the compiainant paid e sum of Rs.36,39,440/- as reset
xx
charges and maintained Debt Service Reserve of
Lei-the with the third Opp:-site Party Escrew Bar;~i<er_.g,
said demand cf R3180 Lakhs as 9ebt_.Eeeerv:e:j
totaiiy unreesenabie, iiiegai ane ur§erifereeehie"'ee:
the tetei ioen of R525 Crores. _
2.3 Thereafter, t%1e_'jse;iarri't'i".\i;§;.rp,¢,§eii;e ietter
dated 87.12.2064, essureci reduce the
rate ef interest, re 91.10.2904
prevideci the;¢er%_i4r:ie§'fierit"r2eii3'e ei' i'-23.27-40 Lakhs as
reset "--¢e§r1';7ieirzeri'E,*"in geed faith, made
peyrnenigef second apposite Party
on §.4.12.2§04§ . V. VV;ii1_eA"._ee:r§Tpiainant, basw on the said
_~.e3surerice__,medeliiéy' «tizeeecend apposite Party, caicuiated
A"VtVheV:,in?.er«e.ei~etfire rate of 10.25% for the quarter ending
paid the same be the second Opposite
i?arty..K' firie rzempieinent was not in arrears ef any ioen
vvVTheeecend Qppesite Party instead ef adhering
ie ltfieiriiistand, by fetter dated 15.02.2005, informw the
T eierhgziainant that there was short payment ef interest of
iis.17.66 ieiszhs and there was deiay 93' 9 days by the
\?
-3,
agency in remitting the amount and therefore, request fer
resetting cf interest from 31.10.2004 ceuid not be
considered. The second respondent refused to reduce___the
rate ef interwi: as assured and despite the iegaip~e_Vtxi;i_cevv
dated 02.12.2955, ameunt of Rs.1,06,2$,41’8{v§V.:t§iiet;tee’.__.J”-.
by the ssecend Opposite Party under_Jthe__heas;i”:fesét;vfiherftges. ” ” it
and excessive interest has net been paid.
parties. Hewever, the :empti_atn.anti:vas l§mEtveciV.ij£’ts_¢;:iaim%
fer Rs.99,83,00D/–. It is furtheytksierted tfiat: dpposite
parties have faiiw ta re:’se€:r Atfitfcptetfih am: teasonabie service
to the tf€§ii”!’tV£)ia§:!.§T,8flt” jthere is”tS*ef”:i:iency in service an the
part ofithaf which they are iiabie to
compensatethe c¢V!fs’:;$ir-_3’iri5nrV1t and therefore, the complaint
” for agbeate said” re.–*–é–fis.
State Commission by order dated
G2.t§’&i§2§O§’;’i: that as the compiaireant has sought for
‘.V.’direetiari’.i:_te’ the Gpposite Parties to pay a sum of
‘u..jifRs_9§.,’3Z-v3;0G0i– aiieging breach of centract in the
etagtfgéteinant, the appropriate remedy for the compiainant
” “tees to approach the Civii Court and net by way of fiiing a
-9»
complaint before the State Commission under the
Consumer Protectlon Act. Accordlngiy, the State
Commission has dismissed the complaint reserving liberty
to the complainant to approach the Civil court,
‘ advised. Being aggrieved by the said order
Commission, the complainant hag preferretl’1jj~thi*a: w
Petition.
4. We have heard tha’l’leas’hed appeafing
for the writ petitioner; l A A
5′.’ “”” oo:§hseIh”_”Vap’oearlng for the writ
petitioner eomplaint was matntainable
before _ the%”‘$ta”teVVCot:-ktleéslon and the finding that the
._v_con.1pl~ai;giAant A- pet: ‘o:—.«er should approach the Gvtl Court is
ht é5».vt}_ two have given carefui conslderafion to the
VA “~Tf’coVnt*e«ntlons of the learned counsel appearing for the
A’ oéztlttoner and scrutinized the material on record.
V’
7. The material on record would cleady shoaethat
even as per the averments made in the
complainant alleges breach of contract ‘eppioséte–«’
parties. The impugned
Commission is passed in original v”€:o:ri*2pla.ii1i:I_’..’v;$§;’23/V3930?’VQ
and the order passed by the Stete Cominisisten
in the Writ Petition can’:i:.e_ chaiii-hge;iyi’ytiin__appeai’ before the
1 National Commission in ‘ofV”‘the_\.p”reyrie_ions of Section
19 of the Coneeefier Mm an
effective arid of appeal is
provided’ to ‘to;approech the National
Commieeion.’_ by ‘we do not find any ground
to interfere “with ,tiaeA’tn1p£iVgned order in etacise of writ
of thxis-~<':ourt and accordingly, we hold that
tieefeVis"n:e' this writ petition and pass the foiiowlng
Olideif – L' % L t
2 writ Petition is disposed of reserving Hberty to
' petitioner to file appeal before the National
Commission against the impugned order passed by the
State Commission in complaint No.23/2007 dated
ox'
.11.
02.08.2007. Am the contentions urged in the writ pefitiotf-_
are kept open to be urged before the Appellate Authoflt§;_fi ‘
VYé$/N6} ‘ ;,}’/
_ We5:2..Hofst’ No