Mr Vipin Sethi v. The Banking Ombudsman

((((((((((((HC-KAR, NC:(2026:KHC:42504( WP(No.(6832(of(2022( ( ,,,,,,,,,, , CNR:(KAHC010145272022( ( ( IN(THE(HIGH(COURT(OF(KARNATAKA(AT(BENGALURU( TH DATED(THIS(THE(11 (DAY(OF(AUGUST,(2026(

BEFORE(

THE(HON'BLE(MR.(JUSTICE(M.G.S.(KAMAL(

WRIT(PETITION(NO.(6832(OF(2022((GM-RES)(

(

BETWEEN:(( (

1., MR,VIPIN,SETHI,

S/O,K.L.,SETHI,, AGED,ABOUT,47,YEARS,, ,

2., MRS,RAJNI,SETHI, W/O,VIPIN,SETHI,,, AGED,ABOUT,46,YEARS,,

, BOTH,RESIDING,AT,NO.112,,, WEST,OF,CHORD,ROAD,, ND ND 2 ,STAGE,,2 ,,PHASE,,, TH 6 ,MAIN,,, BENGALURU-560,086.,

Digitally …PETITIONERS, signedtiby SUMA0B0N (BY,SRI.,SRIDHAR,G.,ADVOCATE), Location: (HIGH0COURT OF AND:( KARNATAKA (

1., THE,BANKING,OMBUDSMAN, C/O,RESERVE,BANK,OF,INDIA,, 10/3/8,,NRUPATHUNGA,ROAD,, REPRESENTED,BY,MS,SARASWATHI,SHYAMPRASAD,, EMAIL.,CRPC@RBI.ORG.IN., BENGALURU-560,001., ,

2., CANARA,BANK, STRAJAJINAGAR,1 ,BLOCK,BRANCH,, NDHAVING,OFFICE,AT,NO.8,,2 ,FLOOR,, ((((((((((((HC-KAR, NC:(2026:KHC:42504( WP(No.(6832(of(2022( ( ,,,,,,,,,, , CNR:(KAHC010145272022( ( ( NEXT,TO,GODREJ,SHOWROOM,, DR.RAJ,KUMAR,ROAD,, STRAJAJINAGAR,,1 ,BLOCK,, BENGALURU-560,010., REPRESENTED,BY,ITS,CHIEF,MANAGER., …RESPONDENTS, , (R1,-,SERVED, ,SRI.,VIKRAM,UNNI,RAJAGOPAL.,,ADVOCATE,FOR,R2), , , THIS, WRIT, PETITION, IS, FILED, UNDER, ARTICLES, 226, AND, 227, OF, THE, CONSTITUTION, OF, INDIA, PRAYING, TO, QUASH,THE,IMPUGNED,ORDER,DATED,08.03.2022,SENT,BY,R1, INTIMATION, CLOSURE, FOR, COMPLAINT, AGAINST, CANARA, BANK, VIDE, ANNEXURE-A;, DIRECT, THE, RESPONDENTS, TO, REFUND,THE,EXCESS,AMOUNT,OF,INTEREST,COLLECTED,FROM, THE, PETITIONERS, AMOUNTING, TO, RS.96,42,821/-, (RUPEES, NINETY,SIX,LAKHS,,FORTY,TWO,THOUSAND,EIGHT,HUNDRED, AND,TWENTY,ONE,ONLY),AND,ETC., ,, , THIS,PETITION,,COMING,ON,FOR,PRELIMINARY,HEARING, IN, 'B', GROUP,, THIS, DAY,, ORDER, WAS, MADE, THEREIN, AS, UNDER:, , CORAM:, ,HON'BLE,MR.,JUSTICE,M.G.S.,KAMAL, ,

ORAL ORDER

¶1Petitioners are before this Court seeking following reliefs: ''(a). Quash the impugned order dated 08.03.2022 bearing complaint No. N202122002014573 sent by Respondent No.1 intimation closure for complaint against Canara Bank, produced as "Annexure A".

(b). Direct the Respondents to refund the excess amount of interest collected from the Petitioners amounting to Rs. 96,42,821/(Rupees Ninety-Six lakhs forty-two thousand eight hundred and twenty-one only).

(c). Direct the Respondents to pay compensation of Rs.20,00,000/-(Rupees Twenty Lakhs Only).

(d). Grant such other and further relief/s including cost, as this Hon'ble Court deems fit in the facts and circumstances of the case and in the interests of justice and equity.''

¶2Learned counsel for the petitioners submits that as regards prayer column (a) is concerned, the only grievance of the petitioner is that, when the petitioners had approached the respondent No.1-Banking Ombudsman, alleging irregularities committed by the respondent No.2-Bank in charging the penal interest, the respondent No.1-Banking Ombudsman, without even hearing the petitioner, accepting the stand of the respondent No.2-Bank has closed the matter.

¶3As regards, the prayer column (b) and (c), he submits that the petitioners have initiated proceedings before the

State Consumer Redressal Commission and the matter is thus seized. Therefore, he would insist consideration only of prayer (a).

¶4Learned counsel appearing for the respondent No.2-Bank, fairly submits that since the petitioner is restricting the writ petition to the extent of prayer at column (a), an opportunity be granted to the petitioner directing the respondent No.1-Banking Ombudsman to reconsider the matter.

¶5Submissions are placed on record.

¶6Perusal of the order of the respondent No.1-Banking Ombudsman produced at Annexure-A, indicate that the complaint raised by the petitioners has been closed, purportedly on receipt of the reply by the respondent No.2-Bank. There is no indication of respondent No.1-Ombudsman having given or furnished the copy of the reply filed by the respondent No.2-Bank to the petitioner. It also does not indicate any response being sought by the petitioners.

¶7The respondent No.1-Banking Ombudsman who is vested with a judicious powers is required to comply with the principles of natural justice before arriving at the conclusion in exercise of its power conferred under the Regulations. The impugned order does not reflect compliance of the same.

¶8In that view of the matter, impugned order at Annexure-A dated 08.03.2022 is hereby quashed. Matter is remitted to the respondent No.1-Banking Ombudsman, who shall furnish the reply, which is stated to have been filed by the respondent No.2-Bank to the petitioners and on receipt of the response of the petitioners, proceed to pass appropriate order thereof.

¶9Since the parties are represented by their respective learned counsels, they shall appear before the respondent No.1-Banking Ombudsman on 10.09.2026 without any further notice.

¶10The respondent No.1-Banking Ombudsman shall proceed to pass appropriate Order in accordance with law as directed above. Petition is disposed of, accordingly.

Sd/- (M.G.S. KAMAL) JUDGE

RL List No.: 1 Sl No.: 20