Madras High Court judge disputes home loan repayment; SBI seeks transfer

The dispute stems from a home loan taken by the Madras High Court judge for a partially constructed property that was later demolished

New Delhi, September 25, dmanewsdesk: The State Bank of India (SBI) has approached the National Consumer Disputes Redressal Commission (NCDRC) to transfer a home loan repayment dispute case filed against it by Madras High Court judge, Justice J Nisha Banu, outside Tamil Nadu. The bank is apprehensive that it may not receive an impartial hearing from the District Consumer Disputes Redressal Commission (DCDRC) in Madurai, as the case falls under the jurisdiction of the Madras High Court, reported The Indian Express. 

The dispute revolves around a home loan Justice Banu took from SBI for a property in Madurai that was partially constructed and later demolished due to alleged poor construction. According to SBI, despite reminders, the judge has not fully repaid the outstanding loan amount. Justice Banu, on the other hand, claims the issue is linked to a rejected insurance claim from The New India Assurance Company, alleging collusion between bank officials and the insurance company to deny her rightful compensation.

The NCDRC, led by its president, Justice AP Sahi, and Member Inder Jit Singh, issued a notice to SBI regarding the transfer request on August 2. The next hearing is scheduled for September 23.

SBI’s counsel, Advocate Jitendra Kumar, sought an interim stay on proceedings in Madurai, arguing that the bank’s concerns warranted a transfer. However, the Commission remarked that SBI’s apprehension could not be lightly accepted because a sitting High Court judge is involved, asking for more substantial reasons.

SBI contends that the judge’s equated monthly instalments (EMIs) were not honoured due to insufficient funds on several occasions in 2018 and 2019. According to records, the judge had requested a rescheduling of her EMIs at one point, but payments through the Electronic Clearing Service (ECS) failed due to insufficient funds.

When contacted by the news daily, Justice Banu’s counsel refused to comment, citing the ongoing national commission case.

Source: Business Standard