M’luru: Bank directed to pay Rs 1L to account holder for declaring loan as NPA, seizing vehicle

 

Mangaluru: Taking cognisance of a bank’s act of declaring a loan account of an account holder as NPA despite prompt loan repayments, the first additional district and commercial court directed the Kavoor branch of Union Bank of India (now erstwhile Corporation Bank) to pay Rs one lac with 10% interest and compensation for the loss.

The victim, Danesh had taken a bank loan to buy a vehicle from the bank. Danesh had given instructions to the bank for debiting his saving account and transfer of money to the loan account. The bank observed that though Danesh was making timely payments there was negligence on the bank’s part and they declared the loan as NPA.

They also confiscated the vehicle and lodged a complaint against Danesh with the commercial court. regarding non-payment of loan amount

Advocates K S Nambiar and Vivek Nambiar argued for the defendant.