KOTAK MAHINDRA BANK LTD vs R. SRINIVASAN

AGGRIEVED by the order dated 25.8.2011 passed by the Karnataka State Consumer Disputes Redressal Commission (for short the State Commission in FA No. 2494/2010, the opposite party bank has filed the present proceedings.

WE have heard learned Counsel for the petitioner and the respondent No. 1/complainant in person and have considered their submissions. The facts and circumstances which led to the filing of the complaint are amply noted in the order of the Fora below need no repetition at our end. We may simply note that even after the complainant had repaid the entire amount of loan against the hypothecated vehicle, the petitioner bank declined to issue ''No Due Certificate '', i.e., scoring out of the hypothecation of the vehicle on the ground that beside the loan obtained by the complainant against the said vehicle, the complainant had taken other loan from the petitioner bank which was not repaid by him and, therefore, the Bank had to approach the Debts Recovery Tribunal for recovery of the said amount. During the course of his arguments, learned Counsel for the petitioner submitted that there is no objection from the side of the petitioner to issue the ''No Due Certificate '' as claimed by the complainant but what has prompted the petitioner Bank to approach this Commission are the findings and observations of the State Commission recorded in the penultimate paragraph of the order, which are to the following effect: "In the light of that contention the respondents are entitled for modification of the order before the Arbitration Court if he intends to transfer the vehicle. Therefore, we are of the firm opinion there is no reason to interfere with the impugned order directing the appellants to issue No Objection Certificate with compensation and costs. Hence we pass the following: Appeal is dismissed. The amount deposited by the appellants in this appeal shall be transferred to the DF to enable the DF to pay the same to the respondents/complainants after due notice to them. "

Having regard to the entirety of the facts and circumstances of the case, we are of the view that the direction of the above nature was not at all called for as it would amount to overreaching the jurisdiction of the exercise of a jurisdiction in relation to the subject matter of the other litigation which could not be subject matter of the present proceedings. Accordingly, the directions given in the impugned order are hereby expunged and the petitioner Bank is directed to issue a ''No Due Certificate ''/ ''No Objection Certificate '' in respect of vehicle bearing No. KA-01-C 6601 in favour of the complainant within two weeks from today. The Revision Petition is accordingly disposed of. A copy of this order be given dasti to the Counsel for the petitioner for compliance of the order. Revision Petition disposed of.