Shri Ram Krishna Cold Storage and Ice Factory Private Ltd. vs The State Bank of India and Others

A writ petition was filed by Shri Ram Krishna Cold Storage and Ice Factory, Private Limited against the State Bank of India that a loan is not being granted. For several reasons the learned Judge was not inclined to issue a writ, whether a mandamus or otherwise directing the bank to facilitate the loan.

This Court has several other reasons that the writ jurisdiction of the High Court cannot be utilised in such matters. The fact that the loan is sought by a customer is a pure contract. A loan is given on the reputation of a customer, his credibility and other factors. The High Court is not running a banking service and has no means to evaluate the credit of a person who seeks a loan. Further, as the nation moves into a new economic order, loans cannot be had on a direction of a Court but as a customer-bank relationship. This is not a matter where the customer has been duped by the bank.

If the Petitioner is not satisfied with his banker he can move to another bank. It is a free commercial world. The Court has reservations whether such a complaint can even become a matter for a civil action for specific performance of a contract. The learned Judge has committed no error in the order passed on the writ petition.

Dismissed.