Daijiworld Media Network – Mangaluru (MS)

Mangaluru, May 15: The first additional district and commercial court considered the act of a bank which declared the bank account of a vehicle loan holder as NPA, though he had paid the loan instalments in full and also confiscated the vehicle against which he had taken the loan from the bank.

The court asked the bank to pay victim Danesh Rs one lac with 10% interest and compensation for the loss.

M S Danesh had purchased a vehicle on loan from earlier Corporation Bank Kavoor branch. The present Union Bank of India (since corporation bank was merged with Union Bank of India) confiscated the vehicle of Danesh saying that he has not done the repayment of loan on time and also filed complaint in this regard with the commercial court.

The erstwhile Corporation Bank Kavoor branch (file photo)

Justice T P Ramalinge Gowda, who heard the arguments of both parties, said that Danesh was paying his instalments in due time and had requested the bank to transfer the instalment amount from his savings account to the loan account. However, the bank showed negligence and declared his loan account as NPA and confiscated the vehicle. This is against the law.

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