SBI has asked the NCDRC to transfer a home loan dispute involving Madras High Court Justice J Nisha Banu to a forum outside Tamil Nadu, citing concerns of potential bias. The case is currently with the Madurai District Consumer Disputes Redressal Commission.
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NEW DELHI: The State Bank of India (SBI) has approached the National Consumer Disputes Redressal Commission (NCDRC) seeking the transfer of a home loan dispute involving Madras High Court Justice J Nisha Banu to a forum outside of Tamil Nadu. SBI’s request for the transfer stems from concerns over potential bias, as the case is currently under the jurisdiction of the Madurai District Consumer Disputes Redressal Commission, which falls under the Madras High Court.
The dispute revolves around a home loan that SBI sanctioned for a residential property in Madurai, which Justice J Nisha Banu acquired. According to SBI, the property was partially constructed when complications began. Eventually, the property had to be demolished due to what the bank described as substandard construction. This demolition became the focal point of the ensuing legal confrontation.
On the other hand, Justice Banu presents a different perspective. According to her, the primary issue is linked to an insurance claim she had filed with The New India Assurance Company. She asserts that the claim, intended to cover the property damage, was unfairly denied.
The denial of her insurance claim, Justice Banu argues-
“resulted from a collusive effort between bank officials and the insurance provider.”
This alleged collusion left her unable to clear the remaining balance of the home loan, triggering the current legal dispute.
In its petition to the NCDRC, SBI expressed apprehension about the impartiality of the proceedings at the Madurai District Consumer Disputes Redressal Commission. The bank emphasized that the current forum falls under the jurisdiction of the Madras High Court, where Justice Banu holds a prominent position. SBI raised concerns that this connection could potentially influence the outcome of the case.
The bank is advocating for the case to be transferred to another forum outside Tamil Nadu to ensure fair and unbiased adjudication. SBI’s legal representative, Advocate Jitendra Kumar, stressed the importance of impartiality during the hearings.
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The NCDRC, led by Justice AP Sahi and Member Inder Jit Singh, took note of the transfer petition on August 2. The Commission issued a formal notice to SBI and scheduled further hearings on the matter for September 23.
During the proceedings, SBI’s legal counsel Jitendra Kumar requested an interim stay on the ongoing proceedings in Madurai. He argued that there were legitimate concerns about the neutrality of the current forum, given Justice Banu’s association with the Madras High Court.
However, the NCDRC refrained from granting an immediate stay. The Commission acknowledged that the involvement of a High Court judge in a case doesn’t automatically imply partiality or bias. The NCDRC emphasized that concrete evidence would be required to substantiate SBI’s concerns before any decision could be made about the transfer request.
“The mere involvement of a High Court judge does not automatically validate the bank’s concerns about bias.”
-the Commission remarked, urging SBI to present stronger evidence to back its claims.
In addition to the property and insurance issues, the bank raised concerns about irregularities in loan repayment. According to SBI, Justice Banu had several instances of non-payment during 2018 and 2019, where her account lacked sufficient funds to complete the loan payments. SBI highlighted that despite several attempts to reschedule the loan repayment, the payments failed to go through.
SBI’s representatives elaborated that Electronic Clearing Service (ECS) transactions meant to facilitate the repayment of the loan had repeatedly failed due to insufficient funds in Justice Banu’s account,
