Loan repayment: Tamil Nadu Co-operative Bank refuses to return 131 grams of gold over Rs 1?

According to the customer, he returned Rs 14,590 on March 28, 2011 and paid the entire balance amount, with interest, but the bank received only Rs 1,37,761 and kept Rs 1 as a pending balance.

Published: 01st July 2018 05:10 AM  |   Last Updated: 01st July 2018 05:10 AM  |  

By Express News Service

CHENNAI: A difference of Rs 1 in remittance to settle a loan has allegedly resulted in a bank’s refusal to return 131 grams of gold pledged by a man.

According to his advocate M Sathyan, C Kumar had pledged 131 grams of jewellery and availed a loan of Rs 1.23 lakh on April 6, 2010 from Pallavaram branch of Kancheepuram Central Co-operative Bank Limited. He returned Rs 14,590 on March 28, 2011 and paid the entire balance amount, with interest, but the bank received only Rs 1,37,761 and kept Rs 1 as a pending balance, Sathyan told the Madras High court.

“Even though the petitioner was willing to pay the Rs 1, the bank rejected the offer and refused to return the jewels,” Sathyan alleged.

The Madras High Court directed the government advocate to obtain instructions on a writ plea from a member of the bank. Justice T Raja gave the direction while admitting a writ plea from Kumar last week.