M/S SAMSIDH SCHOOL, vs THE RESERVE BANK OF INDIA
- Court
- Karnataka High Court
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HC-KAR
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WP No. 39367 of 2025
CNR: KAHC010852992025
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 14 DAY OF OCTOBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE C.M. POONACHA
WRIT PETITION NO. 39367 OF 2025 (GM-RES)
BETWEEN:
1. M/S SAMSIDH SCHOOL,
AT SY. NO.33, RACHANPALLI,
ANANTAPUR, ANDHRA PRADESH,
REPRESENTED BY ITS AUTHORISED SIGNATORY.
ANANTHPUR-515001.
S/O. K. SUNDARRAJ
SRI. S. KATHIKEYAN,
AGED 45 YEARS
2. M/S. SAMSIDH EDUCATIONAL TRUST.
AT NO.19/6, FIRST FLOOR,
MARUTI PLAZA, T C PALYA,
RAMAMURTHY NAGAR,
BENGALURU 560016.
REPRESENTED BY ITS AUTHORISED SIGNATORY
SRI. KATHIKEYAN.S.
S/O. K. SUNDARRAJ
AGED 45 YEARS
…PETITIONERS
(BY SRI. MOHAMMED MUJASSIM.,ADVOCATE)
AND:
1. THE RESERVE BANK OF INDIA
HAVING ITS REGIONAL OFFICER
AT NO. 10/3/8, NRUPATHUNGA ROAD,
BENGALURU 560 001.
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2. THE OMBUDSMAN
OFFICE OF OMBUDSMAN KARNATAKA,
C/O. RESERVE BANK OF INDIA NO.10/3/8,
NRUPATHUNGA ROAD,
BENGALURU 560 001.
3. M/S. KOTAK MAHINDRA BANK LIMITED
BRANCH OFFICE AT NO.22,
2ND FLOOR, KOTAK HOUSE,
M.G. ROAD, BENGALURU - 560 001,
REPRESENTED BY ITS BRANCH MANAGER
4. M/S. KOTAK MAHINDRA BANK LIMITED
HAVING ITS REGISTERED OFFICE AT
NO.27 BKC, C 27.
G BLOCK, BANDRA KURLA COMPLEX.
BANDRA (E), MUMBAI - 400 051.
REPRESENTED BY ITS BRANCH MANAGER
5. M/S. KOTAK MAHINDRA BANK LIMITED
HAVING ITS ONE OF BRANCH
OFFICE AT 3RD FLOOR, 6-3-1109/1/P/302,
JEWEL PAVANI TOWERS,
RAJ BHAVAN ROAD, SOMAJIGUDA,
HYDERABAD-500 082.
REPRESENTED BY ITS BRANCH MANAGER
6. M/S. CANARA BANK
HEAD OFFICER AT 6648, 112, JC ROAD,
P.B, HALSURPETE, NAGARATHPETE,
BENGALURU 560 002.
REPRESENTED BY ITS BRANCH MANAGER
7. M/S. KALP JAIN MOTORWORLD,
HAVING ITS OFFICE AT NO. 15/1-1,
18TH CROSS NEAR, NRITHYA APTS,
MALLESWARAM, BENGALURU - 560 055.
REPRESENTED BY ITS MANAGER
…RESPONDENTS
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(BY MS. SHREYA, ADVOCATE FOR
SRI. RAMAKRISHNAN, ADVOCATE FOR R3 TO R5
SRI. RANJAN KELKAR, ADVOCATE FOR R6
SERVICE IN R/O R7 IS HELD SUFFICIENT V/O DTD 14.7.2026
NOTICE TO R1 & R2 IS DEFERRED V/O DTD 10.2.2026)
THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE
CONSTITUTION OF INDIA PRAYING TO QUASH AND SET ASIDE
THE ORDER DATED 17.06.2025 BEARING REFERENCE
RBI/CMS/N2024250236 02662/2024-25, VIDE ANNEXURE - A,
PASSED BY RESPONDENT NO.2, IN SO FAR AS IT DISMISSES
THE PETITIONERS COMPLAINT REGARDING THE WRONGFUL
DISBURSEMENT OF THE SANCTIONED LOAN AMOUNT.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING
IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS
UNDER:
CORAM: HON'BLE MR. JUSTICE C.M. POONACHA
ORAL ORDER
The present writ petition is filed seeking for the following
reliefs:
"a) Issue a writ of certiorari or any other appropriate writ,
order, or direction quashing and setting aside the order
dated 17.06.2025 bearing reference
RBI/CMS/N2024250236 02662/2024-25, vide Annexure
A, passed by Respondent No.2, in so far as it dismisses
the Petitioners complaint regarding the wrongful
disbursement of the sanctioned loan amount;
b) Issue a writ of mandamus or any other appropriate
writ, order, or direction directing Respondents 3 to 5 to
Cease and desist from initiating or continuing any
coercive legal proceedings against the Petitioners in
respect of Loan Account Nos. LCV-2979464, LCV-
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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2977385, and LCV-2979541 until the refund and correct
disbursement is made.
c) Declare that the Petitioners cannot be held liable for
any amount not received by them due to the wrongful
actions of Respondents 3 to 5 in respect of Loan Account
Nos. LCV-2979464, LCV-2977385, and LCV-2979541;
d) Issue any Writ or order or direction as this Hon'ble
Court deems fit in the circumstances of the case,
including an order as to cost of this Writ petition, in the
interest of justice and equity. "
2. The relevant facts in a nutshell are that the
petitioners, intending to purchase three buses, approached the
seventh respondent - dealer for purchase of the same.
Accordingly, a purchase order dated 22.05.2024 as well as Pre-
Invoice dated 22.05.2024 (Annexures-C and D to the writ
petition respectively) were issued by the seventh respondent to
the first petitioner - School. The petitioners availed financial
assistance from the respondent Nos.3 to 5 - Kotak Mahindra
1
Bank for the purpose of purchasing the buses in question. The
necessary loan application, amount and other relevant
documents having been submitted, the KMB was required to
remit the loan amount that was sanctioned in favour of the
petitioners to the seventh respondent. Accordingly, a sum of
1
Hereinafter referred to as 'KMB'
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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Rs.16,46,000/-, which was sanctioned for each vehicle, and the
`
cumulative sum of 49,38,000/- was transferred by the KMB to
the Canara Bank account of the seventh respondent.
3. It is the case of the petitioners that the KMB was
2
required to transfer the amount to the Bank of India account
of the seventh respondent, which aspect was communicated by
the petitioners to the officials of the KMB, and that since the
amount had been transferred by the KMB erroneously to
another account of the seventh respondent, the vehicles in
question that were sought to be purchased by the petitioners
were also not delivered. Hence, the petitioners lodged a
complaint with the Ombudsman - second respondent of the
Reserve Bank of India - first respondent. The second
respondent vide order dated 17.06.2025 (Annexure-A to the
writ petition) rejected the complaint lodged by the petitioners
holding that there was no deficiency of service by the KMB.
Being aggrieved, the present petition is filed.
4. It is the contention on behalf of the petitioners that
the bank account details of the seventh respondent with the
BOI have been conveyed to the officials of the KMB. In support
2
Hereinafter referred to as 'BOI'
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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of the said contention, the learned counsel for the petitioners
relies upon copies of the WhatsApp communication (Annexure-
E to the writ petition) as also a copy of the cheque issued by
the BOI to the seventh respondent that has been
communicated to the KMB for the purpose of disbursing the
loan amount to the BOI account of the seventh respondent.
That erroneously the amount has been disbursed to the Canara
Bank account of the seventh respondent. It is further
contended that the officials of the KMB admitted vide their e-
mails dated 24.06.2024 and 13.06.2024 (Annexure-F to the
writ petition) as to the error committed by the officials of the
KMB. Hence, it is contended that there is deficiency of service
on behalf of the KMB.
5. Learned counsel for the KMB placing reliance on a
copy of the Mandate submitted by the petitioners to the KMB (a
copy of which is produced as Annexure-R1 to the statement of
objections) and submits that the Canara Bank details of the
seventh respondent were furnished by the petitioners and that
the same has also been signed by the authorized signatory of
the seventh respondent as well as the petitioners. It is further
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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contended that the amounts have been transferred by the KMB
in terms of the request made by the petitioners, which was
furnished while submitting the requisite loan documents and
acting on the said request, the amount has been transferred. It
is further submitted on behalf of KMB that the credit facilities
that have been granted by it to the petitioners have not been
repaid, consequent to which the KMB has filed OA
3
No.2223/2025 before the Debts Recovery Tribunal and that
the petitioners, despite being aware of the said proceedings
have not appeared in the said proceedings and have been
placed ex-parte before the DRT. A copy of the order sheet of
the DRT is produced as Annexure-R5 to the statement of
objections. It is contended that the petitioners without
appearing before the DRT, are prosecuting the present writ
petition.
6. The sixth respondent - Canara Bank has also filed
statement of objections, whereunder it is averred that the bank
account of the seventh respondent held with the Canara Bank
3
Hereinafter referred to as 'DRT'
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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4
has been marked as an Non-Performing Asset and the dues
payable by the seventh respondent are in excess of a sum of
Rs.50.00 crores. That the Canara Bank has initiated
proceedings under the provisions of the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security
5
Interest Act, 2002 and various properties have already been
sold for recovery of the overdue amounts of the seventh
respondent. The learned counsel for the sixth respondent
placing reliance on the averments made in the statement of
objections has contended that the amounts transferred by the
KMB has been appropriated towards the dues payable by the
seventh respondent.
7. Learned counsel for the petitioners vehemently
contends that the officials of the KMB having admitted in their
e-mails (Annexure-F to the writ petition) that they have
erroneously transferred the amounts to the Canara Bank
account of the seventh respondent and there is deficiency of
service, which ought to have been favourably considered by the
Ombudsman.
4
Hereinafter referred to as 'NPA'
5
Hereinafter referred to as '
SARFAESI Act'
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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8. It is forthcoming that the seventh respondent has
furnished on its letter head its bank account details with Canara
Bank (a copy of which is produced as Annexure -R1 to the writ
petition). The same was enclosed along with the request for
disbursement made by the first petitioner to the KMB and the
first petitioner has also signed the said request. The bank
account details of the seventh respondent with the Canara
Bank has also been furnished along with the said request for
disbursement. The date of disbursement is mentioned as
04.06.2024.
9. It is the contention of the petitioners that the said
Forms have been fabricated and the signatures of the
petitioners on various Forms have been taken at the time of
availing the loan. The said contention is ex-facie untenable and
liable to be rejected, inasmuch as the bank account details of
the seventh respondent with the Canara Bank have been
furnished on the letter head of the seventh respondent. As
noticed above, the said bank account details are also
mentioned in the request for disbursement made by the first
petitioner, which is annexed as Annexure-R1.
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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10. It is the contention of the petitioners that
subsequently the petitioners have corresponded with the
Officials of the KMB have been communicated to transfer the
amounts to the BOI account of the seventh respondent. In
support of the said contention, reliance is placed on behalf of
the petitioners on the copies of the WhatsApp communication
(Annexure-E to the writ petition). The same indicates that a
screenshot of the BOI cheque of the seventh respondent has
been sent to a representative of the KMB. Reliance is also
placed by the petitioners on the e-mail communications
addressed by the officials of the KMB.
11. In response to the reliance placed by the petitioners
on the WhatsApp communication (Annexure-E to the writ
petition) as well as the emails of the respondents (Annexure-F
to the writ petition), the KMB in its statement of objections at
paras 12 and 14 has averred regarding the same, which is
extracted hereunder for ready reference:
"12. The allegation of the Petitioners that the loan
amount was transferred to a wrong account is misleading
and incomplete. The transaction was processed based on
the documentation and instructions available at the
relevant time. Assuming, without conceding that
Annexure "E", was indeed sent to the representative of
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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these Respondents through Whatsapp on 22/05/2024,
the loan agreement and disbursal mandate form was
executed subsequent to the said date, therefore it is
crystal clear that these Respondents have acted on the
mandate provided by the Petitioners which mandate has
been produced as Annexure R1 herein. This being the
case, the Petitioners cannot blame the Respondents for
any inaction on the part of Respondent No.7.
xxxxxx
14. With regard to "Annexure F" produced by the
Petitioners, the said email only points out to the efforts
being made by these Respondents in getting the
amounts transferred from one account of Respondent
No.7 to the other. The same cannot be interpreted in any
other manner, much less admission of any wrong doing.
As already stated, it is not as if the loan amount has
been transferred to a third-party. It has been transferred
to another account of Respondent No.7 itself, the
account for which the mandate was clearly given by the
Petitioners themselves."
(emphasis supplied)
12. It is clear from the same that the officials of the
KMB attempted to deal with the alleged grievance that was
raised on behalf of the petitioners.
13. The resultant situation as is forthcoming from the
aforementioned factual matrix is that the first petitioner had
communicated to the officials of the KMB, the bank account
details of the seventh respondent held at the Canara Bank.
Subsequently, it appears that through a WhatsApp
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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communication, the bank account details of the seventh
respondent held with the BOI have been communicated.
14. Notwithstanding the same, the material on record
indicates that the KMB at the time when the request was made
for availing the credit facilities was the request made to
disburse the sanctioned credit facilities to the Canara Bank
account of the seventh respondent. The action on behalf of the
the KMB to transfer the amounts to the Canara Bank account of
the seventh respondent in terms of the communication that it
had received at the time of applying of the loan, cannot by any
stretch of imagination, be construed as a deficiency of service
as sought to be alleged by the petitioner.
15. The Ombudsman vide its order dated 17.06.2025
(Annexure-A to the writ petition) after noticing the complaint
filed by the petitioners has closed the complaint. The relevant
portion of the order of the Ombudsman is as under:
"2. Your complaint was taken up with the RE (Kotak
Mahindra Bank and Canara Bank). In the matter of the
complaint Kotak Mahindra Bank(KMB) submitted that they
had transferred funds based on the Canara Bank account
number provided by you in the signed disbursement
request form. Basis the complaint, KMB raised chargeback
with beneficiary Canara Bank. The beneficiary bank has
adjusted amount with NPA account of beneficiary towards
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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its outstanding liabilities. KMB has submitted that Legal
steps have been initiated in the matter including filing an
OA with DRT Bangalore. It is submitted that as KMB had
disbursed to the account indicated by you, no deficiency is
observed on their part. In view of the above your
complaint is treated as dealt with and closed at our end."
(emphasis supplied)
16. Having regard to the aforementioned factual matrix,
it cannot be stated that the conclusion reached by the
Ombudsman is erroneous, warranting interference by this Court
in the present writ petition. Accordingly, the writ petition stands
dismissed.
17. Pending IAs., stand disposed of.
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
(C.M. POONACHA)
JUDGE
ND/List No.: 1 Sl No.: 31