Muthoot Finance Ltd Vs Dr. S Shobha (Karnataka High Court)
The appeals before the Karnataka High Court arose from a common order dated 28 February 2024 passed by a Single Judge in three writ petitions filed by the respondent, who appeared in person. The petitions were directed against a private finance company in relation to three gold loans availed by the respondent. The loans were for amounts of ₹15,00,100, ₹4,65,000, and ₹4,15,000. Upon default in repayment, the financier issued notices to auction the pledged gold. The respondent challenged these actions through writ petitions, seeking waiver of penalty and compound interest, reduction of the interest rate, and consequential reliefs.
Read SC Judgment in this case: Gold Loan Recovery Disputes Against Private Financiers Not Maintainable in Writ: SC
During the pendency of the writ petitions, interim orders were passed. Subsequently, the financier proceeded with auction of the pledged gold and realised a total sum of ₹24,39,085, which was deposited with the Registry of the High Court. The Single Judge entertained the writ petitions and directed release of the deposited amount to the petitioner, along with further directions requiring the financier to return the gold or its value, while leaving open the petitioner’s right to seek higher valuation before an appropriate forum.
