Indusind Bank Limited Vs Pearson Drums & Barrels Pvt. Ltd. & Ors. (Calcutta High Court)
The appeal arose from a judgment dated 10.03.2021 whereby the Single Judge set aside the decision of the General Manager, Consumer Education and Protection Cell (CEPC), Reserve Bank of India, and directed the bank to refund the entire processing fee of ₹14,27,850 to the borrower within 30 days, with interest at 6% per annum in case of default. The writ petition had challenged the bank’s refusal to refund the processing fee and the disposal of the borrower’s complaint by the Reserve Bank of India. The borrower contended that, following negotiations, a credit facility of ₹25.05 crore had been sanctioned through a communication dated 24.09.2015, the terms were accepted, and a processing fee of ₹14,27,870 was paid pursuant to an email dated 29.09.2015. The email stated that if the sanction did not go through from the bank’s end, the processing fee would be refunded. Subsequently, the bank issued a “Fresh Sanction” containing modified and additional terms which the borrower did not accept, withdrew the request for the credit facility, sought refund of the processing fee, approached the Reserve Bank of India, and ultimately filed the writ petition after negotiations failed.
