Case Law Details
Shekar B.S. Vs Chief General Manager, Syndicate Bank (Karnataka High Court)
Bank’s justification is, petitioner has not opted for switchover to a new system. The fact remains that bank has reduced the rate of interest from 11.75% to 8.25% with effect from 24.01.2017. It is a housing loan. The stand taken by the bank that petitioner has not requested earlier to switchover to lesser rate of interest is untenable. Bank is owned by the Central Government and the change in rate of interest from time to time should be made applicable uniformly. In the circumstance, this petition merits consideration.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
This writ petition is filed challenging order dated 29.05.2019 passed by respondent No.2 as per Annexure-M.
2. Petitioner has availed housing loan from respondent No.1-bank on 14.02.2007 at prime lending rate of 11.75% p.a. The bank, vide Circular dated 30.06.2010 (Exhibit R2) has reduced the rate of interest to 8.25% with effect from 01.07.2010. Petitioner has filed an application with the bank on 24.01.2017. The interest has been reduced by the bank with effect from 24.01.2017.
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