Manish Mehta, a distressed customer, filed Writ Petition No. 1572/ 2021 against IDBI Bank and IFCI Limited before the Nagpur Bench of the Bombay High Court, objecting to their wrongful inclusion of his name in the list of willful defaulters from the start that was posted on the IDBI official website.
As per the petition, IDBI Bank had assigned loan accounts to IFCI Ltd on 12/10/2011 by executing a Deed of assignment in favour of IFCI Ltd. Manish Mehta and his father have settled their guarantor obligation of loan by depositing the entire agreed amount with the IFCI Ltd. in the year 2011.Therefore IFCI Ltd issued “No Dues Certificate” on 24/10/2011 in favour of Manish Mehta and his father. In spite of this the IDBI Bank has published the name of the Manish Mehta and his father in the list of willful defaulters.
Further in the High Court, the IDBI Bank confirmed in their affidavit that no amount has to be recovered from the Manish Mehta and the IFCI Ltd also stated that they had issued a No Dues Certificate to Manish Mehta on 24/10/2011 and hence they have not declared him as a willful defaulter. The High Court set aside the wrongful action of IDBI Bank accordingly. Writ Petition of Manish Mehta was allowed and court directed to IDBI Bank to take all necessary steps to remove name of Manish Mehta from the list of willful defaulters.
This case is a glaring illustration of how financial institutions harass the public in order to further their nefarious goals. Manish Mehta had faith in the legal system and hoped for a favourable outcome in his favour. He feels that justice has finally been served to him after so many years.
