State Bank of India (SBI) is having a loan dispute with Justice J Nisha Banu, a judge of Madras High Court. SBI has now approached the National Consumer Disputes Redressal Commission (NCDRC) to transfer the consumer complaint filed against it over a home loan repayment dispute out of Tamil Nadu. According to a report in Indian Express, SBI fears that it will not get justice before the District Consumer Disputes Redressal Commission (DCDRC) in Madurai. SBI fears this because DCDRC falls under the jurisdiction of Madras High Court.
According to the report, the judge’s house in Madurai was partially constructed and was demolished allegedly due to poor construction. The bank has alleged that the judge has not yet paid the full amount due despite notices and she is linking it to the policy claim on her house which was rejected by New India Assurance Company. Justice Banu has accused the bank officials and the insurance company of colluding to deprive her of the policy benefits.
On August 2, a bench of NCDRC chairperson Justice AP Sahi and member Inder Jit Singh issued notice on the plea filed by SBI seeking transfer of the case and fixed it for further hearing on September 23.
Advocate Jithendra Kumar, counsel for SBI, pressed for an interim stay on the proceedings before the DCDRC in Madurai. However, the commission said, “You may have a reasonable apprehension, but when it comes to a High Court judge, it is not so frivolous. You have to explain why you expect this to happen in your case. There has to be something more serious than a frivolous claim.”
According to SBI, Justice Banu was paying the EMIs. But the ECS (Electronic Clearing Service) initiated for debiting the EMIs in February 2018, December 2018, January 2019 and February 2019 were returned unpaid due to lack of funds.
Justice Banu has urged the Madurai Commission to direct New India Assurance Company Limited to pay him Rs 46 lakh, which is the sum assured along with interest. Also direct the insurance firm and SBI to pay Rs 1 crore as compensation for mental agony. Direct to refund all the EMIs paid along with interest. Also refund Rs 17,125 deducted for purchasing the policy. Also pay Rs 50,000 for litigation costs.
In her consumer complaint filed in June 2024, Justice Banu alleged that the bank and insurance officials colluded over the policy. She claims SBI had bought it without her knowledge. She also said that the bank debited Rs 17,125 for the policy. At the same time, SBI argued that the judge was aware of the policy purchase. It also argued that the judge has not paid the dues despite receiving Rs 38 lakh as compensation for alleged poor construction from the builder. The bank said that they had to demolish the partially constructed building.