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Saturday, October 27

Supreme Court condemned ‘Gramin Bank’ to litigate for paltry Rs. 15,000/- for years


In a recently decided case of “Gurgaon Gramin Bank vs. Smt. Khazani & Anr.” [CIVIL APPEAL NO. 6261 OF 2012 in Special Leave Petition (C) No. 8875/2010], Hon’ble Supreme Court came down heavily on the Appellant ‘Gramin Bank’ which litigated up to Supreme Court against the paltry claim of Rs. 15,000/- by the Respondent.


In this case the Respondent filed a claim of Rs. 15,000/- in respect of insurance of her Bufallo [which died] against the Appellant in the District Consumer Redressal Forum, Gurgaon. District Consumer Redressal Forum passed an order in favour of Respondent directing Appellant to pay the insurance money with 9% interest and also Rs. 3000/- as cost. Thereafter the Appellant failed in its appeal before State Consumer Disputes Redressal Commission and National Disputes Redressal Commission and thus filed appeal before Supreme Court.


The Supreme Court held:

“We are of the view that issues raised before us are purely questions of facts examined by the three forums including the National Disputes Redressal Commission and we fail to see what is the  important  question  of law to be decided by the  Supreme  Court In our view, these types of litigation should be discouraged and message should also go, otherwise for all trivial and silly matters people will rush to this court.[Para 12]


“Gramin Bank like the appellant should stand for  the  benefit  of  the gramins who sometimes avail  of  loan  for  buying  buffaloes,  to  purchase agricultural implements, manure, seeds and so on.   Repayment, to a large extent, depends upon the income which they get out of that. Crop failure, due to drought or natural calamities, disease to cattle or their death may cause difficulties to gramins to repay the amount.  Rather than coming to their rescue, banks often drive them to litigation leading them extreme penury.  Assuming that the  bank  is  right,  but  once  an  authority  like District Forum takes a view,  the bank should graciously  accept  it  rather than going in for further litigation  and  even  to  the  level  of  Supreme Court.   Driving poor gramins to various litigative forums should be strongly deprecated because they have also to spend large amounts for conducting litigation. We condemn this type of practice, unless the stake is very high or the matter affects large number of persons or affects a general policy of the Bank which has far reaching consequences.” [Para 12]


Supreme Court further observed that:

Number of litigations in our country is on the rise, for small and trivial matters, people and sometimes Central and  State  Governments  and their instrumentalities Banks, nationalized or private, come to  courts  may be due to ego clash or to save the Officers’ skin.  Judicial system is over-burdened, naturally causes delay in adjudication of disputes.   Mediation centers opened in various parts of our country have, to some extent, eased the burden of the courts but we are still in the tunnel and the light is far away.  On more than one occasion, this court has  reminded  the  Central Government, State Governments and other instrumentalities as well as to  the various  banking  institutions  to  take  earnest  efforts  to  resolve  the disputes at their end.  At times, some give and take attitude should be adopted or both will sink.  Unless, serious questions of law of general importance arise for consideration or a question which affects large number of persons or the stakes are very high, courts jurisdiction cannot be invoked for resolution of small and trivial matters. We are really disturbed by the manner in which those types of matters are being brought to courts even at the level of Supreme Court of India and this case falls in that category”. [Para 2]


See full judgement here: