Tamil Nadu

Debts Tribunal says banks cannot deny copy of statements to borrowers

Debts Recovery Tribunal, Chennai has ruled that banks cannot deny copy of account statements to customers even in cases where the borrower has discharged the debt or defaulted in discharging the debt due to the bank.

“Every customer of a bank is entitled to have copies of his / her statement of account(s) from his banker and the bank is under contractual obligation to furnish the same to its customers. May be the bank is entitled to charge for the copies but the bank cannot deny the right to have a copy of the statement of account accrued in favour of the customer by virtue of the contract of lending entered between the bank and the customer,” N.V. Badarinath, presiding officer, Debts Recovery Tribunal-I, Chennai, said in his order.

The verdict was delivered in the case of NPT Offset Press Private Limited, an MSME and State Bank of India.

As per the records, the Debts Recovery Tribunal had directed NPT Offset to pay the dues of ₹16.35 crore to SBI. Later both the parties agreed for one-time settlement for about ₹2.62 crore. Subsequently NPT Offset had moved the Tribunal, seeking furnishing of bank statements, which the bank refused to issue.

The Tribunal rejected the bank’s plea that the applicants are precluded from demanding copies of their statements of accounts having accepted one-time settlement. “When a borrower has accepted and complied with the one-time settlement scheme promoted by the bank, it cannot be said borrower is debarred from asking for his / her statements of accounts,” it held.

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Printable version | Oct 28, 2020 1:05:52 PM | https://www.thehindu.com/news/national/tamil-nadu/debts-tribunal-says-banks-cannot-deny-copy-of-statements-to-borrowers/article32660583.ece

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