Against National Australia Bank and Commonwealth bank:

I filed a case against National Australia Bank C 564/2007 and Mr Rao against Commonwealth Bank of Australia C556/2007.

Justice John Bowman, gracefully permitted me to present my case on 18th June 2007 (against NAB) and on 20th June 2007 (against CBA) and reserved a decision on 'whether I have a case to continue or no case at all and summary dismissal'.

He came back on 23rd January 2008 (after 7 months) and agreed.

Mr Chris Archibald, special counsel for NAB agreed in the court on 18th June 2007, that interest is compounding on monthly basis.

I was overseas at the time of judgement on 23 Jan 2008. I requested VCAT in December 2007, to postpone a case I registered against Justice Harbison (scheduled for hearing on 30th January 2008). The court refused postponing the case, so I had to withdraw it.

Justice John Bowman dismissed my case because in the loan contract 'total amount repayable' (if the loan has run for its entire term), is disclosed.

These are some of the excerpts of what Mr Chris Archibald, special counsel for NAB said inside the court:

"It is agreed that interest has been compounding on a monthly basis. Thus, the actual numbers and details are not of concern, but rather the dispute centres upon whether the method of calculation was disclosed"

These are some of the excerpts of what Justice John Bowman, then Acting President of VCAT said in his judgement:

"I must thank the parties (and, in the case of the NAB, those representing it) for the very civil and instructive way in which this application was presented. Mr Iyer had obviously done an enormous amount of work in preparing his submissions. Whilst clearly having passionate and committed beliefs concerning the NAB and banking institutions generally, he then advanced those submissions in a most polite, respectful and orderly fashion. While some of his arguments may not have been to the point, he had obviously done a large amount of research, some of it quite technical, but was nevertheless able to express quite complicated accounting and mathematical propositions in terms which could be understood. I am grateful for his assistance, and also that of Mr Archibald"

"The civility and mutual respect demonstrated at the bar table was exemplary”. “I appreciate that Mr Iyer is deeply committed to this cause". "However, the sad fact is that, despite the enormous amount of time and energy which he has put into this action, in my opinion it is absolutely bound to fail. The defences outlined by Mr Archibald on behalf of the NAB are such that the claim is answered completely and is rendered hopeless and untenable. In other words, I am of the view that the NAB has discharged the very heavy burden which it bears"

"31. In considering why the NAB succeeds and Mr Iyer’s application is bound to fail, the following agreed or uncontested facts should be considered" "The concept of paying compound interest may be repugnant. That this is what the loan contract provided seems to me to be abundantly clear. Furthermore, the total amount to be repaid should the contract run its full distance of 25 years is specifically spelt out".

   I have not had a loan with CBA and not a customer of CBA but received a reply to letters sent to 14 CEOs as my initial efforts of getting the banks to correct themselves.