NATIONAL IRON FOUNDRY Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) The first petitioner, a partnership firm of petitioners 2 and 3, seeks reliefs as under :-

(2.) There are three respondents. First two respondents are State Bank of India (S.B.I.) respectively sued through its Chief General Manager/Chairman-cum-Managing Director with Local Head Office at Parliament Street, New Delhi, and through its Deputy General Manager, Lauries Hotel, Partappura, Agra. The third respondent is Reserve Bank of India (R.B. I.), Parliament Street, New Delhi, It will at once be seen that head office of the S.B.I, and the R.B.I, are at Bombay. The Branch of the S.B.I, which is to grant relief to the petitioners in terms of the prayers is, however, not a party before us.

(3.) The case of the petitioners in short, is that they had a certain unit of small scale industry duly registered with the appropriate authority of the state Government. A scheme to rehabilitate the unit of the petitioner was examined and it was found that the unit was viable and technically and economically needed nursing at the hands of the S.B.I. The scheme of rehabilitation was accepted by the. S.B.I, in October 1988 and it agreed to release facilities to the tune of Rs.31.58 lakhs. Since the facilities have not been provided, this writ petition has been filed. It is stated instead of providing the facilities the S.B.I, served a notice dated 15 April 1991 recalling its carrier loan amounting to Rs.15,47,922.68. This amount the S.B.I, has claimed by way of balance under the Cash Credit Account, Medium Term Loan and interest, etc. Petitioners say in terms of certain directions issued by the R.B.I., the S.B.I, was competent and bound to grant facilities of 31.58 lakhs as aforementioned and also could not demand return of the amount as contained in its legal notice dated 25 June 1991.