HASMUKHRAI K THAKAR Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) The petitioner has questioned the decision of the respondent-State Bank of India in discontinuing various credit facilities and recalling the account by letter dated 14.9.1981 by invoking aids of the provisions of Article 226 of the Constitution of India.

(2.) According to the case of the petitioner the respondent bank had sanctioned various credit facilities as elaborately enumberated in para 7 of the petition by its Wadhwan branch. The manager of the said branch recalled the account of the petitioner and discontinued the credit facilities. The case of the petitioner is that the action of the respondent bank is illegal and therefore the respondent bank should be directed to continue the financial facilities granted to the petitioner.

(3.) There is no dispute about the fact that the petitioner was granted various credit facilities under the scheme for financing small industries by the respondent bank. The frame-work of the said scheme is manifested and high lighted in annexure A. By virtue of the said scheme the respondent bank offered financial assistance by setting up small scale unit and small advances and thereby encouraging entrepreneurs. The scheme is also guaranteed by the Reserve Bank of India. Various types of credit facilities are available under the said scheme of the eligible small units and business entrepreneurs.