PEARSON DRUMS & BARRELS PVT. LTD. Vs. GENERAL MANAGER, CONSUMER EDUCATION & PROTECTION CELL OF RESERVE BANK OF INDIA

JUDGEMENT

(1.) The petitioner is a company coming within the purview of the Micro, Small and Medium Enterprises Act, 2006 and is engaged in the business of manufacture and supply of M.S. Barrels to the Oil Sector and various other sectors. On September 24, 2015 the respondent no.4, that is, the IndusInd Bank granted "in-principle" sanction, subject to final sanction of the Credit Committee, for credit facility worth Rs.25.05 crore to the petitioner. It was mentioned that the processing fee of 0.60 percent of the total sanction facility, along with applicable rates and taxes, have to be paid by the petitioner to avail of the financial assistance. It was also mentioned therein that the communication by the bank to the petitioner did not create any binding/obligation on the bank to release any payment in favour of the petitioner by way of financial assistance provided the bank issued its final sanction letter to that effect and the terms thereof were duly accepted by the petitioner.

(2.) Subsequently, by an e-mail dated September 29, 2015, the respondent no.4 asked the petitioner to deposit Rs.14,27,850/- as processing fees including service tax. In the said e-mail. It was mentioned that if by any reason the sanction did not go through from the bank's end, the bank would refund the same. The petitioner paid such amount pursuant to the bank's e-mail.

(3.) Subsequently on November 6, 2015, respondent no.4 issued a fresh sanction of credit limits in favour of the petitioner. The relevant communication in that regard requested the petitioner to return to the bank the duplicate copy of the sanction communication along with annexures, duly signed by the authorized signatory of the petitionercompany and the guarantors as a token of the petitioner having accepted the terms and conditions, within 30 days of the letter, failing which it would be presumed that the petitioner was not interested in availing continuation of the facilities and the bank may, in its discretion, withdraw them without any further notice to the petitioner.