KALPANA DAS Vs. CONTAI CO OPERATIVE BANK LTD

JUDGEMENT

(1.) The appellant applied for loan in Contai Co-operative Bank Limited, respondent No. 1. Accordingly, the bank agreed to grant credit facilities. Accordingly, an agreement of hypothecation of goods were entered into for Rs. 50,000/- (Rupees fifty thousand only) on December 19,1988. A Deed of Hypothecation was also entered into for Rs. 5,20,000/- on April 27, 1988. Accordingly, loan was disbursed. The appellant could not repay the said loan. As a result of which the bank terminated the agreement and demanded repayment of outstanding dues.

(2.) The appellant raised disputes before the Assistant Registrar, Co-operative Society under section 95 of the West Bengal Co-operative Societies Act, 1983. According to the appellant, the bank was supposed to grant further credit facilities in terms of the scheme submitted by the writ petitioner for a total investment of Rs. 1566448/-. Since the bank did not release the balance part of the loan they were not entitled to recover the loan and demand the amount due therefor. Ultimately, the writ petitioner claimed disbursement of the balance amount of Rs. 5,11,296/-. The Additional Registrar, Co-operative Society published an award directing release of Rs. 66,436/- towards the Plant and Machinery as well as for release of a sum of Rs. 3.00 lacs for cash credit.

(3.) Being aggrieved by and dissatisfied with the said award the bank preferred an appeal before the Co-operative Tribunal. The Tribunal dismissed the appeal and affirmed the award of the Assistant Registrar, Co-operative Society.