STATE BANK OF INDIA Vs. VIMAL NARAYAN LOHANE

JUDGEMENT

(1.) Being aggrieved by the judgment and award passed by District Consumer Forum, Mumbai Suburban in Consumer Complaint No.669/2000 decided on 28/8/2003 whereby the original O.P. has been directed to pay sum of Rs.20,000/- as compensation and Rs.2,000/- as cost to the complainant, the original O.P./State Bank of India has filed this appeal challenging the said judgment and award.

(2.) Facts to the extent material may be stated as under:

(3.) Complainant/Respondent was having saving bank account in State Bank of India, Chunabhatti Branch at Mumbai. The O.P. bank had granted credit facility to M/s.Rekha Novel Products whose sole Proprietor was Mrs.Rekha Salvi, the daughter of Complainant/Respondent. The complainant gave personal guarantee to her daughter for the loan/cash credit facility sanctioned to M/s.Rekha Novel Products. The borrower committed default. The complainant had issued cheque of Rs.15,000/- to one Shri Sandip Shah. The said cheque was dishonored despite the fact that complainant was having balance of Rs.32,568/- in her saving bank account. The complainant received letter dated 17/7/1999 from the bank that bank had exercised its right to set off balances in the complainants saving bank account for appropriation of dues payable by M/s. Rekha Novel Products for whom complainant had stood personal guarantor. The complainant filed consumer complaint alleging deficiency in service on the part of the bank. She alleged without issuing any notice, the bank had appropriated her saving bank account balance towards the loan unpaid by M/s.Rekha Novel Products and thereby her cheque was dishnoured deliberately by the bank. Hence, she suffered business loss, loss of reputation and claimed Rs.2,50,000/- for business loss, Rs.1,50,000/- towards compensation for mental agony and Rs.10,000/- towards cost.