SOBRAN SINGH Vs. DISTRICT CONSUMER FORUM

JUDGEMENT

(1.) This appeal has been filed by Sri Sobran Singh, r/o Village Sadi Bhadi, District Ghazipur against the judgment and order dated 16.11.1998 passed by District Consumer Forum, Ghazipur in Complaint Case No.100/1997.

(2.) The facts of the case are that the appellant/ complainant Sri Sobran Singh had applied to the State Bank of India for a loan to install the Pumping Set. The State Bank of India initially sanctioned a loan of, Rs.5,500/- for Pumping Set and Tank and the rest amount, of loan of Rs.10,000/- was withheld by the Bank. The Bank had informed the complainant that as soon as the subsidy of Rs.2,000 /-is received by the Bank then the remaining amount of Rs.10,000/- shall be released. The complainant then requested to the Bank that either he should be paid Rs.10,000/- in cash and if it was not possible then the amount of Rs.5,500/- should be treated as loan but the Bank Authorities informed the complainant that since a loan of Rs.15,500/- had been sanctioned nothing more or less can be done. The complainant wanted the cash payment but the State Bank of India diverted an amount of Rs.10,000/- so sanctioned to the shopkeeper to supply the Motor. The shopkeeper informed him that only an amount of Rs.8,750/- was given to him and an amount of Rs.1,250/- was taken away by the officials of the Bank. Thus an amount of Rs.15,500/- only was sanctioned to him as loan on which a subsidy of Rs.2,000/- was available. Thus he owed to Bank only an amount of Rs.13,500/- and since an amount of Rs.1,250/- was not given by the Bank to the shopkeeper who supplied the Motor, therefore, the total amount of loan comes to Rs.12,250/-. The complainant represented to the Bank and to other Authorities but recovery proceedings were initiated against him and an amount of Rs.10,450/- was recovered from him. He lodged a claim before the District Consumer Forum, Ghazipur.

(3.) In the written statement, the State Bank of India, opposite party refuted the allegations of the complainant. The complainant was selected for Free Borring Scheme and his case was recommended by the Block Development Officer to State Bank of India, Saidpur. The project cost was Rs.15,500/-. A subsidy of Rs.1,500/- was admissible by the Government on the said loan and, therefore, net loan sanctioned was of the amount of Rs.14,000/- out of which an amount of Rs.5,500/- was paid in cash to the complainant and the remaining amount of Rs.10,000/- was given to M/s. Arti Electrical and Machinery Stores, Saidpur from whom the complainant had procured the Electric Motor of 5 H. P. This amount was paid to the said M/s. Arti Electrical and Machinery Stores through a cheque after due satisfaction of both the parties.