PARIKSHIT DAS Vs. ALLAHABAD BANK

JUDGEMENT

(1.) The complainant obtained a loan of Rs.23 lacs from the OP- Allahabad Bank on 14.10.2006 for his business purpose. He applied for an increase in the over-draft limit to Rs.35 lacs but was sanctioned an over-draft limit of only Rs.31 lacs. The complainant could not service the loan which he had taken from the bank, as a result of which, the loan amount become NPA. For the purpose of taking the aforesaid loan for his business purpose, the complainant had mortgaged an immovable property worth about Rs.1 crore with the bank. A notice under Section 13(2) of Sarfaesi Act was issued to the complainant consequent to the account having become NPA.

(2.) Vide his application dated 26.08.2017, the complainant requested One Time Settlement of the dues outstanding in his loan account. The One Time Settlement sought by the complainant, however, was declined by the bank. A Writ Petition was then filed by the complainant before the Hon'ble High Court of Odisha, which was disposed of vide order date 31.10.2017. On 15.01.2018, the complainant sought settlement of the dues on payment of Rs.31 lacs to the bank. On 07.01.2019, possession notice was issued by the bank to the complainant in exercise of the powers conferred under Section 13(4) of Sarfaesi Act read with Rule-9 of the Security Interest (enforcement) Rules, 2002. This was followed a notice of sale of the mortgaged property on 25.02.2019. The complainant made payment of Rs.31 lacs to the bank but the bank is asking for further payment of Rs.11 lacs from the complainant. Being aggrieved, he is before this Commission, seeking closure of his loan account and payment of compensation from the bank.

(3.) The term 'consumer' has been defined in Section 2(1)(d) of the Consumer Protection Act, which to the extent it is relevant for the purpose of this petition means a person who buys goods or hires or avails services for consideration but does not include a person who obtains goods for resale or who purchases goods or avails services for any commercial purpose. As per the explanation, inserted with effect from 15.3.2003, for the purpose of the above referred clause, commercial purpose does not include use of the goods or services exclusively for the purpose of the earning livelihood by means of self-employment.