ASHA SHARMA Vs. U O I

JUDGEMENT

(1.) THE complain¬ant has alleged that Respondents No. 2,3,4 & 5 the State Bank of India and its Officers have failed to extend to the complainant the working capital loan for her small scale industry manufacturing P.V.C. Footwear in conformity with the directions of the Respondent No. 1, Union of India, Ministry of Finance. The complainant has alleged that he applied for a working capital loan of Rs. 1,50,000.00 to the State Bank of India because her small scale industry was suffering for want of adequate funds. But the respondents, instead of granting her working capital loan as per the guide¬lines of the Government for providing loan to small scale industries, started harassing her; in November, 1987 the opposite party advanced her a petty loan of Rs. 25,000.00 out of which Rs. 15,000.00 was kept as a fixed deposit amount leav¬ing with her a paltry sum of Rs. 10,000.00 as working capital. The complainant has further al¬leged that because of being deprived of financial assistance from the opposite party, her business suffered and her small scale industry was paralysed totally and came to a stand-still and the factory closed down. In consequence, she alleges, she suffered a loss of Rs. 10.73 lakhs. She has claimed compensation of Rs. 10.73 lakhs as loss of busi¬ness and Rs. 4 lakhs as personal damages, mental as well as physical, caused by the opposite party. The complainant has further prayed that the oppo¬site party be directed to sanction and disburse the working capital loan required by her production unit.

(2.) THE Opposite Party Respondent No. 3 State Bank of India has, in its counter, pointed out that:

(3.) INSPECTIONS by the field staff of the Bank and these inspections were made after the bank had given her a loan of Rs. 25,000.00 by way of initial help to set up factory. The Respondent Bank has observed that the applicant did not inspire confidence in the Bank to provide financial assistance to her.