STATE BANK OF INDIA Vs. MOHINDER SINGH

JUDGEMENT

(1.) This revision petition arises from the order passed by the State Commission dismissing the appeal filed by the petitioner before us.

(2.) Brief facts of the case are that the complainant had taken a loan for purchase of a truck in 1981, repayment of which was to be made in 50 equal monthly instalments. There was irregularity in these payments, the Bank filed a civil suit to recover the outstanding amount. As per requirement, an N.O.C. has to be given by the Bank at the time of renewal of route permit for the truck. When the complainant requested for NOC to be issued in February, 1992, it was issued on 17.11.1992. The complainant sought damages for non-issue of NOC for the period February, 1992 to November, 1992. The District Forum after hearing both the parties, found the petitioner deficient in rendering services and directed the petitioner to pay Rs. 50,000/- as damages within 30 days of the order, not to charge any interest on the loan amount for the period i.e. 26.2.1992 to 17.11.1992 and awarded cost of Rs. 10,000/-. Appeal filed by the petitioner was dismissed, hence this petition.

(3.) It was argued by the learned Counsel for the petitioner that the complainant was a defaulter in its repayment; under these circumstances how could they be issuing NOC ? Both the lower Courts erred in this regard hence the order of both the lower Forums be set aside. On the other hand, it was argued by the learned Counsel for the respondent/complainant that there is nothing wrong with the order of the lower Forums. The Bank was obliged to issue NOC as it had been doing in earlier years of the loan. The Bank just slept over its request without sufficient reason for about 9 months causing loss to the complainant, hence the damages awarded are in order.