CHALAPPURAM ASSOCIATES Vs. CORPORATION BANK

JUDGEMENT

(1.) - We are unable to appreciate the attitude taken by the Corporation Bank, that it is not willing to have this dispute referred to arbitration. This is certainly not the attitude expected from a Public Sector Organization such as the Corporation Bank. The result of their stand is that the parties have to be driven to seek their remedies by protracted litigation before the Civil Court, which is very much to be deprecated. The contentions raised in this Petition are such that they cannot be satisfactorily adjudicated upon in proceedings under the Consumer Protection Act. We, accordingly leave the petitioners to pursue their remedy by way of a Civil Suit inasmuch as consensual reference to arbitration has been rendered impossible by reason of the attitude adopted by the Corporation Bank. The petition is accordingly disposed of with the above observations reserving liberty to the petitioners to pursue any other remedy that they may have in regard to the matter inclusive of approaching ordinary Civil Court seeking such reliefs to which they may be entitled. Copies of this Order will be forwarded to the Chairman, Corporation Bank and also to the Secretary, Banking Division, Government of India for their information and appropriate corrective action. Petition disposed of.