M.O.H. LEATHERS LTD. Vs. INDIAN BANK

JUDGEMENT

(1.) THE whole controversy pivots around the question, "Whether the Consumer Fora can poach into the jurisdiction of Delhi Debt Recovery Tribunal? M.O.H. Leathers Ltd. a partnership concern, approved as SSI Unit and 100% Export Oriented Unit, was formed in the year 1986. UCO Bank was the Banker of the said firm. In the year 1990, Indian Bank became the Banker of the partnership firm. The aforesaid partnership firm was converted into a Private Limited Company, i.e., the complainant and the Indian Bank, O.P., in this case, was retained as its Banker. In the year 1991 -92, the turnover of the complainant was Rs. 11,05,46,874.00. The Bank took into consideration the above said turnover and performance and enhanced the credit limits, w.e.f. 21.5.1992. The said limit was further enhanced on the basis of turnover of Rs. 16,11,02,131 and performance by the Bank on 16.8.1993. During the year 1994 -95, there was decline in Leather Industry because of (1) Global Recession, (2) Central Water (Prevention and Control of Pollution) Act, 1974, Air Prevention and Control of Pollution) Act, 1981, and Environment (Protection) Act, 1986.

(2.) DURING the year 1994 -97, the complainant, with its own resources, was able to achieve turnover of Rs. 9.00 crores, approximately, every year. At the top of the above said enactments, the Hon'ble Supreme Court of India, issued directives which added more burden resulting in many of the tanneries being closed down and the turnover of tanned leather diminished. The export trade was hard hit.

(3.) O .P. agreed to rehabilitate the complainant in principle and asked the complainant for additional security, vide letter dated 17.5.1997. In June, 1997, the complainant furnished additional security. Vide letters dated 11.8.1997 and 20.8.1997, the Export Credit Guarantee Corporation of India Ltd. (hereinafter referred to as 'E.C.G.C., in short), allowed the sanction relating to post -shipment and pre -shipment credit facility with certain conditions. As desired by E.C.G.C., the complainant submitted the Schedule of Shipment, on 20.8.1997.