COMMON WEALTH PHARMACEUTICAL Vs. DIVISIONAL MANAGER CANARA BANK

JUDGEMENT

(1.) The appellant has appealed against the order of the 7th October, 1992 of the State Commission of Tamil Nadu in Original Petition No. 92 of 1992 on the file of the State Commission. By this order, the State Commission has dismissed the complaint.

(2.) The facts briefly are that the complainant is a proprietorship concern engaged in pharmaceutical industry. He has been availing of various credit facilities from the respondent-Bank such as O.C.C., S.D.R., bill discounting on the security of fixed assets, life insurance policy, fixed deposit receipts, cash deposits etc. Through the facility of bill discounting, the appellant/ complainant could realise immediately the sale proceeds of the goods supplied to any party leaving it to the Bank to realize the amount of the discounted bills. During the relevant period, the appellant/complainant supplied certain stocks of pharmaceuticals worth Rs.8 lakhs to its superstockiest at Vijaya Wada and got the bills for supply of goods discounted with the respondentBank. The consignee at the Vijaya Wada end, however, cleared the goods only to the value of Rs. 4 lakhs and did not retire the remaining bills and take delivery of the remaining goods. The respondent/complainant carrier issued notice for the clearance of the goods, within 10 days, on 27th July, 1990 failing which it threatened to send the goods to the lost property department. Eventually, the respondent-Bank recalled the bills from its branch office at Vijaya Wada and insisted upon the appellant/complainant for payment of the balance amount which had been received by it from the Bank when the bills were discounted. The Bank was also willing to hand over the bills and the lorry receipts for the clearance of the undelivered goods to the appellant/complainant provided he furnished tangible and acceptable security to the Bank.

(3.) According to the appellant/complainant, the respondent-Bank recalled the discounted bills hurriedly and arbitrarily and there was delay in releasing the lorry receipts with the result that the medicines sent to Vijay Wada and which remained undelivered became time expired. The appellant/complainant filed a complaint before the State Commission alleging deficiency of service on the part of the respondent-Bank for recalling the discounted bills arbitrarily and hurriedly and for delay in delivering the lorry receipts resulting in the consignment become obsolete causing huge loss to the appellant/complainant.