PRECISION INDUSTRIES Vs. BANK OF BARODA

JUDGEMENT

(1.) THIS is an appeal against the order dated 1st October, 1992 of the State Consumer Disputes Redressal Commission, Uttar Pradesh at Lucknow. By the impugned order the State Commission has allowed the complaint filed by the present Appellant-Precision Industries (hereinafter referred to as Complainant) against the present Respondent-Bank of Baroda (hereinafter referred to as Opposite Party). However, no relief was granted to the Complainant and the State Commission merely directed the Bank to intimate to the Complainant the precise reasons for refusing to extend the cash credit facility. Feeling aggrieved the Complainant has filed this appeal on the ground that the direction issued by the State Commission gives no relief to him.

(2.) ACCORDING to the averments in the complainant, the Complainant-proprietor, Shri Krishan Maheshwari was selected by the Opposite Party and U.P. Electronics Corporation (for short the Corporation) jointly in the year 1977 under the Government sponsored scheme for technical entrepreneurs to set up small scale industrial unit at the proposed Uptron Industrial Estate, Panki, Kanpur. The detailed project report of the Complainant for manufacturing of Water meters was examined for technical and financial feasibility respectively by Sponsoring Authorities. The Corporation was to provide infrastructure for the project such as factory shed, water, power, technical and marketing assistance while the Opposite Party was to provide the needed finances towards the purchase of machinery and working capital for the project on soft terms of margin money, subsidised interest rate and easy instalments for repayment of loan. After approval of the project report, the Complainant got factory shed at the said Industrial Estate where he set up his project in the year 1977-78, and the Bank of Baroda sanctioned demand loan of Rs. 2.00 lakks towards purchase of machinery besides working capital facilities of Rs. 85,000/- in the form of cash credit against stock of goods and book debts. As per the terms of sanctioned letter the Complainant fulfilled his obligation of depositing margin money amounting to Rs. 37,500/- from his own resources being 10% of the total cost of the project so as to avail the facilities/services of the Opposite Party and also completed all paper formalities for the Bank to release the funds. Part of machinery ordered by the Complainant was received for which the Opposite Party released total amount of Rs. 93,460/- on various dates upto 17th September, 1978. However, all of a sudden the State Government imposed total ban to new power connections to the Industry in the year 1977 and due to indefinite position of electrical power availability, procurement of the remaining machinery was postponed. On getting electricity connection in January, 1978, after a period often months, the Complainant took action to instal balance machinery. When two of the ordered consignments arrived, the Complainant submitted its demand note to the Opposite Party on 28th August, 1979 to release the payment for the same. The Complainant further averred that the facilities provided by the Bank have been highly deficient which hindered the progress of the work for the following reasons :

(3.) THE complaint was contested by Bank of Baroda. However, the copy of the counter is not on the record nor the pleas taken by the Opposite Parties in the counter find mention in the order of the State Commission.