VIMAL CHANDRA GROVER Vs. BANK OF INDIA

JUDGEMENT

(1.) THIS Original Petition under Section 21 of the Consumer Protection Act, 1986 by Shri Vimal Chandra Grover, Complainant, against the Bank of India, Opposite Party, alleges lapses and deficiency in service of the Opposite Party in servicing the overdraft account bearing No. 15098 with the Kingsway Branch, Nagpur and the mismanagement by the Opposite Party of the shares pledged as security for the said overdraft facility besides the non-extension of the letter of credit facility to the complainant.

(2.) THE Complainant alleged in the complaint that on his request the Opposite Party sanctioned an overdraft limit of Rs. 5.00 lakhs against the security of the pledge of shares on the terms and conditions contained in their letter dated 20.9.1989, that the Opposite Party obtained regular documents including letter of pledge, that 1400 shares of Castrol Limited, 2400 shares of Reliance Industries Ltd., 1500 shares of Punjab Tractors, 135 shares of Andhra Pradesh Paper Mills and 800 shares of Maharashtra Scooters Ltd. were got transferred in the name of the Opposite Party by the share department of the Bombay Head Office of the Bank after verification and due assessment of the same besides holding certain other shares not transferred in the name of the Bank and that the total value of the above said shares as on the date of pledge was Rs. 10,60,000/-. It is further pleaded that the Opposite Party received bonus shares i.e. 840 shares of Castrol Ltd. in December, 1991, 1384 shares of Castrol Ltd. in August, 1992 and 1500 shares of Punjab Tractors Ltd. in March, 1993 against the shares held as security. The Complainant then gave in the complaint the market value of the shares from time to time based on the rates quoted at Bombay Stock Exchange to base a plea that the market value of the shares originally pledged together with bonus shares increased manifold and thus the shares were held by the Bank as surplus amount.

(3.) THE Complainant was a partner in a partnership firm by the name of M/s. Shiv Dutt and Sons which had a facility to establish a letter of credit for Rs. 2.00 lakhs. Later the business of the said firm was taken over by the Complainant as sole proprietor. The letter of credit facility was renewed in the years 1990-91 in account of M/s. Shiv Dutt and Sons, Proprietor V.C. Grover. It is alleged that in the year 1992 the Chief Manager declined to renew letter of credit facility taking contradictory stands, but the real reason was to pressurise the Complainant to liquidate the overdraft account. The Complainant claimed that due to non-renewal of letter of credit facility by the Opposite Party the Complainant lost permanent customers, regular business income of approximately Rs. 25,000/- per annum. The action of the Chief Manager of the Opposite Party is branded as mala fide act on the part of the Opposite Party and thus the Opposite Party is liable to pay damages.