A PADMAVATHI Vs. MANAGER VIJAYA BANK

JUDGEMENT

(1.) The complaint CD 109/91, State Commission/ Hyderabad is filed by 8 individuals who were all teachers working in Devid Memorial High School at the time of occurrence of the event, against (1) The Manager, Vijaya Bank, Hyderabad, (2) Conwest Estates and Builders, Narayanguda, Hyderabad and (3) Sri Rajendrapal Reddy, Public Relations Officer, NCC Directorate, Secunderabad to direct the opposite parties jointly and severally (a) to waive the loan with interest upto date, (2) to direct the Conwest Estates and Builders and its agent Sri K. Rajendrapal Reddy to pay the loan amounts, (3) to pay to the complainants the difference in the prices of house plots during the past three years, and (4) to direct the opposite party No.1 Bank to supply copies of sets of loan agreements together with enclosures like the pronote, receipts and letter of authorization to transfer the amounts to the builder with his name printed in them and to direct the Bank i. e. first opposite party to freeze the current account No.2804 or any other number operated by Conwest Estates and Builders of BMR Estates and Builders or by Shri B. Murari Reddy or Shri K. Rajendrapal Reddy, and also to direct the first opposite party Bank to furnish details of deposits and withdrawals effected opening in the name of the builder and the individuals of the respective accounts since the time of opening of the accounts, and to attach the properties of 2nd and 3rd opposite parties and their house bearing No.3-4-632, Narayanguda, Hyderabad and to award costs of the petition and to pass any other order.

(2.) According to the complainants during the first half of April, 1988, the third opposite party then an unemployed youth, approached the complainants who were all working as teachers in Devid Memorial High School, Tarnaka and induced them to purchase house plots measuring 200 to 300 sq. yards at Narapalli or any other place nearabout or in Hyderabad and he also convinced the complainants that they could avail the Bank loan which he can arrange through Vijaya Bank i. e. first opposite party for purchase of these house plots. The third opposite party got the signatures on sets of different kinds of papers containing the loan agreement, promissory note, receipts, authorization for the transfer of sanctioned loan amount to the builder. But thereafter the third opposite party did not contact the complainants at all. But the complainants received a notice on 26.9.1990 from the first opposite party asking them to repay the total loan amount outstanding from the complainants in a sum of Rs.1,25,340/-with interest within/days. It is their further case that on enquiry at the Bank, they came to know that the Bank sanctioned the loans for the purchase of house plots in April, 1988 and that the sanctioned loans were credited to the current account No.2804 of the Conwest Estates and Builders operated by Sri B. Murari Reddy i. e. second opposite party. According to the complainants the said amounts were withdrawn by the second opposite party and misutilised in collusion with the third opposite party as well as the staff of the first opposite party Bank. Thereupon they gave legal notices to all the opposite parties and also lodged a police complaint to the Station House Officer, Osmania University.

(3.) Alleging that all the three opposite parties hatched a conspiracy and committed commissions and omissions and fraudulently with a common design and object, cheated the complainants and did not pay them the loan amount or register the plots, and that the Bank was deficient, faulty, imperfect and inadequate in quality, nature and manner of performance and the Bank is not entitled to recover the so-called loan amount from the complainants; this complaint was filed for the reliefs mentioned above.