BERO COLD STORAGE Vs. UCO BANK THROUGH CHAIRMAN

JUDGEMENT

(1.) HEARD the Ld. Counsel for the appellant. The appellant is aggrieved by the order passed by the State Consumer Disputes Redressal Commission, Jharkhand Ranchi, dismissing the complaint claiming compensation of Rs.53,80,800/ - on the following counts: The appellant had sought for the following relief to compensate:

(2.) ACCORDING to the case of the complainant/appellant, the appellant initially took a loan of Rs.1,50,000/ - from the opposite party -Bank and made a proposal for enhancement of loan facility to the tune of Rs.50,00,000/ -. After much persuasion, the respondent -bank sanctioned the additional loan facility to the complainant subject to various clauses mentioned in Annexure -6. Since the loan was not released, he made a complaint to the Senior Branch Manager vide its letterdated 6.2.2006 for disbursement of. On 8th April, 2006, the complainant was informed to comply the terms and conditions of the sanctioned loan. NABARD stopped subsidy to the complainant. The cold storage consequently became non -functional and the complainant suffered huge loss as mentioned earlier and filed a complaint.

(3.) THE respondent -bank contested the matter, inter alia on the ground that the complainant did not comply the terms of the sanctioned advice dated 18.11.2005. For the additional loan proposal of Rs.50,00,000/ -, the sanction was to be operative only after all the terms and conditions stipulated therein were complied with by the complainant. The end use of the funds ought to be verified by the branch from the original bills/invoices produced by the complainant. The disbursement of loan could be directly made to the suppliers of materials and machinery against their invoice and no cash disbursement could be allowed without prior permission from the Dy. General Manager, UCO Bank Regional Office, Ranchi. Despite specific instruction from the Dy. General Manager, UCO Bank Regional Office Ranchi not to disburse any amount to the complainant till all the terms of the sanction were accepted unconditionally and complied with fully, the complainant was disbursed an amount of Rs.19,50,000/ - on 10.2.2006 by the Manager of Bero Branch, Shri B. Bhattacharjee. On the instruction of the Deputy Chief Officer, UCO Bank Regional Office, Ranchi, Shri B. Bhattacharjee, the then Branch Manager, UCO Bank Bero, Ranchi issued a letter dated 21.3.2006 asking the complainant to comply the terms and conditions before further disbursement of additional loan of Rs. 50,00,000/ -. Though it was not disputed that the amount of disbursement of Rs.19,50,000/ -,was allegedly paid to the supplier directly through bank draft, yet the receipt and cash memos were not placed on banks record. A show cause notice was issued to Sh. Bhattacharjee for the said mentioned act, bank being a financial institution without ensuring that the requisite terms and conditions were complied with before disbursement of additional loan. As such, there was no deficiency in service on the part of the opposite party -bank.