ICICI BANK LTD Vs. K VENKATAREDDY

JUDGEMENT

(1.) BEING aggrieved and dissatisfied by the order of the Karnataka State Consumer Disputes Redressal Commission, Bangalore dated 5.6.2008 in Complaint No. 39/2007, the ICICI Bank (hereinafter referred to as the Bank for short) has filed this appeal before us.

(2.) FACTUAL matrix of the case in brief are that Mr. K. Venkatareddy (hereinafter referred to as the complainant for short), a farmer residing at Ganjigunte Village of Kolar District, wanted to set up a poultry farm. Accordingly, he made an application to the Bank which sanctioned him a loan of Rs. 93,77,000 on 31.5.2006. An agreement was signed between the Bank and the complainant which stipulates releasing of the loan amount as per the Sanction Order depending upon the progress of construction of the poultry farm. Though the Bank released Rs. 55,95,554 on two occasions, the remaining amount was not released. The complainant alleges that he suffered financial loss due to this despite the fact that he had produced the Utilization Certificate fulfilling Bank's conditions.

(3.) ON being noticed, the Bank submitted its version stating inter alia that as the complainant had not utilized the money already utilized for the purpose for which it was borrowed, is a breach of contract and the bank was not obliged to release the remaining amount. Further, non -releasing the amount to the complainant does not amount to a consumer dispute under the Consumer Protection Act. The State Commission, after hearing the parties, allowed the complaint in part and ordered as under: