PUNJAB NATIONAL BANK Vs. SHIVAM GUEST HOUSE

JUDGEMENT

(1.) These revisions arise out of the same order of the State Commission, which is impugned. The petitioners were respondents in the complained filed by M/s. Shivam Guest House.

(2.) The complainant had applied for loan from H.P. Khadi and Village Industries Board and Khadi Village Industries Board (hereinafter referred as State Board and Khadi Board, respectively) for establishment of Shivam Guest House. Necessary sanction was accorded vide letter dated 2.12.2000 and the project was to be financed by Punjab National Bank, Hamirpur to the tune of Rs. 10,00,000. The project was completed and became functional from April, 2002. It is pertinent to note that the project was sponsored under margin money scheme by the State Board and as per scheme the margin money worth Rs.2,50,000 was lying deposited as per condition of the scheme at Vile Parle branch of the Punjab National Bank at Mumbai and the said amount was to be transferred from there to Punjab National Bank, Hamirpur Branch and the money was to be kept there for a period of two years. The interest accrued was to be utilized to serve partial relief on interest burden on the loan disbursement to the beneficiary .The margin money was to be adjusted in the loan account of the Shivam Guest House, and Punjab National Bank, Hamirpur was not to charge interest on the said amount. The margin money was not adjusted against the loan advances to the complainant, the penal interest was not waived and the complainant had suffered mental tension and financial losses. Accordingly, the complainant sought directions from the Consumer Forum to adjust the amount of Rs.2,50,000 in the loan amount, waive the penal interest, to grant of Rs.50,000 as damage for mental tension and financial loss.

(3.) The Consumer Forum found that the project was sponsored by the State Board and Board, respectively, for which adequate funds were placed at the disposal of the Punjab National Bank, Vile Parle Branch, Mumbai in respect of which, Punjab National Bank, Hamirpur was duly informed. In spite of that margin money was not adjusted resulting in deficiency on the part of the Punjab National Bank, Hamirpur and Punjab National Bank, Vile Parle, Mumbai. Accordingly the said banks were directed to adjust the amount of Rs.2,50,000 in the loan account of the complainant and to waive interest penal interest on loan amount to the extent of Rs.2,50,000 The cost of litigation was also assessed at Rs.1,000 and was ordered to be paid to the complainant by the banks.