PUNJAB & SIND BANK Vs. SANDHU COLD STORAGE

JUDGEMENT

(1.) This revision petition has been filed under section 21(b) of the Consumer Protection Act, 1986 against the order dated 29. 03. 2011, passed by the Punjab State Consumer Disputes Redressal Commission (hereinafter referred to as 'the State Commission') in First Appeal No. 1011/2005, "Punjab & Sind Bank versus Sandhu Cold Storage," vide which, it was directed that 'the remaining amount shall be paid by the appellant to the respondent within 6 months'.

(2.) This case has an interesting history. The complainant M/s. Sandhu Cold Storage was maintaining current account CA/1133 with the opposite party (OP)/Petitioner Punjab & Sind Bank (hereinafter referred to as the Bank). The complainant had obtained term loan and cash credit limit also from the said Bank. The issue in question revolves around the fact that a sum of Rs. 4 lakh from the current account of the complainant was adjusted against the term loan/cash credit limit account. The case of the complainant is that the Bank had no right to transfer the said amount to the term loan without his consent. Alleging deficiency in service on the part of the Bank, the consumer complaint was filed, seeking directions to the OP to make payment of Rs. 4 lakh to the complainant with interest. In reply to the complainant, the Bank admitted that they had adjusted Rs. 3,50,000/- in the term loan account and Rs. 50,000/- in the CC Limit account of the complainant. They also stated that they had initiated proceedings for recovery of huge amount of Rs. 28,85,566/- + interest from the complainant. The Bank stated that they had a general lien on the moveable or immoveable properties of the borrower and they had every right to transfer the said amount.

(3.) The District Forum vide their order dated 07. 01. 2005, allowed the consumer complaint and gave directions to the OP bank to refund Rs. 4 lakhs with interest @12% p. a. from the date of transferring the amount in the term loan account and cash credit account till realisation. The OP was further directed to pay Rs. 4 lakhs as loss suffered by the complainant due to non-purchase of potatoes for their business and Rs. 10,000/- as compensation against harassment/litigation cost etc. Being aggrieved against the said order of the District Forum, the Bank challenged the same before the State Commission by way of an appeal, FA No. 1011/2005. However, the said appeal was dismissed as withdrawn vide order dated 14. 07. 2009 of the State Commission, which reads as follows:-