PUNJAB KHADI BOARD Vs. SUKHWINDER SINGH

JUDGEMENT

(1.) This appeal is by the opposite party challenging order of District Forum, Mansa dated August 14,1996 directing the appellant to return the original mortgage deed and issue 'no due certificate' to the complainant, alongwith Rs.500/- as costs.

(2.) Sukhwinder Singh, complainant, took a loan of Rs.25,000/- from Punjab Khadi Board - the opposite party. As per terms and conditions of the loan, he was to purchase the machinery and pay 4% interest on the loan. In case of non- utilisation of the loan, he was to pay 5% interest. The complainant having discharged the entire loan asked for return of the mortgage deed and 'no due certificate'. Since the same was not done, District Forum was approached. The version submitted by the appellant was that inspite of several notices having been issued, the complainant did not submit bills for the purchase of the machinery. Thus, it was taken that he had misused the loan and notices were issued to pay interest at the enhanced rate i. e.5%, amounting to Rs.8,669/-. Steps were also taken to recover the same. Jurisdiction of the District Forum to entertain the complaint was also raised. On the affidavits and documents produced by the parties, the impugned order was passed.

(3.) Learned Counsel for the appellant has argued that the District Forum could not entertain the complaint. It was internal matter of the Khadi Board. As per terms and conditions of the loan to charge enhanced rate of interest on failure of the complainant to submit the utilisation certificate i. e. the bills for the purchase of the machinery. The word service has been defined under Sec.2 (1) (o) of the Consumer Protection Act as under: ""service" means service of any description which is made available to potential users and includes the provision of facilities in connection with banking, financing, insurance, transport, processing supply or electrical or other energy/board or lodging or both housing construction entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service. "