CORPORATION BANK Vs. SOMENATH GUPTA

JUDGEMENT

(1.) This is an appeal against the order of the State Commission dated 7.2.1997 by which Corporation Bank, the appellant has been directed to pay the complainant a compensation of Rs. 12.88 lakhs on account of loss caused to the complainant by not financing a project of Prawn Fish Farm and a sum of Rs. 5,000/- have also been awarded as cost.

(2.) The main point of the complaint Shri Somnath Gupta, Proprietor, Bengal Marine Products and others is that they had applied for a loan for the purpose of setting up a Prawn Fish Farm. The loan was sanctioned by the Branch Manager of the Corporation Bank, Rash Behari Branch, Calcutta. On the strength of this sanction, Brackish Water Fish Farmers' Development Authority (a financial body set up by the Government of West Bengal) gave a subsidy of Rs. 1.20 lakhs. The amount of subsidy was paid to the Bank for disbursement to the complainant. By its failure to pay the sanctioned amount of Rs. 4.50 lakhs and also the subsidy amount provided by BFDA the Corporation Bank has caused considerable loss and damage to the complainant for which compensation is to be paid.

(3.) The complainant, however, has not annexed its application for loan or the letters sent by the Corporation Bank to the complainant sanctioning the loan application. Before proceeding the case, the State Commission should have verified these vital documents. The case of the Corporation Bank before us is that the complainant had made an application on 20.3.1995 for a loan of Rs. 7.80 lakhs which was not sanctioned at all.