Orissa

Cuttak

CC/172/2014

Pravat Ranjan Prusty - Complainant(s)

Versus

Chairman,Bank of India - Opp.Party(s)

S K Padhy

16 Apr 2022

ORDER

IN THE COURT OF THE DIST. COINSUMER DIUSPUTES REDRESSAL COMMISSION,CUTTACK.

                                                                                C.C.No.172/2014

           Sri Pravat Ranjan Prusty,

S/O:Sri Gagan Bihari Prusty,

Res. Of Plot No.146,Mahjanadi Vihar,

P.O:Nayabazar,P.S:Chauliaganj,

Dist:Cuttack.                                                                                                    ... Complainant.

 

                                                Vrs.

1.        Chairman-cum-Managing Director,

Bank of India,Star House,C-5,G Block,Bandra Kurla Complex,

Bandra East,Mumbai-400051.

2.      Zonal Manager,

Bank of India,Bhubaneswar,

Dist:Khurda-751015,Odisha.

3.      Branch Manager,Bank of India,

Mahanadi Vihar Branch,Mahanadi Vihar Road,

P.O:Nayabazar,P.S:Chauliaiganj,

Dist:Cuttack.                                                                                     ... Opp. Parties.

 

Present:               Sri Debasish Nayak,President.

                                Sri Sibananda Mohanty,Member.

 

Date of filing:    21.11.2014.

Date of Order:  16.04.2022.

 

For the complainant: Sri S.K.Padhi,Adv. & Associates.

For the O.Ps:                      None.

Sri Sibananda Mohanty,Member.

 

                The complainant has filed the present case against the O.Ps alleging deficiency of service and other consequential reliefs against the O.Ps.

                The complainant’s case is that he is an unemployed educated youth who came across the welfare schemes of Govt. of India namely “Prime Minister’s Employment Guarantee Programme”.  Accordingly as per the procedure the complainant submitted an application before the District Industries Centre, Cuttack.  After the process of selection, the project proposal of the complainant was selected and recommended to the Branch Manager i.e., O.P No.3 for sanctioning approval of loan for his project for Offset printing press.  Thereafter, the O.Ps have called for the complainant for  an interview by their letter dt.10.1.2011.  He has registered his unit before the District Industries Centre.   His further case is that after observance of all the procedures, a sum of  Rs.10,00,000/- was sanctioned on 23.3.2011 in his favour.  He was directed by the O.P bank to deposit a sum of Rs.1,00,000/- towards margin money and accordingly he  deposited the same.  On the same day i.e. on 23.3.11, an agreement was executed between the O.P.No.3 and complainant for an amount of Rs.9,00,000/- only as composite term loan agreement.  As per the agreement, the loan to be repaid in 60 instalments.  The bank has also received the subsidy of Rs.1,50,000/- only from the Govt.  The O.Ps have released payment of Rs.75,075/- on 8.6.11 in favour of Rameswar Agency against their quotation dt.9.3.2011, Rs.20,025/- only on 27.5.2011 in favour of  S,P. Associates against their quotation dt.10.3.11 and further released an amount of Rs.5,81,540/- on 14.7.11 in favour of Umapati Traders against their quotation dt.10.6.11.  It is alleged by the complainant that bank officials demanded Rs.50,000/- as illegal gratification to disburse the further loan amount including working capital, but  he denied and lodged complaint against the official before the higher authority i.e. O.P.No.2.  But the O.P.No.2 did not take any action against them.  The bank also in connivance with supplier i.e. Umapati Traders had delayed in supplying the materials.  The complainant after receiving the machinery presented electrification layout of the pending space and requested O.P.No.3 for releasing the working capital and electrification charges vide his letter dt.13.4.12, 16.7.12,19.3.,13,16.6.13 but the O.P.3 remained silent and did not take any action for releasing the said amount.  The complainant alleged that the O.Ps have violated the terms and conditions of the agreement thereby causing mental agony and natural rights of the complainant and has committed deficiency in service.  The further case of the complainant is that O.P. bank had not released the working capital but asked for repayment of loan amount for which he expressed his inability.   However, with much difficulties, he borrowed loan from market and paid Rs.90,000/- towards the loan amount.  It is also alleged by the complainant that on 5.8.13, the O.P.No.3 came to his unit and took Rs.40,000/- towards loan instalment but that has not been accounted.  The complainant on 3.1.14 placed his grievance through one representation to the O.P.No.1 & 2 against O.P.No.3 but they also did not respond.  He also had lodged a complaint before the banking OMBUDSMAN of Bank of India vide letter dt.13.11.14 but no action has been taken till date.  The O.P bank has sent a pleader’s notice on 18.8.2014 demanding loan amount.  The complainant also has replied to the said pleader’s notice vide letter dt.2.9.2014.  It is stated by the complainant that that the O.Ps are not releasing the working capital and are also not giving electrification charges which  amounts to deficiency of service by the O.Ps and so also it is an unfair trade practice by them.  By this action of the O.Ps the complainant sustained pecuniary loss and also sustained mental agony.  So he has filed the case praying therein to exempt the interest charged against him, to pay a sum of Rs.4,00,000/- towards the loss incurred by him, to pay Rs.50,000/- towards compensation for mental agony and Rs.10,000/- towards cost of litigation.

2.            In spite of notice, the O.Ps did not appear, hence they were set exparte.

3.            The O.Ps have not filed the written version.  Hence it is presumed that the allegations made by the complainant against the O.Ps are true.  The complainant has proved the fact that he was sanctioned loan amount of Rs.9,00,000/-.  The bank has released the payment in favour of the agency from whom the complainant has purchased the machinery for installation of his establishment.  But due to non-payment of the working capital he could not run his business.

4.            In the absence of O.Ps who though had received the notices have neither  appeared and nor contested the case, this Hon’ble Commission can safely  concluded that the averments made in the complaint petition are found to be true and trust worthy. 

 

                                                                                     ORDER

Accordingly, this Commission directs the O.Ps to release the working capital in favour of the complainant and take instalments from the complainant only towards the monthly instalments thereafter.  It is made clear that after payment of working capital, grace period would be given to the complainant as per the agreement and thereafter the instalments/E.M.Is would be charged.  The amount paid by the complainant would be adjusted towards the loan amount.   But the O.Ps have intentionally charged the interests soon even before not disbursing the working capital to the complainant. 

The O.Ps are further directed to pay a sum of Rs.50,000/- towards the compensation for mental agony and litigation cost to the complainant within a period of 30 days hence.

                Order pronounced in the open court on the 16^th day of April,2022 under the seal and signature of this Commission.

                                                                                                                       

                                                                                                                            

                                                                                                                         Sri Sibananda Mohanty

                                                                                                                            Member.

 

 

                                                                                                                                Sri Debasish Nayak

                                                                                                                                        President