DISTRICT CONSUMER DISPUTES REDRESSAL FORUM,<br /> BATHINDA (PUNJAB)<br /> <br /> CC.No.156 of 15-7-2009<br /> Decided on: 17-9-2009<br /> <br /> Gurvinder Singh son of Sh. Gurdev Singh, resident of Village Mehma Sarja, Tehsil & Distt. Bathinda.<br /> <br /> ………..Complainant.<br /> <br /> Versus<br /> <br /> ICICI Bank Ltd., Bathinda, Guru Teg Bahadur Chowk, Bibiwala Road, Bathinda, through its Branch Manager.<br /> <br /> ………Opposite party.<br /> <br /> Complaint under section 12 of<br /> the Consumer Protection Act,1986.<br /> <br /> Present:-<br /> For the complainant : Mahesh Kumar, Advocate counsel <br /> for the complainant.<br /> Opposite party already exparte.<br /> <br /> QUORUM<br /> <br /> Sh. George, President.<br /> Sh. Amrajeet Paul, Member.<br /> <br /> ORDER<br /> <br /> GEORGE, PRESIDENT:-<br /> <br /> 1. The present complaint has been filed by the complainant under Section 12 of the Consumer Protection Act, 1986 ( here-in-after referred to as ‘Act’) with the allegations against the opposite party that he wanted to setup Agro-Forestry plant on his own landed property comprising in khasra nos. 206/9(8-0), 10(8-0), khata no. 940/2479, situated at Vill. Mehma Sarja, Tehsil & Distt.Bathinda and for which he approached the opposite party for grant for loan of Rs. 10,00,000/-. He asked by opposite party to furnish the project report for the said Agro-Forestry, he accordingly prepared the detailed project report and furnished the same to the opposite party along with other documents dt. 10-1-2009. After furnishing the said project report and other documents as required by opposite party, he continued to approach opposite party for sanctioning his loan. However, the opposite party failed to give any reply to him and neither sanctioned the loan to him nor refused the same rather the opposite party kept the project report of the complainant along with other documents unattended; due to the inaction of the opposite party for a period of more then six months, complainant continued to approach the opposite party but with no results. He had to suffer from grave mental tension, agony, botheration and harassment and inconvenience due to the aforesaid act of the opposite party besides suffering loss in his project as the trees planted by him in his Forestry plants, are not growing properly due to lack of funds; due to non-sanctioning of the loan by opposite party. As per the guidelines issued by the Reserve Bank of India, the opposite party was bound either to sanction or to reject the project report of the complainant within 15 days, but the opposite party did not take any action rather the same is still lying in the office of the opposite party without any action, which amounts to deficiency in service on the part of opposite party, as the opposite party has not acted fairly and also in accordance with rules and regulations of Reserve Bank of India.<br /> <br /> 2. Noticed was issued to opposite party, however, despite due service, opposite party did not appear before this Forum to contest the allegations and therefore, the opposite party was proceeded against as exparte.<br /> <br /> 3. To prove respective assertions, complainant has led his evidence; he filed his own affidavits dt. 8-7-2009 Ex.C-1 and dt.29-7-2009 Ex.C-8 and also brought on the record, copies of jamabandi Ex.C-2 and Ex.C-9; copy of project report Ex.C-3; copies of letters dt. 10-1-2008,dt.31-5-2009 and dt. 29-9-2008 Ex.C-4 to Ex.C-6, respectively.<br /> <br /> 4. We have heard learned counsel appearing on behalf of the complainant who has filed written submissions.<br /> <br /> 5. We have taken into consideration all the documents brought on the record by the complainant as well as the written submissions filed on behalf of complainant.<br /> <br /> 6. Complainant has filed his affidavits in evidence Ex.C-1 and Ex.C-8, wherein he has pleaded that he applied for sanctioning loan amount of Rs. 10,00,000/- from opposite party and opposite party asked him to prepare the detailed project report and furnished the same in the bank. The complainant accordingly prepared the detailed project report and furnished the same with the bank along with all other required documents dt. 10-1-2009. However, despite his repeated requests, opposite party has not taken any final decision either for sanctioning of the loan in favour of the complainant or rejecting his loan application. The complainant has placed on record Ex.C-13 instructions of Reserve Bank of India, according to which opposite party being a Public Sector Bank cannot keep the loan application of the complainant unattended for unreasonable period. Opposite party being the public sector bank is governed by the Reserve Bank directives and non acceptance of application for loan without furnishing valid reasons or making delay in sanctioning, disbursement or non observance of prescribed time schedule for disposal of loan application amount to deficiency in banking service. Complainant has specifically not only pleaded but also proved by his Ex.C-1 and Ex.C-8 that he submitted his project report along with all other required documents with the opposite party dt.10-1-2009, but he has not received any communication from opposite party bank; his loan application neither accepted nor it has been rejected.<br /> <br /> 7. We are conscious of the fact that opposite party being a public body has to act within a frame work of rules and regulations in the matter of either sanctioning or rejecting the loan application. However, being a public body, opposite party has to observe the directives of the Reserve Bank of India and also norms of fair play and natural justice while accepting or rejecting a loan application filed for sanction for a loan. Opposite party being a public sector bank and as a statutory obligations even in case of non acceptance of application for loan is to furnish valid reasons for the same to the applicant and to observe the prescribed time schedule, as per the directives of Reserve Bank of India for disposal of loan applications .<br /> <br /> 8. In the present case, the records reveals that the loan application of the complainant has been pending for disposal with the opposite party since 10-1-2009 and complainant has not been furnished with any communication for non acceptance of the same till date, which definitely amount to deficiency in service for which complainant is entitled for a reasonable and adequate amount of compensation.<br /> <br /> 9. Taking into consideration, a manner in which, opposite party has shown inaction with regard to the disposal of loan application of the complainant. Complainant has definitely suffered mental tension, agony, harassment and inconvenience for which he is entitled to a reasonable and adequate amount for compensation which we assess to the tune of Rs. 15,000/-; the complainant shall also been for an amount of Rs. 2,000/- for litigation expenses. Opposite party is further directed to take appropriate steps for disposal of loan application of the complainant within a period of 30 days from the receipt of this order and the complainant be furnished with valid reasons either for acceptance or non acceptance of his loan application.<br /> <br /> 10. The copy of this order be sent to the parties concerned free of cost and file be indexed and consigned.<br /> <br /> Pronounced (GEORGE)<br /> 17-9-2009 PRESIDENT<br /> <br /> (AMARJEET PAUL)<br /> MEMBER<br /> <br /> <br /> <br />