Karnataka

StateCommission

A/3938/2010

The Branch Manager - Complainant(s)

Versus

M/s Agni Briqueted Fuel Industries - Opp.Party(s)

Udaya Prakash

11 Mar 2022

ORDER

 

BEFORE THE KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BANGALORE

 

 

DATED THIS THE 11^TH DAY OF MARCH 2022

 

 

PRESENT

 

HON’BLE Mr. JUSTICE HULUVADI G. RAMESH    : PRESIDENT

MR. K. B. SANGANNAVAR                                : JUDICIAL MEMBER

MRS. DIVYASHREE M.                                     : MEMBER

 

Appeal No. 3938/2010

 

The Branch Manager Karnataka State Financial Corporation, R.C. Road, Hassan. (By Sri. Udaya Prakash) V/s

……Appellant

1.  M/s Agni Briqueted Fuel Industries      Hassan, A Partnership Firm,      1. Rudramma, W/o. T.J. Venkataswamy,      2. T.V.Ravi, S/o. T.J. Venkataswamy. 2.  M/s R.V.Solidifiers, Hassan      A Partnership Firm,      Rep. by its Partners,      1. T.J.Venkataswamy, S/o.Late Javarashetty,      2. Rudramma, W/o.T.J. Venkataswamy,            All are R/at KIADB Industrial Area, B.Katihalli, Hassan (By Sri. A.N. Krishnaswamy)

…Respondents

 

 

 

O R D E R

BY HON’BLE Mr. JUSTICE HULUVADI G. RAMESH, PRESIDENT

This appeal is preferred against the order dated 26.08.2010 passed in C.C.No.218/2009 on the file of District Consumer Disputes Redressal Forum, Hassan.

2. The brief facts of the case are that the complainant Nos. 1 & 2 availed loan of Rs. 38.30 lakhs and Rs.28.50 lakhs from OP financial corporation respectively for their briquetted fuel manufacturing unit.  The OP has received Rs.23.94 lakhs as repayment for the first complainant’s unit and sum of Rs.30.10 lakhs for the second complainant’s unit.  The complainants became defaulters.  The OP extended OTS for units for Rs.32.00 lakhs including the initial payment of Rs.5,65,000/- based on the valuation of primary and collateral security.  Unfortunately, because of the reasons beyond the control of the complainants, the complainants did not make the payment and requested the corporation to sell the primary assets of the unit and to release the collateral security.  The assets of the complainant units were sold and the corporation realized a total amount of Rs.35.00 lakhs which is more than the OTS amount of Rs.32.00 lakhs payable by the complainants.  The complainants also agreed to pay the interest on the delayed payment of Rs.32.00 lakhs amounting to Rs.1,34,360/-.  Thus, the complainant requested OP to accept a sum of Rs.32.00 lakhs being the balance OTS amount and a sum of Rs.1,34,360/- being the interest for the delayed payment amounting to Rs.33,34,360 and sought refund of excess amount of Rs.7,30,640/- from the OP corporation.  The OP/Corporation again directed complainants to pay Rs.5.00 lakhs within 10.07.2009 failing which to pay the entire amount including interest.  Left with no option complainants paid Rs.5.00 lakhs.  The complainants have paid excess amount of Rs.12,30,640/- for no fault of them.  Thus, inspite of having agreed to OTS scheme, OP forced them to pay additional amount by playing unfair trade practice and has caused a financial loss of Rs.12,30,640/-, sought for refund of the same with compensation and costs.
3. OP in their version admitting sanction of loan, extending of OTS facility, Cancellation of OTS and adjustment of sale proceeds of primary assets of first complainant to loan account pleaded that after the adjustment the complainants were still due to an extent of Rs.17,89,295/- towards first complainant M/s.Agni Briquetted Fuels and Rs.41,17,832/- in M/s.R.V. Solidifiers i.e., the second complainant.  Hence, the corporation decided to bring the collateral property for sale for recovery of the balance due.  Again both the complainants have come and requested the OP that at least the collateral security to be saved and sought for another OTS in respect of collateral security on 02.04.2009.  Again the OP as per the resolution of the executive committee dated 12.06.2009 decided to close both the accounts of both firms subject to payment of Rs.5.00 lakhs.  Both the complainants together have paid Rs.5.00 lakhs and sought for closure of both the accounts and sought for release of collateral security.  The OP corporation closed the loan accounts of both the firms and waived all the interest which was worked out to Rs.57.28 lakhs.  Since, the collateral security released by the corporation was also pledged with SBI Hassan on second charges basis, all the original papers were sent to SBI Hassan.  Thus, denying all other allegations sought dismissal of the complaint.
4. District Forum on the basis of the pleadings and evidence led in by both the parties deemed it fit to allow the complaint in part and directed OP to refund excess amount received at Rs.12,34,360/- to the complainant with compensation of Rs.1.00 lakh and costs of Rs.5,000/-  within one month, failing which ordered to pay interest at 10% p.a.
5. Being aggrieved by the said order OP is in appeal amongst other grounds that complaint is not maintainable, suffers from misinterpretation of law and wrong appreciation of facts.  The conditions stipulated in the OTS sanction communication letter and other documents have not been considered as per law.  The assets were brought for sale on failure by the complainants to avail the OTS benefit offered.  The concessions already offered to the complainant while settling the account are huge amounting to waiver of Rs.57.27 lakhs and that the settlement accepted and complied by the complainants cannot now be reopened by the District Forum as it would amount to altering the terms on which the settlement was finalised.  Thus, sought to set aside the impugned order.
6. Heard.  Learned Counsel for respondent submitted that the District Forum on appreciation of the documents submitted by the complainant/respondent has rightly considered the case of complainant and passed the orders.  Thus, sought dismissal of the appeal.
7. Perused the appeal memo and impugned order.  For refund of excess amount collected by the OP corporation after allocating sale proceeds of the primary collateral security towards OTS complaint has been lodged.  The District Forum observing to the fact that as per the public notice issued by OP/ corporation for auction which clearly indicates that the realized amount from release of Collateral Security and sale of primary assets of M/s. Agni Briquetted Fuel Industrial as part of the OTS amount, has rightly come to the conclusion that the OTS cannot be termed as cancelled.  Further observing that though OP corporation also collected Rs.1,34,360/- for delay in payment of OTS amount, opined that demanding of Rs.5.00 lakhs to close both loan accounts after adjusting sale proceeds is not proper and thus, ordered to pay the excess amount collected.  The reason assigned by the District Forum in allowing the complaint is just and proper.  We do not find any reason to interfere with the order passed. Accordingly, the appeal is dismissed.
8. Amount in deposit is directed to be transferred to the District Commission for needful.

 

MEMBER                   JUDICIAL MEMBER          PRESIDENT

 

CV*