`DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION

PATIALA.

                                      Consumer Complaint No. 381 of 11.9.2019

                                      Decided on: 30.7.2024

Birbal aged about 51 years son of Sh.Bansi Lal, R/o H.No.B-38/49, Mohalla Jejian, Top Khana More, Patiala Prop. M/s Chauhan Traders

                                                                   …………...Complainant

                                      Versus

1. The Branch Manager, State Bank of India, New Officers Colony, SBI Branch Code 8303, Patiala.
2. State Bank of India, Small and Medium Enterprises Credit City Centre, Administrative Office, Floor-3, Sheranwala Gate, Patiala through its Division/Branch Head/Authorized Signatory.

                                                                   …………Opposite Parties

Complaint under the Consumer Protection Act

QUORUM

                                      Ms.Gagandeep Gosal, President

                                      Sh.G.S.Nagi,Member    

ARGUED BY              

                                      Sh.C.S.Mittal, counsel for complainant.

                                      Sh.Anand Puri, counsel for Opposite Parties.              

 ORDER

                                      G.S.NAGI,MEMBER

1. The instant complaint is filed by Birbal (hereinafter referred to as the complainant) against The Branch Manager, State Bank of India and another (hereinafter referred to as the OP/s) under the Consumer Protection Act ( for short the Act).
2. It is averred in the complaint that the complainant has been availing a cash/credit limit of Rs.5lac from December,2018 from the OPs and was regularly depositing the amount of interest against the used credit limit and the same was deducted by the OPs from time to time and entries to that effect have been shown in the statement of account from 1.4.2018 to 27.6.2019.That vide letter No.SMECCC/289 dated 6.5.2019 OPs raised a demand to submit the documents as mentioned in letter dated 6.5.2019 which have already been supplied to OP No.2 as per the demand of OP No.1 alongwith blank cheques and stamp paper in favour  of OP No.1.That manual entry regarding the same is registered at the office of OP No.2 but the online system entry was not updated by the concerned bank official.
3. It is averred that OP No.1 reduced the cash/credit limit of the complainant from Rs.5lac to 2.50lac without any reason and without intimating the complainant due to which business of the complainant has suffered/causing financial hardship. Not only this OP No.1 in connivance with OP No.2 has filed a case against the complainant before the National Lok Adalat-cum-Presiding Officer of National Lok Adalat Patiala and Bank is claiming a total amount of Rs.5,02,674.93 through their claim in which SBI, SMECCC Patiala has claimed Rs.4,56,640.85 as principal amount and Rs.46,034.078 as interest amount which is totally illegal, unlawful ,arbitrary and against the principles of natural justice as on the one side bank is issuing letter dated 6.5.2019 to the complainant to submit the desired documents and on the other hand bank in the month of July,2019 initiated legal action against the complainant without any fault.
4. That as per RBI rules, when the complainant has been regularly depositing the amount in connection with cash credit limit, the action of the OPs for reducing the limit from 5lac to 2.50lac is illegal and null & void. There is also deficiency in service and unfair trade practice on the part of the OPs. Complainant also sent legal notice dated 31.7.2019 through registered post upon the OPs to continue the limit of the complainant to the tune of Rs.5lac but the OPs did not bother to the request of the complainant, which caused mental agony and harassment to the complainant.
5. On this back ground of the facts, complainant has filed the present complaint with the prayer to accept the same by giving direction to the OPs to continue the limit to the tune of Rs.5lac immediately without raising any demand of any documents, interest amount, any penal charges; to pay Rs.50,000/- as compensation for causing mental agony and harassment and also to pay Rs.22000/-as litigation expenses.
6. Upon notice, OPs appeared through counsel and filed the written reply having contested the complaint by raising preliminary objections that the Hon’ble Forum has got no jurisdiction to try and decide the present complaint as the OPs have already filed Civil Suit on 8.8.2019 against the complainant for recovery of the bank dues; that the complainant has no cause of action to file the present complaint against the OPs; that the complainant has not come to the court with clean hands; that the complainant has no locus standi to file the present complaint; that the present complaint is false, frivolous and vexatious .
7. On merits, it is submitted that the complainant has availed the cash/credit limit of Rs.5lac on 11.8.2014 and utilized by the complainant from time to time for his requirements vide cash credit account No.34033968867. The said cash credit limit was lastly renewed on 21.1.2017. That in response to the said cash credit limit the complainant executed the loan documents in favour of the OPs. In addition to the execution of the loan documents, complainant also supplied to the OPs his Aadhar card, Pan card, etc. The above said CC limit amount was repayable on demand alongwith interest @13% with monthly rests. Vide letter i.e. SMECCC/289 dated 6.5.2019 OPs requested the complainant for renewal of the CC limit and advised the complainant to submit the documents but the complainant failed to do so. That as the account had turned into NPA on 28.12.2018 , the OPs filed suit for recovery of Rs.5,10,720.99P against the complainant vide plaint dated 8.8.2019 in which the complainant appeared and filed written reply and wrongly denied the claim made by the OPs.
8. That in the Lok Adalat complainant requested the OPs to receive Rs.5000/- per month but thereafter also he failed to regularize the loan account. That the OPs never reduced the cash credit limit. There is no deficiency in service or unfair trade practice on the part of the OPs. After denying all other averments made in the complaint, OPs have prayed for the dismissal of the complaint.
9. In support of the complaint, ld. counsel tendered in evidence Ex.CA affidavit of the complainant alongwith documents Exs.C1 copy of letter dated 6.5.2019, Ex.C2 copy of legal notice, Ex.C3 and Ex.C4 original postal receipts, Ex.C5 copy of statement of account, Ex.C6 copy of summon of Lok Adalat, Patiala and closed the evidence.
10. On the other hand, ld. counsel for the OPs has tendered in evidence Ex.OPA affidavit of Davinder Pal Singh, Chief Manager alongwith documents, Ex.OP1 copy of application form dated 11.8.2014 alongwith business details, Ex.OP2 attested copy of memorandum for sanction, Ex.OP3 attested copy of letter of arrangement,Ex.OP4 copy of statement of account, Ex.OP5 copy of plaint,Ex.OP6 copy of letter dated 6.5.2018 and closed the evidence.
11. Written arguments on behalf of the complainant have been filed. We have gone through the same, heard the ld. counsel for the parties and have also gone through the record of the case, carefully.
12. The complainant has alleged that he has been availing a cash credit limit of Rs.5lac from December,2018 with the OPs in the name and style of Chauhan Traders. It has also been alleged that the complainant had been regularly depositing the interest against the used credit and has paid a sum of Rs.10,000/-, Rs.8000/-, Rs.10,000/-, Rs.5000/-, Rs.5000/-,Rs.7500/- and Rs.5000/- from 1.4.2028 to 7.6.2019, as per the account statement,Ex.C5.The complainant has further alleged that vide letter dated 6.5.2019,Ex.C1, complainant was asked to submit various documents. The complainant has alleged that these documents as per the demand of OP No.1 had already been supplied to OP No.2 alongwith some blank cheques and a stamp paper in favour of OP No.1. The complainant has alleged that since these documents had already been supplied to OP No.2 as such the demand raised by OP No.1 is unjustified. The complainant has further alleged that the cash credit limit of the complainant has been reduced from Rs.5lac to Rs.2.5 lac without any reason and prior intimation to the complainant due to which the business of the complainant has suffered due to financial hardships. It has also been alleged that the OPs have filed a complaint against the complainant before National Lok Adalat, Patiala and a demand of Rs.5,02,674.93 has been raised against the complainant i.e. Rs.4,56,640.85 as principal amount and Rs.46034.07 as interest amount which is totally arbitrary and illegal and against the principle of natural justice. The complainant has submitted that on the one hand a letter dated 6.5.2019 has been issued to the complainant for submission of the documents and on the other hand a case was filed against the complainant in the month of July/2019 leading to mental agony and harassment of the complainant. The complainant has alleged that the OPs are in the process of declaring the account of the complainant NPA i.e. Non performing Asset. The complainant has sent a registered legal notice dated 31.7.2019 upon the OPs as per Ex.C2 wherein the OPs were requested to continue the cash credit limit of the complainant at Rs.5lac and not to reduce the same from Rs.5lac to Rs.2.5.lac.However, no action was taken by the OPs. The complainant has now prayed that his account with a cash credit limit of Rs.5lac be continued and may not be reduced from Rs.5lac to Rs.2.5lac.The complainant has also prayed for compensation and litigation expenses on account of mental agony and harassment.
13. The OPs in their written statement and affidavit Ex.OPA of Sh.Divinder Pal Singh, Chief Manager, SME CCC has submitted that the complainant had availed a cash credit limit of Rs.5lac w.e.f.11.8.2014 and it has been wrongly pleaded that the complainant was availing the cash credit limit from 1.4.2018.The OPs have produced a loan application dated 11.8.2014,Ex.OP1, appraisal memorandum for sanction of SME Collateral free loan dated 11.8.2014 as per Ex.OP2 and letter of arrangement dated 11.8.2014,as per Ex.OP3, confirming that the cash credit limit of Rs.5lac was sanctioned and was being availed by the complainant from 11.8.2014. The OPs have also produced on record the copy of the statement of account w.e.f.1.8.2014 to 7.8.2019 against account No.34033968867 sanctioned to the complainant under the name and style of Chauhan Trader as per Ex.OP4.
14. The OPs have submitted that the cash credit limit was renewed periodically and was last renewed on 21.1.2017. The complainant had executed the loan documents against the said cash credit account with the OPs. The above said cash credit limit amount was repayable on demand alongwith interest @13% with monthly rests. The complainant was then advised to submit various documents as per letter dated 6.5.2019,Ex.OP6 for renewal of the cash credit limit but the complainant failed to do so. The OPs have alleged that the complainant was continuing breach in making the repayment of the loan amount and was not submitting the requisite document for renewal of the cash credit limit. Even the sales of the unit of the complainant were not being routed through the said cash credit account. The account had turned into NPA i.e. non performing asset on 28.12.2018 and as such the OPs have filed a case in the National Lok Adalat, Patiala and subsequently a suit  for recovery against the complainant  in the court of Civil Judge, Sr.Division, Patiala vide suit No.1325 of 2019 dated 8.8.2019 for the recovery of Rs.5.10.720.99, as per Ex.OP5. It is alleged that the complainant appeared through his counsel in the said suit on 3.9.2019 and filed this complaint in this Commission on 6.9.2019 as a counter of that. They have further submitted that no such action as alleged by the complainant has been taken by the OPs for reducing the cash credit limit of the complainant from Rs.5lac to Rs.2.5lac. It is also alleged that when the matter between the OPs and the complainant was not settled amicably in the N.L.A.Patiala and as such a suit for recovery as stated above ,as per Ex.OP5 was then filed by the OPs. The OPs have alleged that as the complainant was not making the repayment of the loan amount and was not submitting the required documents for renewal and was not routing the sales proceeds through cash credit account as such his account has become N.P.A. on 28.12.2018. OPs were thus within their right to file a case for recovery in the National Lok Adalat and subsequently a suit for recovery of the amount from the complainant and have prayed for the dismissal of the complaint.
15. From the  perusal of the documents produced by the complainant as well as the OPs it transpires that the complainant had availed a cash credit limit of Rs.5lac under the name and style of Chauhan Traders. The cash credit limit was sanctioned w.e.f.11.8.2014.The complainant had produced the account statement from 1.4.2018 to 27.6.2019 only as per Ex.C5 whereas the complete statement from 11.4.2018 to 7.8.2019 has been produced by the OPs as per Ex.OP4. The plea of the complainant that he has been regularly paying the interest against the cash credit limit is not justified  even as per the statement produced by the complainant an amount of Rs.456640.85 was due from the complainant as on 27.6.2019 inspite of payments having been made by the complainant from 1.4.2018 to 27.6.2019, as above which have been duly reflected in the bank statement. Even perusal of the bank statement from 11.8.2014 onwards indicates that the complainant had been irregular in making the payments with monthly rests as per the condition of the CC Limit and huge balance was outstanding against the complainant at the end of each financial year as per the account statement submitted by the OPs. It is also a fact that the complainant was well aware of the outstanding amount due from the complainant and was irregular in making the payment against utilization of the said cash credit. The account of the complainant had turned into NPA on 28.12.2018 when principal amount of Rs.4,95992.85 was due from the complainant as per account statement,Ex.OP4.The case was then filed in the National Lok Adalat and subsequently recovery suit was filed on 8.8.2019 and complainant appeared through his counsel on 3.9.2019. The complainant requested the OPs to accept Rs.5000/- per month from the complainant for settlement of the case in the Lok Adalat but failed to honour the same and subsequently backed out from the offer. The complainant failed to settle the issue with the OPs in National Lok Adalat.The complainant was well aware of the proceedings and suit of recovery of Rs.5,10,720.99 filed by the OPs and in order to escape from the same filed this complaint on 11.9.2019.The only prayer made by the complainant in the present complaint is that the OPs may be directed to continue the limit of the complainant to the tune of Rs.5lac and not to reduce the same from Rs.5lac to Rs.2.5lac.
16. The complainant has failed to produce any document whereby the limit of the complainant has been reduced by the OPs from Rs.5lac to Rs.2.5lac.Moreover, this averment of the complainant has been specifically denied by the OPs and they have stated that no such action has been taken by the OPs for reduction of the limit from Rs.5lac to Rs.2.5lac. The complainant was irregular in making the payment of interest against the used credit limit right from the date of the sanction of the credit limit i.e. from 11.8.2014 onwards and asset has become N.P.A. i.e. non performing asset on 28.12.2018 and a case has already been filed in the National Lok Adalat and suit for recovery is also pending against the complainant in the court of Civil Judge, Sr.Division, Patiala. At this stage as suit for recovery has already been filed by the OPs before filing of this complaint and same is pending adjudication. However, there is no dispute w.r.t the amount due from the complainant. As such we do not deem it fit to issue any directions in the case. As such the case is dismissed accordingly. Parties are left to bear their own costs.            
17.           The instant complaint could not be disposed of within stipulated period due to heavy rush of work and for want of Quorum from long time.
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                                              G.S.Nagi                       Gagandeep Gosal

                                              Member                          President