DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, PALAKKAD

Dated this the  27^th  day of November,  2023

Present      :   Sri. Vinay Menon V., President

                  :  Smt. Vidya A., Member                        

                  :  Sri. Krishnankutty N.K., Member                                Date of Filing: 19/09/2023  

                         CC/247/2023

Riju K.K.,

Karukamani,

Panayur post,

Polpully, Palakkad                                           -                             Complainant

(Party in Person)

                                                                                                Vs  

            The  Manager,

            ESAF Small Finance Bank,

            Tattamangalam Post,

            Palakkad                                                         -                            Opposite party                  

            (By Adv. M.J. Vince)

ORDER  IN  THE  QUESTION  OF  MAINTAINABILITY

            By Sri. Vinay Menon V., President

1. Complainant’s grievance pertains to non-sanctioning of loan by the O.P. bank.
2. Per complaint pleadings, Complainant is an account holder of the O.P. Bank. He applied for a loan from the O.P. But the O.P., on false, frivolous and baseless grounds repudiated his claim for loan causing untold sufferings. The Banking Ombudsman found that there were some irregularities on the part of the Bank and allowed a cost of Rs. 2000/- payable to the complainant. Aggrieved by the non-sanctioning of the loan, this complaint is filed.
3. O.P. entered appearance and filed version. They also sought for hearing on the question of maintainability. Since this is a case wherein, per complainant’s pleadings, a loan was not sanctioned to the complainant, the matter was taken up for hearing on the question of the maintainability of the complaint.
4.  Even if the Complainant be a consumer of the Bank, being an account holder, grant of loan by a bank is not an automatic process whereby the account-holder ex-officio becomes entitled to grant of loan. Grant of loan requires meeting of varied number of criteria by the applicant and involves administrative decision making by the authorized officers of the Bank. Such decision making authorities are authorized, empowered and competent make studied decisions, based on the parameters set for the by the Bank or by other controlling Authorities.

                        If the Commissions under the Consumer Protection Act resort to finding deficiency in service each time an application for loan is rejected, it will lead to infringement upon the financial wisdom of Banking Authorities and ultimately to financial chaos.

5. Any decision so made will not attract the jurisdiction of this Commission, as held by  various  decisions of State Commissions  and National Commission.  
6. Accordingly this complaint is dismissed.  

     Pronounced in open court on this the  27^th day of  November,  2023.     

                                                                                                                 Sd/-  

                                                                                              Vinay Menon V

                                                      President

         Sd/-

   Vidya.A

                       Member        

          Sd/-                                          Krishnankutty N.K.

                                                                                                      Member

NB : Parties are directed to take back all extra set of  documents submitted in the proceedings in accordance with Regulation 20(5) of the Consumer Protection (Consumer Commission Procedure) Regulations, 2020 failing which they will be weeded out.