Consumer Case No.121/S/2014
Order No.17.
Dt.02.03.16. Today is fixed for order.
The petition dated 10.03.2015 is taken up for hearing and order.
The complainant’s case in brief is that it is a limited company, and it has a corporate office at Siliguri, and it owns a tea garden which provides employment to many persons. The complainant had cash credit facility at Axis Bank Limited in Siliguri, but the personnel of OP Nos.1 & 2 approached the complainant’s director, and requested that the complainant obtain cash credit facility at their bank i.e., HDFC Bank Limited, and assured the complainant to give better services at lower rate of interest than Axis bank. The OP bank sanctioned a cash credit facility of Rs.2,00,00,000/-, and Rs.1,00,00,000/- as working capital term loan, which was renewable every year on payment of processing fee. After verbal discussion with officials of the OP, the complainant submitted a request dated 15.01.2014 for enhancement of cash credit facility, and the officers of the OP assured the complainant that the request was under consideration, but at a very late stage the complainant was informed that such enhancement was not feasible. He then approached Axis Bank for the same facilities, and the said bank agreed to provide such facilities, and it also agreed to take the liability of the OP Bank as regards the amounts in the two accounts. The director of the complainant was under the impression that the cash credit and term loan accounts would be renewed after expiry of one year on enhanced limit as requested, but quite surprisingly the director received a letter dated 24.02.2014 from the OP bank on 13.03.2014 asking the complainant to submit renewal application due on 15.03.2014. The letter mentioned about renewal notice dated 08.01.2014, and reminder dated 10.02.2014, but the complainant did not receive these notice or reminder. On receipt of the letter dated 24.02.2014, on 13.03.2014, the director of the complainant wrote a letter on 14.03.2014, and personally handed it over to the OP No.1 requesting immediate closure of the said two accounts, and the complainant also requested to be informed about the outstanding amounts so that these could be cleared at once. However, the OP bank did not respond. The complainant claims that if the borrower does not submit renewal letter, then the loan account will be closed on completion of one year, and it cannot be renewed by
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the bank at its sweet will. The complainant claims that Axis bank transferred on 29.03.2014 a sum of Rs.1,98,88,500/- through R.T.G.S., the outstanding amount payable by the complainant in the cash credit account, and he deposited a banker’s cheque for Rs.86,29,500/- for credit in the term loan account of the complainant, but the OP did not credit the same in the loan accounts of the complainant. The complainant claims that the accounts were closed on 13.05.2014, after he made some further payments on protest. The complainant claims that the OP has intentionally, and without any application for renewal from the complainant, debited large amounts for renewal charges or processing charges on 25.03.2014, and the complainant is entitled to refund of the same. Accordingly, the complainant filed this case praying that the OPs be directed to pay him the sums which were unlawfully debited by way of renewal charges or processing charges, and he prays for some other reliefs as well.
OP raised objection by filing written objection denying inter-alia all the material allegations raised by the complainant. The ground raised by the OPs is that the complainant is not a consumer within the meaning of the Consumer Protection Act.
It is also submitted by the OPs that the instant case is prima facie, barred under the Consumer Protection Act, 1986, is not maintainable and is liable to be dismissed on the following ground :
(a) The complainant is a Private Limited Company and it does not fall within the purview of Consumer as defined under Section 2(d) and (m) of the Consumer Protection Act.
(b) The relationship between the complainant and the opposite party bank is that of a debtor and creditor and hence by no stretch of reasoning the complainant can come within the purview of consumer.
(c) The complainant availed credit facility to the tune of Rs.300.00 lakhs in the nature of Cash Credit and Term Loan from the opposite party bank for expanding its business and hence, the transaction made between the complainant and the opposite party bank is purely commercial in nature and does not fall within the purview of consumer dispute as defined under the Act.
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(d) The purported dispute raised by the complainant arises out of the credit facility sanctioned by the bank to the tune of Rs.300.00 lakhs to the complainant. The complainant has further, claimed relief up to Rs.15,37,150 along with pendent lite interest @ 12% till realization on the sum of Rs.5,37,150/-. As per the definition of Section 11 (1), the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed “does not exceed rupees twenty lakhs. The purported complaint exceeds the said amount which is beyond the pecuniary jurisdiction of this Ld. Forum.
Considered the submissions of both sides. Objections and counter objections of both sides.
From the facts laid down in the complaint shows that the complainant is not a consumer within the meaning of the Consumer Protection Act. The objection raised by the OPs in their written objection has more weight than the same of complainant.
Admittedly, complainant is a private limited company and does not come within the 2(1) (d) of the C.P. Act.
After considering the material on record, we are of opinion that complaint is not maintainable as the complainant is not a consumer.
Therefore, the petition dated 10.03.2015 filed by the OPs is disposed of.
Hence, it is
O R D E R E D,
that the Consumer Case No.121/S/2014 be and the same is dismissed being not maintainable.
Let copies of this order be supplied to the parties free of cost.
-Member- -Member- -President-
