Harpreet Singh son of Sh. Jagjit Singh, resident of No.14697, Street No.3, Kalsi Nagar, Dholewal, Ludhiana.
1. H.D.F. C Bank, Kalsi Nagar, Ludhiana through its M.D/Chairman.
2. The Branch Manager, H.D.F.C. Bank, Kalsi Nagar, Ludhiana.
O R D E R
1. Complainant under Prime Minister Rojgar Yogna Scheme, after fulfilling all the formalities and completion of documentation of small scale industries, approached the OP-Bank for loan. They sought project report before approval of the loan. Spent Rs. 3000/- to obtain project report from the Chartered Accountant and submitted the same to the bank, who issued sanctioned letter dated 20.3.2008 subject to sanctioning of P.M.R.Y. loan cases for the year 2007-08. Thereafter, repeatedly requested OP-Bank to relase the loan amount, but they evaded on one pretext or the other. By not releasing the loan after sanctioning, is claimed amount to deficiency in service on their part. Resultantly, also served legal notice dated 9.8.08 but without any effect. Hence, this complaint for direction to the opposite party to disburse loan of Rs.2,00,000/- and to pay him Rs. 85,000/- compensation for mental pain and agony along with Rs.15,000/- litigation costs.
2. Opposite parties no.1 & 2 in joint reply claimed that allegations of the complainant are baseless, frivolous and there is no deficiency in service on their part. However, they conceded that complainant applied for loan of Rs.2,00,000/-under Prime Minister Rojgar Yogna Scheme. But denied that he had fulfilled all the formalities or they demanded project report from him. Request of the complainant for loan was declined for non completion of formalities and project report submitted by the complainant was of trading of steel and aluminum scrap which is an industrial activity. Further claimed that sanction and disbursement of the loan is their discretion and they can refuse to disburse the loan without assigning any reason.
3. In order to prove their respective versions, parties led their evidence by way of affidavits and documents.
4. We have heard the arguments addressed by ld. counsel for the parties, gone through file, scanned the documents and other material on record.
5. It is admitted that the complainant under Prime Minister Rojgar Yogna Scheme applied for loan of Rs.2,00,000/- from the Op-Bank. Bank, consequently issued sanctioned order (Ex. CW3) in favour of the complainant, sanctioning loan of Rs.2,00,000/- in his favour subject to completion of bank formalities. Directed G.M. Industrial Centre, Ludhiana to impart necessary training to the complainant, so that loan amount be disbursed. After issuance of the letter Ex.CW3 by the opposite party, complainant underwent industrial training qua which obtained certificate Ex.CW2 from the General manager, Industries General, Ludhiana
6. It is apparent that while sanctioning the loan, pre condition made by the opposite party was to obtain necessary training before enabling the bank to release and disburse sanctioned loan in his favour. This condition was complied by the complainant, when obtained certificate Ex.CW2 after undergoing training programme during the months of March- April,2008 from the Institute for Auto Parts Technology, Ludhiana. Earlier the complainant had complied with requirements of the opposite submitting project repot to them and complainant claimed that had spent Rs.3000/- for obtaining such report. The opposite party in reply has stated that project report submitted by the complainant was of trading of steel and aluminum scrap which was industrial project. It means project report as asked by the opposite party from the complainant, was made available to them.
7. When after meeting requirements of the opposite party sanctioned loan was not disbursed, complainant filed application Ex. CW4 and CW5 to the Hon’ble Prime Minister of India, New Delhi and thereafter issued legal notice Ex.CW1, posted through postal receipt Ex.CW6 to the opposite party but till filing of the complaint loan so sanctioned was never released in his favour.
8. No doubt, it may be discretion of the OP-Bank to release or not release the loan unless and until all their requirements are complied by the loanee. In the instant case, whatever were conditions for sanctioning of the loan, stood fulfilled by the complainant. What other formalities he failed to complete, opposite party has not been able to specify the same. Only for the sake of objections, they have taken such plea without any substance. It appears that officials of the opposite party by their acts and deeds not only frustrated aims, goals and designs of the complainant but also of the Govt. of India to help the Youth of the nation to get self employment by starting work at small scale with the help of bank loans.
9. Hence, we are of the view that opposite party-Bank certainly in this respect would be guilty of not rendering proper services to its own consumer. As they after applying for loan by the complainant, made him to shift his stand by undergoing training and procure project report by spending Rs.3000/- thereon. Consequently, the loan should have been disbursed, but not done so and this act on the part of opposite party-Bank certainly would be deficiency in service. Such deficiency has gone against intention of the Central Govt. to help unemployed Youth of the Nation.