First Appeal No. A/60/2008, (Arisen out of Order Dated 27/04/2006 in Case No. CC/5/2005 of District Rohtas). Case: Bihar State Financial Corporation Vs M/S Jai Bajrang Agro Implement Industries.

Case NumberFirst Appeal No. A/60/2008, (Arisen out of Order Dated 27/04/2006 in Case No. CC/5/2005 of District Rohtas)
JudgesMr. Subhash Chandra Jha, President and Mrs. Renu Sinha, Member
IssueConsumer Law
Judgement DateMay 27, 2011


S.C. Jha, President

  1. The instant appeal has been filed by the Bihar State Financial Corporation and its officials, which is directed against the order dated 27-04-2006 passed in Consumer Complaint No. 5/2005 by the learned District Consumer Disputes Redressal Forum, Rohtas at Sasaram (hereinafter to be referred to as District Forum) whereby and whereunder the complainant of the complainant-respondent have been allowed exparte and O.Ps. of the said complaint, who are appellants here, were directed to disburse the remaining sanctioned amount of loan too the tune of Rs. 2,55,000/- in favour of the complainant-respondent with 2% remission in the rate of interest till the same is liquidated with a further direction for payment of Rs. five lacs by way of compensation within a period of two months from the date of passing of the order, failing which to pay the amount along with interest @ 18% per annum till the date of actual of payment.

  2. We have heard the learned counsel of both sides and also gone through their pleadings, documents and materials on the record, which have been made available here. The respondent-complainant filed complaint case before the District Forum wherein it was stated that they had applied for grant of loan of Rs. five lacs before the Bihar State Financial Corporation, appellant here (hereinafter to be referred to as Corporation), who in turn sanctioned a loan of Rs. 4,58,000/- out of which Rs. 2,03,000/- lacs was released in between 25-09-90 and 06-03-1992 wherefrom the complainant constructed a workshop of the industry and all such money so received were spent, thereafter the complainant were in need of money for purchasing tools and machinery for which the Corporation was approached for disbursement of remaining sanctioned amount of Rs. 2,55,000/-, which was not provided, so the complainant could not purchase the tools and machinery for running their industry, M/S M/S Jai Bajrang Agro Implement Industries and all the investments made in the construction of workshop went in vain and as such, the complainant sustained a loss of Rs. seven lacs on account of non-disbursing of the sanctioned remaining amount, hence the complaint was filed for physical, mental harassment and financial loss besides the cost of suit.

  3. The O.P.-appellant appeared and repudiated the claim orally and filed petition seeking time to file written statement but the date was not communicated to the Advocate Clerk of the Advocate of the...

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