Case nº First Appeal No. 111 of 2006 of National Consumer Disputes Redressal Commission, March 27, 2006 (case Jason Links (India) Pvt. Ltd. Vs State Bank of India and Anr.)
|Judge:||For Appellant: S.P. Mittal, Adv.|
|President:||S.N. Kapoor, J. (Presiding Member) and B.K. Taimni, Member|
|Resolution Date:||March 27, 2006|
S.N. Kapoor, J. (Presiding Member)
This appeal is directed against the order of the State Consumer Disputes Redressal Commission, Delhi in Complaint No. 107 of 1994 dated 8.12.2005.
Brief facts of the case are as under:
The appellant/complanant is NRI who has established his name in executing works on prestigious works in Middle East since 1985, started his projects in India and bagged a number of good contracts from the leading organizations such as IOC, TCIL, HAL, MTNL, Spie Capag, etc. For executing the contracts, the appellant/complainant availed of credit and the State Bank of India facilities in terms of mutual agreements with OP No. 2 w.e.f. 1986. At that time, there was a small credit facility of Rs. 3.00 lakh in the year 1986 which was enhanced by the OP in 1993 to the sum of Rs. 38.00 lakh in view of satisfaction of respondent State Bank of India. The appellant/complainant requested for issuance of earnest money Bank guarantee in favour of MTNL on 5.12.1992 which was not issued by the bank. On 7.1.1993 the OP confirmed continuation of the Credit facilities for a further period of six months as under:
Cash Credit Limit - Rs. 38.00 lakh
2. Bank Guarantee Limit - Rs. 120 lakh
On 17.2.1993 the appellant/complainant requested for extension of bank guarantee No. IG/92/489 for Rs. 22,53,255 in favour of Silver Oak Cooperative Group Housing Society Ltd. for a further period of six months w.e.f. 23.3.1993 to 22.9.1993. At the time of seeking extension of the Bank guarantee facilities availed were only as under:
(i) MTNL Rs. 31,91,615.00
(ii) I.O.C. Rs. 1,95,000.00
(iii) Silver Oak Society Rs. 22.53.255.00
3. The existing Bank guarantee issued in favour of M/s. Silver Oak Cooperative Group Housing Society Ltd. in the sum of Rs. 22,53,255 was to expire on 23.3.1993. But, the OP did not renew the Bank guarantee and inflicted a serious blow to the financial health of the appellant Company as also its liquidity position as the Silver Oak Society withheld the payments due and the amount which would have become due to the appellant Company to the tune of Rs. 1,500 lakh. This wrongful action in not renewing the Bank guarantee gave a big jolt, seriously and severally affecting and damaging the good name, reputation, credit and liquidity of the appellant Company. Hence, the State Bank of India, Barakhamba Road Branch was directly responsible for stopping the immediate flow of money...
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