C.GOPI CHETTIAR vs FEDERAL BANK LTD.

THIS appeal has been argued before us with conspicuous ability by Mr. S. Prasad, learned Advocate appearing for the Appellant but inspite of his persusive arguments we do not see any flaw in the reasoning and conclusion recorded by the State Commission. The main claim advanced by the Appellant before us as well as before the State Commission was against the Federal Bank Ltd.-1st Respondent. The grievance of the Appellant is that though the Complainant had applied in the year 1987 for financial facilities being granted to him by the Bank for the provision of working capital for his small scale industry which he had started the Bank took an unduly long period of time to take any decision in the matter and ultimately it wrongly denied him such facility as a consequence of which the Appellant-Complainant was rendered incapable of carrying on the industry in question.

THE State Commission has found that there was no deficiency in service on the part of the Bank in declining to sanction the loan advance to the Complainant in as much as the Complainant had failed to provide the guarantee money as well as collateral scurity as had been demanded of him by the Bank and without these being conditions being fulfilled by the Applicant for loan, the Bank which had to act in confirmity with the rules and regulations framed by the Reserve Bank of India could not have made the advanced to the Complainant. We see no illegality in the said reasoning and conclusion of the State Commission. We uphold the finding that there was no deficiency in service on the part of the Bank. Though the Kerala State Financial Corporation was also impleaded as Opposite Party No.2 in the Complainant before the State Commission and also in this Appeal no ground worth mentioning is made out by the Complainant-Appellant as against the said Corporation also.

IN the result the appeal fails and is dismissed but in the circumstances without any order as to costs.