National Small Industries Corporation Ltd. vs M.ADIKANDA

THIS is an appeal challenging the impugned order of the District Forum, Berhampur directing the present appellant the National Small Insustries Corporation Ltd. to pay a sum of Rs. 2,767/- to the complainant with interest @ 12% per annum from the date 28.8.1992 till the date of payment within one month of receipt of the order. Short matter that arose is, the complainant approached the Corporation for availing a term loan for a stone crusher machine worth Rs. 2,00,000/- under the hire purchase scheme through the said Corporation. THIS needed the deposit of a margin money of Rs. 88,100/- which admittedly the complainant deposited for the purpose of loan. While it is the case of the complainant that although he deposited this margin money as well as observed all formalities with regard the documentation etc. the Corporation did not act according to the rules for procuring the machinery, it is the case of the Corporation that in fact it was the complainant who did not co-operate in the matter. Inspite of several letters addressed to him to comply with the requirement for documentation when the complainant did not respond, finally the earnest money deposited by him was returned to the complainant after deducting 1% of that amount which the Corporation was entitled to retain towards process fees as per decision of the Board, when the loan was not availed.

WE have heard the learned Counsel for the Corporation. None present for the complainant-respondent. Our attention is drawn to Annexure-10 dated 1.5.1992 i.e. a letter of the complainant under his own signature requesting to refund the margin money. It is the case of the opposite party that on the basis of that letter since the complainant did not want to avail the term loan the margin money was refunded only after deducting the said amount provided under Clause (b)(1) of the decision of the Board which reads that in case the provisional order was not placed, 1% of value of machine which is the E.M. paid should be deducted. WE have perused the decision of the Board and we find that the Corporation has rightly deducted 1% as indicated above. WE find that the order of the District Forum is erroneous since this point has not been considered by the District Forum in the body of the judgment. Hence, we allow this appeal but without any cost. The impugned order is hereby set aside. Appeal allowed.