UTTAM BANERJEE vs GENERAL MANAGER, S.B.I

THE case of the complainant is that he applied for Motor Vehicle loan with the opposite parties and made deposts certain amounts in S.B. A/c No.C/194 with the opposite party No.2 and T.D.R. a/c etc. to secure loan to be granted by the opposite parties but inspite of compliance of all finalities and repeated assurances given by the opposite parties to grant loan in favour of the petitioner ultimately he came to know on 2.7.92 that the opposite parties are not in a position to sanction loan in favour of the complainant. Hence this complaint praying for direction upon for grant of loan and compensation for harassment and mental agony.

THE opposite party No.3 has filed a separate written statement and opposite party No.l and 2 have filed joint written statement. In the written statement filed by the opposite party No.3 it has been pointed out many drawbacks in the loan application filed by the complainant with the opposite parties for grant of loan for purchase of motor vehicle Tata 407but the opposite party Nos.1 & 2 have denied outright the existence of loan application for motor vehicle or any proposal submitted in this regard. THE opposite parties have also denied all material allegations contained in the petition of complaint. THE opposite party Nos. 1 & 2 challenged the maintainability of the petition of complaint as the complainant is not a consumer within the meaning of C.R.Act 1986 and contended that there is no allegation about deficiency in service and sought for dismissal of the complaint petition. JUDGMENT 3.Upon perusal of the petition and the materials on record, it appears to us the complainant filed the loan application for grant of loan for purchase of a motor vehicle Tata 407 for which the letter dt. 10.12.91 to issue of a temporary permit for motor vehicle was sent by the Transport Authority in this regard and also the letter dt. 17.6.91 addressed to the opposite parties was sent by M/s. Calcutta Auto Body Builders on behalf of the complainant. THE said documents along with the letter of guarantee and subsequent withdraw of the guarantorship by one Purna Chandra Banerjee annexed with written statement of the opposite party No. 3 go to show that the loan application was definitely filed by the complainant and the same was duly processed but ultimately the opposite parties declined to grant loan to the complainant for purchase of motor vehicle. So the outright denial by the opposite party Nos. 1 & 2 about non-existence of loan application and proposal of the complainant is false statement made on the part of the opposite party Nos.1 & 2. 4. However, as per settled law pronounced in different reported decisions of the National Commission it is observed that it is for the financial institution to decide whether to provide loan to any incumbent after taking in consideration all factors, viability and probability of realisation etc. and non-sanction of loan by the bank of financial institution is not deficiency in service. So it is clear from the said views that the Bank-opposite parties have discretionary power to grant loan to the borrower. 5.Relying on the case of Rabindra Kumar Das v. Managing Director, Orissa State Financial Corporation Ltd. we also direct the opposite party Nos. 1 & 2 that they shall give an interview to the complainant, hear his grievances and if there would be any ways and means to assist the complainant within norms of financial assistance fixed by the Bank in order to encourage an unemployed youth and they must strive to help the complainant in this regard, hi case the opposite party Nos. 1 & 2 are unable to assist the complainant in financial matter for purchase of motor vehicle for his subsistence they must indicate the reasons therefore so that the complainant can approach to appropriate Forum for redressal of his grievances. 6.THE said direction be complied by the opposite party Nos. 1 & 2 within 15 days from the date of communication of this order. 7. With the aforesaid direction the complaint petition is disposed of. THEre shall be no order as to costs. Complaint disposed of.