National Consumer Disputes Redressal
Lakshmi Ispat Udyog (P) Ltd., Cuttack vs State Bank Of India And Ors. on 11 February, 2002
ORDER
D.P. Wadhwa, J. (President)
1. In this complaint filed under Section 21 of the Consumer Protection Act, 1986, complainant prays for a sum of Rs. 130.50 lakhs from the opposite parties-Bank along with interest @ 18% per annum. First opposite party is the State Bank of India and other two respondents are officers of the Bank. This complaint was instituted as far back as on 18.1.1996 through the Managing Director of the complainant-company. On 15th October, 2001 we directed that evidence in the case shall be led by means of affidavit. Complainant was given six weeks' time to file affidavits. Opposite parties were required to file their affidavits within eight weeks thereafter. Complainant was directed to be listed on 11th February, 2002. On the last date both the parties were represented by their respective counsel. However, complainant did not file affidavits. When the matter taken up today one Mr. Abhist Kumar, Advocate appeared. He was not instructed by the counsel earlier appearing for the complainant. He said that he received a telegram from the complainant stating that he could not walk and prayed for one month's extension to filed evidence by way of affidavit. He said that telegram was received in the (SIC) Mr. P.N. Mishra, Advocate and he was unaware of the facts of the case.
2. There is huge pendency of cases in the National Commission Act (SIC) for a certain set time scheduled for disposal of the cases. It is with great efforts that (SIC) disposing old cases. We cannot give adjournment just as a matter of course. We do not want a Consumer Forum to be converted into a Civil Court. Parties must stick (SIC) time schedule. It is with great difficulty that dates are fixed. We, therefore, (SIC) request to adjourn the matter and proceed to consider the matter.
3. Particulars of the claim amounting to Rs. 1.30 Crores are given in a schedule to the complaint which are as under:
"Schedule of claim.
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Sl. Item of claim Amount No.
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1. Loss of money on account Default of accumulated interest and in overdue of principal cost principal Rs. 16,60,484.00 against loan granted by OSFC. Interest Rs. 33,55,568.70
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Rs. 50,19,052.75 (Defaulted amount as on 30.6.93)
2. Loss of money due to not @ Rs. 12 lakhs availing exemption of sales per year Rs. 18,00,000.00 tax on purchase of raw material and sale of finished goods coupled with exemption of electricity duty from 31.7.92 to 31.3.94 (18 months) as the plane was idle for working capital.
3. (i) Erosion of promoters contribution/equity. Rs. 20,00,000.00
(ii) Loss of margin money given by OSFC & OSIC being totally eroded due to loss. Rs. 10,50,000.00
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Rs. 30,50,000.00 Less stock Rs. 10,50,000.00
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Rs. 20,00,000.00
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(Refer to the item No. 1 of Meeting held on 19.1.94, SBI has mentioned the erosion of promotion equity due to past loss with a TNW on 31.3.98 buy -ve of Rs. 4.26 lakhs.)
4. Loss of goodwill in the market due company's inability to supply M.S. Rods 418 x 2/100 for Rods.
(Cancellation of OSIC order, etc.) 2% of annual sales turnover as on 31.3.93 (Projects). Rs. 8,36,000.00
5. Loss due to payment made/pending of electricity dues of OSEB from the date of power connection. Rs. 11,94,538.75 i.e. 7.5.90 to till date inclusion of minimum charges pending etc.
6. Interest to be paid by SBI @ 205% in the day to day balance of the company in its current A/s at par with interest charges in cash-credit A/c as SBI has delayed sanction/release of CC limits to the company. Lump sum Rs. 5,00,000.00 (Total transmission in the current A/c is Rs. 100 lakhs nearly on 5% has been committed extra.
7. Loss due to idle labour payment and mounting 4-1/2 years establishment costs like telephone, security Rs. 10,000/- staff, salary of staff p.m. (June 89 to 31.3.94.) Rs. 5,40,000.00
8. Loss due to invocation of BGs by OSIC and stoppage of its raw materials assistance to the company as a result of non-disbursement of funds against stocks by SBI (March 93 to March 94) Compound interest, Service charges etc. 30% Rs. 9,00,000 x 30/100 Rs. 2,70,000.00
9. Legal expenses for bank documentation to avail loan, Filing at ROC, Cuttack including trolley expenses.
Lump sum Rs. 20,000.00
10. Damage to the coal fire retracted furnace, electrical and mechanical equipments for intermitted operation for want of finance from SBI.
Lump sum Rs. 2,00,000.00
11. Cumulation expenses in travelling, boarding and loading trunk calls/local calls, correspondence etc. for chasing up SBI authority, of its branch as Rourkela Zonal Office at Sambalpur and LHO and Bhubaneshwar for the last 5 years (April, 89 to April, 94).
Lump sum Rs. 1,80,000.00
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Rs. 125,59,636.50
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Or say Rs. 125.50 lakhs
12. Compensation for harassment and mental agony of the body entrepreneur for running after SBI from 1989-1994. Rs. 5,00,000.00
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Rs. 130.50 lakhs
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4. Opposite parties-Bank had filed its version. It would appear that the assets of the Ashok Ispat (P) Ltd. were transferred to the complainant on purchase by it for Rs. 42 lakhs. It is not disputed that the company itself was merged with the complainant. Complainant asked for loan from the Bank which the Bank declined on 5.2.1994. Discussion between the parties went on and ultimately this complaint was filed. Since the Bank did not sanction any loan, it could not be said that there was any obligation on the part of the Bank to award any amount to the complainant. Complainant under no circumstances could be termed as consumer. We, therefore, dismiss this complaint with costs which we assess at Rs. 5000/-.