STATE BANK OF INDIA Vs. TARACHANE AGRAWAL
LAWS(JHRCDRC)-2012-9-1
JHARKHAND STATE CONSUMER DISPUTE REDRESSAL COMMISSION
Decided on September 04,2012

STATE BANK OF INDIA Appellant
VERSUS
Tarachane Agrawal Respondents

JUDGEMENT

- (1.) THIS appeal by SBI, Chandwa has been filed against order dated 5.12,2009 by which in Complaint Case No. 07/2006, it has been directed to pay Rs. 50,000 with interest @ 8% p.a. to the complainant from 13.9.2006.
(2.) ADMITTEDLY Shri Tarachand Agrawal proprietor M/s. Hindustan Cycle and Electronics was. enjoying cash credit facility from the appellant branch of SBI as per banking rules from 2000. As per complainant the stocks of the shop were agreed to be insured by the bank itself. Further stated on 28.2.2006 theft occurred in his shop vide Chandwa P.S. case No. 24/2006 regarding which bank was also intimated.
(3.) WHEN the complainant tried to get the policy of insurance from the bank, his account was freezed from 3.3.2006. Further stated two of cheques were dishonoured on 3.3.2006 and 6.3.2006 on grounds of default by him. Then the bank illegally started to demand settlement of the said account also. Ultimately the complainant lodged a claim of Rs. 11,28,500 on account of the deficiency in service, etc. The appellant appeared on notice to deny any deficiency on it part and further to assert that the cash credit facility as per rules did not envisages insurance premiums to be paid by the bank. It was stated that as the borrower, the complainant was to get the stocks insured, verified on monthly basis to avail the overdrawing facility. In this reply it was specifically stated that the complainant violated the rules and he has no valid stocks on 3.3.2006 and 6.3.2006 to cover the cheques which were rightly returned with objections to the complainant. It also asserted that the alleged story of theft was found Not True by the police. Therefore the complaint be dismissed with cost.;


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