MOHAMMED ZUBER Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) This complaint has been filed by Mr. Mohammed Zuber, Managing Director of Effective Publications, Indore against State Bank of India, SSI Branch, Indore, Madhya Pradesh alleging deficiency in service.

(2.) Brief facts of the case are : Mr. Mohammad Zuber is the Managing Director of a publication company. In order to increase the business Mr. Zuber had submitted a request for term loan of Rs. 30 lakhs and Rs. 28 lacs for working capital to State Bank of India. The project report along with all the other documents were handed over to the Bank and the complainant was awaiting reply from the Bank approving his loans. In this connection, the complainant was constantly in touch with Shri Majumdar, who is the Manager of the Indore Branch. In order to participate in tenders for supply of election materials during the elections in Madhya Pradesh and Rajasthan and since the complainant's Company had a good experience of screen printing and supplying of election material and since the complainant had good relations with various political parties and leaders he had requested the Bank to accept the project at an early date so that he could participate in the tenders. On 23.9.1998 the complainant submitted a letter to supplier of machines who were ready to supply the same and in anticipation of approval from the Bank for the said loans the complainant had started paying advance Bank drafts to the Machine Supplier M/s. Meera Graphics so that there would not be any further delay.

(3.) It is alleged that on 5.10.1998 Shri Majumdar had informed that the required sanction for the amount that has been asked by the complainant need to go to head office and it would take further 8 to 10 days. It is alleged by the complainant that various queries of correspondence has been exchanged between the complainant and the Bank. The Bank informed the complainant on 3.2.1999 that a proposal was under active consideration. The complainant contended that from 5.10.1998 to 27.4.1999 which is six months the complainant has been visiting Shri Majumdar who was holding the charge of the Chief Manager of the Branch and yet there was no progress on the sanction of the loans. Complainant had written another letter on 1.6.1999 for an early sanction of the loan amount and again on 11.6.1999 he had informed the Bank that he received an order for supply of election material for Parliament election, worth 50 lakhs of rupees and additional orders of Rs. 50 lacs agreed to be given to him and that it would require loan at an early date. It is further alleged that Madhya Pradesh Text Book Corporation, Bhopal had invited tender for four crore text books and that he was not able to participate in the said tender. He further contended that his competitive companies with no facilities of having done such works were also getting orders whereas he who had the necessary experience and space of 6550 sq. ft. for installation of machines and with good contacts with publishers and sellers he was unable to expand his business. Further on 22.9.1999, the Deputy General Manager vide his letter No. CAC/KCH/351 had admitted in that letter that SSI Branch, Indore has delayed for long and expressed his regret and said that the reply to other reasons and queries would be given later. The complainant alleged that he had never received reply as yet. Finally, after such a long anguish waiting the Bank has intimated vide letter SSI/Misc./98/256 dated 3.2.1999 that the Bank's decision will be intimated by the end of February, 1999. After that Bank rejected the proposal without giving any reasons.