NARAYANA TRADERS Vs. DHANALAXMI BANK

JUDGEMENT

(1.) In CC No.1389 of 2015, the complainant, which is a company incorporated under the provisions of Companies Act and is engaged in business of jewellery, besides construction of shopping malls/residential houses, etc. was sanctioned a term loam of Rs.29 crore by the opposite party State Bank of India. The loan had been sanctioned for construction of shopping malls. The complainant sought enhancement of the aforesaid loan by Rs.11 crore. Since the opposite party failed to sanction further loan, the complainant got a term loan of Rs.40 crore sanctioned from another bank. The complainant on receipt of the Statement of Account found that the Bank had debited a sum of Rs.54 lakhs in its account as penal interest and Rs.9,79,414/- as discharge interest. The complainant is aggrieved from the aforesaid debits in its account and, therefore, has filed this complaint seeking payment of the aforesaid amounts along with interest and compensation.

(2.) In CC No.139 of 2015, the complainant, a partnership firm of three persons engaged in the business of trading of chillies was granted credit facility by the Karur Vysya Bank. The complainant required additional finance for expansion of its business but the said Bank did not enhance the loan limit. The Branch Manager filed a complaint against the complainant under section 420 of IPC on 26.2.2013. The operation of the bank account was stopped by the said bank on 28.2.2013. This is also the case of the complainant that the loan account was classified as "Non-Performing Asset" (NPA) by the Bank and the proceedings under the SARFAESI Act were initiated against it. The provisions of the aforesaid Act, according to the complainant, were not followed by the Bank. Alleging deficiency in service on the part of the Bank in rendering services to it, the complainant is before this Commission seeking compensation quantified at Rs.5 crore with interest.

(3.) In CC No.140 of 2015, the complainant who is in business of trading of red chillies as proprietor of M/s Yamini Exports and a partner of Sri Narayana Traders (complainant in CC No.139 of 2015) was grated credit facility by Dhanalaxmi Bank. Credit facilities to the extent of Rs.1 crore were sanctioned to the complainant by the aforesaid Bank. In this case also, the Branch Manager filed a complaint against the complainant under section 420 of IPC and after classifying the account as "Non-Performing Asset" (NPA), proceedings under the SARFAESI Act were initiated. The complainant in this case is seeking compensation quantified at Rs.5 crore from the Bank along with interest.