DREAM DECOR Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) This complaint has been filed for recovery of a sum of Rs.10.00 lakhs from the opposite parties. That amount consists of Rs 5.00 lakhs towards loss of profit and another sum of Rs.5.00 lakhs towards loss of reputation and future prospects of business and mental torture for the uncertainty caused in the mind of the complainant regarding his future business.

(2.) The claim of the complainant for recovery of compensation of Rs.10.00 lakhs centres round a cheque bearing No.627926 dated 21.8.1995 issued by the complainant to M/s. Vidyut Real Estates Pvt. Ltd. , which on presentation was returned unpaid with the endorsement 'refer to Drawer'. The case of the complainant is that he had cash credit facility with the first opposite party to an extent of Rs.2,00,000/- against hypothecation of stocks and in the course of business he used to buy his requirements from M/s. Vidyut Real Estates Pvt. Ltd. , and accordingly he had issued a cheque for Rs.45,000/-, dated 21.8.1995 favouring M/s. Vidyut Real Estates Pvt. Ltd. and the same has been returned unpaid with the endorsement as 'refer to Drawer'. It has been pleaded, this return of cheque issued by him was unwarranted and was also unprecedented and that the same has resulted in loss of reputation and business to him for a period of four months. The complainant has referred to the exchange of letters between him and the opposite party from 5.9.1995 to 23.11.1995. Therefore he has sought for the recovery of the two sums of Rs.5,00,000/- totalling to Rs.10,00,000/- from the opposite parties.

(3.) The first opposite party has filed his written version in reply to the complaint. That the complainant had cash credit facility to the extent of Rs.2,00,000/- and that he issued a cheque for a sum of Rs.45,000 /- and the same on presentation was not honoured and was returned with an endorsement as 'referred to drawer', are not disputed by the opposite parties. It has further been pleaded that the return of cheque was under bonafide belief that the cheque in question was issued for inter-firm transaction which was not allowed under cash credit accommodation; that the complainant has been put to any kind of financial loss or it is to an extent of Rs.5,00,000/- or that there has been any loss of reputation to him or that it is liable to compensate the complainant to the extent of Rs.5,00,000/- towards loss of reputation, have been denied. It has further been pleaded that there was a meeting between the complainant and the Zonal Manager of the State Bank of India and all the disputes were settled and it was agreed that the first opposite party should give a letter of apology and that has been given and therefore, the whole matter stands settled and there is no scope for the complainant to further resort to any grievance for award of compensation. Therefore, it has been prayed that the complaint be dismissed.