Chairman-Cum-M.D,R.F.Corpn.And Anr vs Commander,S.C.Jain(Retd) & Anr

4) Thereafter on 26.07.1990, the respondent again submitted the bills in the name of Kailash Udhyog and not in the name of his own business, i.e., Fauji Kutir Udhyog. The appellant - Corporation was forced to dishonor the bills as the name indicated in them were not as per the requirement and new bills were asked to be submitted. Later, 3 on 04.05.1991 the respondent submitted a bill of Nita Udyogic Vastu Bhandar Private Limited dated 21.08.1989 for a sum of Rs.10,200/- representing the purchase price of drill machine etc., prior to the date of sanction of the loan and its disbursement. Another bill of Rs.17,800/- dated 29.12.1989 which represented saw machines with two HP motors with accessories etc. was also submitted. Due to repeated submission of wrong bills by the respondent, the appellant addressed a letter to the respondent stating that the bills were unacceptable for two reasons, firstly, Nita Udyogic Vastu Bhandar Private Limited is a family concern and the respondent is in gainful employment in the concern. Secondly, Nita Udyogic Vastu Bhandar Private Limited is not an authorized dealer for Wolf make machine or M/s rally India Ltd. The appellant also informed that the machines were old as per the internal checkup done by the appellant - Corporation. The respondent was given another chance as the appellant informed the respondent that though the loan agreement was time barred, his case could be considered favourably only if he submits the bills from authorized dealer or manufacturer. The correct and accurate bills were to be submitted within one month from 31.05.1991. The respondent submitted bills from the authorized dealer 4 of Wolf portable machine, i.e., Heerex Corporation amounting to Rs.19,797.75/- against which a sum of Rs.2000/-, as advance was paid to the respondent. The respondent was, therefore, asked to submit a receipt for Rs.3172.75 denoting his contribution of 25 per cent, in order to avail the sum of Rs.14,625/-. In spite of such a request the respondent never submitted the receipt. The appellant - Corporation sent a cheque of Rs.14,625/- favouring the authorized dealer Heerex Corporation, to Fauji Kutir Udyog along with a request to send the receipt to the Corporation for the amount so paid. An additional request was also made as regards the receipts showing the respondent's share of Rs.3172.75/-. Another correspondence was addressed to the respondent requesting him to fulfill all other terms and conditions of the loan agreement, including a condition to create assets in the ratio of 1:1.10 as stipulated in Clause 5 of the Special Terms and Conditions annexed with the loan agreement. The respondent thereafter made a representation whereby he claimed that the Corporation was under liability to pay a sum of Rs.3,375/- as the balance amount of sanctioned loan by considering his earlier bill of Nita Udyog Vastu Bhandar Private Limited which was rejected by the appellant stating it to be untenable as the Nita Udyog Vastu Bhandar 5 was not an authorized dealer.

9) The respondent being aggrieved by the order of the District forum, preferred appeal before the State Consumer Commission. The 7 State Commission refused to entertain the appeal vide order date 02.09.2004. Thereafter, the review petition filed by the respondent was also rejected by the State Commission vide order dated 09.09.2004.

Corporation to pay compensation of Rs.1,50,000/- with interest at the rate of 12 per cent from the date of filling of complaint. The cost is also awarded to the tune of Rs 10,000/-.