R.M.Prasad, J.

1. In first writ petition, petitioner has sought for direction to the State Bank of India to carry out the directions given to it by the Banking Ombudsman in his order dated 30th March, 2002 in a dispute between the petitioner and the bank and second writ petition has been field by the Bank challenging the said order. Vide order dated 7.4.2003 both these writ petitions were directed to be heard together, and, as such, both these writ petitions have been heard together, as prayed by the learned counsel for the parties and are being disposed of by this common order.

2. The petitioner of the first writ petition, which is a partnership firm applied to the respondent-State Bank of India, hereinafter referred to as the Bank, for grant of loan in the year 1995 with the total project cost of Rs. 33.33 lacs for construction of Hotel-cum-Shopping Complex. The proposal for a term loan of Rs. 24 lacs was considered at Zonal Office level and was finally rejected on 25.7.1996. The petitioner resubmitted the proposal with necessary amendments and finally a loan of Rs. 15 lacs was sanctioned vide Zonal office note dated 24.4.1997 On completion of necessary formalities a sum