P.K. Shamsuddin, President - A preliminary objection was raised by the opposite party and he prayed that before taking evidence the preliminary issue may be considered. The case of the complainant is that he approached the second opposite party, the Kerala State Co-operative Bank Limited through Kottayam District Cooperative Bank Ltd. for an Industrial term loan of 7.00 lakhs for a hotel project styled M/s. Vijayam Tourist Complex, Ettumanoor, Kottayam and the second opposite party sanctioned a loan of Rs. 7.00 lakhs through the first opposite party against a total investment of Rs. 13.82 lakhs marking the contribution of the complainants at Rs. 6.82Iakhs. The complainant executed necessary documents. According to the terms of the agreement the loan will be disbursed only in installments in proportion to the actual investment of capital brought in by the promoter namely the complainants at a debt equity ratio 1: 1. The opposite parties were under obligation to release the loan according to the progress in work based on the reports/certificates produced. The complainants after the completion of the work to the tune of Rs. 5.661akhs submitted the request for the release of loan to the tune of Rs. 5. 66 lakhs on 1-10-1989 supported by all required documents. But the opposite parties released only Rs. 2.83 lakhs violating the condition No. 12 of the sanction of the loan this put the complainant to great difficulties and therefore the complainants sent a letter but there was no response from the opposite party. In the circumstances the complainants had to borrow funds from outside at a higher rate. It is in these circumstances the complainant sought a direction to pay an amount of Rs. 1.25 lakhs being the increase in the construction cost suffered by the complainants with 18.5% interest from March, 1991.

2. In para 20 of the version filed by the second opposite party it is contended the matter falls within the purview of Section 69 of the Kerala Co-operative Societies Act and therefore there is a bar in entertaining the complaint by this Commission. Learned counsel for opposite parties invited out attention to Section 69(1)(f). It relates to a dispute between the society and a person other than a member of the society who has been granted a loan by the society or with whom the society has or had business transaction or any other person claiming through such a Consumer Court to entertain the matter which fall within the purview of Section 69 of the Kerala Co-operative Societies Act. The same view has been expressed by the National Commission and other Commissions(See 1993(1) C.P.J. 68\1995(1) C.P.R. 2412, and 1994(2) C.P.R. 5453.)

3. In the circumstances the complaint is not maintainable and accordingly complaint is dismissed. This will not however preclude the complainant from seeking remedy available to him under Section 69 of the Kerala Co-Operative Societies Act. We direct the parties to bear their respective costs.

Complaint dismissed.