K.S. Gupta, Presiding Member—Complaint was filed, inter-alia, alleging that the complainant had established 160 bed hospital and for meeting construction expenses and for equipping the hospital it had taken loan from Industrial Development Bank of India, Industrial Finance Corporation of India and Industrial Credit and Investment Corporation of India at high risk interest rates. To liquidate the liability of the accumulated interest and loan amount, the complainant decided to raise money from other resources. Opposite party offered his services representing that he had links with overseas banks and financiers who could finance the money to the complainant. A Memorandum of Understanding was executed between the parties on 5.12.1997. Under this MoU upfront fee @ 2% on the loan to be secured of US 5 million dollars was to be paid by the complainant in advance to the opposite party. Complainant paid amounts of Rs. 39,00,000 by means of demand draft bearing No.924893 dated 5.12.1997 and Rs.11,70,000 by means of demand draft No.924894 dated 5.12.1997 to the opposite party. Another sum of Rs.81,396 was paid by a cheque bearing No.909228 dated 25.11.1997towards registration and processing fee. It was further alleged that the complainant Co was advised by the opposite party to float a Company called M/s. Gold Earth Fund Limited and register it under the laws of British Virgin Islands. All these years the opposite party was unable to arrange the assured loan of US 5 million dollars to the complainant. He was thus deficient in service. Ultimately, on 12.11.1999, the complainant sent a notice calling upon the opposite party to refund the amount of Rs.51,51,396. Though this notice was served on the opposite party but he failed to comply with the demand made therein. Complainant is a consumer. It was prayed that opposite party be -directed to pay amount of Rs.51,51,396 together with amount of Rs.76,24,066 towards interest @ 24% p.a. as also future interest and compensation of Rs.5,00,000 to the complainant.

2. Opposite party contested the complainant by filing written version. It was alleged that the opposite party renders the services as detailed in para No.3 of the complainant. Complainant after satisfying that the opposite party was fully capable of rendering such services entered into MoU with the opposite party for arranging loan of US 5 million dollars at preferential/lower rate of interest than that prevailing at that time. Complainant wished to borrow the loan through M/s. Horizon International Group S.A. based in the Republic of Seychelles, sole Director whereof was Yeluri Venkat Sai Vinod, auditor of the complainant. While the matter was under process, the complainant proposed to form a foreign Company in Singapore at its own and increased the loan amount to US 8 million dollars of which US 3 million dollars was proposed to be retained abroad. It was stated that the incorporation of foreign Co. by the name of M/s Gold Earth Fund Ltd. took considerable time. Opposite party made offer on 14.3.1998 of the increased loan amount of US 8 Million dollars and the complainant accepted that offer after a long period on 18.5.1998. It was denied that the opposite party gave any advise to the complainant regarding incorporation of the said Company to avail the loan amount. It was pleaded that the complainant made an application to avail of the said financial assistance through the above foreign Company and an 30.7.1998 RBI asked the complainant to provide a Dun and Bradsheet Credit report on the credentials of M/s Gold Earth Fund Ltd. but the complainant was unable to do so. On 1.8.1998 M/s Gold Earth Fund Ltd. confirmed to the opposite party’s principal abroad that it had received acceptance from the complainant and offer made on 14.3.1998 was accepted. Complainant was still not able to get the required clearance from RBI. Opposite party could not proceed further in the matter without RBI clearance as it would have attracted the violatio