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A. P. SAHI
Matrix. Through its Proprietor, Mr. Rajiv Sawhney – Appellant
Versus
Axis Bank Through Its Manager – Respondent
ORDER
A.P. Sahi, President.—This complaint has been framed alleging deficiency on the part of the Respondent Bank that has reduced the Credit Limit extended to the Complainant from Rs.2,30,00,000/- to Rs.1,50,00,000/- way back in the year 2014. The contention is that the Complainant could not carry out effective marketing of his Merchandise resulting in huge losses. On account of the acts and omissions of the Bank even thereafter as explained below, the trading of the Complainant was effected on account of Unfair Trade Practices adopted by the Bank. It is stated that there was no default on the part of the Complainant in complying with its obligations of timely payment of interest and other charges of the Bank of the loan account till 2020. Towards the end of February, 2020, the Complainant received an urgent Order for supply of 20,000 table mats and in order to cope up with immediate financial requirements the Complainant requested for a temporary overdraft of Rs. 30,00,000/- against which the Bank sanctioned only a sum of Rs. 17,00,000/- as a temporary overdraft facility to be repaid within 30 days on an interest @ 10%. The Complainant after procurement of the material was in the
Bank extending financial facility for commercial venture & business to business transaction with profit generation as dominant purpose – Consumer Forum is not available to Complainant.
Legal Title - The legal title of the complainant does stand compromised on account of the loss of the original documents by opposite party 1.
Consumer – Borrower of a project loan does not fall within definition of ‘Consumer’ under provisions of Consumer Protection Act, 1986.
(1) Consumer Complaint – Maintainability – What needs to be seen is dominant intention or dominant purpose of transaction – Status of purchaser or recipient of goods or services, whether it is an ind....
Term Loan – Action of bank in not obtaining insurance policy for insuring building/machinery/stocks of Complainant on or immediately after sanction/disbursement of loan, amounts to deficiency in serv....
Commercial transactions do not qualify for consumer protection under the Consumer Protection Act, 1986.
A partnership firm qualifies as a consumer under the Consumer Protection Act, 1986, establishing rights to seek redress for deficiency in service.
Bank's discretion in fixing and revising credit limits based on customer's performance and financial parameters.
When a person avails a service for a commercial purpose, to come within meaning of ‘consumer’ as defined in C.P. Act, he will have to establish that services were availed exclusively for the purposes....
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