IMPORTANT POINT
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 service.

ORDER

Dr. Inder Jit Singh, Presiding Member—The present Consumer Complaint (CC) has been filed by the Complainant against Opposite Parties (OPs) as detailed above, inter alia praying for directions to the OPs:—

(i) To withdraw the notice dated 16/06/2016 issued under SERFAESI Act immediately and proceed to claim under CGTMSE Claim/insurance;

(ii) To regularize the CIBIL account of the complainant;

(iii) To pay to the complainant a sum of Rs.1,73,26,111/- invested by complainant towards the establishment of the industry;

(iv) To refund the Fixed/co I lateral deposit of Rs.40,00,000/-;

(v) To refund a sum of Rs.8,96,000/- the amount released towards the sale of the Gold deposited by the complainant or to order for return of 432 grams of gold to the complainant;

(vi) To pay the production profit loss of Rs.50,59,360/- per month from July 2014 i.e., the date of starting operation of complainant’s industry till the date of realization;

(vii) To pay the DIG subsidy of Rs.20,00,000/- supposed to be received by the complainant if the industry was running as per letter dated 22.01.2012;

(viii) To pay 36% subsidy amount supposed to be granted by NABARD on Rs.1,73,26,111/-invested by complainant;

(ix) To refund a sum of Rs.3,22,600/- amount deposited by the Complainant towards the CGTMSE fee;

(x) To pay liquidated damages of Rs.25,00,000/- for the loss incurred because of the negligence on the part of OPs.

(xi) To pay interest @24% per annum on all the above said claim amounts, within thirty days from the day of receipt of notice, till the date of realisation.

2. Notice was issued to the OPs. Parties filed Written Statement/Reply, Rejoinder, Evidence by way of an Affidavit and Written Arguments/Synopsis etc. as per details given in the Table below. OP-3 has filed its written version and written synopsis. OP-3 was deleted from the memo of party vide order dated 14.08.2023.

3. It is averred/stated in the Complaint that:—

(i) The Complainant intended to set up Small Scale Agriculturalbased industrial unit which was coveredunder the Credit

(ii) Guarantee Fund Scheme for Micro and Small Enterprises(CGTMSE) in which complainant deposited fixed deposit of Rs.40,00,000/- on 29.03.2013 with the OP-1 for getting his loan sanctioned.

(iii) OP-1 sanctioned loan of Rs.20,00,000/- towards working capital and also a term loan of Rs.70,00,000/- towards purchase of plant & machinery for running the above mentioned small scale industry.

(iv) As per point No.7 of the Annexure annexed with sanction letter all securities charged to the Bank were to be comprehensively insured against all risks for the full value by the bank at the firms cost, the said point is reproduced below:—

‘7. All securities charged to the bank shall be comprehensively insured against all risks for the full value at the firm’s cost and the policy shall remain in the joint names of the Company and bank with bar clause duly incorporated under this”

(v) On 30th and 31st of May, 2014, the industry was strongly hit by heavy rainfall and storm, water slashed into the unit and went inside the newly bought unused machines and got destroyed.

(vi) On 03.06.2014, Complainant informed to the Deputy Commissioner and the Tehsildar about the loss caused to hi