STATE CONSUMER DISPUTES REDRESSAL COMMISSION, UTTARAKHAND, DEHRADUN Date of Institution : 18.05.2022 Date of Final Hearing : 20.04.2026 Date of Pronouncement : 27.04.2026 SC/5/A/76/2022 State Bank of India Regd. / Central Office: State Bank Bhawan Corporate Centre, Madame Cama Road, Mumbai 400021 Maharashtra Branch Office: IDO Roorkee, B.T. Ganj, Roorkee 247667 District Haridwar Through its Auth. Representative & Signatory Branch Manager – Mrs. Sunita Thakur W/o Mr. Bir Prakash Jha C/o State Bank of India, IDO Roorkee, B.T. Ganj, Roorkee 247667, Haridwar (Through: Sh. Ashish Chakravarty, Advocate)

….Appellant VERSUS M/s Akanksha Constructions Through its Proprietor Mr. Dharmendra Singh S/o Mr. Ramsharan Singh R/o Double Fatak, Near Samrat Shafakhana, Roorkee, Haridwar (Through: Sh. T.S. Bindra & Ms. Japleen Bindra, Advocates)

…. Respondent Coram:

Ms. Kumkum Rani, President Mr. C.M. Singh, Member

ORDER

(Per: Mr. C.M. Singh, Member):

This appeal has been directed against judgment and order dated

07.04.2022 passed by the learned District Consumer Disputes Redressal Commission, Haridwar in consumer complaint No. 91 of 2021 styled as M/s Akanksha Construction Vs. State Bank of India, wherein and whereby the District Commission has allowed the complaint directing the opposite party – Bank to close the disputed account No. 39603767737 of the complainant and to refund the penalty amount of Rs. 14,194/- recovered from the complainant’s account No. 32972839431; to refund Rs. 16,201.40ps. wrongly deducted towards insurance premium from the account No. 32972839431, total sum of Rs. 30,395.40ps. alongwith interest @ 6% p.a. from the date of filing of complaint case, i.e. 10.03.2021 till its actual payment to the complainant as well as the opposite party shall also pay Rs. 1,00,000/- as special cost and Rs. 10,000/- towards advocate expenses to the complainant within one month from the date of judgment and order.

2. The facts giving rise to the present appeal, in brief, are as such that the complainant established a proprietorship firm namely M/s Akanksha Constructions for his livelihood and in the name of the said firm availed a cash-credit facility (CC account) from the opposite party – Bank. The complainant submits that cash-credit account No. 32972839431 was opened with sanctioned limit of Rs. 7 Lacs on dated 02.05.2013, which was subsequently reduced to Rs. 6,42,000/- on dated 20.01.2020 without any valid or lawful justification. It is further alleged that in April, 2019, the opposite party unilaterally converted the cash credit account into Mudra Loan without prior intimation or consent and recovered an insurance premium deducting an amount of Rs. 8,100.70ps on two occasions from the account of complainant. The cash-credit limit of Rs. 7 Lacs of the complainant was secured by mortgage of property, however, the opposite party – Bank failed to release the mortgage property after converting the said loan account into Mudra Loan. The complainant further contends that the conversion of cash-credit account into Mudra Loan was arbitrary and without consent of the complainant. The complainant also stated that in January, 2020, the opposite party again converted the Mudra Loan back into cash-credit account without information. The complainant also alleged that the opposite party imposed unjustified penalties and opened a separate loan account No. 39603767737 without any application or authorization from the complainant and debited the account with Rs. 24,309/- and charged interest unlawfully. It is further stated that the complainant raised the objections against this irregularities including wrongful penalties and unauthorised account operation. A total penalty of Rs. 28,996/- was imposed out of which Rs. 14,802/- was refunded by the opposite party vide letter dated 19.08.2020 while balance amount of Rs. 14,194/- remained unpaid. According to the complaint, these acts demonstrate arbitrary and deficient conduct on the part of the opposite party ca