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Non-Release of balance loan is not a deficiency of Service on the part of bank/corporation

Raj Kumar Makkad ,
  26 July 2010       Share Bookmark

Court :
Supreme Court of India
Brief :
Deficiency in service - Section 2(g) of the Consumer Protection Act, 1986 - Disbursement of loan amount - Examination of administrative decision of the Corporation to recall the loan in view of the past conduct of the complainant - Whether the Commission was correct in holding that there has been deficiency in service provided by the Corporation to the complainant on account of their failure to release the balance loan amount
Citation :
Managing Director, Maharashtra State Financial Corporation and Ors. v. Sanjay Shankarsa Mamarde (decided on 09.07.2010) MANU/SC/0463/2010

There was no shortcoming or inadequacy in the service on the part of the Corporation in performing its duty or discharging its obligations under the loan agreement. The Corporation was constrained not to release the balance instalments and recall the loan on account of stated defaults on the part of the complainant himself. Non-release of loan amount was not because of any deficiency on the part of the Corporation but due to complainant's conduct and therefore, the failure of the Corporation to render 'service' could not be held to give rise to claim for recovery of any amount under the Act. Appeal accordingly allowed.

 

 
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Published in Civil Law
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