Consumer cases
A.V.S.Subramanyam
(Querist) 07 November 2009
This query is : Resolved
A Bank sanctioned a loan to a multinational company. However the loan was not released as certain sanction terms were not complied with by the Company. The company is doing business for commercial purpose.
In such event whether a consumer complaint be maintained against the Bank by the Company. Pls furnish any decisions that the company cannot maintain a compalaint.
adv. rajeev ( rajoo )
(Expert) 07 November 2009
Consumer complaint cannot be filed by the co., it does not come under the defination of consumer.
U have told that co., is doing business for commercial purpose, when it is commericial purpose then co., cannot become the consumer. Moreover sanctioning of loan is the discretionay power of the bank.
And co., has not complied the terms and conditions of the bank.
adv. rajeev ( rajoo )
(Expert) 07 November 2009
Consmer SEc 2 of CP Act.Aonsumer means any person who-
(i) buys any good for a consideration which has been apir or promised or partly paid and partly romised, or under any system of deferred payment and inlcudes any user of such goods other than the person who buiys such goods for consideration paid or promised, or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any COMMERCIAL PURPOSE;or
(ii) hires or avails of ny services for a consideration which has been paid or promised or partly paid and partly promised, or under any service or deferred payment and includes any beneficiary of such services other than the person who hires or avails fo the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first/mentioned person but does not include a person who avails fo such services for any commercial purpose.
Ur question is related to sanctioning of loan, which does not come under the consumer prot., act.
Hope defination above given clarifies your doubt.
Raj Kumar Makkad
(Expert) 07 November 2009
Had the company not engaged in the commercial/business activities even then no consumer complaint lies against bank for non-sanctioning of loan. It is purely the discretion of the bank to release a loan or not within its rules and terms and conditions. If any term is not obeyed by the applicant for loan, bank is within its right to reject his application.
PALNITKAR V.V.
(Expert) 07 November 2009
Since your company did not comply with the terms and conditions, how can it be said that there was deficiency in service even it is assumed for a moment that a company can be called as a consumer.
Y V Vishweshwar Rao
(Expert) 08 November 2009
I agree with Mr Raj K Makkad & Mr Palnitker
It is the discretion of the Bank to sanction or not to sanction loan, on its own assessment on the person / borrower ! No compulsion to give any loan ! No consumer dispute !
