RAVINDRA KR.DAS vs MANAGING DIRECTOR, O.S.F.C.

GRIEVANCE of complainant is that there is deficiency in financing service.

CASE of complainant is that he made an application for loan from opposite party to establish a Spun pipe factory. Loan was sanctioned. However, on account of delay in releasing loan in time, factory could not function. Officers also did not co-operate with him properly to render required assistance. When grievance was made before the State Commission earlier direction was given that the Managing Director shall hear the complaint after he files a representation. Managing Director has heard the complainant and complainant has been intimated that the Unit sought to be established is no more viable. Grievance of complainant is that due consideration has not been made by the Managing Director. Challenging the ground the project is not viable, it is stated before us that a Unit has been sanctioned at Hinjilikata recently when complainant is struggling to complete his Unit. Spun pipes are also being imported form the State of Andhra Pradesh and Madhya Pradesh which itself would lead to conclusion that there is good marketing facility for complainant. Besides, the requirement is calculated at the rate available in 1986 although the Unit is to be completed in May, 1992. Non-consideration of questions material for grant of loan is said to be deficiency in service. Learned Counsel for opposite party submitted that complainant has already been liable for about Rs. 5,23,000/-. Further loan cannot be granted since scope of realisation is less.

After hearing the complainant personally and learned Counsel for opposite party, we are satisfied that grievance of complainant has not been considered properly by the opposite party. Rightly or wrongly complainant has not been able to establish his Unit in time to have his products. However, heavy investment has been made. To withdraw assistance at this stage would have the inevitable, result of complete ruine of the complainant.

IN this circumstance, when complainant makes his grievance that new Units are intended to be established and his requirement of Spun pipe is met by import, we feel that his case should be taken into consideration sympathetically. Accordingly we direct opposite party to find out the amount that would be necessary for bringing the Unit fit for commercial production, taking note of the rate of 1992. Complainant would be called upon to furnish adequate security for the extra loan to be granted by taking into consideration the present value of the property which have been given as security earlier. Documents shall be executed afresh in that regard under the prevailing policy. As regards grievance of complainant that products are being imported from outside the State and a new Unit is also being established, the same should also be noted. The entire exercise should be completed by the end of July, 1992. In the result, complaint is disposed of with the aforesaid directions. Complaint disposed of.