How to claim compensation from bank against deficiency in service
We are a partnership firm (roller flour mill) engaged in manufacturing atta ,suji, maida. we were having a term loan and working capital facility with state bank of India and were a running unit. Then we participated in a competitive tender for supply of atta with civil supply corporation of the state (govt.) and bagged the order for the job work .
with this order we negotiated with SBI for reducing the interest rate charged and also for additional enhancement of capacity of mill and accordingly required working capital. Sbi response was slow meanwhile Bank of Baroda approached us and agreed to give loan at a competitive rate. Accordingly dues with State bank was closed (Rs. 43.15 lacs) and loan was taken over by Bank of Baroda(BOB) . We submitted the project report as per the norms of bank's procedure. As per application we requested for additional facility of 30 lacs as term loan and 24 lac as working capital. We were allowed to open loan account for term loan and sanctioned a limit of total 73 lacs with 84 installments (7yrs) of Rs.72000/-. As per the submitted and approved project report we erected additional machinery and expanded the storage space. The loan was disbursed as the progress of the project and trial run was completed with in the moratorium period given by the bank.
But when approached for release of working capital the bank did not even allowed to open the working capital account and sanction the limit to it. our work stopped . we lost our order with govt.,
lost our earnest money deposited with govt. , also black listed. We also lost our civil market orders and our brand had a sudden death. Till date the bank have not given any reason for not sanctioning the working capital limit as per the project report.
The account turned NPA and almost after 2 yrs the bank took over the unit as per their act and subsequently auctioned Meanwhile after taking over the unit bank approached DRT court and moved against firm saying that in future while auctioning they will not fetch the required value , so have requested for attachment of personal properties and family properties of the partners, and court allowed it
Now the matter has been taken up in DRT court and we have evidence to prove it a breach of contract. Now how can we get compensation which is few crores other than civil court due to court fee. Can we approach National consumer forum or is there any other authority as we are bankrupt.
Asked 6 years ago in Civil Law