Compensation for loss due to bank fault
sukhbir singh
(Querist) 18 July 2010
This query is : Resolved
I have lost over Rs.3.5 crore due to a fault of my Bank. I want to fight it to the highest court. Will any lawyer take this matter to the logical conclusion of getting my loss recovered due to fault of bank. The advocate would be handsomely rewarded if he is able to get me the justice. Due to fault of Bank, my money was lost, account became NPA, factory closed, lost 18 crore of production, yet the Bank did not hear the plea and continue to harass.
Kiran Kumar
(Expert) 18 July 2010
Can you please mention, what exactly the matter is?
sukhbir singh
(Querist) 18 July 2010
For a long time I have been availing Packing credit, bill discounting facilities from Bank. Bank discounted bills under L/C and the party (buyer's bank) sent discrepancy in documents. Bank did not inform me. I continued to send goods to the party, and the party continued to reject documents as discrepant. Bank continued to discount bills. In this way they discounted ten bills. When statutory auditor came to the Bank to the audit the branch, it came to the notice at that time, that the payment in respect of ten bills amounting to Rs.71 lakhs has not come. They immediately got in touch with me. I stopped further supplies to the party. It was realised that while the party was taking delivery of the goods they were rejecting the documents on one ground or the other and ifnromed my bank. It was a ninety day DA LC so I would not know the fate of receipt of money by my Bank. When I came to know about this I stopped further supplies, in this process I lost the stocks, goods in process, and bank did not bother to follow up the matter with RBI against the Bank but realised money from my FDR, restructuring this amount into long term term loan, etc. putting my cash flow in disorder, thereby resulting into closing of the factory, removal of 150 workers, stoppage of export, loss of image, pf, esi dues and other taxes continue to pile up as I was out of work. Account thus became NPA.
ALL THIS WAS DUE TO THE FACT THAT BANK DID NOT INFORM ME ABOUT DISCREPANCY RECEIVED FROM MY BUYER AND I CONTINUED TO SUPPLY GOODS WITH ABOVE LOSS. My annual turnover at that time was over RS.6 CRORE WHICH CAME OT ZERO THEREAFTER.
Chanchal Nag Chowdhury
(Expert) 18 July 2010
It seems that U have a good case. U should move court without delay before matters get further complicated. Rope in the buyer as well. Good Luck.
Uma parameswaran
(Expert) 18 July 2010
As per my observation bank ,buyer and supplier are equally liable.
Kiran Kumar
(Expert) 24 July 2010
Sukhbir Singh Ji, serve the bank with a legal notice immediately.
factually u have a good case to contest, rest will depend upon the presentation of case.
you have got both civil court remedy consumer court remedy....(now the SC says even a company can be a consumer)
