LAW FOR ALL

The complaint arises from alleged delay in disbursal and part non-disbursal of a loan of Rs.70 lakhs, sanctioned by the OPs to the Complainant for setting up a marine products processing unit. = the delay in disbursal of the term loan with subsidy as well as part non-release of the same after March 1995, was without any justifiable cause. This failure to provide proper service to their borrower, amounted to ‘deficiency of service’ on the part of the OPs, within the meaning of Section 2(1)(g) of the Consumer Protection Act, 1986. We are therefore of the view that the complainant is entitled to be compensated for the same. = Accordingly, the total compensation payable under all admissible heads is rounded off to Rs.25 lakhs. Cost of Rs one lakh is also awarded in favour of the Complainant. The OP/Tamilnadu Industrial Investment Corporation Limited, is directed to pay this amount of Rs.26 lakhs to the complainant, together with interest at 9% per annum, from the date of the complaint. The entire amount shall be paid within a period of three months, failing which the period of delay shall carry additional interest of 2% per annum.