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Mere assurance of loan by Manager is not a ground to challenge actual loan sanctioned

In Nisar Ahmed v. Branch Manager, State Bank of India, the appellant applied to the respondent bank for a loan of Rs 9,00,000, but only a loan of Rs. 5,25,000 was sanctioned. The appellant produced as evidence a letter signed by the Respondent-Branch Manager wherein the respondent expressed inability to sanction a loan of Rs. 9,00,000 at the moment due to unavailability of subsidy. The respondent assured to sanction a sum of Rs.5,00,00 and the balance amount after the subsidy amount was received.

The respondent produced the letter of arrangement, entered into4 days after the assurance received by the appellant, which clearly showed that the sanctioned amount was only Rs. 5,25,000, of which Rs. 1,94, 750 was as premium loan, Rs. 3,04,000 as working capital and Rs. 26,250 to be arranged by the appellant himself.

NCDRC decided that only sanction letter was the proper document for sanction of loan and only the amount mentioned in the sanction letter can be said to be a loan amount sanctioned by the bank and a mere assurance by the bank manager that a greater sum shall be sanctioned cannot be treated as a binding condition on the actual sanction of the loan.

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