CHAIRMAN-CUM-M.D,R.F.CORPN. vs COMMANDER,S.C.JAIN(RETD)

The Supreme Court upheld the order of the National Consumer Disputes Redressal Commission directing the Rajasthan Financial Corporation to pay Rs. 1,50,000 as compensation to the respondent for failure to disburse the sanctioned loan amount. The Court emphasized that the Corporation's refusal to honor the loan agreement based on incorrect billing was unjustified, as the respondent had complied with the necessary documentation requirements. The Court affirmed the principle that financial institutions must act in good faith and adhere to their contractual obligations under the Consumer Protection Act, 1986.