Have you received notice from the bank without getting any loan from the bank?

My friend applied for bank loan. They gave bunch of papers. He duly filled and submitted to the bank. The bank called him and told that they will give only 60% amount and no rule for granting 100%. my friend refused to receive 60% and got back all his papers given to the bank. Now, he is served with a notice for failure of refund of loan obtained. He rushed to the bank and said that he has not received any amount and got back his papers. We don't know about it, but there is a ledger entry in the bank and you try to remit the dues promptly. He came back with dark face and told me. i gone to bank and said that i am ready to pay the amount, and please see your loan cheque not realised, and tell me date of loan cheque. They searched..searched..and finally no such loan given. If so, why you sent notice to the person for which they pleaded for pardon. Has anyone there in such experience?