PUREWAL AND ASSOCIATES Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) This special leave petition is directed against the order dated 1st November, 1991 in Civil Review No. 12/1991 (in Writ Petition No. 447/1991) by which the earlier order of the 13th August, 1991 disposing of the writ petition on consent terms was recalled and the writ petition restored. The order dated 13th August, 1991 disposing of the writ petition proceeded on the concession made on behalf of the respondent-Bank to the following effect :

(2.) We have heard learned counsel on both sides. Special leave granted.

(3.) We may briefly refer to the controversy in the writ petition before the High Court. The appellants, who manufacture watches and clocks are aggrieved by the denial of banking services to them by the respondent Bank. The denial was on the ground that the appellants who allegedly owe large sums of money to the Bank, have failed and neglected to repay the same. The appellants allege that the monopolist Nationalised Banking Sector has virtually made it impossible for the appellants to avail themselves of the normal banking services and operations such as furnishment of letters of credit for import purposes, payment of statutory outgoings, taxes, wages and salaries, payment to suppliers of raw-materials etc. This refusal of the services is sought to be denied on the authority of certain Reserve Bank instructions and inter-Bank arrangements.