PUNJAB NATIONAL BANK Vs. PUSHKAR WOOLENS PVT LTD

JUDGEMENT

(1.) The appellant, Punjab National Bank, granted a term loan of Rs. 2,00,000/- and a cash credit limit of Rs. 3,00,000/- to the respondent on the 4th February, 1986 for financing the textile unit to be established by the respondent complainant.

(2.) The Appellant, in pursuance of the loan to be given to the Respondent, issued on 27.2.1986 a Bank Draft for Rs. 2,16,200/- (including the margin money of Rs. 16,200/- deposited by the Respondent) on 3.3.1986 in favour of the manufacturer of dyeing and knitting machinery for supply of the machinery to the Respondent

(3.) However, the said Bank Draft was dishonoured and could not be encashed by the bankers of the supplier of the machinery on the ground that the signatures of the drawing officer of the Bank differed.