ESSEX HARMS P LTD Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) During the relevant period the Complainant had various accounts in the Hindustan Commercial Bank Ltd. which was merged with Respondent (Punjab National Bank) in December, 1986. Before this merger, Government of India imposed a moratorium over the Hindustan Commercial Bank on the 23rd of May, 1986.

(2.) According to the Complainant, his company suffered due to the freezing of his accounts, as a result of the moratorium declared by the Government of India over the Hindustan Commercial Bank. The Complainant could not fulfill its contractual obligations because of the said freezing of accounts. The grievance of the Petitioner is that when he approached the Punjab National Bank for the continuance of the credit facilities, the Respondent (Bank) insisted that the Complainant should reduce the outstanding balances in his accounts by a sum of Rs. 17 lakhs which was later on raised to Rs. 22 lakhs. The freezing of the accounts resulted in the complainant going to "the verge of irrecoverable disability" which was further aggravated by the condition imposed by the Punjab National Bank that the outstanding balance in cash credit accounts be reduced substantially.

(3.) Even though the Complainant faced great difficulty in depositing Rs. 22 lakhs to reduce his outstandings, the Respondent Bank did not permit them to operate their accounts and "availment of the running facilities" (see Paras 16 to 19 of the complaint).