NARAIN STEEL TRADERS Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) The failure of the agency arrangement between the Bank of Rajasthan Ltd. , and Central Bank of India and FORTIORARI, the delayed payments of the bank demand drafts of various amounts at different times issued by the Bank of Rajasthan Ltd. drawn on Central Bank of India, in short, is the subject-matter of the present complaint.

(2.) The complainant-concern has filed the present complaint u/sec.17 (a) (i) of the Consumer Protection Act, 1986 (briefly 'the COPRA') before this Commission, alleging that it supplies steel to different firms all over the country. Often the payments for the goods supplied by it are made through demand drafts. One party in Rajasthan sent a demand draft of Rs.17,362/- to the complainant-concern, issued by respondent-1, The Bank of Rajasthan Ltd. , Branch Office, Jodhpur and drawn on Central Bank of India, Branch Office, Mandi Gobindgarh, respondent-1. The complainant deposited the said demand draft with Punjab and Sind Bank, Kura Majra. It was returned by Central Bank of India, Mandi Gobindgarh, vide Annexure P3 dated 6-3-1991 with the remarks "exceed Arrangements". Hence, the said demand draft was bounced. Similar are the allegations regarding the bouncing of other demand drafts of various amounts of different dates issued by respondent-3 Bank drawn on respondent-1 Bank.

(3.) On notice, being issued, the opposite-parties have filed separate written statements containing their respective versions. In the written statement filed on behalf of respondent- 1 Bank, it was admitted that demand draft of Rs.17,362/- issued by the Bank of Rajasthan Ltd. , was returned unpaid vide memo dated 6-3-91 due to oversight by the dealing official. Regarding the other demand drafts, it has been alleged that on the date on which they were presented for encashment, the corresponding value of the drafts had not been received by respondent-1 Bank and the draft issued exceeded the overdraft limit, sanctioned by it for respondents-2 and 3 Bank and they were paid immediately on receipt of the amount from respondent-1.