AHUJA TRADERS Vs. CANARA BANK

JUDGEMENT

(1.) - Briefly, the facts are that the complainant is exporting goods to various countries. Two bills were drawn by them () on M/s. Tiru Garment Industries, Kathmandu; one for Rs.1,78,947/- and the other for Rs.6,24,541.71 on 26th September 1988. The bills were submitted to the (O. P.) for collection around 26.9.88 against the letters of credit opened by Rashtriya Banijya Bank Ltd. Kathmandu, Nepal, (hereinafter referred to as the Nepal Bank) on behalf of the drawees of the bills.

(2.) It is alleged that generally bills are received within 2 weeks or so from the date of submitting them to the O. P. for collection, but the proceeds in the present case were credited to the account of the complainant on 9th December, 1988. They received a letter dated 15th Jan. , 90 from the O. P. informing that the proceeds of the bills had been received by them on 29th March, 1989 whereas the credit for the amount had been given in their account on 9.12.88. Consequently, they were liable to pay interest amounting to Rs.43,587.10 Ps. from 9th December, 88 to 28th March, 89. It is alleged that the O. P. was not entitled to charge any interest from them as the amount had been rightly credited to their account on 9.12.88. Consequently, they have prayed that the O. P. be directed to refund the amount of Rs.43,587.10 Ps. with interest @ 30% p. a, with quarterly rests and pay a sum of Rs.2,50,000/- as damages.

(3.) The complaint has been contested by the O. P. They have controverted the allegations of the complainant and inter alia pleaded that the amount of the bills had been received by them from the City Bank on 29th March '89. The amount of Rs.8,03,488.71 Ps. was credited to the complainant on 9.12.88 on account of temporary advance to tide over their financial difficulties.