KSHETRIYA GANDHI ASHRAM Vs. PUNJAB NATIONAL BANK & ORS , BRANCH MANAGER; PUNJAB NATIONAL BANK, REGIONAL MANAGER

JUDGEMENT

(1.) The complainant before us is a society registered under the provisions of the Societies Registration Act and is stated to have been recognized by Khadi Gram Udyog, a Government of India Undertaking, for the purpose of spinning and knitting of cotton, cotton products and sale of khadi products, etc.. According to the complainant it implements the schemes of the Government for production and sale of cotton, woolen, silk, khadi clothes and other cottage industry products, with the main objective of giving employment to the backward, poor and rural persons. The complainant is maintaining a current account with the opposite party Punjab National Bank at it Urdu Bazar, Gorakhpur Branch and credit limits to the extent of Rs.1,15,09,000/- were sanctioned to the complainant by the aforesaid branch of the bank.

(2.) Vide circular No.RPCD No.PL.NFS.DC.90/C.464 (A)-Spl.KVIC-87/88 dated March 29, 1988 the Reserve Bank of India instructed all scheduled commercial banks, which would include Punjab National Bank, as under:

(3.) The complaint has been resisted by the bank primarily on the ground that it is barred by limitation and they had charged interest from the complainant in terms of circular dated 21-09-1990, 25-06-1991, 21-09-1991 and 08-10-1991 issued by the Reserve Bank of India.