INTERTEC COMMUNICATION LTD Vs. HDFC BANK LTD

JUDGEMENT

(1.) M/s. Intertec Communications limited, the Complainant's company transacts the business of development of software tools. It intended to raise moneys through public issues through equity shares during March, 2000. The HDFC Bank Ltd. ( the then Bank of Punjab Limited)- the Opposite Party, through its Vice President - Sh. H.V. Sharma, visited the consultants of the Complainant, M/s. Karvy Consultants, along with a representative of M/s. Enam Securities and requested for its representation in the proposed Public Issue. The OP also intimated the complainant vide its letter dated 03.03.2000 that they obtained the licence from the Securities and exchange board of India i.e. SEBI for collection of application money, allotment money, refund bankers, paying bankers for payment of divided interest. The OP also intimated the Bank, rate of interest payable on the fixed deposit in the above said letter, the copy of which has been produced on the record as Annexure-A. Subsequently by a letter dated 07.03.2000, the OP consigned to act as a Banker to propose the public issue under the provisions of the SEBI Act 1992. Copy of the said letter has been placed on the record as Annexure-B.

(2.) The complainant vide its order dated 10.03.2000 designated the OP, one of the Collecting Bankers to the public issue of shares opening on 27.03.2000 and closure on 30.03.2000. The copy of the letter is produced before this Commission as Annexure-C. The OP was designated as the controlling Branch and the applications with application monies were to be collected by the OP from the prospective investors. The complainant further informed the OP that M/s. Karvy Consultants Limited were appointed as Registrars to the said issue, vide letter dated 16.03.2002, Annexure-D. In Clause 8 of their General Instructions, M/s. Karvy Consultants gave instructions regarding the transfer of fund, which run as follows:-

(3.) Subsequent to the closure to the Public issue, all the monies collected by the OP, totalling to Rs.1,37,67,18,000/- were kept in different fixed deposits created with the OP on 30.03.2000, 31.03.2000, 03.04.2000 and 04.04.2000 in Nos. 1902, 1903, 1904 and 1905, respectively. On 28.04.2000, on the request of the complainant, pursuant to its letter dated 27.04.2000, the OP transferred the funds in the fixed deposit to its account at HDFC Bank, Nariman Point, Bombay. Copy of letter dated 27.04.2000 has been placed on record as Annexure E. The complainant further requested the OP vide its letter dated 10.05.2000 to transfer the interest accrued on the aforesaid fixed deposits less applicable TDS to its account at State Bank of India, Bangalore or in the alternative, send a demand draft favouring the complainant. Copy of the said letter dated 10.05.2000 has been placed on record as Annexure-F.