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Friday, Jan 11, 2002

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SC notice to IndusInd on CSE brokers' cheques

Our Bureau,

KOLKATA, Jan. 10

THE Supreme Court has issued a notice to IndusInd Bank on an appeal moved by the Calcutta Stock Exchange (CSE). In its appeal, CSE alleged that the bank had failed to notify on time the dishonouring of certain high-value cheques in March 2001.

The CSE claimed that this had caused a loss of around Rs 49 crore to the exchange and also loss of business and reputation. The CSE move follows a rejection by the National Commission for Consumers' Disputes Redressal. The commission had felt that it was not a suitable legal forum to deliver justice on the issue.

The CSE, in its appeal before the apex court, has also asked for directives on trial of the case.

Mr V B Raju, Senior Vice-President, IndusInd Bank, told Business Line over telephone from Mumbai ``we are yet to receive the notice''. He, however, informed that the bank would take appropriate legal steps for replying to the notice. The bank had so far maintained before the Reserve Bank of India (RBI) and the Joint Parliamentary Committee (JPC) that it had informed on time the exchange authorities regarding the bouncing of the high-value cheques.

The dishonouring of those cheques issued by some of the brokers of the exchange supposedly triggered the payment crisis at the CSE. The exchange authorities argued that timely information regarding the bouncing of cheques could have stalled the precipitation of the crisis.

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