38.6c New Delhi, India, Sunday, April 21, 2024
Judiciary

If A Cheque Is Lost By The Bank, It Is The Responsibility Of The Bank To Compensate The Loss: NCDRC [Read Order]

By LawStreet News Network      24 July, 2019 12:00 AM      0 Comments
If A Cheque Is Lost By The Bank, It Is The Responsibility Of The Bank To Compensate The Loss: NCDRC [Read Order]

The National Consumer Disputes Redressal Commission (NCDRC) on July 19, 2019, in the case of Manager, Bank of Baroda & Anr. v. Chitrodiya Babuji Divanji has dismissed the revision petition filed by the bank after finding it guilty of having lost a customer's cheque.

The National Consumer Commission holding the bank liable ordered it to pay an amount, worth the cheque.

It was the bank's case that the cheque deposited by the respondent was dishonored and was sent to his registered address along with cheque return memo by registered post AD. The same was returned to the bank unserved, and thus there was no deficiency in its services.

The respondent, on the other hand, alleged that he persistently pleaded the bank to return his cheque. He even visited the bank personally to collect his cheque but, in vain.

The District Commission, vide its Order dated 10.10.2013, partly allowed the complaint. The State Commission, vide its order dated 20.01.2016, directed the bank to pay the full amount of the cheque, i.e., Rs. 3,60,000 to the respondent.

Aggrieved by the order, the present Revision petition was filed by the Bank under Section 21(b) of the Consumer Protection Act, 1986.

NCDRC found that while the dishonored cheque was returned unserved from the respondent's registered address, the same was not delivered to him on any later occasion. The respondent constantly pursued his case with the petitioner for return of dishonoured cheque and cheque return memo, however, the bank had lost the cheque due to which the respondent lost his right to file a case under Section 138 of the Negotiable Instruments Act, 1881, against the account holder.

Taking into account that the respondent had to suffer a loss of Rs.3,60,000, the court upheld the order of the State Commission of Gujarat by ruling that “When the cheque in question had been lost by the Petitioner Bank, it is the responsibility of the Bank to compensate the loss.”

[Read Order]



Share this article:

User Avatar
About:


Leave a feedback about this
TRENDING NEWS

sc-orders-medical-examination-of-yr-old-rape-survivor-seeking-to-terminate-her-week-pregnancy
Trending Judiciary
SC orders medical examination of 14-yr-old rape survivor seeking to terminate her 28-week pregnancy

Supreme Court orders medical examination of 14-year-old rape survivor seeking termination of 28-week pregnancy. Decision to be made after evaluating impact on her health.

20 April, 2024 11:00 AM

TOP STORIES

need-to-safeguard-judiciary-from-unwarranted-pressures-21-ex-judges-write-letter-to-cji
Trending Legal Insiders
Need to safeguard judiciary from unwarranted pressures: 21 ex-judges write letter to CJI

21 ex-judges write to CJI Chandrachud urging protection of judiciary from pressures undermining its integrity and autonomy.

15 April, 2024 12:17 PM
sc-notice-to-ed-declines-early-date-on-plea-by-delhi-cm-arvind-kejriwal-against-arrest
Trending Judiciary
SC notice to ED; declines early date on plea by Delhi CM Arvind Kejriwal against arrest

SC issues notice to ED, declines early hearing on Delhi CM Kejriwal's plea against arrest in liquor scam.

15 April, 2024 03:08 PM
call-for-chapters-gender-based-violence-and-religion
Trending Law School
Call For Chapters: Gender-Based Violence and Religion

Calling For Book Chapters: As an editor, Dr. Amit Anand, Assistant Professor, School of Legal Studies, REVA University, Bengaluru, is inviting people to contribute to a book, entitled "Gender-Based Violence and Religion." This book is scheduled to be published by Cambridge Scholars Publishing.

15 April, 2024 04:21 PM
cannot-stop-any-public-rally-bombay-hc-says-on-allegation-that-ram-navami-processions-deliberately-pass-through-muslim-majority-areas
Trending Top Stories
Cannot stop any public rally, Bombay HC on allegation that Ram Navami processions deliberately pass through Muslim-majority areas

The Bombay High Court calls upon the Maharashtra Police to ensure that no law and order issues occur during a Ram Navami rally in a Muslim-majority area in Mumbai.

15 April, 2024 06:36 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email