Skip to main content

Bank directed to pay Rs 25 K to consumer in cheque bounce case

A bank has been directed by a consumer forum here to pay a compensation of Rs 25,000 to a person for debiting Rs 85 from his account as cheque bounce charge without giving reasons as to why it was dishonoured.

New Delhi District Consumer Disputes Redressal Forum, presided by C K Chaturvedi, asked Vijaya Bank to pay the amount to Delhi resident Kamal Krishan Sharma, saying that banks are supposed to "mould themselves in consumer friendly mode", rather than acting as office without any sensitivity.

The forum, also comprising members S R Chaudhary and Ritu Garodia, passed the order noting that the cheque bouncing charge was debited without explaining to Sharma why it was levied when a cheque of Rs 1.5 lakh, to be deposited in his account, was awaiting clearance.

"In such circumstances, the Opposite Party (bank) should inform the complainant the reason for non-payment, rather than returning the cheque by post with reasons of insufficient funds," the forum said.

It noted that the bank had dishonoured the cheque citing insufficient funds in Sharma's account and that Rs 1.5 lakh cheque was under clearing and Rs 50,000 cheque came for clearing when there was no clear balance available in account.

Further, the bank said that cheque of Rs 50,000 was cleared only when balance of Rs 1.5 lakh was credited in his account, it noted.

Theonly dispute left was for Rs 85 cheque bouncing charge which was debited from Sharma's account, it said.

"The banks are supposed to mould themselves in consumer friendly mode, rather than acting as office without any sensitivity," the forum added.

It said that bank was under obligation to inform Sharma by telephone and depending on his need, to offer alternative of overdraft or temporary payment to avoid embarrassment to him.

"...Opposite Party (OP) should compensate complainant for agony and loss of Rs 85. We direct OP to re-credit Rs 85.... We also award a compensation of Rs 25,000... To sensitise OP bank in its dealing with consumers for such imperfect behaviour," the forum said.

Sharma had told the forum that he had deposited a cheque of Rs 50,000 on April 28, 2011 for withdrawal but it was dishonoured by the bank and Rs 85 was debited from his account as cheque bouncing charge despite having sufficient amount.

The bank, however, had submitted that there were two types of balance available. First was ledger balance when cheque was sent for clearing and other was when cheque returned duly honoured by clearing branch, it said

It added that Sharma was considering the statement of ledger balance as a clear balance available in his account but in reality there was insufficient fund in his account.

Article referred: http://www.business-standard.com/article/pti-stories/bank-directed-to-pay-rs-25-k-to-consumer-in-cheque-bounce-case-114082000772_1.html

Comments

Most viewed this month

Inherited property of childless hindu woman devolve onto heirs of her parents

In Tarabai Dagdu Nitanware vs Narayan Keru Nitanware, quashing an order passed by a joint civil judge junior division, Pune, the Bombay High Court has held that under Section 15 of the Hindu Succession Act, any property inherited by a female Hindu from her father or mother, will devolve upon the heirs of her father/mother, if she dies without any children of her own, and not upon her husband. Justice Shalini Phansalkar Joshi was hearing a writ petition filed by relatives of one Sundarabai, who died issueless more than 45 years ago on June 18, 1962. Article referred:http://www.livelaw.in/property-inherited-female-hindu-parents-shall-devolve-upon-heirs-father-not-husband-dies-childless-bombay-hc-read-judgment/

'Seize assets to pay damages to accident victim'

Her story might be an inspiration for the physically challenged but justice has remained elusive for her. In 2008, a bus accident left research engineer S Thenmozhi, 30, paraplegic. In April 2013, the motor accident claims tribunal directed the Tamil Nadu State Transport Corporation (TNSTC) to provide her a compensation of 57.9 lakh. However, TNSTC refused to budge and on Tuesday a city court ordered attaching of movable assets of the transport corporation. Thenmozhi was employed in C-DOT, a telecom technology development centre in Bangalore. On July 21, 2008, she was coming to Chennai in a private bus. Around 2am, the bus had a flat tyre and the driver parked it on the left side of the road near Pallikonda in Vellore district on the Bangalore-Chennai highway. While the tyre was being changed, a TNSTC bus of Dharmapuri division hit the stationary bus. The rear part of the bus was smashed and passengers were injured. Thenmozhi who had a seat at the back of the bus suffered...

Mumbai ITAT rules income of offshore discretionary trust is subject to tax in India

The Mumbai Income Tax Appellate Tribunal (ITAT) has recently determined the following issue in the affirmative in the case of Manoj Dhupelia: Should the income of an offshore discretionary trust be subject to tax in India, if no distributions have been made to beneficiaries in India? The question arose from appeals filed by individual beneficiaries in relation to a Lichtenstein-based trust, the Ambrunova Trust and Merlyn Management SA (the Trust) with the ITAT. It is important to note that the individuals in this case were amongst those first identified by the Government of India (GOI) as holding undeclared bank accounts in Lichtenstein. The ITAT ruling raises the following issues: Taxation of Trust Corpus: ITAT classified the corpus of the trust as "undisclosed income" and declared it taxable in the hands of the beneficiaries. Taxation of Undistributed Income: ITAT refused to draw a distinction between the corpus and undistributed income from the trust and declared i...