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Canara Bank To Pay Compensation For Wrongful Attachment of Property

The Delhi High Court, in the case of VK Bhatnagar vs Canara Bank and Anr, has directed the bank to compensate the petitioner for the trauma and humiliation caused due to wrongful attachment of his property because of the bank’s negligence arising due to mistaken identity.

The petition was filed by VK Bhatnagar, whose property was wrongly attached by Canara Bank for default of payment by a debtor of the same name.

The petitioner faced extreme humiliation since not only was the warrant of attachment affixed to his property, but loudspeakers too proclaimed the same.

The petitioner then filed objections before the Debt Recovery Tribunal, stating that he had undertaken no financial transactions with Canara Bank and also disclosing his parentage.

He also showed that he was a resident of Delhi where as the debtor is a resident of Lucknow.

 Article referred: http://www.livelaw.in/delhi-hc-tells-canara-bank-pay-rs-2-62-lakh-compensation-wrongful-attachment-property-read-judgment/

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