I have come across a very interesting story where a bank consumer gets justice from supreme court of India. t took almost 10 years, but it finally happened when a bank account holder in Vijaya bank finally got back money which he lost due to deficiency of service by Vijaya bank.

I am quoting the whole story here as I find it inspiring for people who have suffered due to deficiency of service provided by banks.

NEW DELHI: The Supreme Court has dismissed an appeal of Vijaya Bank which was held responsible for gross deficiency in service resulting in unlawful withdrawal of Rs 3,50,000 from the account of a customer by using a cheque leaf of the newly-issued cheque book. Gurnam Singh, the complainant had a savings bank account with the appellant bank. Somehow he lost his cheque book containing one unused leaf and the requisition slip required for issue of a new cheque book.

On September 24, 1999, when Mr Singh visited the bank to draw money, he was surprised to find a balance of Rs 1,682.93. It was found that the requisition slip had been used to get a new cheque book issued from the bank and the remaining cheque in cheque book was used to withdraw Rs 2,500 from the complainant’s account. It was also discovered that Rs 3,50,000 had been withdrawn from the account by using a leaf of the new cheque book. Having failed to get the amount reimbursed, Mr Singh approached District Consumer Disputes Redressal Forum, Chandigarh, alleging deficiency in service by the bank.

After examination of his account-opening form, the requisition slip and the cheque in question, the District Forum on December 4, 2001, came to the conclusion that there was gross deficiency in the service by the bank which resulted in loss to the customer. The District Forum found that the specimen signatures on the account-opening form and the cheque used for withdrawal of money were different. More significantly, when the cheque for Rs 3,50,000 was presented, the balance in the account was only Rs 3,46,682.93 and yet it was honoured by recording a debit entry of Rs 3,317.07 as recoverable from the complainant, said District Forum. Consequently, it accepted the complaint and directed the bank to credit Rs 2,500 and Rs 3,50,000 less Rs 5,000 in the account of the complainant along with interest @ 10% per annum from August 17, 1999, till the date of the correct entry.

The findings of the forum were challenged by the bank in the Consumer Disputes Redressal Commission, Chandigarh, which upheld the order. The National Consumer Disputes Redressal Commission also turned down the bank’s plea. It finally came to the apex court.

A bench comprising Justice DK Jain and Justice TS Thakur while dismissing the plea said, in the absence of overdraft facility, how did the bank honour a cheque for an amount more than the account balance.

Source of the stoy : Economic Times and link is here.

Related posts:

1. Local Cheques will be cleared same day!
2. ICICI Bank’s ATMs not working in Udaipur, Rajasthan
3. Mobile and cable operators are looting people : says SC

This is the line I have been implying in my blog for long! Thank you very much Supreme Court of India!

I have posted before in my articles ( Did You Know and Late arrival of bill and late payment charge), I was always maintaining the Supreme Courts line that, Mobile Companies at least might be looting people and how they can loot!

The excerpts of the news here :

NEW DELHI: The Supreme Court on Monday voiced what consumers may have felt for years, saying “mobile and cable operators are looting people”.
Clearly, the agony to consumers subjected to inflated bills from mobile service providers and local cable operators has not escaped the notice of the apex court, particularly that of Chief Justice of India K G Balakrishnan. Source and Complete news here.

Related posts:

1. Bank pays for deficiency of service
2. Be careful with VAS charges of mobile operators
3. MNP : Mobile Number Portability