The Hindu Business Line : Shaved off by loose leaf & a snatcher on a scooter

THE latest issue Consolidated Commercial Digest (www.cliofindia.com) reports about an interesting consumer dispute, Dena Bank vs Dina Ram. The complainant had a savings bank account with the bank, and some unauthorised person withdrew Rs 15,000 and Rs 3,000 from the account on two different dates, within a space of about a month.

"When the matter was brought to the notice of the bank, it was revealed that a person representing himself as the complainant came to the bank and requested the counter clerk to issue a loose cheque since he did not have his cheque book with him at that time and required money urgently as his father was admitted in the hospital," narrates the legal journal, recounting the facts about how a savings account got shaved off by loose leaves.

"On humanitarian ground," loose cheques were issued to the said person, on both the occasions, though the bank officials claimed to have verified and tallied the signature of the said person with those appearing in the account-opening form. Therefore, they claimed that the money was allowed to be withdrawn "on the bona fide belief that the person withdrawing the money was the real account holder."

Dina went to the District Forum. It said that even if it were believed that the first withdrawal of Rs 15,000 was allowed on humanitarian consideration, "the bank had no satisfactory explanation as to why another loose leaf cheque was issued to the same person without calling for the pass book." The bank went on appeal before the State Commission, anxious not to lose the case.

There, it was held that the first instance of allowing the impersonator to withdraw money after tallying his signature with that in the account opening form might be a bona fide act as claimed by the bank, "but not the subsequent act." It was a sheer case of not only negligence but also carelessness, ruled the Commission. "As a matter of fact, the officials of the bank should have insisted on at least the production of the pass book in order to ensure the veracity of the person seeking to withdraw," was the opinion of the Commission, as one learns from the report in the Digest, though the bank would have found the judgment difficult to digest.

Okay, what did Dina get? "Taking an overall view of the matter and the conduct of the bank officials a compensation of Rs 10,000 on account of deficiency in service and Rs 1,000 towards costs was awarded," ruled the Commission.

Another banking case, which I grab from Manupatra (www.manupatra.com) is Col. D.S. Sachar (Retd.) vs Punjab and Sind Bank, before the National Consumer Disputes Redressal Commission, New Delhi.

Facts of the case inform that one day, the petitioner along with his wife visited the bank branch to deposit Rs 45,000 into his current account. This amount was a part of the sale proceeds of a plot the petitioner had sold.

"At about 1.45 p.m., when the petitioner was at the counter, someone snatched the money from his hand and despite his raising loud alarm and chasing, the snatcher fled away on a scooter standing outside the premises of bank with engine on," continues the case, taking a dramatic turn.

"At the time of the incident, there was no security guard/gunman present at the entry/exit gate of the bank. Collapsible doors of the main gate were not chained. It was further alleged that the bank authorities failed to sound the siren alarm." So?

"Petitioner had suffered loss of amount of Rs 45,000. Direction was sought to the respondent-bank to pay the said amount with interest at the rate of 18 per cent per annum as also Rs 15,000 by way of compensation for the harassment and mental agony caused... "

Catch up, not with the snatcher on the scooter, but with the case!

ExParte@TheHindu.co.in

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Witching hour passed, fans pour into bookshops

Govt to allot land for 40 five-star hotels in Delhi

Satellite adds speed to Wal-Mart

Shaved off by loose leaf & a snatcher on a scooter

The French (rail) connection

Cartoon