IMPORTANT POINT
When an account with only cheque facility and without any request for net banking is tagged to a personal account enabling net banking from school’s account also, it is gross deficiency of service on the part of the Bank.

JUDGMENT :

Hrishikesh Roy, J.

1. The challenge in this appeal is to the final judgment and order dated 24.4.2018 in the First Appeal [First Appeal No. 386 of 2018] whereunder the National Consumer Disputes Redressal Commission [“NCDRC”] dismissed the appeal of the appellant and upheld the order passed by the State Consumer Disputes Redressal Commission, West Bengal, [The State Commission]. Under the impugned judgment, the liability of the respondent Indian Bank was limited to Rs 1,00,000/-although the complainant suffered total loss of Rs 30,00,000/-, from their Bank Accounts and sought return of the lost sum.

2.1 The complaint of the Principal of the DAV Public School, [The School] alleged deficiency of service against the respondent Bank inasmuch as the School’s bank accounts without net banking facility, was linked with the personal Customer Information File (CIF) of the Principal of the School, facilitating online transaction which led to siphoning of Rs 30,00,000/-(Rupees Thirty Lakhs), from the school’s account.

2.2 The complaint mentioned that the DAV Public School, Paschim Medinipur maintained three accounts with the Indian Bank, Midnapur Branch in District Paschim Medinipur, West Bengal namely, i) the School General Fund Account – A/c No. 553624984; ii) School Pupils Fund Account – A/c No. 553625423 and iii) School Interest Account – A/c No. 933045930. While the Withdrawal from the first two accounts could be made through cheques under joint signature of the Principal, DAV Public School, Midnapore and Managers/Principal, DAV Model School, IIT Kharagpur, the third referred account was authorised to be operated by the Principal of the DAV Public School, under his own signature. It was the specific case of the complainant that the school never approached the Bank for net banking facility for any of their three accounts, but on 2.9.2014 when the Principal opened his personal savings account (distinct from the school accounts) for the purpose of transferring money through net banking, he learnt that the three accounts of the school got tagged with his personal savings account. As the school Principal was required to go on an urgent official tour, he decided to report the matter to the Bank after his return from the official tour.

2.3 On 7.9.2014, one of the school employees was sent to the Bank for updating the passbook but the passbook couldn’t be updated for technical reason as informed by the bank’s staff. Again on 9.9.2014 the School employee went to the bank for updating the passbook and it was then detected that Rs. 25,00,000/-(Rupees Twenty Five Lakhs) was unauthorizedly transferred from the school’s account. This was brought to the notice of the Bank’s manager on 9.9.2014, but the Bank Manager advised the concerned school staff to visit the Bank on the next day morning. But by the time the account could be blocked, another sum of Rs. 5,00,000/-(Rupees Five Lakhs) got transferred from the school’s account.

2.4 It was also mentioned by the complainant that the mobile phone sim of the complainant was blocked on 5.9.2014 and subsequently the complainant learnt that a duplicate sim card was issued against his mobile number and his phone bill was paid by somebody even before the normal bill could be generated on 8.9.2014. With this information, the complainant demanded return of the siphoned sum with interest in the school’s bank account.

3. The Bank contested the case before the State Commission. They acknowledged that the school did not apply for net banking facility but inadvertently the personal CIF of the then Principal of the School got tagged with the school’s accounts which facilitated the online transfer of school’s money.

4. The BSNL Authorities who were arrayed as respondent Nos. 4 and 5 in the Complaint before the State Commission pleaded that the then Principal on his way back from Howrah to Kharagpur lost his mobile phone with the BSNL post paid sim No. 9434340725 for which, diary was lodged on 4.9.2014 at the Khar