A bank's allowance of withdrawals from a joint account involving an illiterate individual violates regulatory norms, necessitating accountability for negligence and fraud.

Milind N. Jadhav, J.

1. Heard Mr. Chauhan, learned Advocate for Petitioner, Mr. Tripathi, learned Advocate for Respondent Nos.1 and 2 and Mr. Patil, learned Advocate for Respondent No. 3.

2. Petitioner Buniya Devi Chauhan is original complainant before the State Consumer Dispute Redressal Commission, Maharashtra. Complaint is filed against Respondent No. 1 – Bank. By order dated 14.09.2016, the State Consumer Dispute Redressal Commission, Maharashtra allowed the Complaint directing the Bank to refund Rs. 25,28,515/- alongwith 6% interest per annum from complaint date and directed payment of compensation of Rs. 2,00,000/- for mental harassment alongwith litigation cost of Rs. 25,000/- to Petitioner. The Bank being aggrieved appealed before National Consumer Disputes Redressal Commission, New Delhi. The Appellate Authority by order dated 03.01.2022 allowed the Appeal filed by Respondent No.1 – Bank and set aside the order passed by the State Consumer Dispute Redressal Commission, Maharashtra. Buniya Devi therefore filed Review Application before the National Consumer Disputes Redressal Commission, New Delhi which stood dismissed by order dated 12.04.2022. Hence, being aggrieved, Buniya Devi approached this Court by present Writ Petition to challenge the orders dated 31.01.2022 and 12.04.2022 passed by National Consumer Disputes Redressal Commission, New Delhi.

2.1. Briefly stated, Petitioner is an illiterate widow entitled to compensation of USD $55,000 (Rs. 25,28,515/-) from the employer of her husband who died on 10.01.2003 in an accident in Tzanjin Port, China. Respondent No. 3 i.e. Gulab Chand A. Chauhan with hand in glove with the officer of Respondent - Bank played fraud on Petitioner by surreptitiously adding her name jointly with him in his existing Savings Bank Account No.26589 in Wadala Branch and converted it into a joint account with “either or survivor” basis on a formal application made by Respondent No. 3 without signature of any witness when the Petitioner approached the branch of Respondent Bank to open her separate individual Savings Account. The inevitable happened and entire money was withdrawn by Respondent No.3 fraudulently. He was convicted for this offence.

2.2. It is Petitioner’s case that she was under the impression that her separate Savings Account was opened in Respondent – Bank. Pursuant to opening of account she deposited cheque of USD $55,000 (about Rs. 25,28,515/-) in the Joint Account and returned back to her native place in Deoriya (U.P.) and stayed there from September 2004 to 24^th August, 2005. In the interregnum, Respondent No. 3, i.e. Gulab Chand A. Chauhan withdrew the entire amount from the Joint Account by cheque and by filling withdrawal slip form without informing Petitioner and most importantly Respondent - Bank allowed him to withdraw the entire amount ignoring all Rules of procedure laid down by the Indian Banks’ Association/ Reserve Bank of India.

2.3. On 29.08.2016, Respondent No.3 was convicted for offences punishable under Section 248(iii) of Criminal Procedure Code, 1973 read with Sections 406, 420, 467, 468 and 471 of Indian Penal Code, 1860 for his above acts.

2.4. On 14.09.2016, State Consumer Dispute Redressal Commission, Maharashtra in CC/08/37 held Respondent Nos. 1 to 3 responsible and directed them to refund the amount of Rs. 25,28,515/- by crossed payee pay order together with 6% interest per annum from the date of filing of Complaint till realization alongwith compensation of Rs. 2,00,000/- for mental harassment of Petitioner and litigation costs of Rs. 25,000/- payable within 2 month