A minor, as an account holder, has the right to operate their bank account, and a bank can be held liable for deficiency in service and negligence under the Consumer Protection Act.

Mr. Justice G.G. Loney, President—This is an appeal against the order of District Forum, Panaji dated 11.10.1993. A complaint made by Miss Sarvishtra Gaonkar has been rejected by the District Forum on the ground that the Bank, namely the Respondent, could not credit the amount of interest accrued on her Fixed Deposit to her a/c. The District Forum appears to have been satisfied with an apology letter written by the Bank to the Complainant’s father.

2. We have heard Shri D.A. Gaonkar for Appellant and Shri P.P. Singh, Advocate for Respondent. There is a very eloquent piece of evidence on record of the District Forum, i.e. the original letter written by the Bank dated 11.9.1993 to Miss Gaonkar. In that matter, it has been very clearly admitted by the Bank that it was a mistake not to credit the interest accrued on her Fixed Deposit to her Saving Bank a/c. According to the Bank, she could have outstanding balance of Rs. 608/- when the cheque was bounced. It is very clearly written in the said letter that the Bank tenders its apology for the inconvenience caused to the Complainant. From this document it is very clear that the Bank was deficient while rendering the service to the consumer. It is clearly found that although the complainant had balance of Rs. 608/- in her a/c yet her cheque for Rs. 500/- was not discounted by the Bank. In our view, this is pertinently a deficiency in the working of the Bank. The Bank cannot be absolved from this liability merely because it was a busy day for the Bank to work out the proper balance in the Complainant’s a/c.

3. Shri Singh made two submissions before us. Firstly, that a minor cannot operate on a/c and cannot issue a cheque. It is also contended that the Complainant, minor, was directed not to operate the a/c and issue a cheque. We fail to understood why such a bar was created to the Complainant not to operate the a/c. Moreover, Shri Singh was failed to show us any provision under the Bank’s rules that a minor cannot operate an a/c. Shri Singh has, however, submitted from general law that a minor cannot contract with other party through his minority but that is not enough for purpose of Consumer Protection Act. When the Bank had allowed the minor to open the a/c it reasonably follows that an a/c holder has a right to operate his a/c. In any case, we clearly find that this is a case of deficiency in the service of the Bank. The next submission of Shri Singh is that the cheque could not be discounted since there was no fresh balance on the date the cheque was presented for discounting. This argument is factually incorrect in view of the letter dated 11.10.1993. Considering the facts and circumstances of the case, we are clearly of the view that the rejection of payment of compensation to the Complainant is erroneous. Section 14 provides payment of compensation to a consumer for any loss or injury suffered by the Complainant due to the negligence of the O.P. The negligence has been establishment on the part of the Bank. There is no definition of injury provided under the Consumer Protection Act. However, there is a definition of injury, “provided under the Indian Penal Code. The definition of injury as provided under the IPC provides that injury can be to the property, reputation. It can be physical or mental also. When the cheque was bounced the Complainant was bound to suffer some sort of injury to the reputation.

4. Under these circumstances, there is injury to the consumer when the cheque was bounced for no reasons. Under these circumstances, we hold that the Complainant is entitled to receive the compensation for the injury suffered by her by the negligent act of the Bank. The amount of cheque is Rs. 500/- and, therefore, we calculate the amount of compensation to be awarded to the Complainant as Rs. 200/-. The Complainant also be granted cost of both the Court, District Forum and State Commission at Rs. 150/- each. Thus the Bank shall pay to the Complainant Rs. 500/- within one mont