Back
UTTARANCHAL STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, DEHRADUN
Hon’ble Mr. Justice K.D. Shahi, Chairman;
Mr. Surendra Kumar & Ms. Luxmi Singh, Members
BRANCH MANAGER, PUNJAB & SIND BANK—Appellant
versus
SUSHEEL KUMAR BANSAL—Respondent
Appeal No. 5 of 2003—Decided on 14.5.2003
Counsels for the Parties :
For the Appellant :Mr. M.K. Kohli, Advocate.
For the Respondent: In person.
Banks have a responsibility to rectify unauthorized transactions in customer accounts and recurring transactions in bank accounts persist until the account is closed, without any question of limitation.
Headnote:
Bank Account - Unauthorized Withdrawal - The court directed the appellant to credit the complainant's account with the amount withdrawn without his knowledge and signature, along with interest. The court emphasized that in the case of a bank account, recurring transactions persist until the account is closed, and therefore, there is no question of limitation. The court also highlighted the responsibility of the bank as a public institution to rectify any unauthorized transactions and awarded simple interest at the rate of 12% to the complainant.
Fact of the Case:
The complainant's bank account was subjected to an unauthorized withdrawal of Rs. 3,200 without his knowledge and signature. Despite objections and requests, the ledger was not corrected, and the amount was not shown in the complainant's account.
Finding of the Court:
The court dismissed the appeal and directed the appellant to credit the complainant's account with the withdrawn amount and awarded simple interest at the rate of 12%.
Issues: Unauthorized withdrawal from the complainant's bank account, failure to rectify the ledger, and the question of limitation for recurring transactions.
Ratio Decidendi: The court emphasized that in the case of a bank account, recurring transactions persist until the account is closed, and therefore, there is no question of limitation. The bank, as a public institution, has the responsibility to rectify unauthorized transactions.
Final Decision: The appeal was dismissed, and the appellant was directed to credit the complainant's account with the withdrawn amount along with simple interest at the rate of 12%.
Mr. Justice K.D. Shahi, Chairman—This is an appeal against the judgment and order dated 20.12.2002 passed by the District Forum directing the appellant to give a credit of Rs. 3,200/- in the account of the complainant along with interest.
2. The facts are very simple. The complainant has a bank account with the appellant. A sum of Rs. 3,200/- was withdrawn from his account without his knowledge and signature. On his objection the then Branch Manager made correction in the statement, but he did not make correction in the original ledger. Inspite of several letters, the ledger was not corrected and that amount had still not been shown in the accounts of the complainant. The written statement is that the then Manager of the Bank under the request of the applicant had transferred a sum of Rs. 3,200/- from the account of the applicant to the account of Devyani Constructions Company. On inquiry it was informed to us that this request was verbal. We are surprised that the Bank Manager hears verbal instructions as well. Nothing is on merit in this appeal.
3. It was argued that the complaint before the learned Forum was barred by time. This is a case of bank account. The bank account still persists. These are the recurring transactions. Every amount of the petitioner survives till the account is there. There is no question of limitation. The Bank is a public institution. It cannot digest any amount of the public for nothing. It is sufficient that no order is being made against the Bank Manager or punitive cost is imposed, or compensation is awarded against the Bank. Only simple direction has been given to give credit of this amount along with simple interest at the rate of 12%. The appeal has got no force and is to be dismissed.
ORDER
The appeal is hereby dismissed. Cost of the appeal shall be easy.
Appeal dismissed.
––
