The bank's failure to verify the authenticity of debit vouchers led to unauthorized withdrawals, constituting a deficiency in service and warranting compensation for the complainant's losses.

JUDGMENT :

Mohd Yousuf Wani, J.

01. Impugned in the instant appeals filed under the provisions of Section 17 of Jammu and Kashmir Consumer Protection Act, 1987 (now repealed & hereinafter referred to as the “Act” for short) is the order dated 28th of February 2018 passed by the J&K Consumer Disputes Redressal Commission Srinagar (hereinafter referred to as the Commission for short) on a consumer complaint No. 133 of 2012 filed by the appellant/complainant against the Respondent-Bank/opposite parties whereby the learned Commission inter alia passed the following directions at para Nos. 20, 21 and 22 while disposing of the complaint:-

20. “It is not in dispute while assessing the amount of mental agony the complainant has undergone, is visible from the way he has been treated by the bank. It is also a fact that he has suffered a loss of business due to non- availability of funds. Even though, in his complaint he has not quantified the amount of loss that he has suffered as he has restricted his prayer only to the extent of granting Rs.60.00 lacs. Keeping in view these facts, we allow a damage of Rs.15.00 lacs (rupees fifteen lacs only) to be paid to the complainant. The amount of Rs.42,69,763/- (rupees forty two lacs sixty nine thousand seven hundred sixty three only), which has been withdrawn from his C.C. Account is required to be transferred to his account and for the period this amount remained unutilized by the complainant, no interest shall be charged by the bank from him. He shall also be found entitled to receive interest @ 12% per annum from the date of filing of the complaint. Therefore, the following directions are issued:,

a) An amount of Rs.42,69,763/- (rupees forty two lacs sixty nine thousand seven hundred sixty three only) be transferred to the C.C.Account of the complainant forthwith and no interest for the period this amount, remained unutilized by the complainant, shall be charged by the bank from the complainant.

b) Compensation for tremendous mental agony and loss of business is awarded as Rs.15.00 lacs (rupees fifteen lacs only).

c) Interest @ 12% per annum from the date of filing of the complaint shall also be payable to the complainant. The opposite party-bank shall comply this order within a period of two months from the date of order.

21. Since the stand of the bank is that this amount stands transferred in the loan account of brother of the complainant namely Sheikh Irfan Farooq, bank will be at liberty to recover this amount form said Sheikh Irfan Farooq by taking appropriate legal remedies available under law.

22. Before parting with the judgment, it is a case of unique nature where with open eyes the bank officials have committed the fraud and forgery which is a case of gross deficiency of service Unmindful of the consequences. Not only this, they have harassed the complainant by initiating recovery proceedings against him being fully aware that default in the cash credit account was on account of the illegal act committed by the bank. We are surprised that the bank authorities have not taken any action against the defaulting officers even though more than five years have elapsed. The banks are the custodian of the money which belongs to the public. Therefore, affecting such sham transactions results in people losing confidence in the banking system. An appropriate direction in this behalf could have been issued for registration of a FIR for taking cognizance against the erring bank officials but we constrain ourselves from doing so and we hope that the Chairman, Jammu and Kashmir Bank will take cognizance of the matter. It is directed that the Chairman of the bank shall appoint an Inquiry Committee headed by a General Manager of the Bank, who shall identify the officials, who indulged in this sham and fraudulent transactions and proceed against them The inquiry be initiated within a period of three months from the date copy this order is served 'on the CEO/Chairman of the bank. In case the needful is not d