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IN THE HIGH COURT OF TELANGANA
ABHINAND KUMAR SHAVILI, TIRUMALA DEVI EADA
State Bank Of India – Appellant
Versus
Biresh Chandra Gangopadhyay – Respondent
ORDER :
(Abhinand Kumar Shavili, J.)
This Writ Petition is filed aggrieved by the judgment, dated 30.07.2024, rendered in First Appeal No.684 of 2022, by the National Consumer Disputes Redressal Commission at New Delhi (for short, ‘National Commission’) and also the order, dated 04.08.2022, passed in C.C.No.102 of 2019 by the Telangana State Consumer Disputes Redressal Commission, Hyderabad (for short, ‘State Commission’).
2. Heard Sri M. Narender Reddy, learned Senior Counsel representing Sri V.U.S.S.R. Anjaneyulu, learned counsel appearing for the petitioner-Bank and Sri D.V. Sitaram Murthy, learned Senior Counsel representing Sri K. Kiran Kumar, learned counsel appearing for the respondents.
3. Learned Senior Counsel appearing for the petitioner-Bank had contended that the respondents were wife and husband. They have opened joint Savings Bank Account with the petitioner-Bank bearing A/c. No.10123103876 at Balkampet Branch, Hyderabad. The respondents have opened three fixed deposits for Rs.10,00,000/-, Rs.15,00,000/- and Rs.15,00,000/-, totaling Rs.40,00,000/-, on 09.08.2017 for a period of one year with a mandate of auto renewal. Accordingly, the petitioner-Bank has issued Fixed Dep
The court ruled that consumer commissions lack jurisdiction over disputes involving fraudulent transactions, emphasizing that responsibility for account security lies with the customer.
Fraudulent transaction of Bank - On completion of investigation if it is established that the fraud took place purely due to the negligence or deficiency of service on the part of the respondent no. ....
Banks must prove customer negligence to deny liability for unauthorized transactions; mere downloading of an app does not constitute negligence.
(1) Zero Liability of the Innocent Consumer – Reinforcing RBI guidelines, the Commission established that when a customer is an innocent victim of a “third-party breach” (where the fault lies elsewhe....
It is responsibility of Bank to compensate its customers in cases of fraudulent withdrawals.
“Since the Bank after following the due procedure, transferred the fund through net banking, any deficiency in service on part of Bank ruled out.”
Banks must authenticate transactions rigorously; failure leads to liability for unauthorized fund transfers.
Banks must ensure robust security measures to protect customers from cyber fraud, and failure to do so may result in liability for unauthorized transactions.
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