Banks are liable for negligence in safeguarding customers' cheques, leading to compensation for misappropriated funds.

1. Heard Mr. A. Parvez, learned Counsel, appearing for the appellant. Also heard Mr. M. Dutta, learned Counsel, for the respondent No. 1. Mr. N. Baruah, learned Counsel, for the respondent No. 2 remained absent. However, as the matter is taken up for its disposal, the written argument submitted by the Counsel for the respondent No. 2 along with the one of the Counsel present today, are taken into consideration along with the oral argument of the Counsel present today.

2. This is an appeal under S.15 of the Consumer Protection Act , 1986, challenging the judgment passed by the learned District Commission, Golaghat, dated 23.5.2013 in CPC No. 2/2007. The appeal was filed by the United Bank of India through its Regional Office at Jorhat and the Branch Office at Golaghat both impleaded as opposite party Nos. 1 and 2 and the respondent No. 2 in this appeal as opposite party No. 3 in the said CPC No. 02/2007 filed by the present respondent No. 1 as the complainant, seeking for a direction to the opposite party No. 1 to credit the amount of Rs. 1,60,000 to the Savings Bank Account No. 13741 of the complainant and compensation of Rs. 50,000 from the opposite party Nos. 1, 2 and 3, jointly or severally and any other reliefs. Subsequently, vide order dated 10.2.2022 passed by this Commission, the appellant United Bank of India was substituted by the Punjab National Bank on the ground that the United Bank of India was amalgamated to the Punjab National Bank.

3. The respondent No. 1 / complainant filed the said complaint on the ground that he deposited fo the appellant bank one A/C payee cheque No. 000924 amounting to Rs. 1,60,000 vide deposit slip dated 19.9.2006 for collection of the said A/C payee cheque from Indian Bank, Golaghat branch, the respondent No. 2. The said amount was supposed to be credited to the S/B Account No. 13741 standing in the name of the respondent No. 1 / complainant in the United Bank of India, Golaghat branch after collecting the same from the Indian Bank, Golaghat branch. The respondent No. 1 had no account in the said Indian Bank, Golaghat branch. On 22.9.2006, he come to know that the cheque amount was not credited to his S/B Account and on enquiry it was informed by the officials of United Bank of India, Golaghat branch that the cheque which was presented for collection of the amount was encashed by someone personally from Indian Bank, Golaghat branch, respondent No. 2 and withdrawn the amount in cash. Thereafter, the respondent No. 1 / complainant approached the Branch Manager who advised the complainant to submit formal written complaint which was submitted on 23.9.2006 to the Branch Manager, United Bank of India, Golaghat Branch along with a copy of the counter foil of deposit slip. In the written complaint the complainant demanded credit of the cheque amount to S/B Account No. 13741. On the same day, an FIR was lodged whereafter Golaghat P.S. Case No. 454/06 under S.409 IPC, corresponding to GR Case No. 979/06 was registered, but no enquiry was carried out by the said police and recover the said amount. On the other hand, no action was initiated by the bank in order to credit the amount to the S/B Account of the complainant. Advocate Notice dated 23.11.2006 was sent by registered post to United Bank of India with a copy to Indian Bank, Golaghat Branch which were duly received by the addressees. As there was no reply as to the notice dated 23.11.2006, the respondent No. 1 / complainant accordingly filed the said complaint registered as CPC No. 02/2007, alleging involvement of the officials of United Bank of India, Golaghat Branch, in the conspiracy with the officials of Indian Bank, Go