2025:MHC:1390 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 12-06-2025 CORAM THE HONOURABLE MR JUSTICE N. ANAND VENKATESH WP No. 413 of 2024

1. M/s.Dadha Pharma LLP (formerly Known As M/s.Dadha Pharma Private Limited)

Rep By Its Authorised Signatory Mr.D. Rahul Bafna Having Its Registered Office At New No. 187/ Old No.121, St.Marys Road, Alwarpet, Chennai- 018.

Petitioner(s)

Vs

1. Reserve Bank Of India Rep By The Governor, No.06, Sansad Marg, New Delhi- 100 001.

2.The State Rep By Commissioner Of Police, Team XI, Central Crime Branch, Egmore, Chennai- 600 008.

3.M/s.Axis Bank Limited Having Its Branch Office At No.113, G.N. Chetty Road, T.Nagar, Chennai- 017.

Respondent(s)

PRAYER To direct the 3rd Respondent Bank to recredit the Sum of Rs.16,15,000/- (Rupees Sixteen Lakhs and Fifteen Thousand Only) along with interest and damages fixed by this Court, to the Current Account bearing number 014010300007962 of the Petitioner Company, operated in the 3rd Respondent Bank.

For Petitioner(s): Mr.D.Ferdinand for M/s.B&S Legal For Respondent(s): Mr.Leonard Arul Joseph Selvam Government Advocate (Crl. Side) for R2 No appearance for R 3

ORDER

This writ petition has been filed for the issue of writ of mandamus directing the 3rd respondent to recredit/restore the amount of Rs.16,15,000/-, which is said to have been illegally siphoned from the current account of the petitioner.

2. The case of the petitioner is that they are operating the current account with the 3rd respondent, since the year 2009. A sum of Rs.25,80,000/- was siphoned off illegally from the petitioner's account on 24.06.2011. Immediately, the petitioner sent a complaint on the same day to the 3rd respondent, intimating the same and seeking a refund of the entire amount. Simultaneously, a complaint was also given to the 2nd respondent.

3. The further case of the petitioner is that an FIR came to be registered by the Central Crime Branch, Chennai City in Crime No.312 of 2012 on 25.05.2012 for the offences under Sections 465, 468, 419, and 420 IPC. On completion of the investigation, a police report has been filed before the Special Court for CCB CBCID cases, Chennai, confirming that the money has been siphoned from the current account of the petitioner. Out of the total sum of Rs.25,80,000/-, Rs.9,65,000/- was credited to bank account of the petitioner, and the balance of Rs.16,15,000/- was transferred to different bank accounts in different places. When the same was verified, they were all found to be bogus addresses. Ultimately, the police had to drop the case since they were unable to detect the accused persons.

4. The petitioner has relied upon the circular of Reserve Bank of India, dated 06.07.2017 and sought for a direction to the 3rd respondent to recredit/restore the amount of Rs.16,15,000/- to the current account of the petitioner.

5. Heard Mr.D.Ferdinand, learned Senior Counsel for the petitioner and Mr.Leonard Arul Joseph Selvam, learned Government Advocate (Criminal Side)

for the 2nd respondent.

6. It is relevant to take note of the circular issued by the Reserve Bank of India. In Clause 6(ii) of the RBI Circular, it is stated that in cases of third-party breaches, where the deficiency lies neither with the bank nor with the customer but elsewhere in the system, if the customer notifies the bank within three working days of receiving the communication from the bank regarding the unauthorized transaction, the bank must act upon it and ensure that the customer has zero liability due to such unauthorized transaction. It is also relevant to take note of Clause 9 of the notification, which makes it clear that on being notified by the customer, the bank shall credit the amount involved in the unauthorised electronic transaction to the customer's account within ten working days from the date of such notification by the customer.

7. Different High Courts had dealt with the very same issue and it will be relevant to take note of the same, 7.1. The Delhi High Court in the case of Hare Ram S