IN THE TAMIL NADU STATE CONSUMER DISPUTES REDRESSAL COMMISSION, CHENNAI.

Present: Hon’ble Thiru Justice R.SUBBIAH       ... PRESIDENT

            Tmt. Dr. S.M.LATHA MAHESWARI  ... MEMBER

F.A. No.214 of 2014

(Against the Order, dated  19.03.2014,  in C.C. No.307/2010,

on the file of  the DCDRC, Chennai-South)

                                Orders pronounced on:   01.03.2022

1. The Branch Manager,

Karnataka Bank,

R.A. Puram Branch,

62, Greenways Road,

Raja Annamalaipuram,

Chennai 600 028.

2. The Chairman,

Karnataka Bank HO,

Mangalore.                            …Appellants / Opposite Parties

vs.

1. Consumer Protection Council, Tamil Nadu,

2, RMS Building, Thillainagar Main Road,

Tiruchirappalli-18.

On behalf of:

2.Sanjeevani Yoga Ayurveda Foundation

represented by Nedungadi Haridas

     and

3.Indira Nedungadi,

Directors, Sanjeevani Yoga Ayurveda

     Foundation,

A-7, No.17, First Street,

Gill Nagar, Chennai 600 094. … Respondents/Complainants

             Counsel for Appellants          :M/s.S.R.Rajagopal

             For Respondents  – R1, argued Party-in-Person.

          This First Appeal came up for final hearing on 31.01.2022 and, after hearing the arguments of both sides and perusing the materials on record and having stood over for consideration till this day, this Commission passes the following:-

O R D E R

R.Subbiah, J. - President.

             This appeal has been filed by the unsuccessful Opposite Parties/Karnataka Bank, challenging the order, dated 19.03.2014, passed by the DCDRF, Chennai-South, in C.C. No.307 of 2010, whereby, the complaint came to be allowed against the Opposite Parties/Bank.

             2. In the complaint filed before the District Forum by complainant No.1/Consumer Protection Council on behalf of  complainant Nos.2 & 3, the case projected, in brief, runs thus:-

             Complainant Nos.2 and 3 were the Directors of a Private Limited Company by name Sanjeevani Yoga Ayurvedic Foundation (in short SYAF), which was founded in the year 1997 and registered in Chennai with the Registrar of Companies.   Since 1997, the company was operating Current Account Nos.150200010004001 and 150200010001280 with the 1^st Opposite Party Branch at R.A. Puram, Chennai.  While the company had more than 5 Directors, the Bank Account was operated by one of them by name Mr.Peter Morgan, as the sole signatory.

             While so, for various reasons, the Board was reshuffled to have only three Directors viz., Nedungadi V.Haridas/2^nd complainant, Indira Nedungadi/3^rd complainant and Peter Morgan, and, in the Board Meeting held on 23.05.2009, it was resolved that the aforesaid Current Accounts of the Bank maintained with the 1^st OP shall be operated jointly by two Directors out of three.   The said resolution was duly communicated to the Bank/1^st OP under acknowledgment as well as to the Registrar of Companies.

             In such a situation, on 31.08.2009, a sum of       Rs.10 lakh was credited to the Current Account of the Company operated with the Bank/1st OP.   To the shock and surprise of the two Directors/complainant Nos.2 and 3, much later, they came to know that the Bank/1st OP, despite being aware of the Resolution, dated 23.05.2009, had issued a cheque book on an Application that carried the sole signature of Peter Morgan on the same date/31.08.2009 and permitted him to withdraw Rs.6 Lakh through a self-cheque  and also allowed several withdrawals on subsequent dates without even the knowledge and consent of complainant Nos.2 and 3. On the whole, the Bank had allowed withdrawal of Rs.9,97,876.50 by honouring all the cheques issued by Peter Morgan, carrying his sole signature.  The said act of the bank, exhibiting wilful negligence and gross violation of instructions/resolution of the Board, caused huge monetary loss to complainant Nos.2 and 3. Having thus suffered mental agony, anxiety and undue hardship, seeking the Opposite Parties to re-credit the amount, the complainants sent a legal not

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