D.O.F:28/01/2021

                                                                                                   D.O.O:04/09/2023

IN THE CONSUMER DISPUTES  REDRESSAL COMMISSION, KASARAGOD

CC.24/2021

Dated this, the 4^th day of September 2023

PRESENT:

SRI.KRISHNAN.K                          : PRESIDENT

SMT.BEENA.K.G                              : MEMBER

Benny Sebastian, aged 50 years

S/o Devasia

Residing at Kareekunnel House

Palavayal Village, Palavayal Post,

Vellarikundu Taluk, Kasaragod District,

Pin: 670511.

(Adv: John Thomas)                                                                                   : Complainant

       And

1. The Manager,

Kerala Gramin Bank, Palavayal Branch,

Palavayal Post, Vellarikundu Taluk,

Kasaragod District,

Pin: 670511.

(Adv: M. Narayana Bhat)

2. Kerala Gramin Bank

Represented by it’s Chairman

KGB Towers, A K Road, Malappuram Post,

Malappuram District.                                                                 : Opposite Parties

ORDER

SRI.KRISHNAN.K  : PRESIDENT

The complainant’s case is that he is a SB bank account holder with opposite party.  Complainant issued a cheque for Rs.1,00,000/- drawn on HDFC bank Rajarajeshwari branch  Bangalore in the name of the complainant dated 10/11/2020.He presented the cheque for collection in 21/11/2020 through the opposite party’s Palavayal branch.  Amount is credited for SB account of the complainant on 23/11/2020 to withdraw Rs.1,00,000/-.  The opposite party No.1 wrongly refused to pay the money claimed though sufficient fund is available in his account.  Opposite party No.1 gave a reply in writing that his money in the account is marked as lien not available for withdrawal.  Later, complainant came to know that opposite party No.1 transferred the amount without his consent and thereby misappropriated the money.  There is unfair trade practice, deficiency in service, suffered loss in business mental tension agony.  The opposite party No.2 is legally liable for the act of opposite party No.1.  The complainant claims Rs.1,00,000/-, the amount illegally transferred and Rs.25,000/- for business loss and Rs.50,000/- as compensation and cost of litigation.

            The opposite party No.1&2 filed written version.  Opposite party No.1 admitted that on 17/11/2020, the complainant presented the cheque for 1,00,000/- and also admitted that the amount is credited to the account of the complainant on 23/11/2020.  On 24/11/2020 HDFC bank informed opposite party No.1 that cheque is passed by mistake and requested to opposite party No.1 to hold the fund and keep the status quo.  Cheque return memo was sent to opposite party No.1 with request to transfer and intimate to the complainant as per practice of the bank.  The amount is transferred on 30/11/2020.  Thus, complainant could not withdraw the money as per withdrawal slip.  The complainant came to the branch form 03/12/2020 and collected the cheque return memo.  The opposite party No.1 not liable to pay any amount to complainant nor liable to any relief claimed in the case.  HDFC bank Bangalore is a necessary party and therefore prayed to dismiss the complaint.

            The complainant filed chief affidavit and cross examined as PW1.  Ext.A1 to A3 documents marked.  Ext.A1 is the certified copy of the cheque.  Ext.A2 is the copy of the ledger entries of SB account of the complainant.  Ext.A3 is the copy of the letter issued by opposite party No.1 to the complainant.  The opposite party produced Ext.B1 and B12 documents.

            On considering the rival contentions both oral and documentary, these points arised for consideration:

1. Whether opposite party is legally entitled to transfer money lying to the credit of account holder to the account of any other bank without the consent of knowledge of the account holder?
2. Whether there is any deficiency in service or negligence on the service of the bank in re transforming the money from the account of the complainant and thereby refusal to pay the amount as per withdrawal slip to the complainant?
3. Whether complainant is entitled for any compensation and if so, for what reliefs?

Here is a case admittedly the cheque is encashed and amount covered thereunder is credited to the account of the complainant on 23/11/2020.  As per version of opposite party No.1, the amount is transferred on 30/11/2020 on the request of HDFC bank Bangalore on the ground that the cheque is mistakenly honoured for payment.  The question is whether opposite party No.1 bank is legally authorized to withdraw or transfer any amount to the credit of a customer to the account of any other bank or any other customer of any other bank without the consent or knowledge of the account holder in the absence of a court order. 

            Honourable Supreme Court in AIR 1967 SC 540 held that, if third party by mistake deposits money in the account of another, the money becomes the money of the constituent.  In that event to the credit of the bank Apex count held that third party deposit, it become money of the customer.  The transaction can be treated as disputed transaction.  RBI Circular says the remedy of the bank in while the bank cannot reverse the amount that has been transferred.  Such circumstances is to refer to civil court to recover the amount.

            The bank will act as a facilitator and provide with details of the bank and branch of the account where the money has been transferred.  If it is in the same bank, check with the recipient directly and ask for a reversal.  In such circumstances, the beneficiary’s branch may call the incorrect beneficiary and request for retransfer but retransfer with consent of account holder.

            Here bank retransferred the money without or consent of account holder amounts to unfair trade practice and deficiency in service.

            Bank is liable to honour withdrawal slip and pay the amount therein.  The complainant is also entitled for compensation and costs.

            In the result, the complaint is allowed in part.  The opposite party is directed to pay the complainant a sum of Rs.1,00,000/-(Rupees One Lakh only) amount with 8% interest from the date of complaint till realization and pay Rs.10,000/-(Rupees Ten thousand only) as cost compensation and Rs.5,000/-(Rupees Five thousand only) as cost of the litigations within 30 days of the receipt of the order.

     Sd/-                                                                                                                   Sd/-

MEMBER                                                                                                      PRESIDENT

Exhibits

A1 – Certified copy of the cheque

A2 – Copy of the ledger entries

A3 – Copy of the letter issued by opposite party No.1

B1 – Office copy of the letter issued by the opposite party No.1

B2 – Served copy of the letter issued by the complainant

B3 – Copy of the e-mail communication

B4 – Copy of the e-mail communication

B5 – Copy of the e-mail communication

B6 – Copy of the e-mail communication

B7 – Copy of the memorandum

B8 – Copy of the Cheque Return Register

B9 – Certified copy of the cheque

B10 – Certified copy of the memorandum

B11 – Certified copy of the Registered Notice

B12 - Certified copy of the C.C.No.291 of 2021

Witness cross-examined

PW1 – Benny Sebastian

     Sd/-                                                                                                                   Sd/-

MEMBER                                                                                                      PRESIDENT

Forwarded by Order

                                                                                    Assistant Registrar

JJ/