Petitioner was the opposite party before the District Forum.

          Briefly stated the facts are that the complainant was maintaining a saving account with the petitioner bank.  He deposited two cheques of Rs.1,28,621/- and Rs.6,620/- drawn on State Bank of India, I.P.Estate, New Delhi and UCO Bank, IIPA, New Delhi respectively with the petitioner for collection on 16.6.1998.  Even after lapse of considerable period of time the cheques were not credited to his account.  On enquiries made by the complainant, he was informed that the cheques were lost in transit; that the petitioner was not able to trace out those cheques despite best efforts.  Petitioner advised the complainant to get duplicate cheques.

          Aggrieved by this, complainant filed complaint before the District Forum.

          District Forum, vide its order dated 8.9.1999, allowed the complaint and directed the petitioner to pay interest at the rate of 12% on the cheque amount from the date of deposit till its payment. 

Counsel for the petitioner states that the cheque amount was credited to the account of the respondent on 23.12.1998

          Aggrieved by the order passed by the District Forum granting interest from the date of deposit of the cheque till it was credited in the account of the complainant, petitioner filed an appeal before the State Commission, which has been dismissed by the impugned order. 

          Counsel for the petitioner contends that the cheques were lost in transit because of the fault of the postal authorities and the petitioner could not be burdened with the liability to pay the interest.  That liability is of the postal department as it has admitted its fault in not delivering the cheques.  It has been held in innumerable cases by this Commission that, liability would be of the bank for the default committed by its agent.  Postal Department was the agent of the petitioner.  Complainant did not have relationship with the postal department.  Fora below have rightly directed the petitioner to pay the interest.  If so advised, petitioner may proceed against the postal department for recovery of the loss caused to it.

          With these observations, Revision Petition is dismissed.  No costs.