Date of Filing: 01-06-2015
Date of Order:08 -4-2019
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM – I, HYDERABAD
P r e s e n t
HON’BLE Sri P.VIJENDER, B.Sc. L.L.B. PRESIDENT.
HON’BLE Smt. D.NIRMALA, B.Com., LLB., MEMBER
Monday, the 8th day of April, 2019
C.C.No.302 /2015
Between
Mangilal Pacheria,
S/o.Late Ghisaram Pacheria,
Aged about 84 years, Occ: Business,
Rr/o.21-1-27/28,
Cellar Floor, MG Market,
Rikabgunj, Hyderabad ……Complainant
And
M/s. Punjab National Bank,
Represented by its Branch Manager,
Charminar Branch, Hyderabad ….Opposite Party
Counsel for the complainant : Mr. Nirmal Kumar Srivastav
Counsel for the opposite Party : Mr.K.Prabhu Kumar
O R D E R
(By Sri P. Vijender, B.Sc., LL.B., President on behalf of the bench)
This complaint is preferred under Section 12 of C.P. Act of 1986 for a direction to opposite party bank to reverse the entry dated 21-08-2014 with regard to debit entry of Rs.24,255/- in his savings bank account and a further direction to pay a sum of Rs.5,00,000/- with interest there on at 24% P.A as damages for causing mental harassment to the complainant by the opposite party bank and the cost of the complaint.
- The complaint averments in brief are that the complainant is having a Savings bank account with opposite party bank. The complainant delivered a cheque bearing No.856407 dated 29-12-2013 to M/s. Akhil Silk Mills, Surat. Thereafter he was informed by said Firm that the cheque given by him was dishonoured for the reasons of insufficient funds in his account. Stating so the said Firm returned the original cheque to the complainant. Thereupon the complainant issued a fresh cheque bearing No.513644 on 22-02-2014 for an amount of Rs.24,255/- and delivered to the said Firm M/s. Akhil Silk Mills and on presentation it was honoured.
Complainant obtained a pass book of S.B account from opposite party bank and noticed that in the second week of February, 2015 there was debit entry for Rs.24,255/- on 21-08-2014 for cheque bearing No.856407 has been honoured on its presentation on the said date. The said debit entry is false because the original dishonoured cheque is in the physical possession of the complainant hence it cannot be said, the said cheque has been honoured by the opposite party bank and making of a debit entry in respect of the said cheque amount is on account of gross negligence on the part of opposite party bank and it also amounts to criminal conspiracy, cheating and criminal breach of trust. Having seen the said false entry the complainant suffered great harm to his mind and body and reputation is affected. The said cheque bearing No.856407 is dated 29-12-2013 and on presentation of the same on 29-12-2013 by M/s. Akhil Silk Mills Limited and was dishonoured as such there was no occasion for the bank to make a debit entry of it on 21-08-2014 after a lapse of 8 months. In fact the very validity of the said cheque has been expired by the time of debit entry made by opposite party bank in the complainant’s pass book.
The opposite party bank every day calling the complainant to pay the said amount. The complainant got issued a notice to opposite party bank on 12-02-2015 asking it to reverse the entry and having acknowledged the said notice the opposite party bank neither reversed the entry nor gave a reply. On account of gross negligence on the part of opposite party bank complainant suffered harm to his mind, body and reputation besides monetary loss and he quantified damages at Rs.5,00,000/-. Hence the present complaint for the above said relief.
- The opposite party bank filed a detailed written version denying the allegations of gross criminal breach of trust and cheating on its part. The facts set out in the written version are that the complainant is having a Savings bank account with it and he issued a cheque bearing No.856407 on 29-12-2013 for a sum of Rs. 24,255/- to M/s. Akhil Silk Mills which is having account with Indian Bank, service branch at Ahmedabad. The said Firm presented the cheque given by the complainant with Indian Bank Ahmedabad branch on 10-01-2014 for clearance through CTS clearing system. Normally cheque will be cleared on the next working day and cheque amount would be debited to the drawer’s account and the amount shall be passed on to the presenting banker i.e., Indian Bank for crediting to the account of M/s. Akhil Silk Mills and the presenting banker will credit the amount to payees account soon after clearing of the cheque. On 11-1-2014 the service branch of the opposite party bank i.e, RCC, Ahmedabad received the cheque for clearance under CTS system wherein the image of cheque would be sent to paying banker and the physical instrument i.e, cheque would be retained by the presenting banker i.,e Indian Bank. The service branch of the opposite party bank i.e, RCC, Ahmedabad could not return the cheque on time for want of funds and due to technical reasons. The Indian Bank service branch at Ahmedabad received the cheque amount from opposite party bank to credit payees account under CTS clearing system. Since the cheque was passed though there was no sufficient funds available in complainant’s account and a debit entry was made in the complainant’s account.
During the reconciliation of imprest account on 21-08-2014 the amount of Rs.24,255/- was debited to the drawer’s (complainant) account by creating a over draft in the account as there was no sufficient balance as on the said date the process of clearance was completed between the presenting banker and drawee bank of instrument.
The opposite party bank is not aware of issuance of fresh cheque by the complainant to M/s. Akhil Silk Mills as same was not informed by the complainant. Opposite party bank is also not aware of return of the physical cheque to the complainant who did not file return memo along with original cheque. The opposite party bank is not aware as to why Indian Bank Ahmedabad returned the physical cheque to the complainant instead of crediting the cleared amount in the payee’s account.
After receipt of the legal notice from the complainant he was informed about the process at the time of his visit.
RCC Ahmedabad branch took up the matter with the Indian Bank service branch Ahmedabad then it came to know that the Indian Bank neither credited the cheque amount to the payee’s account nor returned the amount to opposite party service branch at Ahmedabad at the first instance.
Originally Indian Bank prepared a pay order on 16-01-2014 for a sum of Rs.86,724/- towards returning of disputed cheque amount to PNB RCC Ahmedabad along with the amount of other three cheques but retained the pay order with it. On 30-7-2015 the Indian Bank revalidated the pay order for Rs.86,724/- and sent it to opposite party and same was received by it on 30-7-2015 and then immediately sent for clearance and after clearance of the pay order the opposite party service branch credited the cheque amount to the complainant’s account by reversing the entry dated 21-8-2014 and over draft was cleared. The Indian Bank service branch, Ahmedabad committed a mistake and it is negligent in delivering the physical cheque to the payee without knowing the true facts.
The above stated facts would goes to show that there was no negligence, malafide intention, cheating, and criminal breach of trust on the part of the opposite party Bank. The Indian Bank is responsible for delay and non-credit of the cheque amount to the payee’s account and it is not supposed to return the physical cheque to the payee when it received cheque amount through clearing process. Thus there are no merits in the complaint and same is liable to be dismissed.
In the enquiry stage complainant has got filed evidence affidavit reiterating the allegations made in the complaint and got exhibited four (4) documents to support him. For Opposite Party Bank evidence affidavit of its Manager Sri Venkanna is got filed and the substance of the same is in line with the version set out in the written version. It also got exhibited nine (9) documents. Opposite party alone filed the written arguments. Complainant neither filed the written arguments nor made oral submissions.
On a consideration of material placed on record the following points have emerged for consideration .
- Whether the complainant could substantiate that the opposite party bank by making a debit entry of Rs.24,455/- from savings bank account showing clearance of cheque caused criminal breach of trust, cheating and gross negligence ?
- Whether the complainant is entitled for a damage of Rs.5,00,000/- prayed for ?
- To what relief?
Point No.1&2: The first relief sought by the complainant in the complaint is a direction to opposite party bank to make reverse entry on 21-08-2014 by cancelling the debit entry of Rs.24,455/-. As per the written version and evidence affidavit of the opposite party after receipt of revalidated pay order of Rs.86,724/- from Indian Bank the service branch of Opposite party at Ahmedabad sent for it clearance and on 3-8-2015 its service branch credited the amount into the complainant’s savings bank account and as a result the first claim of the complainant has been satisfied. The complainant has filed the original cheque dated 29-12-2013 delivered by him to M/s. Akhil Silk Mills as it was returned to him by the said Firm as it was bounced when presented by Indian Bank for clearance. The complainant claim is after returning of the cheque to him he gave a fresh cheque to the said Firm on 22-2-2014 the amount of Rs. 24,255/- and same was honoured on 22-2-2014 on presentation and the amount was credited to the account of M/s. Akhil Silk Mills. It is a common knowledge that whenever an instrument of cheque is bounced for any of the reasons it will be returned with a memo by the presenting bank. The complainant is conveniently silent as to what happened to the cheque returned memo delivered along with cheque in Ex.A1 by the Indian Bank to the Firm for whom complainant delivered the said cheque. As rightly pointed out by the opposite party bank how Indian Bank returned the cheque to M/s. Akhil Silk Mills without a cheque return memo. In the written version the opposite party bank has clearly stated that the firm to whom the complainant delivered Ex.A1 cheque got an account with Indian Bank at Ahmedabad branch and it presented the cheque and Indian Bank service branch at Ahmedabad in turn presented the cheque on 10-1-2014 for clearance through CTS clearing system. Since normally cheque will be cleared on the next working day, the cheque amount would be debited to the drawer’s account and the amount will be passed on to the presenting banker i.e., Indian Bank for crediting the same to the account of M/s. Akhil Silk Mills.
On 11-01-2014 the service branch of opposite party bank received the said cheque for clearance through CTS system under which cheque image would be sent to paying banker and physical instrument would be retained by the presenting banker i.e, Indian bank only. The service branch of opposite party bank at Ahmedabad could not return the cheque on time for want of funds and other technical reasons and passed the said cheque . The Indian Bank service branch at Ahmedabad having received the amount from the opposite party bank neither credited the cheque amount to the account of M/s. Akhil Silk Mills nor returned to the service branch of opposite party bank at Ahmedabad . However it prepared a pay order for a sum of Rs.86,724/- for return of the disputed cheque amount along with amount related to three other cheques but did not pass on it and retained for the reasons best known. Thereafter opposite party after receipt of revalidated pay order on 30-07-2015 sent to service Branch of the opposite party bank at Ahmedabad. Soon after receipt of the same it was sent for clearance and amount was credited to the opposite party bank and in consequence of it the opposite party bank reversed the entry dated 21-08-2014. Thus it is crystal clear that lapses are on the part of the Indian bank by not crediting to payee’s account.
The complainant has rightly filed a petition I.A No.186/2016 to implead the Indian Bank service branch at Ahmedabad but the notice sent to the said bank returned with an endorsement as address is not sufficient. There upon the complainant is directed to furnish the correct address of Indian Bank service branch at Ahmmedabad but he did not turn up as a result of it the said petition was dismissed for default on 17-4-2018. Thus the complainant having made an attempt to implead Indian Bank service branch at Ahmedabad whose presence is necessary for adjudication of the lies in between the parties in the present complaint allowed it to be dismissed default. So the complaint is bad for non-joinder of necessary parties.
No attempt has been made by the complainant to explain what happened cheque returned memo issued to M/s. Akhil Silk Mills by its banker Indian bank. It is the specific case of the complainant that the cheque was bounced for the reasons of insufficient funds. But said endorsement was not available on the cheque and it will be on the cheque return memo which has been suppressed by the complainant. It is not as if the complainant amount available in the savings bank account was debited by the opposite party bank showing the clearance of the Ex.A1 cheque. As per the stand of the opposite party there was no balance in the account of the complainant either on the date of issuance of Ex.A1 cheque or when the debiting entry was made for the cheque amount in spite of it the opposite party bank had shown the debit entry by giving a facility of over draft with a view to collect said amount subsequently from the complainant. So how the complainant interest was effected on account of debit entry is not explained. If really he maintained sufficient balance and the amount was debited from his account and without knowing it the complainant issued a cheque to 3rd party or presented himself then it is returned for want of it certainly complainant can claim that because of bouncing of cheque his reputation was effected. The debit entry shown by the opposite party bank is on account of payment of the amount to Indian bank the banker of M/s. Akhil Silk Mills to whom the complainant delivered the disputed cheque and soon after receipt of the amount the entry was reversed by the opposite party bank. How the complainant suffered harm to his mind, body and reputation is not stated. As rightly pointed out by the opposite party bank the complainant wanted to take advantage of situation created by Indian Bank service branch at Ahmedabad. Inconvenience or so called effect of reputation if any to the complainant is on account of mistake committed by Indian Bank service branch Ahmedabad and no relief can be granted to the complainant from the said bank because it is not a party to this complaint. The complainant has miserably failed to substantiate his allegation that opposite party bank deliberately caused debit entry for the amount of Rs.24,255/- and thereby caused harassment to him. Hence the point is answered against the complainant.
Point No.3: In the result, the complaint is dismissed. No order as to costs.
Dictated to steno, transcribed and typed by her, pronounced by us on this the 8th day of April , 2019
MEMBER PRESIDENT
APPENDIX OF EVIDENCE
Exs. filed on behalf of the Complainant:
Ex.A1 is original cheque dated 29-12-2013
Ex.A2 is extract of entries of pass book
Ex.A3 is office copy of the legal notice dt.12-02-2015
Ex.A4is receipt of the RPAD
Exs. filed on behalf of the Opposite party:
Ex.B1 is email dated 13-03-2015 sent by opposite party to service branch RCC Ahhmedabad
Ex.B2 is Email dated 14-03-2015 from RCC Ahmedabad to the opposite party
Ex.B3 is mail dated 25-07-2015 from opposite party to RCC Ahmedabad along with letter dt.24-07-2015 addressed to RCC Ahmedabad
Ex.B4 is mail dated 03-08-2015 from RCC Ahmedabad to opposite party
Ex.B5 is mail dated 03-08-2015 from opposite party to RCC Ahmedabad
Ex.B6 is mail dated 04-08-2015 from RCC Ahmedabad
Ex.B7 is cheque image
Ex.B8 is payment order bearing No.735416 issued by Indian Bank for Rs.86,724/
Ex.B9 is statement of account
MEMBER PRESIDENT
