Banks to pay compensation for wrong payment: SC
The Supreme Court has held that banks are liable to compensate a customer whose money is wrongly paid to another person without verifying the original signature of the account-holder as it amounted to deficiency of service. - Banks to seek govt nod for issuing tax-free bonds - The cost of land - Latha Jishnu: Who owns the eggplant?">Latha Jishnu: Who owns the eggplant? - Pvt varsities flout UGC, SC directions; run off-campus - Govt not aware of any move to impeach Dinakaran: Moily - M J Antony: Lure of govt contracts">M J Antony: Lure of govt contracts A Bench of Justices D K Jain and T S Thakur said the bank was guilty of honouring the cheque presented by the fraudster by releasing an amount over and above the amount in the account even though the customer Gurnam Singh had no overdraft facility. "On a query by the court how in the absence of any overdraft facility being enjoyed by the complainant, a cheque for the amount which was in excess of the balance amount in the account of the complainant could be honoured, learned counsel is unable to furnish any satisfactory explanation. "In our opinion, this fact, highlighted by the State (Consumer) Commission, by itself is a glaring example of negligence/deficiency in the service of the bank," the Bench said. The Bench made the remarks while dismissing the appeal of public sector Vijaya Bank which had challenged the concurrent findings of district consumer forum, Chandigarh, State Consumer Commission and the National Consumer Commission which had held the bank guility of deficiency in service for releasing an amount of over Rs 3.5 lakh to a fraudster who had presented stolen cheques of Gurnam Singh.Compare payday loan commented:
They have to pay the money now as they have not taken the proper care
06.09.2011
cash loans commented:
Swupreme court\'s verdict is right in the situation I think.Thanks for such post.
05.11.2011
http://www.citycashloans.co.uk/Articles-payday-loans.html commented:
I am in favour of SC\'s decision as it is totally fair and reasonable.Thanks for such post.
09.11.2011
Wealth Transfer Asia commented:
Supreme court\'s decision is really very nice and it will help banks in understanding how they operate specially private bank.I really like the post very much.
10.11.2011
Family Offices Singapore commented:
They must compensate and even pay the penalty for not doing its work properly and giving some kind of harassment to the customer.
12.11.2011
Mortgage Specialist commented:
Banks have to follow the commint rule which are specified by the commitment books for all the banks.That guy must be comensated for the problem he faced.
23.12.2011
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29.12.2011