For dishonouring cheque wrongfully, consumer disputes redressal forum, Chandigarh, directed Canara Bank to pay Rs 10,000 as compensation for deficient services and Rs. 5,000 as cost of litigation to a Sector-41 resident.
Balwinder Singh, in 2013, took a health insurance policy from Kotak Mahindra Bank Limited, and issued a cheque in January 2013 of Canara bank amounting to Rs 4,656 towards premium.
He claimed but despite paying the money through cheque, the policy was cancelled, and on enquiring, Balwinder came to know that the insurance policy was cancelled on account of insufficient funds in his account as the cheque issued by him was dishonoured.
Balwinder claimed that according to the statement issued by the Canara bank itself, there was sufficient amount in his account. Alleging that the act of the bank in not clearing his cheque amounts to deficiency in service and unfair trade practice on its part, Balwinder moved consumer forum.
Canara Bank, in its reply, said due to mechanical error in the account holding system, the cheque of the complainant was presented in the wrong account and in the said account there was no sufficient funds to clear the cheque and in such circumstances the cheque of the complainant could not be cleared.
Consumer forum, presided over by Rajan Dewan, on July 9, opined, “For the dishonour of the cheque of the complainant, the bank has tried to take shelter behind some mechanical error in the account holding system, however, it has failed to give elaborate reasons for the same. Therefore, bank is proved to be deficient in rendering proper service.”