E-Paper
Dishonouring Chandigarh resident’s cheque despite sufficient funds costs bank dear
When the complainant presented a self-cheque for the same amount, it was easily encashed and another bank transaction was also successful
The District Consumer Disputes Redressal Commission has penalised Punjab National Bank for dishonouring a Sector-33 resident’s donation cheque despite adequate funds in his bank account.
In his complaint, Darshan Singh, 68, had submitted that he had donated ₹21,000 via cheque to Shubh Karman Trust on August 8, 2019. However, the cheque was dishonoured with the remarks “account blocked”, causing him humiliation.
When he presented a self-cheque for the same amount in September 2019, it was easily encashed and another bank transaction was also successful.
He paid the donation in cash and approached the bank for reasons for cheque bounce, but it failed to give any plausible reason.
Alleging that the aforesaid acts of omission and commission on the part of the bank amount to deficiency in service and unfair trade practice, the complainant approached the consumer commission.
In its response, the bank submitted that the staff had been requesting Singh to complete the KYC, as mandated by RBI guidelines, but he did not comply, which led to the cheque being dishonoured.
However, the commission observed that the bank had failed to bring on record any documentary evidence that showed Singh was ever intimated to complete the KYC formalities failing which the account will be blocked.
“Moreover, it is not understood that if the KYC formalities were not completed by the complainant, then how the self-cheque was honoured by the bank,” the commission said.
Allowing Singh’s complaint, the commission said, “Due to dishonour of the cheque by the bank issued in favour of the trust, the complainant had to suffer humiliation and his reputation was also damaged. In view of the above, the deficiency in service on the part of the bank is proved.”
Singh was awarded compensation of ₹5,000 on account of mental agony and physical harassment, as well as litigation expenses.
