District Consumer Disputes Redressal Commission order : Ludhiana Bizman gets ₹50k compensation as bank loses ₹6L bounced cheque

The complainant, Inderpal Singh, proprietor of Jasbir Trading Company at New Grain Market, said a fabric-dealing firm had issued him a cheque for ₹6.05 lakh towards an outstanding payment

The District Consumer Disputes Redressal Commission, Ludhiana, has directed HDFC Bank to pay ₹50,000 compensation to a Ludhiana businessman after its officials allegedly lost a dishonoured cheque worth ₹6.05 lakh, depriving him of the opportunity to pursue legal remedies against the issuer.

The order was passed by the commission comprising president Sanjeev Batra and member Monika Bhagat on August 7. (HT FILE)

The order was passed by the commission comprising president Sanjeev Batra and member Monika Bhagat on August 7.

The complainant, Inderpal Singh, proprietor of Jasbir Trading Company at New Grain Market, said a fabric-dealing firm had issued him a cheque for ₹6.05 lakh towards an outstanding payment. He deposited the cheque with HDFC Bank on November 3, 2022, but it was dishonoured the next day due to insufficient funds.

According to the complaint, the bank deducted ₹118 as bouncing charges but failed to return the original dishonoured cheque and bank return memo despite repeated requests. When Singh approached bank officials, he was allegedly told that the cheque had been lost.

The businessman told the commission that the loss of the original cheque affected his ability to initiate proceedings under Section 138 of the Negotiable Instruments Act, which deals with cheque dishonour. He also claimed that the loss of the cheque affected his right to represent it within its validity period.

The bank did not appear before the commission despite notice and was proceeded against ex parte.

The commission observed that the bank was legally required to return the dishonoured cheque along with the return memo so that the complainant could pursue the remedies available to him. Its failure to do so, the commission held, constituted negligence and caused mental agony and harassment.

However, the commission rejected the complainant’s claim for compensation equivalent to the entire ₹6.05 lakh cheque amount, observing that the underlying debt and his right to sue the cheque issuer continued to survive.

The commission directed HDFC Bank to pay ₹50,000 as composite compensation within 30 days of receiving the order. If the bank fails to comply, it will have to pay an additional ₹500 per day from the date of the order until the payment is made.