A B STEVAIR SYSTEMS PRIVATE LIMITED Vs. STATE BANK OF PATIALA
LAWS(DELCDRC)-2006-10-2
DELHI STATE CONSUMER DISPUTES REDRESSAL COMMISSION
Decided on October 05,2006

A B Stevair Systems Private Limited Appellant
VERSUS
STATE BANK OF PATIALA Respondents

JUDGEMENT

- (1.) ALLEGING deficiency in service on the part of opposite party -State Bank of Patiala (in short OP -Bank) in dishonouring cheques of Rs. 6 lakh each issued by the complainant -firm, complainant has sought direction of the OP -Bank to allow withdrawal of Rs. 12,13,592 which was credit balance on 6.3.97 in its account and also interest and compensation.
(2.) CASE of the complainant, in brief, is that the complainant is a company engaged in sale and purchase of shares and other investments. Sh. Anil Kumar is one of the directors of the complainant company. Complainant has been maintaining its Current A/c bearing No. 205 with the OP -Bank. On 5.3.1997 the complainant deposited two pay orders issued by Canara Bank each of Rs. 6 lakh issued in favour of the complainant, for collection through clearing and the payments thereof was collected by OP and the same were credited into the account of the complainant on 6.3.1997 thereby showing a credit balance of Rs. 12,13,592 in the account.
(3.) THAT the complainant issued a bearer cheque bearing No. 417287 dated 29.4.1997 for Rs. 12 lakh but on deposit it was returned dishonoured by the OP -Bank with remarks "Account already overdrawn". On enquiries the complainant was informed that the bankers cheques/pay orders worth Rs. 40 lakh, issued by the Bank of Madurai Ltd. E -4, Conn. Place, New Delhi in favour of the complainant, have not been honoured by the said issuing bank (Bank of Madurai Ltd.) on the ground that the same were reported missing by the purchaser thereof M/s. C.R.B. Capital Markets Ltd. According to the complainant, the OP -Bank having purchased the said bank drafts/pay orders instruments from the complainant, was possessed with title, right and interest and therefore, Bank of Madura had no authority to dishonour the same. The pay orders issued by Bank of Madurai remained unpaid although the said bank did not disown the issuance of the same. Since the OP -Bank had no authority to debit the account of the complainant vide entries dated 7.3.1997, 10.3.1997 and 11.3.1997, it created a frivolous debit balances in the account and this amounts to deficiency in service.;


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