ALLAHABAD BANK Vs. GREATER HYDERABAD BENEFIT FUND LTD.
ANDHRA PRADESH STATE CONSUMER DISPUTES REDRESSAL COMMISSION
GREATER HYDERABAD BENEFIT FUND LTD.
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(1.) THE opposite party
Nos. 1 and 2 are the appellants.
(2.) AGGRIEVED by the order of the District Forum -II, Hyderabad in O.P. No. 848/1996, dated 21.6.2000, the present appeal is filed.
(3.) THE facts leading to the filing of the appeal are set out as hereunder :
The complainant has opened a current account under Account No. 696
at the Branch of the third opposite party and issued a cheque dated
5.11.1995 drawn on Himayatnagar Branch for issuing a demand draft in favour of its customer B. Kutumba Rao who is a resident of Vijayawada.
The demand draft is issued for a sum of Rs. 3 lakhs drawn on Allahabad
Bank, Vijayawada branch. It is contended by the complainant that on
inquiry they came to know that the demand draft was not issued by the
opposite party in favour of B. Kutumba Rao, but issued in favour of M/s.
Jaya Machinery, Vijayawada which is clearly contrary to the instructions
given to the opposite party. It is further stated that the opposite party
acted contrary to the instructions and acted in a negligent manner in
discharging their obligations as a Banker. The inquiry reveals that
somebody has encashed the demand draft and the complainant was disabled
from recovering the said sum of Rs. 3 lakhs on account of the negligence
of the opposite party.
The complainant addressed a letter dated 15.2.1996 enquiring about the factum of demand draft not being issued in favour of B. Kutumba
Rao but it was issued in favour of M/s. Jaya Machinery, the Chief Manager
appears to have wrote that the cheque was presented with a requisition
for issuing draft for Rs. 3 lakhs favouring M/s. Jaya Machinery by one P.
Durga Prasad purporting to be the representative of B. Kutumba Rao. The
opposite party acted contrary to the instructions which resulted in the
loss of Rs. 3 lakhs to the complainant. Hence he approached the District
Forum seeking for a direction to the opposite parties to pay a sum of Rs.
3 lakhs with interest at 24 per cent per annum from 6.11.1995 till the date of realization and for damages.;
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