KOTHA SRINIVASA RAO Vs. ANDHRA BANK, REP. BY ITS BRANCH MANAGER

JUDGEMENT

(1.) Aggrieved by the order in C.C.No.159/2007 on the file of District Forum, Prakasam Dist at Ongole, the complainant preferred this appeal.

(2.) The brief facts as set out in the complaint are that the complainant holds a Savings Bank A/c.no.23615 and on 31.10.2006 the complainant purchased an account payee demand draft bearing no.174634 for an amount of Rs.27,486/- from the opposite party bank drawn on Hyderabad Branch in favour of Vardhaman Textiles Ltd. The complainant sent the said demand draft to Vardhaman Textiles Ltd., Hyderabad through the City Courier Service, Chirala on the same day but it was not delivered to the addressee. On 16.11.2006 the complainant addressed a letter to the opposite party informing that the DD sent by the courier was lost and to immediately stop the payment of the said draft and requested the bank to issue duplicate demand draft. The opposite party issued duplicate demand draft on 5.12.2006 on execution of an indemnity bond in favour of the opposite party undertaking to make good the loss that may be sustained by the opposite party if there is any encashment. The opposite party honoured the duplicate demand draft. On 5.1.2007 the opposite party bank Branch Manager called the complainant and stated that the original Demand Draft was encashed by somebody through H.D.F.C. bank forging the signatures of the bank authorities. The opposite party debited an amount of Rs.27,486/- from the complainants savings account on the same day by obtaining the signatures of the complainant on withdrawal form representing that it was a mere formality as per the opposite party bank rules and that the said amount would be credited to the complainants account within a week. Thereafter a week days expired by 12.1.2007 but the opposite party did not credit the amount to the complainants bank account. Hence the complaint seeking direction to the opposite party to the opposite party to reimburse an amount of Rs.27,486/- to the complainant , to pay interest @ 18% p.a. from 5.1.2007 together with compensation of Rs.20,000/- and to pay costs

(3.) Opposite party filed counter affidavit stating that the complainant purchased a demand draft on 31.10.2006 and on Rs. 16.112006 they received a letter to stop payment and on 18.11.2006 the service centre informed to the opposite party bank about receipt of the letter dt.16.11.2006 and issued acknowledgement notice. On 28.11.2006 indemnity bond was executed by the complainant undertaking that if the draft is encashed he has to pay the amount. The draft was encashed with the knowledge of the complainant and the complainant himself voluntarily came to the bank and issued withdrawal form and obtained payment advise. The complainant did not implead courier service or HDFC bank and it is only the collusion of the complainant with the person who presented the draft and there is no deficiency in service on their behalf.