B M CANARA BANK Vs. K R HANUMANTHA RAO

JUDGEMENT

(1.) This appeal is directed against the order passed by the District Forum, Bangalore, in complaint No.798/90 on its file. It arises in this way: 1. The respondent herein had given two cheques for Rs.4,000/- each on 12.1.1989 and two cheques for Rs.50/- each on 5.10.1988 for collection and crediting to his S. B. Account in the Appellant Bank. Out of those four cheques only one cheque for Rs.50/- was collected and amount was credited to his S. B. Account. But the amounts in respect of other three cheques were not credited to his account. As the Bank refused to pay the said amount to him inspite of his letter dated 18.1.1990, the Respondent filed a complaint before the District Forum, for recovery of the said sum together with interest and costs.

(2.) The Manager of the Appellant Bank admitted the receipt of the said three cheques for collection. According to him, the said cheques were lost and, therefore, their amounts could not be credited to the account of the respondent It is also contended that the Bank is not liable to pay compensation as it is not able to find out what has exactly happened to those cheques.

(3.) The District Forum, directed the Bank to pay to the complainant, Rs.8,050/- with interest thereon at 5% p. a. from 15.1.1989 till 15.11.1990 and thereafter at 10% p. a. till the date of payment and costs of Rs.250/-. Hence this appeal by the Bank.