M. T. SELVARAJ Vs. BRANCH MANAGER, INDIAN OVERSEAS BANK, 4TH MAIN ROAD, BRANCH CODE 2075, ANNA NAGAR, CHENNAI - 600040

JUDGEMENT

(1.) The petitioner challenges the order passed by the Banking Ombudsman, Reserve Bank of India/R3, which rejects his complaint on the ground that it does not make out any of the grounds of complaint set out in clause 8 of the Banking Ombudsman Scheme 2006.

(2.) The petitioner states that he had entered into a loan agreement with another individual, in terms of which the petitioner had advanced a loan of sum of Rs.10,00,000.00 to him. The amount was to be repaid within 11 months from date of the agreement or whenever the demand for repayment is made. The petitioner had made a demand for repayment of the amount along with interest on 8/8/2016 and the individual had handed over a crossed bank cheque for an amount of Rs.10,00,000.00 drawn on the 2nd respondent bank i.e., Oriental Bank of Commerce, Chennai - 600040 (herein after referred as 'drawee bank').

(3.) The petitioner did nothing further till the fag end of the 90 day period provided for validity of the cheque and lodged it on 7/11/2016 before the 1st respondent Bank ie., Indian Overseas Bank. The 1st respondent Bank had passed the cheque to 2nd respondent bank the next day, the 91st day as a result that, R2 dishonored the cheque by way of slip dtd. 8/11/2016 on the ground 'Stale/outdated cheque'.