WTD SRI ITALY Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THE short facts of the case are that the Italy based complainant company which has contract business in India has a Current Account bearing number 01000/071053 with the OP Bank. The OPs cheque books pertaining to that account were got lost and the complainant intimated the OP Bank on 04 -02 -2003 by sending a written information to stop payments to all cheques which were not encashed by then, duly received.

(2.) THE complainant thereafter on 22 -09 -2004 requested the OP Bank in writing to furnish the details about the cheques and the statement of account and the OP Bank in turn supplied the statement of account to the complainant. The complainant s grouse in the complaint is that on perusing the statement of account, it came to its notice that despite receipt of its intimation to stop the payment, the OP bank had encashed three cheques on 7th July and three cheques on 26th July 2003 in total six cheques for an amount of Rs. 11,98,081/ -.

(3.) THE complainant thereafter on 04 -11 -2004 sent a legal notice to the OP (annexure P -4) alleging negligence and deficiency in service on the part of the bank for encashing cheques despite restraint instructions and demanded the bank to pay the complainant Rs. 11,98,081/ - the cleared amount alongwith interest @ 24%, Rs, 2,87,539/ - and Rs. Two lakhs for mental agony and Rs. 25,000/ - towards legal expenses total Rs. 17,10,620/ - which the OP replied on 04 -11 -2004 (annexure P -5) intimating that none of the cheques in respect of which stop payment instructions were received by the Bank had been cleared by the bank and only those cheques for which no stop payment instructions had been received were cleared by the bank including cheques bearing nos. 00644043, 00655818, 00655812, 00655807, and 00655819 ( one cheque 00655817 of an amount of Rs, 2,14,108/ - was also encashed but no mention in the reply of the notice).