FILMALAYA PVT LTD Vs. CORPORATION BANK

JUDGEMENT

(1.) This is a rare complaint by a depositor alleging negligence in Banking service. The complainant is therefore claiming compensation from the Corporation Bank on account of Financial Loss suffered by Filmalaya Pvt. Ltd. as a result of defective banking services in relation to his two accounts.

(2.) It is necessary to state the facts of this Complaint. Filmalaya (P) Ltd. is a famous studio at Andheri (W), Bombay. Since last 30 years the studio is hired by various producers for shooting films. Opposite Party, the Corporation Bank (for short Bank) had estabalished a small counter next to the Filmalaya studio at Ceasar Road, Bombay. Filmalaya Pvt. Ltd. opened Account No.16 on 1.12.1979 and another Account No.162 on 20.12.1985 with the Bank counter. According to complainant Account No.16 was meant for hiring business of the studio while Account No.162 was operated for payment of telephone, electricity bills and incidental maintenance of the studio. Pradeep Roy was the cashier in the employment of complainant and was handling day to day bank work of depositing cheques, cash and also used to withdraw cash from the Bank. However, the cheques were being signed by complainant. During the period from 18.8.1986 to 23.8.1987 an amount of Rs.2,42,021.50 was found to have been misappropriated from both Accounts No.16 and 162. The complainant alleged that misappropriation is a result of gross negligence and glaring dereliction of duties by the Bank Officials. It is further alleges that the Bank officials were a party to the misappropriation alongwith their cashier Pradeep Roy. The incident was reported to Police Station, D. N. Nagar, Bombay on 23.8.1987. The Police after the investigation filed the chargesheet in criminal Court against Pradeep Roy. He was convicted on his own admission for committing the offences of forgery and misappropriation. According to complainant, the Bank official Shri V. R. Shanbag, who was Sub-Manager at the counter of the Bank at the relevant time was immediately transferred out of Bombay in order to protect him.

(3.) The complainant has incorporated in the complaint the statement showing the details of amounts involved which resulted in his loss. According to complainant the fraud was committed with the common intention by his Accountant Mr. Pradeep Roy and Mr. V. R. Shanbag, the Bank Employee. The fraud and misappropriation is divided into three methods as under:-