PUNJAB NATIONAL BANK Vs. MAJ A P LAWALE

JUDGEMENT

(1.) Whether the contravention of the categoric instructions of the Reserve Bank of India pertaining to the mandatory purchase at par of all out-station cheques upto Rs.2,500/- only would be a deficiency in the service of banking? This has ultimately come to be the crucial question in this set of two connected appeals i. e. First Appeal Nos.248 and 242 of 1992, directed against the same order of the District Forum, Ambala.

(2.) Since the other ancillary issues now pale into insignificance, the facts deserve primal notice with reference to the aforesaid issue alone. Maj. A. P. Lawale is a retired serviceman who had maintained a long-standing personal account with Punjab National Bank at its branch in Sector 6, Panchkula. According to him on the 28th of December, 1991, he presented his cheque dated the 28th of December, 1991 for Rs.2,200/-only which was duly purchased by the Bank. On the basis of the said purchase, the consumer-complainant issued his cheque dated the 31st of December, 1991 for Rs.4,500/- in favour of Dr. Sudarshan Kumar, his landlord for payment of the rent due. However, this cheque was dishonoured by the Bank on the ground of insufficient funds to the great annoyance and hardship of the complainant. He was served with a somewhat offensive communication from Dr. Sudarshan Kumar aforesaid casting as persons on his conduct as an officer and pointing out that such dis-honour was also a criminal offence. The complainant then approached the Bank and was surprised to learn that his cheque dated the 28th of December, 1991 for Rs.2,200/- purchased by the Bank on the 28th of December, 1991 was not credited to his account and for that reason, the cheque issued by him in favour of his landlord was dis-honoured. Alleging a grave deficiency in the service on the part of the Bank which had affected his reputation and his credibility as a distinguished soldier and also rendered him perhaps liable for criminal action, he claimed Rs.25,000/- as compensation.

(3.) In the written statement filed by the Bank, it was admitted that the complainant had presented the cheque for Rs.2,200/- on the 28th of December, 1991 but the plea was taken that this was for collection. The further case set-up was that the complainant was a partner in another account maintained by a firm in the name and style of M/s. EXSEN which enjoyed loan limits from the Bank. It was alleged that the said loan account was running highly irregularly and keeping this in view, the credit for the cheque was not given to him because no cheque was discounted in the account which showed any adverse features. It as claimed that the Bank would have a lien over the cheque presented to them by the complainant. It was then the case that when the complainant explained his plight to the Manager of the Bank on the 9th of January, 1992, the Bank thereafter gave him the credit of Rs.2,190/- to his account. It was alleged that the complaint was frivolous in nature.