SHUBH LAXMI MEDICOS Vs. DENA BANK

JUDGEMENT

(1.) THE complainant was sanctioned cash credit limit of Rs.50,000/ - by the respondent and there was a debit balance of Rs.5,168.59/ - in his account as on 31 -12 -1999. Since there was no transaction in the aforesaid account for a considerable period it was taken as NPA. The request of the complainant for continuing the account was not acceded to. The complainant issued a cheque of Rs.10,000/ - on 30 -08 -2001 and a cheque of Rs.16,000/ - on 31 -08 -2001. Both the cheques were dishonoured on the ground that there was no credit balance in his account. Alleging that in fact there was a credit balance of Rs.26,062.41/ - in his account and, therefore, the cheques ought not to have been dishonoured, he approached the concerned District Forum by way of a complaint against the bank.

(2.) THE complaint was resisted by the bank on the ground that since there was no credit balance in the account of the complainant the cheques had been rightly dishonoured.

(3.) VIDE order dated 07 -12 -2006 the District Forum directed the bank to pay an amount of Rs.26,062.41/ - to the complainant along with interest at the rate of 12% per annum, compensation quantified at Rs.2,000/ - and the cost of litigation quantified at Rs.1,000/ -.