ORIENTAL BANK OF COMMERCE Vs. KRISHAN KUMAR KANSAL

JUDGEMENT

(1.) By this Revision Petition under Section 21(b) of the Consumer Protection Act, 1986 (for short the "Act"), the Oriental Bank of Commerce (for short the "Bank") questions the correctness and legality of the order passed by the State Consumer Disputes Redressal Commission, Union Territory, Chandigarh (for short the 'State Commission") in First Appeal No. 2325 of 2002. By the impugned order, the State Commission upheld the order of the District Forum, which had directed the Bank to pay the cheque amount of Rs. 50,000/-, together with compensation of Rs. 5,000/- and costs of Rs. 1,100/-.

(2.) Briefly put, the facts in the present case are that the Complainant had issued an account payee cheque no. 698251 dated 29.3.2000 in favour of Raja Stone Crushing Mills, Hissar for an amount of Rs. 50,000/-. The Complainant pleaded that the said cheque was cleared by the Hissar District Central Bank Ltd. at about 11:00 a.m. on 29.3.2000 itself. The Respondent Bank stopped the payment of this cheque at about 12.00 noon and this was informed to him by the holder of the cheque at about 1.00 p.m. on 29.3.2000. The Complainant met the Bank Manager at about 1.30 p.m. but he refused to clear the said cheque and did not disclose any reason. Thereafter, the Bank issued a memo on 29.3.2000 at about 3.00 p.m. stating that the Complainant's account was attached by the Deputy Commissioner of Income Tax, Hissar at about 2.00 p.m. The Complainant averred that there was no reason for the Bank to stop the payment of his cheque, which was presented in the Bank on 29.3.2000 before 11.00 a.m. during the banking hours. The Complainant pleaded that there was a credit balance of Rs. 88,496.24/- in his Account as on 29.3.2000 and the Bank Manager had sent the entire balance amount to the Income Tax Officer. Had the Bank cleared this cheque on time, this amount of Rs. 50,000/- would have been paid to the cheque holder. The Complainant averred that he is entitled to recover the said sum of Rs. 50,000/- from the Bank towards actual loss together with a sum of Rs. 25,000/- as compensation for the mental agony and damages suffered by him.

(3.) Opposite parties 1 and 2 filed their written version and averred that at the time of presentation of the cheque, there was only a balance of Rs. 38,496.24/- in the Complainant's account. They specifically denied that the cheque was cleared by the concerned officer of the bank at about 11.00 a.m. on 29.3.2000 and that a token was issued for payment. In general, cash transactions take place before 2.00 p.m. and payment received by transfer through clearing cheques or otherwise is credited in the concerned account after public transaction i.e. after 2.00 p.m. The Complainant's account was attached on 29.3.2000 at 2.00 p.m. as per the order of the Deputy Commissioner of Income Tax, Hissar Circle, Hissar and therefore, they have no authority to clear the Complainant's cheque. The Complainant's account did not have sufficient balance at the time of clearance of the cheque because the transfer entry of Rs. 50,000/- was credited in the Complainant's account only after public transaction. The present dispute is between the Complainant and the Income Tax Authority and the Opposite Parties pleaded that there was no deficiency of service on their behalf and prayed for dismissal of the complaint against them.