KAPIL CHIT FUNDS PVT LTD Vs. ANDHRA BANK

JUDGEMENT

(1.) Aggrieved by the dismissal of his complaint opposite party 580/95 by the District Forum, Karimnagar, the complainant preferred this appeal.

(2.) The complainant is Kapil Chit Funds Private Ltd. , and is having Secured Over Draft Account with the first opposite party i. e. , Andhra Bank, Karimnagar branch. One Veeraswamy joined in a chit for Rs.3 lakhs and became a prize bidder on 25.10.92. But the said Veeraswamy committed default of payment of instalments thereafter. When the complainant demanded payment of arrears of instalments, the said Veeraswamy directed the second opposite party K. Venugopal who was looking after his cinema theatre to issue a cheque to the complainant towards the amount due. Accordingly the second opposite party issued a cheque bearing No.422538 dated 24.10.93 for Rs.16114/- drawn on K. D. C. C. Bank, Choppadandi and the complainant deposited the said cheque in his account for realisation. The Andhra Bank gave credit for the amount in the complainant's account as the complainant is a old customer and is having Secured Over Draft facility and sent the cheque for clearance. But as the KDCC Bank at Choppadandi did not send the proceeds and also did not return the cheque inspite of the letters written by the Andhra Bank, the Andhra Bank debited the account of the complainant with the said amount and informed the same to the complainant.

(3.) Alleging that the second opposite party replied that he had already given a cheque and he is not liable to pay again and that therefore the Andhra Bank has no right to debit the amount in his account after a period of more than one year without returning the cheque, the complaint was filed claiming payment of a sum of Rs.16114/- with interest @ 12% p. a. from 24.10.93 and also a sum of towards penalty for negligent service by the first opposite party costs.