CANARA BANK Vs. VIJAYAKUMARAN RAGHAVAN

JUDGEMENT

(1.) Aggrieved by the order in CC No. 21/2013 dated 28.09.2015 passed by Kerala State Consumer Disputes Redressal Commission (for short "the State Commission"?) M/s Canara Bank and Others (hereinafter referred to as "the Bank"?) has preferred this Appeal under Section 19 of the Consumer Protection Act, 1986 (for short "the Act"?). By the impugned order, the State Commission has allowed the Complaint with the following directions:-

(2.) Briefly stated the facts of the case are that the Complainant is an expatriate businessman settled at Doha, Qatar. He was customer of the Bank at its Third Opposite Party Branch by having three NRE Accounts with NRE Fixed Deposits. He was keeping substantially large sum in his accounts. He used to do his correspondence with the Bank through his e-mail id necovijay@yahoo.com. On 26.04.2012, he learnt that his said e-mail id was hacked by some unknown fraudsters and on 27.04.2012 itself he intimated about the same to the Bank through his another e-mail id i.e. vijayakaladas2003@yahoo.com and directed them not to entertain any e-mail correspondence from e-mail id necovijay@yahoo.com. The said message was received by the Third Opposite Party and was duly acknowledged by them. After the receipt of the said communication the Third Opposite Party was legally and morally bound to stop all money transfers of the Complainant under e-mail instructions.

(3.) Subsequently, at the request of the Complainant through e-mail copy of statement of accounts maintained in the Third Opposite Party Branch was served on him. On verification of the said statement of accounts the Complainant found some discrepancy in the account balance. He was shocked to find that US$86,500 was debited by way of closing the NRE fixed deposit. The said fixed deposited was closed and the amount was transferred through the NRE account to some other banks abroad and all were made without any prior information or instruction of the Complainant. He found that US$9,000 was withdrawn on 16.08.2012, US$27,000 on 04.09.2012, US$ 30,000 on 05.09.2012 and US$20,500 on 12.09.2012 and were transferred to some bank abroad. Thus a total amount of US$86,500 was fraudulently withdrawn from his account amounting to Rs.48,25,671/-. Complainant through his e-mail requested the Third Opposite Party Branch to explain the discrepancy in the transactions from 16.08.2012 to 12.09.2012. In response to the same the Bank responded that the amounts were transferred as per instructions received from his through e-mail. Bank transferred the said amounts on the instructions received from his hacked account which was clear negligence on the part of the Bank. On 27.09.2012 the said fraudulent transfers/transactions were brought to the knowledge of the Chief Manager of Third Opposite Party Branch, Customer Service Manager of the First Opposite Party and Circle Office, Thiruvananthapuram but no serious action was taken. On 05.12.2012 he issued notice to Third Opposite Party Branch to rectify the mistakes and credit the amounts transferred from the account of the Complainant back to his account. In response thereto the Third Opposite Party Branch acknowledged the intimation regarding hacking of e-mail id and the direction to stop money transactions based on the said registered e-mail id but maintained that even after receipt of the said intimation the existing e-mail id continued to be the registered e-mail id in the bank records for the reason that alternative e-mail id was not registered. Complainant then issued letter dated 04.01.2013 asking the Bank to credit the amount fraudulently transferred but Bank did not do so. Aggrieved the Complainant filed the Complaint seeking the following reliefs:-