The Hindu : New Delhi News : Bank appeal against compensation quashed

Online edition of India's National Newspaper
Saturday, Aug 16, 2008
ePaper | Mobile/PDA Version

New Delhi

New Delhi

Bank appeal against compensation quashed

Legal Correspondent

New Delhi: The National Consumer Disputes Redress Commission has upheld an award of Rs. 2.50-lakh compensation to a customer of the Bank of Baroda for not permitting him to withdraw Rs. 5.50 lakh from his savings account.

Rejecting the bank’s appeal, a three-member Bench headed by Commission president, Justice M.B. Shah, quoted a Supreme Court judgment to explain the plight of an ordinary citizen fighting against state or its instrumentalities.

“An ordinary citizen or a common man is hardly equipped to match the might of the state or its instrumentalities. That is provided by the rule of law. It acts as a check on arbitrary and capricious exercise of power. If a public functionary acts maliciously or oppressively and the exercise of power results in harassment and agony, then it is not an exercise of power but its abuse.”

In the instant case, Dr. George John, employed in Dehra Dun, had a savings account with the Bank of Baroda. To meet the expenses for his sister’s marriage fixed for April 15, 2001, he transferred Rs. 5.50 lakh to the Chengannur branch of the bank in Alappuzha district of Kerala in March 2001. But he was not allowed to withdraw the amount between March 30 and May 17, 2001.

As his representation to the bank’s ombudsman proved futile, he moved the Kerala State Consumer Disputes Redress Commission. Later the complaint was transferred to the Delhi State Commission.

The bank contended that there was nothing on record to establish that the complainant or his brother approached the Chengannur branch for withdrawal of the amount. The State Commission directed the bank to pay Rs. 2.50 lakh as compensation and Rs. 10,000 as costs. The bank preferred an appeal against the award.

Upholding the award, the Commission said: “This case illustrates how aptly the observations made by the Apexcourt are applicable to the present case.” The Commission, after hearing Dr. John, said: “The contention of the bank [that there was no record] was without substance because customers [account holders] do not maintain a record of their visits to the banks. It is difficult to believe that the person, who transferred the money for marriage of his sister, would not approach bank for its withdrawal, otherwise there was no necessity for the transfer.”

Printer friendly page
Send this article to Friends by E-Mail

New Delhi

News Update

Stories in this Section