B.M.,CANARA BANK vs K.R.HANUMANTHA RAO

THIS appeal is directed against the order passed by the District Forum, Bangalore, in complaint No. 798/90 on its file. It arises in this way: 1. The respondent herein had given two cheques for Rs. 4,000/- each on 12.1.1989 and two cheques for Rs. 50/- each on 5.10.1988 for collection and crediting to his S.B. Account in the Appellant Bank. Out of those four cheques only one cheque for Rs. 50/- was collected and amount was credited to his S.B. Account. But the amounts in respect of other three cheques were not credited to his account. As the Bank refused to pay the said amount to him inspite of his letter dated 18.1.1990, the Respondent filed a complaint before the District Forum, for recovery of the said sum together with interest and costs.

THE Manager of the Appellant Bank admitted the receipt of the said three cheques for collection. According to him, the said cheques were lost and, therefore, their amounts could not be credited to the account of the respondent It is also contended that the Bank is not liable to pay compensation as it is not able to find out what has exactly happened to those cheques. The District Forum, directed the Bank to pay to the complainant, Rs. 8,050/- with interest thereon at 5% p.a. from 15.1.1989 till 15.11.1990 and thereafter at 10% p.a. till the date of payment and costs of Rs. 250/- . Hence this appeal by the Bank.

The learned Counsel for the Appellant urged that as no charges are collected for realising the cheques, the respondent is not a consumer. It is not disputed that the respondent was having his S.B. Account in the Appellant Bank. The Bank is paying 5% interest on the amount outstanding to the credit of the respondent to his S.B. Account and the Bank realises more interest on the said sum by lending it. Hence, we hold that the difference in the interest paid to the. account holder and the interest earned by the Bank by lending his amount is the consideration for the service of the Bank. Therefore, it follows that the respondent, who is the S.B. Account holder is a consumer.

IT is not disputed that the respondent gave three cheques valued at Rs. 8,050/- to the, Appellant Bank for realising the amount and crediting to his S.B. Account and that the said amount has not been credited to his account. The statement of the Appellant Bank that the said cheques were lost, shows that the Bank was negligent in dealing with those cheques. The Bank is unable to state the stage at which those cheques were lost. Hence, it is not possible to know whether the amount of the said cheques has been realised by the Bank or not. The complainant who has deposited the cheques with the Bank cannot be made to suffer on account of the negligence of the employees of the Bank. Under the circumstances, the order passed by the District Forum is proper and we see no valid reason to interfere with the same. In the result, the appeal is dismissed. Parties to bear their own costs. Appeal dismissed.