Bank to pay for cheque error

NEW DELHI, August 27: The Consumer Disputes Redressal Forum-I at Tis Hazari court has ordered Indian Bank to pay Rs 6,000 as compensation to two complainants whose cheques were dishonoured despitehaving a sufficient account balance. Complainants Bharat Bhushan and Madhu Gupta have a savings bank account no. 1463 with the Paharganj branch of Indian Bank.

On September 5, 1992, they issued a Rs 6,000-cheque in favour of Tata Vashishti for the allotment of 600 equity shares. However the bank did not encash the cheque despite the Guptas8217; account having a credit of Rs 6,280.83. As such, the shares could not be alloted and the Guptas could not avail of the profit they were expecting. While Indian Bank denied the allegations, the forum has held them 8220;guilty of deficiency of service8221;.

If the order is not complied with within 2 months, action will be taken against the bank under Section 27 of the Consumer Protection Act, 1986.

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