Banker sue-moto re-open a closed account.
Kunal Sarkar
(Querist) 09 August 2014
This query is : Resolved
Respected Experts,
Can a Banker re-open any closed Savings Account of any customer after a long period of 06 (six) months for clearance any cheque of that customer, without any prior intimation to the customer ?
if so under which provisions of law ?
In this respect which law is applicable ?
In that event can customer entitle any remedy from Banker ?
Devajyoti Barman
(Expert) 10 August 2014
looks like academic query.
If not then give background details.
prabhakar singh
(Expert) 10 August 2014
FIRST YOU NEED TO UNDERSTAND WHAT A CLOSED ACCOUNT IS?
YOU ARE CONFUSED ABOUT A DORMANT ACCOUNT IN WHICH NO TRANSACTION OF WITHDRAWAL HAS TAKEN DURING LAST SIX MONTHS.MANY BANKS DO NOT TREAT THEM DORMANT AND THOSE WHO TREAT HAVE DISCRETION TO ALLOW TRANSACTIONS OF WITHDRAWALS.
ajay sethi
(Expert) 10 August 2014
agree with prabhakarsinghji
K.K.Ganguly
(Expert) 10 August 2014
Furnish complete details of your problem.
Raj Kumar Makkad
(Expert) 10 August 2014
Unless you post the entire relevant facts, no definite reply can be provided to you. What do you mean by close of account and how the alleged account-holder issued a cheque against the closed account?
Kumar Doab
(Expert) 10 August 2014
Agreed with Mr. Prabhakar Singh and the Dormant and Closed a/c has been differentiated.
RAJU O.F.,
(Expert) 10 August 2014
Even in dormant accounts, without the knowledge of customer clearance of a cheque is not possible, unless any standing instructions were given by the customer to that effect.
prabhakar singh
(Expert) 10 August 2014
It should be noted carefully that those banks who make a/cs dormant do not insist any application in writing,just an oral request is enough.
And if there is a cheque issued in name of third party,bank is obliged to honor it even for dormant a/cs.
Rajendra K Goyal
(Expert) 10 August 2014
Whether account was inoperative, dormant, closed or was having zero balance?
How the cheque was received by the Banker?
What was the purpose of credit by the Bank and in what conditions?
What is the grievance when the amount was credited in your account.
Whether at the time of closing of account you closed your customer relation (customer no.)with the Bank which is separate than the account?
Even after closure of particular account some Bank keep the customer no. active so that the same can be used if again account is to be opened. Bank was not wrong even if the account was opened using the same customer no.
Kunal Sarkar
(Querist) 12 August 2014
The fact of the case is that, my client was an Savings Account with Central Bank of India with cheque facility. The cheque book of my client was lost and in due course my client closed his aforesaid account and the Bank issued him a certificate to this effect.
Latter on after a gap of 06 (six) months new Manager joined in the said Branch and the complainant through his own bank deposited one of the lost cheque from the lost cheque book of my client amounting Rupees four lacks.
The new Manager reopen the savings account of my client and dishonour the cheque and then in due course complainant filed case under sec. 138 of NI Act against my client claiming cheque amount.
Now my question is that,
Whether any closed savings account was reopen by the bank authority without intimating the holder of the account ?
if so under what provision of Bank Law or any other law in force ?
whether any remedy is available to my client against the bank authority for their act or omission ?
whether my client is liable for dishonour of cheque ?
Anirudh
(Expert) 12 August 2014
1. What was the balance in your account when you closed it?
2. Did you get the balance in your credit when the account was closed or not? If not, why not?
3. Did you lodge any police complaint about the cheque book having been lost? If not, why not?
4. Please indicate as to what is the exact reason given by your bank, while dishonouring the cheque? (Obviously, if the account was closed, it cannot be "for want of insufficient funds"?) The cheque might have been dishonoured with some other reason. Please indicate this as this information is quite vital.
Raj Kumar Makkad
(Expert) 12 August 2014
Closure of bank account and issuance of a certificate to that effect by banker itself do represent that there was no balance in that account at that time but the reason of closure of bank account and the report to the police qua the loss of the cheque book is very crucial in your case.
Dr J C Vashista
(Expert) 13 August 2014
I agree with the experts. please reply the relevant questions raised by Mr. Anirudh especially what was the action taken by your client for the lost cheque, ie., reporting to police?
Was the cheque presented in the account stated to be closed, duly filled and signed?
What was the date of drawing the subject cheque?
State full facts for forming an opinion please.
T. Kalaiselvan, Advocate
(Expert) 13 August 2014
The bankers would have bounced the cheque citing "Account closed" as reason for returning the cheque unpaid, if that is so, there is no question of reopening the closed account, don't get confused, see the actual reason quoted by the bank while dishonoring the cheque and come back with a proper query instead of giving vague and piece meal information in the name of a query, if at all you sincerely want a proper opinion.
Anirudh
(Expert) 29 August 2014
Dear Mr. Venkatesh,
THANK GOD. All these 19 days I was wondering what would happen in case you had not agreed with the experts.
