consumer case
a.manoharan
(Querist) 28 February 2011
This query is : Resolved
Dear friends, the customer presented his retirement-benefit-cheque into Nationalized Bank whereat he and his institution also have the accounts. Hence, As the same bank is a computorized branch , immediately his cheque was honoured and the same was accounted into his account. on the same day , within minutes, the same customer's another cheque issued to his friend was presented and the same was also honoured and transferred into his friend's account . Subsequently , the customer presented his cheque for withdrawal , there is no sufficient balance in his account due to his friend's collection of customer's cheque. now ,the question is ' is it lack of deficiency of service'. Any land mark judgement? thanks in advance.
R.Ramachandran
(Expert) 28 February 2011
What do you say, when the cheques deposited were got cleared and account credited; similarly when the cheque issued was promptly honoured and account debited.
When the account holder (customer) again presents a self-cheque for withdrawal of money, if the balance in his bank account was not sufficient to honour the withdrawal, how can one say there is any deficiency of service. Do you mean to say that the bank is not supposed to honour the cheque issued by the customer to his friend - but wait for honouring the self-cheque to be presented later? In any case, if the cheque issued to his friend gets dishonoured, he would be hauled up u/s 138 N.I.Act.
Uma parameswaran
(Expert) 28 February 2011
Yes .it is Lack of deficiency of service.
Guest
(Expert) 01 March 2011
If cheques are issued for more than the balance in account, or if the balance falls below the amount of any one cheque, logically how that can be lack or deficiency of service on the part of the bank?
Advocate Vivek Nasa
(Expert) 02 March 2011
If the cheque amount exceeds the outstanding balance, and cheque is dis-honored by the the bank, there is no deficiency in services rendered by the bank.
