The Tamil Nadu State Consumer Disputes Redressal Commission, Chennai, has ruled that a customer cannot seek refund of the entire amount of a lost cheque from banks and has to seek a duplicate cheque as per the Negotiable Instruments (NI) Act.
Its judgment comes in an appeal filed by Indian Bank against a District Consumer Disputes Redressal Commission, Nagapattinam, ruling directing the bank to pay ₹2 lakh towards the cheque amount (which was lost) along with interest and ₹25,000 as compensation for mental agony caused to the customer for deficiency of service.
The Commission cited that as per a Supreme Court ruling, the course left open for the consumer was to take steps under Section 45-A of the NI Act for obtaining a duplicate cheque from the drawer. Without seeking recourse, the consumer cannot seek blanket direction to order payment of the entire cheque amount.
It set aside the order of the District Forum to refund the entire cheque amount. However, the Commission noted that the bank did not reply to the legal notice sent by the customer and ruled that it amounted to deficiency of service.
The Bench, comprising president justice R. Subbiah and member R. Venkatesa Perumal, directed the bank to pay ₹1 lakh as compensation for the deficiency of service.
