HARJIVANDAS VALJIBHAI PATEL vs MANAGER, DENA BANK

THE complainant is having Savings Bank Account number 1318 with the Saraspur Branch of Dena Bank (Bank for short). He had, it appears, issued two post-dated cheques, each for Rs. 1 lakh in favour of Harshnagar Co-operative Society. Cheque No. 429404 for Rs. 1 lakh was dated 10.6.95 whereas Cheque No. 429405 for Rs. 1 lakh was dated 10.8.95. By his letter dated 7.6.95 the complainant informed the Bank to stop the payment of the aforesaid two cheques. THE letter, it seems was handed over personally to the Manager of the Bank and in token of the receipt thereof stamp of the Bank was affixed.

LATER on the complainant came to know that Cheque No. 429404 dated 10.6.95 was honoured by the Bank and payment thereof was made. The Bank issued certificate dated 15.7.95 that the said cheque for Rs. 1 lakh was honoured. It is submitted that the Bank is guilty of negligence or in any case deficiency in service in making payment of the cheque, the payment whereof was stopped. The complainant has incurred loss of more than Rs. 2 lakhs on account of negligence of the Bank. On the above allegations, the complainant has prayed that the Bank be directed to pay to him Rs. 1 lakh, for the cheque of which payment was stopped, Rs. 2 lakhs as compensation for negligence, Rs. 2 lakhs as compensation for mental agony and Rs. 20,000/-by way of cost of this complaint.

The Bank has filed written statement Exh. 6 contesting the complaint. It is not disputed that the complainant had stopped payment of the two cheques referred to in the complaint. It is however submitted that litigation is pending between the complainant and Harshnagar Co-op. Society in respect of allotment of flat and that the proper course for the complainant to adopt was to obtain prohibitory order against the said Society restraining them from encashing the cheque. However, the Bank does to dispute that the payment of the aforesaid two cheques was stopped by the complainant and it had made payment of one cheque for Rs. 1 lakh as stated in the complaint. It is submitted that it was a bona fide mistake on the part of the concerned employee of the Bank in making payment of the cheque. The complainant had, however not suffered any loss on account of the payment of the cheque. On the above grounds, it is submitted that the complaint deserves to be dismissed. It is further submitted that the complainant has inflated the claim to bring this complaint within the jurisdiction of this Commission.

WE do not find any substance in the defence of the Bank. The Bank has made payment of cheque bearing No. 429404 for Rs. 1 lakh although its payment was stopped by the complainant. In other words, the Bank has unauthorisedly made payment of Rs. 1 lakh for and on behalf of the complainant. Whether or not litigation is pending between the complainant and Harshnagar Co-operative Society and whether or not payment of Rs. 1 lakh by the aforesaid cheque was admitted before City Civil Court are not facts which are relevant for resolving the dispute involved in this complaint. The fact remains that the complainant has been deprived of Rs. l lakh on account of the Bank having failed to follow the instruction of stop payment given by the complainant. There is, therefore, no. doubt that the Bank was negligent for rendering service to the complainant. The complainant has however not been able to explain as to how he suffered loss of Rs. 2 lakhs on account of negligence and as to how he is entitled to claim Rs. 2 lakhs as compensation for mental agony. There is some substance in opponent''s contention that the said compensation of Rs. 4 lakhs is claimed to bring this complaint within the jurisdiction of this Commission. However, on that ground the complaint cannot be thrown out. In our opinion the complainant is entitled to claim sum of Rs. 1 lakh together with interest @ 18% from the Bank for negligence in making payment of the cheque, the payment whereof was stopped by the complainant. In the result, this complaint is partly allowed and the Dena Bank represented through its Manager of Saraspur Branch is directed to pay to the complainant Rs. 1 lakh together with interest @ 18%p.a. from July 7, 1995 till realisation and cost of Rs. 1,000/-within one month from the date of this order. Complaint partly allowed with costs.