Bank fined for dishonouring cheque

June 3rd, 2008 - 4:31 pm ICT by IANS  

Bhubaneswar, June 3 (IANS) A consumer court has fined a bank in Orissa for dishonouring a cheque issued by one of its customers despite the fact that he had sufficient money in his account. The district consumer disputes redressal forum at Cuttack, some 26 km from here, Monday asked the local branch of ICICI bank to pay Rs.10,000 as compensation to city trader Santosh Agarwal, Oriya daily Sambad reported Tuesday.

According to the report, Agarwal had issued a cheque amounting to Rs.19,668 to Life Insurance Corporation of India towards the premium of a policy March 21, 2007.

The bank dishonoured the cheque although his account had a balance of Rs.21,775, Agarwal said. He came to know about it after LIC informed him that his cheque had bounced.

He enquired from the bank officials but he was not satisfied with their response. He then filed a case in the consumer court seeking a compensation of Rs.410,130 from the bank saying that the act of the bank caused him mental torture and lost his social image.

The bank officials told before the court that the cheque was dishonoured as Agarwal’s account was suspended for there being no activity for a long time.

The forum members asked the bank to pay Rs.10,000 to Agarwal, the report said.

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