Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Consumer Protection – Deficiency of service |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Consumer Protection – Deficiency of service – The complaint of the principal of the school alleged deficiency of service against the respondent-bank inasmuch as the school’s bank accounts without net banking facility was linked with personal Customer Information File (CIF) of the principal of the school, facilitating online transaction which led to siphoning of Rs.30,00,000/- from school’s account – Siphoning of Rs.25,00,000/- was detected on 09.09.2014 and then Rs.5,00,000/- was unauthorizedly transferred from the school’s account the very next day before it was blocked – The State Commission concluded that there was gross error on the part of the bank as admittedly the complainant-school did not opt for net banking facility in respect of school’s accounts – The State Commission suspected involvement of the then principal of the school in the said fraudulent transactions and also observed that the complainant school cannot avoid their vicarious liability for acts and deeds of their employee – Accordingly, the respondent-bank was directed to pay Rs.1,00,000/- as compensation – The Banking Ombudsman too declared that the Bank was at fault – NCDRC concurred with the relief granted by the State Commission – On appeal, held: It was not possible to siphon out any money from the school’s accounts without accounts being linked with net banking facility – As concurrently found by the State Commission, the Banking Ombudsman and also by the NCDRC, the bank has rendered themselves liable by enabling net banking facility by linking the individual account of the school’s Principal, to the school’s account – The only reason why the State Commission as well as the NCDRC had limited the compensation sum to Rs. 1,00,000/- was because of the perceived complicity of the Principal – But the charge sheet filed by the police reveals how the fraudulent transaction was made by the two charge sheeted accused and more importantly the police did not find complicity of the Principal of the school, with those fraudulent transactions – Insofar as the loss of Rs. 25,00,000/- is concerned, the complainant cannot be held responsible directly or even vicariously, either as an institution or the Principal, as an individual – The respondent Bank directed to compensate the School to the tune of Rs. 25,00,000/- transferred until 9.9.2014, when the misappropriation was first detected but not for the additional sum siphoned on the next date from the School’s account. |
Judge | Hon'ble Mr. Justice Hrishikesh Roy |
Neutral Citation | 2019 INSC 1402 |
Petitioner | Dav Public School |
Respondent | The Senior Manager, Indian Bank, Midnapur Branch & Ors. |
SCR | [2019] 15 S.C.R. 333 |
Judgement Date | 2019-12-18 |
Case Number | 9352 |
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