The Delhi State Consumer Disputes Redressal Commission has directed State Bank of India (SBI) to pay ₹1.7 lakh to a customer after wrongfully dishonouring multiple cheques despite sufficient funds in the account. The order holds the bank liable for deficiency in service, rejecting its defence that the cheque returns were a technical fault.
Facts of the Case
The complainant, a long-standing SBI customer, issued cheques that were returned by the bank even though her account maintained sufficient balance. SBI failed to provide any evidence showing inadequate funds at the time of presentation. The Commission observed that the dishonoured cheques damaged the complainant’s financial standing, caused mental agony, and resulted in unnecessary charges levied by the bank.
Legal Findings and Compensation
The Commission found that SBI’s actions amounted to a “deficiency in service” and directed the bank to:
- Pay ₹1.5 lakh for mental suffering and harassment
- Pay ₹20,000 towards litigation costs
- Pay interest at 7 % per annum on delayed payment
The bank’s claim of procedural technicalities was dismissed as insufficient, given that other cheques under the same mandate were honoured without issue.
Broader Implications
This ruling sends a clear message to banks: automated systems or internal protocols cannot be used as blanket defences when customers maintain funds and service failures occur. Consumer forums are increasingly highlighting that banks must ensure fail-safe processes, especially for cheques and auto-debits from accounts with confirmed balances.
For consumers, the precedent empowers account-holders to challenge wrongful dishonour of payments and seek redress under consumer protection laws when banks fail to act diligently.
