Customers cannot ask for full refund of lost cheques: Consumer Forum

Tamil Nadu State Consumer Disputes Redressal Commission, Chennai has ruled that a customer cannot seek refund of full amount of lost check from banks and has to call for a duplicate check as per the Negotiable Instruments (NI) Act.

Its decision comes in an appeal filed by Indian Bank against the District Consumer Disputes Redressal Commission, Nagapattinam, asking the bank to pay Rs 2 lakh for the check amount (which was lost) along with interest and Rs 25,000 as compensation for mental agony. It was directed to pay Rs. for deficiency in service to the customer.

The Commission said that as per a judgment of the Supreme Court, it was left open for the consumer to take steps under Section 45-A of the NI Act to obtain a duplicate check from the drawer. Without seeking recourse, the consumer cannot seek comprehensive instructions to order payment of the entire check amount.

It quashed the order of the District Forum to refund the entire cheque amount. However, the commission noted that the bank did not respond to the legal notice sent by the customer and ruled that it was a deficiency in service.

The bench, comprising Chairperson Justice R Subbaiah and Member R Venkatesh Perumal, directed the bank to pay ₹1 lakh as compensation for lack of service.