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Bank ex-parte seizing a saving account . .

(Querist) 26 May 2012 This query is : Resolved 
if someone has a saving account in a bank with some amount therein.

the same bank has issued him a credit card, wherein he is a defaulter.

he has not given any lien in respect of the said credit card to the bank over his savings account.

the bank has ex-parte restrained him to withdraw his own funds from his saving account.

is this lawful for the bank?

- Prashant Bhat, Vashi, Navi Mumbai.
Tel. 9820099555.
e-Mail : prashantexpress@yahoo.com
Nadeem Qureshi (Expert) 26 May 2012
Dear Querist
it's depend on the credit card agreement or bank a/c agreement form in which the bank will be mention all the terms and condition.
Feel free to call
Suhail A.Siddiqui (Expert) 26 May 2012
Before signing Banker's one must go through it.
Guest (Expert) 26 May 2012
Dear Prashant,

How you are sure that you have not given any lien in respect of the credit card to the bank over your savings account? Have you gone through the terms & conditions of the application and agreement made for issue of credit card?
R.K Nanda (Expert) 26 May 2012
Yes, as bank must have obtained that exparte order on the basis of agreement and other
documents, from court.
PARDEEP KUMAR (Expert) 27 May 2012
Under all circumstances, it amounts to malpractice, bank can't act as a judge for its own cause the maxim is 'Novari actio in Causa sua'. Approach banking ombudsman and also Consumer Court for redressal of your grievance.

In case there is some problem with credit card,make it a point as well. As far as said so called agreement given in font size of 6, it amounts to signing on dotted lines,which even if read, customer can opt not to take a product but can't get the conditions changed amicably. So, generally Courts do not give much weightage to said agreements.
Saibal Guha Roy (Expert) 27 May 2012
Yes. A bank has a General lirn on customers credit balances in respect o outstanding debts. It is called a Bankers Lien. However, this lien cannoy be exercised if it is a joiny account.
ajay sethi (Expert) 27 May 2012
agree with experts . bank has lien on customer balance in respect of outstanding debts
J K Agrawal (Expert) 27 May 2012
under section 171 of the Indian Contract Act 1872, the Bank has special power to retain your money for any debt due to you. No agreement required.

Bank is rightful.
valentine thakkar (Expert) 29 May 2012
Mr. JK Agrawal's reply is more to the point!
valentine thakkar (Expert) 29 May 2012
Mr. JK Agrawal's reply is more to the point!
valentine thakkar (Expert) 29 May 2012
Mr. JK Agrawal's reply is more to the point!
Guest (Expert) 29 May 2012
@ Shri J K Agrawal,

Would you kindly like to review your reply, as section 171 of the Indian Contract Act does not provide for any lien of the banker on the money of a savings bank account. A Savings bank account is not termed as a security or an instrument in terms of sec. 13 of the Negotiable Instruments Act please.
J K Agrawal (Expert) 30 May 2012
Thanks Mr Dhingra.

I think I was not correct because the section 171 says power to retain 'any goods bailed to them' and certainly the balance in saving account is not "goods".


Guest (Expert) 30 May 2012
Dear Shri Agrawal,

You are welcome. I appreciate updation of the legal position on your part.


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