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Deduction of amount by bank officials with out consent of sb account holder

(Querist) 15 August 2016 This query is : Resolved 
This is to get clarification on the following issue.Person-A has deposited out station non CTS cheque(out side state bank group, suppose for example Indian Overseas Bank of metro branch) in state bank of mysore branch-X(Say Rural branch). After seven days, say 01-08-2016 around 7PM, he received message stating that the amount Rs.50,000/- credited to your account. Due to owning loan to person-B with promissory note as security, Person-A has transferred to Person-B having account in the same branch SB account Stating Hand loan repay through internet banking & collected back his promissory note. Next day, 02-08-2016 ,around 2.44PM, Person-A receives message stating hold and balance is showing -50,000.00 in his SB Account. He has appraised to branch manager stating how can is will be wrongful credit after nearly after twenty hours and requested to release hold on his account. After two hours hold on person-A account is released. Next day, Person-B noted transfer of Rs.50000/- from his account to Person-A stating Cheque WDL, SC Number and learnt that the same amount from Person-A is withdrawn immediately by bank officials at central clearing works. Now, in what way bank officials are empowered to withdraw money from person-B account to person-A,and return to their book of accounts.Now, person-B has complained to bank to credit amount back to SB account as its no where connected with him. Please clarify procedure is as per law or against law followed by bank. How, Person-B can get back amount immediately.
Both persons accounts are SB account, individual type.
Guest (Expert) 15 August 2016
How you are concerned with this problem of A or B?
adv.bharat @ PUNE (Expert) 15 August 2016
Author need to explain how he related with A , B?

Then it will be clear to give answer for his question.
R.K Nanda (Expert) 15 August 2016
Nothing to add.
Kumar Doab (Expert) 15 August 2016
"Now, person-B has complained to bank to credit amount back to SB account as its no where connected with him. '


You may also post what is the reply of the bank?
RADHA REDDY ELLURI (Querist) 15 August 2016
I am concerned as Person-B. As per SB account holders, we both are individuals and individual accounts.When person-B has complained to the bank to remit back, bank has given story of person-A, Cheque collection, by oversight credited to person-A instead of next day, later cheque is found dis-honoured after 20hrs of remittance. He has transferred amount to your account, i.e.Person-B account through INB-Internet banking, hence, same is taken back to person-A and to bank.
Based on reply, person-B, Me complained to the bank, how can i am connected to person-A cheque credit story. How can bank can take back my money from my account Hence remit back.Bank officials were not yet replied as they do not have proposer answer. Here, as person-B, What mistake i have committed and what way bank has right/ against which rule bank can take back my money . I need legal advise.
RADHA REDDY ELLURI (Querist) 15 August 2016
This query is not resolved as it needs expertise advise for me, i.e. person-B. The complain has been addressed to highest authorities after irrelevant reply received by person-B.
RADHA REDDY ELLURI (Querist) 15 August 2016
This query is not resolved as it needs expertise advise for me, i.e. person-B. The complain has been addressed to highest authorities after irrelevant reply received by person-B.
Guest (Expert) 16 August 2016
Your story as well as clarification is jumbled and confusing.

Anyway, fisrt of all you will have to wait for the response on your complaint to higher authority. If not satisfied with the response of the higher authority you may file case of cheating and fraud by person-A and the bank, if credit was not subject to clearance of non-CTS cheque.
RADHA REDDY ELLURI (Querist) 16 August 2016
Sir, here Person-B is no where connected with Person-A & his cheque. Now, person-B has complained to bank, not satisfied with answer, filed second complaint stating clearly, reply given by you is relevant to person-A and no where connected with me. Finally asked to put back money.
P. Venu (Expert) 16 August 2016
You have the option to take up the matter with the Banking Ombudsman.
Guest (Expert) 16 August 2016
Here you have created more confusion, when you say peron-B is nowhere connected, but the non-CTS cheque was seposited by person-A. So, how are you concerned with the cheque of person-A when nowhere connected with you?

If the credit was made in to your account for the proceed of cheque by person=A, the bank was fully authorised to withdraw that amount.

The fact is that instead of describing your own story, what happened, why person A and his cheque was concerned with your own account, you preferred to give examples of banks, like "suppose for example Indian Overseas Bank of metro branch) in state bank of mysore branch-X(Say Rural branch)." Due to that you confused your own query very badly. If really facing any problem, there is no place in law for any supposition.

So, it will be better for you to consult some local lawyer, explain the incidents in clear terms to him and get the needed advice.
Rajendra K Goyal (Expert) 16 August 2016
The facts are not clear.

Who issued the cheque?

In whose favor it was issued?

Payable at which Branch?

Deposited in which Bank and Branch for clearing / collection?
Whether Bank and the Branch where cheque was deposited were member of National Clearing / otherwise procedure?

Whether payee was having account at the same Branch where cheque was deposited?

On what date cheque was deposited?

Whether cheque was returned or if paid when?

If paid when the proceeds credited in the account of payee or otherwise?

Full facts has to be analysed?

If there was wrongful credit / existed uncleared balance and cheque is returned, Bank is authorized to debit the amount.

If not satisfied with the transaction, you may approach Bank, Banking Ombudsman or consumer forum.
Kumar Doab (Expert) 16 August 2016
Post clear query.

Post in this thread and pls don't repeat.


Prefer to consult a very able counsel specializing in banking/consumer matters.
Kumar Doab (Expert) 16 August 2016
Post clear query.

Post in this thread and pls don't repeat.


Prefer to consult a very able counsel specializing in banking/consumer matters.
RADHA REDDY ELLURI (Querist) 16 August 2016
Subject resolved


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