Banking
gopal
(Querist) 21 May 2016
This query is : Resolved
A person has a saving account in Nationalized Bank. He deposits two cheque in his favour in said account issued by some third parties.
The account holder Bank deposits the subject amount. Later when the Bank send the cheque to issuing Bank to recover the money, it was learnt that of one chq account is closed prior too and in another insufficient funds.
Now when the Bank contacted the account holder to deposit back the amount, the account holder is not responding.
What steps the Bank can take in this regards against the account holder; will Compliant lie or civil recovery ,Regards
Kumar Doab
(Expert) 21 May 2016
issue a written communication under proper acknowledgment.
Refer the matter to legal cell.
gopal
(Querist) 21 May 2016
The Bank had issued legal notice through its Advocate to the account Holder to refund Bank`s money but he is not responding.
gopal
(Querist) 21 May 2016
Will it come under purview of cheating / fraud OR civil remeady is only possibility
Sudhir Kumar, Advocate
(Expert) 21 May 2016
bank has to take no action but to dishonour the cheque. It is the holder of cheque who has to take action.
Kumar Doab
(Expert) 21 May 2016
The cheques were not encashed but amount was deposited by bank and now the a/c holder is not returning the money that was wrong credit.
Now the a/c holder has withdrawn the money and is not responding to even legal notice.
Probably the a/c holder knows that bank has no legal right to reverse a legal entry after having credited the same in the bank account and also when no consent of the account holder has been obtained. Bank.
Section 72 of the Indian Contract Act mentioned that the Bank does have a right to recover the money paid under a mistake.
You need to proceed to recover.
[Metro Exporters Pvt. Ltd. & Anr. vs. State Bank of India & Ors.]
(SC, 23.04.2014)
SAINATH DEVALLA
(Expert) 22 May 2016
Criminal complaint against the account holder is not maintainable,but the bank has to file a civil suit for recovery of the said amount for the wrong credit given.The staff involved too have to face the tune.
P. Venu
(Expert) 22 May 2016
How you are concerned with the issue?
Rajendra K Goyal
(Expert) 22 May 2016
Bank should not have paid the amount of uncleared cheque / proceeds.
If the Bank has credited the amount of cheque in the account of depositor, it has become the holder in due course of the cheques.
It should issue notice of dishonor to drawer and drawee of the cheque and file suit for recovery. Being a holder in due course it should also initiate action u/s 138 NI Act.
T. Kalaiselvan, Advocate
(Expert) 27 May 2016
The Bank is having a panel of advocates who will advise the bank properly about the legal and other procedures to recover the amount. This is not a new or a remote case. There had been plenty of such cases with many banks and one can approach one such bank about the legal or other procedure to recover.
