Consumer disputes raised by defaulter

Asst. Vice President (Legal)

Whether Defaulter can raise the issue as consumer under consumer protection act as to the any issue pertaining to banking transaction had with the lender bank regarding defeciency in service and can ask for any injunction or any order in terms of releif from consumer court under the Act ? Please advise along with settled law / judgements thereon. Thanking you.



The answer to your query will depend from case to case. Let me give you an example. Suppose if the Borrower who has pledged the shares with the Lender (Bank) and requests the Bank to sell part of the pledged shares for getting overdraft facilities and which is agreed to by the Bank is certainly part of the service connected with the grant of overdraft facilities. Borrower as a consumer hires service of the Banker for consideration by way of payment of interest for the overdraft facilities received by him

by pleading the shares. The Hon’ble Supreme Court in the case of Bank of India has dealt with the above issue.




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