Bank Of India Held Liable For Levying Unjustified Cheque Return Charges; Thrissur Consumer Commission

Brief facts:

The complainant had a SB account with the Bank of India ('bank') branch at Ayyanthole, Thrissur. A cheque dated 08.11.2011 of Rs. 1,00,000/- was issued by the complainant to M/s BRD Finance Ltd. the cheque was returned by the bank for the reason of mismatch of drawer's signature and the complainant was charged with a cheque return charge of Rs. 295/-. The amount was debited from his account as well.

Upon issuance of a legal notice, the branch manager of the bank replied that the cheques for collection were scrutinised at their Chennai office over which he had no control. As per the complainant, his signature on the cheque was genuine and what he did was only to have written his name beneath his signature on the cheque. Hence, a complaint was filed by the complainant against the branch manager and the general manager of the bank praying for appropriate compensation.

The branch manager and the general manager are hereinafter referred to as opposite parties.

Submissions of Opposite parties:

The opposite parties denied fault on their part. It was submitted that the signature on the cheque varies from the specimen signature given at the bank. It was further submitted that the cheque return charges of Rs. 295/- were levied as per existing bank norms.

Observations of the commission:

The bench examined the cheque and observed that when the customer's signature is genuine and there is no ambiguity, the bank is bound to honour the cheque. It was further observed that the bank has to exercise care and caution while comparing signatures.

The bench observed that the specimen signature does not bear the name of the complainant beneath it but the impugned cheque has his name written beneath. This discrepancy creates ambiguity and hence, no fault was found on the part of the bank in dishonouring the cheque.

However, with respect to levy of a penalty of Rs. 295/-, it was observed that no evidence or document has been produced on record by the bank to justify the said levy. It was observed that imposing charges on a consumer indiscriminately without any explicit mandate is a fault by the bank constitutes deficiency in service.

Hence, the complaint was partly with the following reliefs:

1. A sum of Rs. 295/- towards refund of penalty charges
2. Rs. 5,000 towards compensation
3. Rs. 5,000 towards litigation costs

Case Title: Joyson K.P vs Branch Manager, Bank of India

Case Number: CC 104/2018

Date of Decision: 27.10.2025

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