If A Cheque Is Lost By The Bank, It Is Liable To Compensate The Customer: NCDRC [Read Order]

If A Cheque Is Lost By The Bank, It Is Liable To Compensate The Customer: NCDRC [Read Order]

Dismissing the revision petition filed by the Bank of Baroda, the National Consumer Disputes Redressal Commission (NCDRC) found it guilty of having lost a customer's cheque and held it liable to pay an amount, worth the cheque.


It was the Bank's case that the cheque deposited by one, Mr. Chitrodiya (Respondent), was dishonored and was sent to his registered address along with cheque return memo by registered post AD. The same was returned to the bank unserved, and thus there was no deficiency in its services. The Respondent, on the other hand, alleged that he persistently pleaded the bank to return his cheque. He even visited the bank personally to collect his cheque but, in vain.

The District Commission, vide its Order dated 10.10.2013, partly allowed the complaint. The State Commission, vide its order dated 20.01.2016, directed the bank to pay full amount of the cheque, i.e., Rs. 3,60,000 to the Respondent.

The present Revision petition was filed by the Bank under Section 21(b) of the Consumer Protection Act, 1986 against the order of the State Commission.


NCDRC found that while the dishonored cheque was returned unserved from the Respondent's registered address, the same was not delivered to him on any later occasion. Rather, it was found that the bank had lost the cheque due to which the Respondent lost his right to file a case under Section 138 of the Negotiable Instruments Act, 1881.

Taking into account the bank's failure to return the cheque and the legal injury consequently caused to the Respondent, NCDRC refused to interfere with the order of the State Commission of Gujarat.

(Manager, Bank of Baroda & Anr. v. Chitrodiya Babuji Divanji, Revision Petition No. 2028/2016, NCDRC)

Click here to download the Order