Canara Bank
Wrong dishonour of cheque

I, Prakash Shivshankar, have got an account with the Canara Bank Arumbakkam branch. I had issued a cheque for Rs.730/- to an internet service provider for an internet connection. Shortly after taking the internet connection I got a call from the Internet service provider stating that the cheque has bounced due to insufficient funds and an argument ensued between me and the internet service provider. I insisted that I have more than 20 thousand rupees in my account and that the cheque of 730 cannot be bounced. But the internet service provider demanded that I should pay the amount by cash and also pay the cheque return charges of Rs.112/-. The internet service provider threatened to take action against me under section 138 of the Negotiable Instruments Act which has the facility of arresting the one who has issued the cheque that has been dishonoured due to "insufficient funds". It was after a lot of mental agony that I had to surrender to the demand of the internet service provider and pay them Rs.730/- in lieu of the returned cheque as well as Rs.112/- towards the cheque return charges.

I was given a memorandum issued by Canara Bank, Arumbakkam branch and I was shocked to find that the bank had mentioned "Insufficient Funds" as a reason for returning the cheque.

I sent a legal notice to the Branch Manager, Canara Bank, Arumbakkam branch which was ignored by the Branch Manager.

Later I filed a case in the Consumer Court in Mylapore and nobody from Canara Bank, Arumbakkam branch turned up to defend my complaint. Due to this the case has to continue ex parte.

Finally the Consumer Court ordered that Canara Bank, Arumbakkam branch should pay me a compensation of Rs.50, 000/- for the damages they have caused by their wrongful dishonour of my cheque as well as to pay my legal expenses.

But till this day Canara Bank, Arumbakkam branch have not shown any respect to the Consumer Court verdict and have not paid me the compensation as they have been ordered to do.

Company: Canara Bank
Country: India

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