BARAMULLA, AUGUST 22, KDC: District Consumer Disputes Redressal Commission (DCDRC) Baramulla/Bandipora, presided over by Presiding President Peerzada Qousar Hussian, has ruled in favor of a consumer, Habibullah Sheikh, in a case of deficiency of service against HDFC Bank, Baramulla Branch.
The Commission found the bank liable for failing to honor two cash certificates worth Rs.6.35 lakhs issued to the complainant, which were later declared to have no record in the bank’s system.
The case stemmed from the complainant’s investment in two cash certificates, one for Rs.2,00,000 in September 2022 and another for Rs.4,35,000 in May 2024, to secure his savings and earn interest, but upon the maturity of the first certificate, the complainant learnt that the bank had no record of either investment.
In its order, the Commission firmly established that a bank is vicariously liable for the actions of its employees and held that the mere denial of liability without substantial proof was insufficient, especially since the certificates bore the bank’s official seal and signatures.
Consequently, the Commission has directed HDFC Bank to pay the full maturity value of the cash certificates to the complainant along with applicable interest. Furthermore, the bank has been ordered to pay Rs.50,000 as compensation for mental agony and deficiency in service, Rs.20,000 for litigation costs, and an additional Rs.10,000 to the Consumer Welfare Fund.
The bank has been given four weeks to comply with the order from the date of receipt and further directed the bank to uphold the trust of their customers and their ultimate accountability for transactions conducted under their name. (KDC)
