Page 21 - Banking Finance June 2024

LEGAL UPDATE

Legal

Bank vicariously liable for "It is seen from the record that district filed by him in a narcotics and excise
forum was satisfied that the appellant case.
acts of its employees: SC had in fact handed over Rs 1,60,000 to

Holding that a bank is vicariously liable the bank's officials. This is evidenced The SC bench - of justices B R Gavai and
Sandeep Mehta - said the first appear-
for the acts of its employees, Supreme from the bank's ledger. The record dis- ance of an SP in court had to be through
Court has found deficiency in the ser- closes that an enquiry committee had video-conferencing, if the HC deemed it
vice of District Cooperative Bank Ltd in been set up that recommended initia- necessary to summon him. The bench
Varanasi and directed it to pay a com- tion of criminal proceedings against then quashed the part of the HC's or-
pensation of Rs 25,000 to a man al- certain officials and the bank had der seeking his personal appearance,
most three decades after the bank adopted that course. It is also a fact saying the reasons cited by the HC for
wrongly prevented him from with- that the fixed deposit receipts were such an appearance "cannot be said to
drawing his fixed deposit. renewed from time to time. The bank
be exceptional and rare".
A bench of Justices P S Narasimha and is vicariously liable for the acts of its The SC bench also reiterated an ear-
Aravind Kumar restored the district employees," SC said. lier judgment, in which it had laid down
consumer forum's order which had a standard operating procedure for
granted compensation to the person in SC: In-person summons to
HCs. Then, the SC had said, "We feel it
1997 and quashed the National Con- govt officer only in excep- is time to reiterate that public officers
sumer Disputes Redressal Commission's should not be called to court unneces-
(NCDRC) order which didn't find fault tional cases
sarily. The dignity and majesty of the
in the services of the bank which, sub- Supreme Court, striking down a court is not enhanced when an officer
sequently, allowed withdrawal of the Calcutta High Court order, has said a is called to court. Respect to the court
money. govt officer should be summoned to has to be commanded and not de-
The matter pertains to non-release of appear in court only in exceptional manded and the same is not enhanced
fixed deposit receipts worth Rs cases, that too after first arranging a by calling the public officers. The pres-
1,60,000 by the District Cooperative hearing through video-conference, and ence of public officer comes at the cost
Bank Ltd in Varanasi. The petitioner after the court records why a personal of other official engagement demand-
claimed that the bank wrongly pre- appearance is necessary. ing their attention."
vented him from withdrawing the State govt had challenged in Supreme
money. The matter reached the district Court a Calcutta HC order on March Misappropriating stree-
consumer forum which ordered the 13, in which a division bench had or- dhan is a punishable of-
bank to return the money with 15% dered the South Dinajpur SP to person-
interest and an additional Rs 25,000 in ally appear before it on March 14 to fence
damages. explain certain omissions in a report Reinforcing married women's right

BANKING FINANCE | JUNE | 2024 | 19