Consumer Commission imposed Penalty on Customer of Canara Bank for filing False Case against Bank

The Dharwad District Consumer Commission has dismissed a complaint filed by Chandrashekhar Mavinatop, a resident of Banashankari Layout, against Canara Bank’s Subhash Road branch. Additionally, the commission has imposed a penalty of ₹50,000 on the complainant for filing a baseless case.

Case Details

Chandrashekhar Mavinatop had alleged a deficiency in service by the bank, claiming that he was denied access to his partnership firm’s current account. He argued that this caused him significant hardship. However, Canara Bank clarified the situation, explaining that the account belonged to the dissolved Vajra Steels partnership. According to banking norms, the account had been classified as dormant since October 2017 due to a zero balance.

Commission’s Findings

The Consumer Commission, presided over by President Eshappa Bhute and members Vishalakshi Bolashetti and Prabhu Hiremath, found no merit in the complaint. It ruled that the complainant knowingly filed a baseless case, with no evidence to support claims of service deficiency.

Penalty Imposed

The commission ordered Chandrashekhar Mavinatop to pay a penalty of ₹50,000 to Canara Bank within a month. If the complainant fails to comply, the bank has the right to recover the amount through legal proceedings.

Significance of the Ruling

This decision underscores the importance of filing genuine complaints and the consequences of misusing the judicial system for false allegations. It serves as a deterrent against frivolous litigation, ensuring that resources and time are allocated to genuine cases.

For individuals or firms engaging with banks or other service providers, the ruling also highlights the importance of adhering to terms and conditions, particularly in cases involving dormant accounts.