The Chandigarh District Consumer Disputes Redressal Commission has directed Punjab National Bank (PNB) to pay Rs 1 crore to a woman for the loss of jewellery kept in a locker. The bank has also been ordered to pay a lump sum compensation of Rs 1 lakh for mental agony, harassment, and litigation expenses.
The commission passed the order on a complaint filed by Bela Prasad, a resident of Sector 9-B, Chandigarh. She alleged that her locker was broken open and allotted to another person without her consent.
The complainant said that she had maintained a savings bank account with PNB since 2004 at the High Value Branch in Sector 17-B, Chandigarh.
The account was jointly held with her mother, Kamlesh Kalra. She and her mother were also allotted two lockers, Locker No. 37 and Locker No. 38. The locker rent was regularly deducted automatically from their savings account.
Later, the High Value Branch at Sector 17-B was merged with the Sector-9 branch. All accounts and lockers, including those of the complainant, were transferred to the new branch with assurance that services would remain unchanged.
After the death of her mother, Locker No. 38 was surrendered after completing all formalities, including handing over the keys. After submitting her mother’s death certificate, she was allowed to operate Locker No. 38 and transfer her mother’s jewellery to Locker No. 37.
She said that in early 2020, when she visited the bank to operate Locker No. 37, bank officials refused access and informed her that the locker had already been closed and allotted to another person.
She claimed that she had never requested or authorised the closure of the locker. She also said that she still had the locker key (Key No. 95), which showed that the locker had never been surrendered by her.
According to her, jewellery worth around Rs 1.5 crore was kept in Locker No. 37.
Despite repeated requests, the bank failed to produce any document showing that she had closed the locker or authorised its closure. She made several complaints, but no action was taken by the bank.
However, the bank denied all allegations. It claimed that according to its records, Locker No. 38 was surrendered on July 21, 2012, while Locker No. 37 was surrendered on November 15, 2013.
After hearing both sides, the commission observed that the bank mainly relied on its internal records to claim that the locker was closed on November 15, 2013, and later broken open in 2019. However, the bank failed to produce evidence showing that proper procedure was followed, including prior notice to the complainant and proper preparation of inventory in her presence or before independent witnesses.
The commission said that merely producing bank records without proof of following mandatory safeguards does not free the bank from responsibility.
It further observed that the bank failed to produce complete and reliable records regarding the surrender of the locker, delivery of its contents, or any acknowledgment from the complainant. The commission said that banks have a higher duty of care in locker operations, and failure to maintain transparency and proper procedure amounts to deficiency in service.
Accordingly, the commission held the bank guilty of deficiency in service and directed it to pay Rs 1 crore towards the loss of jewellery, along with Rs 1 lakh as compensation for mental agony, harassment, and litigation costs.
What are the Bank Locker Rules?
If your valuables are lost due to theft, robbery, fraud by bank employees, or building collapse, the bank’s maximum liability is strictly capped at 100 times the prevailing annual rent of the locker. For example, if your annual locker rent is Rs 2,000, your maximum compensation will be Rs 2 lakh, regardless of the actual value of the stolen items.
Even if you keep ₹1 crore worth of valuables in the locker, the bank will only pay a maximum of 100 times the annual rent.
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