The Uttar Pradesh State Consumer Disputes Redressal Commission has directed Punjab National Bank (PNB) to refund ₹6.6 lakh to a customer whose money was allegedly withdrawn fraudulently by a bank employee.
The commission observed that banks cannot escape responsibility for fraud or wrongdoing committed by their own employees while performing official duties.
A bench comprising Justice Ajai Kumar Srivastava (President) and Sudha Upadhyay (Member) was hearing an appeal filed by PNB against an earlier order of the District Consumer Commission, Lucknow.
The case was filed by Lucknow resident Mohammad Laiq Quarasi, who alleged that ₹6.6 lakh deposited in his savings account was withdrawn without his permission. According to the records, he made several deposits between 2010 and 2011, including ₹25,000, ₹1 lakh, and ₹4 lakh, among others.
Quarasi later found that the money had been withdrawn from his account. He alleged that the transactions were carried out with the involvement of the then branch manager, Sunil Kumar Chaturvedi.
After repeated requests to the bank failed to resolve the issue, Quarasi approached the consumer forum seeking recovery of the money and compensation.
In April 2019, the District Consumer Commission ruled in favour of Quarasi and directed PNB to refund ₹6.6 lakh along with 9% annual interest and ₹5,000 as litigation costs.
PNB challenged the order before the State Consumer Commission, arguing that the district commission had incorrectly assessed the facts and evidence. The bank also claimed that it should not be held liable in the manner determined by the consumer forum.
However, after reviewing the case records and hearing both sides, the State Commission upheld the finding that the customer had suffered financial loss due to actions linked to a bank employee.
The commission relied on a Supreme Court judgment in Pradeep Kumar & Another vs Post Master General & Others, which held that banks and post offices can be held responsible for fraud or misconduct committed by their employees during the course of their duties.
The commission said that customers cannot be denied relief simply because the wrongdoing was committed by an individual employee rather than the institution itself. It added that banks have a duty to protect customers’ money and are accountable for the actions of officials working within their system.
While upholding the bank’s liability, the commission modified the interest component of the earlier order. It directed PNB to pay ₹6.6 lakh to Quarasi within 45 days, along with interest at 7% per annum and ₹5,000 towards litigation expenses.
The commission also stated that if the payment is not made within 45 days, the amount will carry interest at 9% per annum thereafter.
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