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Issues: (i) Whether the complainant could be treated as a consumer in relation to the banking service used for payment towards purchase of shares; (ii) whether the amount paid through the cheque was refundable with interest.
Issue (i): Whether the complainant could be treated as a consumer in relation to the banking service used for payment towards purchase of shares.
Analysis: The complainant had availed the bank's services for making payment of the share price by cheque drawn in favour of the bank, and the bank acted as the intermediary for transmission of the amount. On that basis, the service rendered by the bank was held to fall within the consumer relationship.
Conclusion: The complainant was held to be a consumer and entitled to invoke the consumer jurisdiction against the bank.
Issue (ii): Whether the amount paid through the cheque was refundable with interest.
Analysis: Since the amount paid for the proposed share purchase was not transmitted so as to result in allotment of shares, the complainant was held entitled to recover the amount from the bank that had encashed the cheque. Interest was also awarded from the date of encashment till payment.
Conclusion: Refund of Rs. 5,000 with interest at 12% per annum from the date of encashment until payment was directed against the bank.
Final Conclusion: The appeal succeeded only to the extent that the bank was directed to refund the amount with interest, while the complaint against the company in respect of share allotment was not granted.
Ratio Decidendi: A person who avails banking services as an intermediary for payment of consideration retains consumer status against the bank, and if the amount is retained without resulting in the intended payment, refund with interest may be directed.
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