Quick Summary: The Bombay High Court decided in favor of Buniya Devi Chauhan, a widow who couldn't read or write, and was cheated out of her compensation money by a relative with help from bank workers. The court changed earlier decisions that had rejected her claims.
Buniya Devi Chauhan, represented by her authorized representative, Dharmendra Chauhan, first complained to the State Consumer Dispute Redressal Commission in Maharashtra. She accused the Central Bank of India of letting her relative, Gulab Chand A. Chauhan, illegally take her compensation money. The Commission agreed with her, ordering the bank to give back Rs. 25,28,515 with interest and extra for the trouble it caused her.
"The bank was directed to refund Rs. 25,28,515 with 6% interest per year," stated the initial ruling.
Not happy with this decision, the bank appealed to the National Consumer Disputes Redressal Commission in New Delhi. The National Commission reversed the State Commission’s ruling, supporting the bank. Buniya Devi then asked for a review, but it was also dismissed.
The case involved dishonest actions by Gulab Chand A. Chauhan, who added Buniya Devi’s name to his bank account without proper permission. He took out all the compensation money while she was away in her village, breaking banking rules.
"Respondent No.3 withdrew the entire amount... while Petitioner was at her native place," the court noted.
Gulab Chand was found guilty under several sections of the Indian Penal Code for his dishonest actions. Despite this, the National Commission’s decision to dismiss Buniya Devi’s claims left her seeking justice.
Judge Milind N. Jadhav of the Bombay High Court reviewed the case and found the National Commission’s decision unreasonable. The High Court brought back the State Commission’s order, increasing the interest rate from 6% to 9% per year on the repayment amount.
"The order of the State Consumer Disputes Redressal Commission is upheld with modification regarding the interest rate," the judgment concluded.
The Bombay High Court’s decision is a big win for Buniya Devi Chauhan. It shows how important it is for banks to follow the rules and protect consumers from being cheated. The court's decision helps ensure that people who are vulnerable are protected from fraud.
