DCDRC B’la directs HDFC Bank to compensate customer for deficiency in service

Baramulla : District Consumer Disputes Redressal Commission (DCDRC) Baramulla/ Bandipora has directed HDFC Bank, Baramulla Branch, to compensate a local resident after the bank failed to honour two cash certificates issued in his name.
The complainant, Habibullah Sheikh of Dewan Bagh, had invested a total of Rs 6.35 lakh in the form of two cash certificates issued by the bank in 2022 and 2024. Upon maturity, when Sheikh approached the bank for encashment, he was informed that no such records existed. The bank later suggested that the certificates may have been fraudulently issued by an employee who is currently under suspension.
After reviewing the case and evidence, the Commission comprising President Peerzada Qousar Hussain and Member Nyla Yaseen observed that the cash certificates in question bore the official seal and signature of the bank. The Commission held the bank vicariously liable for the actions of its employee and stated that institutions cannot disown responsibility for documents that appear genuine and carry their endorsement.
In its final order, the Commission directed the bank to pay the matured amounts of both certificates along with applicable interest. Additionally, the bank has been ordered to pay Rs 50,000 as compensation for mental agony, Rs 20,000 towards litigation expenses, and Rs 10,000 to the Consumer Welfare Fund, Baramulla.
The bank has also been granted liberty to investigate the matter and take appropriate legal action against the concerned employee.
The Commission has directed that the order be implemented within four weeks from the date of receipt.