Lok Adalat penalises SBI

Tribune News Service

Mohali, December 24

The Mohali Permanent Lok Adalat imposed a penalty of Rs 10,000 on the State Bank of India for causing mental harassment to one of its clients.

Apart from that, the bench headed by Jagroop Singh Mahal also directed the bank to pay Rs 5,000 as litigation cost to the complainant, Abnash Singh, a resident of Mohali.

The court held: “If the amount is not paid within 15 days from today, it will carry an interest at the rate of nine per cent per annum.”

In his complaint, Abnash Singh alleged that SBI, Ludhiana branch in which he has an account, had issued him a cheque book, showing that each cheque was valid up to an amount of Rs 10 lakh and was a multicity cheque payable at par at all branches of the bank.

“I had Rs 69,126 in my bank account and in order to pay salaries to my employees, I had issued a cheque for Rs 65,000 and presented the same at the Industrial Area, Phase VII branch of the StateBank of India, Mohali. The cheque was dishonored on the ground that they cannot make the payment in cash of more than Rs 50,000,” alleged Abnash Singh.

The complainant claimed that he had suffered embarrassment and humiliation before his employees whom he could not pay salary on time.