In a case held at Maharashtra State Consumer Dispute Redressal Commission, Mumbai.

Dilshad Taher kazi vs Bank of Maharashtra in 2006

It was held that Safe Collection of cheques entrusted to a bank by its consumer is the contractual obligation of the bank. If the Bank fails to collect the amount of the cheques and takes the plea that such cheques were lost in transit, the bank can not absolved of its obligation.

The forum after going through the papers and hearing the parties allowed the complaint and directed the appellant to pay the cheque amount with the interest @ 9 % p.a. from 16.05.2005. Forum also directed the appellant to pay Rs. 2,000/- towards the cost and mental agony.

Thus if banks lose the cheque that was sent for collection then the bank has a contractual obligation to fulfil the customers request.

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