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RESEARCH WORK

CONSUMER PROTECTION ACT:-

INTRODUCTION:-
The moment a person comes into the consumption of goods and services he start consuming
so when we approach the market as a consumer we expect value for money in the essence right
quality, right quantity, right prices but there may be instance where a consumer is harassed or
cheated so to solve such problems the Indian government has resorted to the use of consumer
protection act 1986 so that such act can resolve the consumer grievances.
QUESTION BASED ON THE ACT
(ILLEGAL DEBIT REVERSED BY A BANK) WHETHER IT IS A PREVIEW OF
DEFICIENCY OF SERVICE ? WHAT WERE THE BASIS OF ASCERTAINMENT OF
QUANTUM OF COMPENSATION AND DAMAGES?
DEFICIENCY OF SERVICES
Deficiency of service is one of the biggest hindrance to a consumer that the consumer
protection act tends to overcome but to know the deficiency of service the consumer protection
act defines the two words “services” and “deficiency “
SECTION 2(1)(O) OF CONSUMER PROTECTION ACT-Services means service of any
description which is made available to potential users and includes but not limits to the
provision of facilities in connection with banking, financing insurances, transport, processing
supply of electrical or other energy board or lodging or both
Housing construction, entertainment amusement or the purveying of news or other information
but does not include the rendering of any service free of charge or under a contract of personal
service
SECTION 2(1)(G) OF CONSUMER PROTECTION ACT-whereas deficiency means any
fault imperfection or shortcoming or inadequacy in the quality nature and manner of
performance which is required to be maintained by or under any law for the time being in force
or has been undertaken to be performed by a person in pursuance of a contract or otherwise in
relation to any services
DEFICIENCY IN RELATION TO SERVICES
Deficiency must be in relation to a service the word in relation to the services in the definition
signifies that the deficiency is always in term of services thus if the grievances pertains to a
matter which does not fall in the definition of service, the concept of deficiency would not
apply
deficiency of services can be seen in each and every field in day-today life such as medicine,
construction, transport, banking and such deficiency can lead to death, injury, inconvenience
so the services are need to be provided by well equipped individual with utmost care and
proficiency .
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ISSUE 1:-
(ILLEGAL DEBIT REVERSED BY A BANK) WHETHER IT IS A PREVIEW OF
DEFICIENCY OF SERVICE?
To know what illegal debit order means we need to know what debit order actually means ,
A debit order is mainly a way for a third party to collect money from consumers bank account
as by the permission of the consumer its mainly use to collect monthly subscription insurance
premium, online monthly subscription, loan repayment for example if a consumer have a
account on Netflix and the consumer have selected the option of debit order it would
automatically debit the monthly payment of the upcoming month at the end of the last week of
the ongoing month without taking any further permission as one has already permitted to debit
when the consumer has made the account by placing ones bank account number .

How is it set up
Firstly, the consumer will sign agreement with the third party and provide them with his bank
details
Secondly, they will approach the consumer bank for permission to collect specific amount from
the consumer bank account, only party with whom the consumer signed the agreement can
cancel the debit order
ILLEGAL DEBIT ORDER
So, illegal debit order is mainly debiting the consumer for the transaction he has not done or
not permitted or which has continued even if the consumer has stopped his debit order to the
third party or unauthorised electronic banking transactions. So the bank in consequence of the
illegal debit order has to credit or reverse the unauthorised transaction to the consumers account
and the bank is duty bound to ensure that the customer should not suffer any loss of interest.
So, as we know what illegal debit order is we can understand by the facts that when a service
is found deficient by a consumer he can make a complaint under the act so the main requirement
is that the matter should fall within the definition of “services” and it must have some
deficiency which should fall under the concept of “deficiency” as given by the act.
So, as the lines in definition of services –“Services means service of any description which is
made available to potential users and includes but not limits to the provision of facilities in
connection with banking” and as the matter of illegal debit order fall under banking as provided
by the definition of “services“ under consumer protection act so we can state that the deficiency
in providing the and safeguarding service of debit order by the bank to the consumer can lead
to the preview of deficiency of services.”
ISSUE 2:-
the quantum of compensation of damages depends on the case itself like for example in case
of
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JUDGMENT
Axis Bankl Ltd., vs Sri.Prakash.C.M,
on 8 April, 2014
Kerala State Consumer Disputes Redressal Commission, Honourable JUSTICE SHRI. P.Q.
BARKATHALI: PRESIDENT

FACTS-
The case was first taken to the district forum where the judgement passed for the respondent.
The appeal was filed by the opposite party challenging the order of the Forum dated in the
Kerala State Consumer Disputes Redressal Commission.
Complainant (SRI PRAKASH.C.M) is an ATM card holder of the opposite party, Axis Bank
Limited is the respondent. The complainant withdrew a total amount of Rs.49,500/- by 4 times.
the opposite party bank illegally debited Rs.15,394/- from the account of the complainant.
Complainant presented a cheque for Rs.6,380/- and the same was returned by the Bank stating
that there was no sufficient funds in his account. Therefore complainant filed the complaint
for return of that amount and also claiming compensation.
The respondent stated their version that complainant withdrew RS.49,500/-from his account
but actually there RS.34,900 in his account at the time of withdrawal . The complainant
withdrew RS.15,000/ and at that time there was a malfunctioning of the machine and the
withdrawal of the said amount was not recorded in it and the balanced account agained showed
RS.34,900/ so when the complainant withdrew RS.49,500/ and then deposited Rs.15,000/ the
opposite party debited RS.15,000/ from the complainant account therefore when the cheque for
RS.6380/was presented for encashment it was returned unpaid for want of sufficient funds .
JUDGEMENT
On perusal of the record nothing was found on the basis of which the redressal forum could
have come to conclusions that the appellant took steps to inform the respondent in relation to
the malafide transaction of the said ATM card and thus became deficient in providing service
to the Respondent and it is a fact that the Bank is the custodian of the money of its
customers/account holders and it is a service where the bank should have taken steps to contact
the respondent rather than waiting for him to deposit money in his bank account which could
be snatched away by the appellant. Irrespective of any malfunction of their ATM it is their
duty to put forward adequate steps to prevent such defaults and should have diligently handled
the matter rather than waiting for the respondent to deposit money and deduct the same without
his informaion for a default of the complainant.
With regard to debiting of amount without the knowledge of the respondent we can draw
certain points from Dilip Madhukar Kambli Vs. Nilesh Vasant Borkar and Ors. 1991 (1) CPR
571 (SCDRC - New Bombay, Maharashtra "the banker is supposed to safeguard the interest of
the depositors when his amount is entrusted to the custody of the Bank and the Bank is liable
to return the amount with interest. In the absence of any directions from the customer, no
banker can unilaterally and arbitrarily transfer the money of a depositor from his account and
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deposit in the account of another customer. This amounts to deficiency in service by the bank."
Bank/appellant in order to protect their interest cannot just take their customers for granted, in
this manner.
In the result, the appeal fails and the same stands dismissed with cost of Rs.2,000/- to be paid
by the appellant to the respondent/complainant.