The Supreme Court confirmed the District Cooperative Bank in Varanasi’s indirect liability for the misconduct of its employees, leading to the award of Rs 25,000 in compensation to a man who was incorrectly denied access to his fixed deposit nearly three decades ago.
The apex court upheld the district consumer forum’s decision and overturned the ruling of the National Consumer Disputes Redressal Commission (NCDRC). The bank was instructed to reimburse the total amount of Rs 1,60,000 along with 15% interest and an additional Rs 25,000 in damages.
The Supreme Court also acknowledged the formation of an inquiry committee that recommended legal action against certain officials, which the bank pursued accordingly, and the periodic renewal of fixed deposit receipts, confirming the bank’s indirect liability for the actions of its employees.
Tax Concept is a dedicated team of financial writers, legal analysts, and tax professionals committed to breaking down complex Indian corporate updates. From real-time GST amendments and crucial Income Tax judgements to EPFO schemes and corporate law updates, TaxConcept serves as a reliable, authoritative guide for chartered accountants, businesses, and everyday taxpayers seeking absolute compliance clarity.