Legal Question in Banking Law in India

I am a banker. We were given an excel sheet by state govt treasury to fill the a/c no. of our Bank's pensioners. By mistake one digit of the a/c no. got typed as 1 instead of 2. This resulted in a/c of different person of another region. This sheet was handed over to treasury.

Treasury then handed this sheet to another Bank to credit pension through NEFT.

Since a/c no was wrong the pension 14500/- got wrongly credited to a student's a/c through NEFT .He withdrew the amount from atm. There is no balance in his a/c.

When we came to know this mistake we telephoned the student,s mother. She is constantly blaming the bank and says it is bank's problem. Bank has credited. She and her son ve nothing to do with it.

We checked mother,s a/c. She has sufficient balance 30000/-. But prob is it is her single a/c.

Note: Both are single a/c holders of our Bank. The pension got wronglycredited to son's a/c through NEFT done by other Bank.

Now what can be done to recover the money?


Asked on 1/23/16, 5:01 am

2 Answers from Attorneys
Dr Katta Venkata Rama Krishna Drkattavrk

1) Since the mistake is on the part of Bank Official, immediately recover the loss sustained by the Bank from the concerned Bank staff together with the commercial rate of interest. If the staff requests, clean loan may be sanctioned at commercial rate of interest to be recovered from salary in five instalments or as may be decided, reserving the right to initiate disciplinary action for his gross negligence.

2) U cannot recover from her mother's account as u do not have right of set off in such cases.

3) If the pension amount is wrongly credited by mistake can be recovered from the pensioner.

4) Only u hv to go to the mother and the student and try to convince them to repay the amount in question.

5) Section 72 of the The Indian Contract Act, 1872 states�Liability of person to whom money is paid, or thing delivered, by mistake or under coercion.�A person to whom money has been paid, or anything delivered, by mistake or under coercion, must repay or return it. �A person to whom money has been paid, or anything delivered, by mistake or under coercion, must repay or return it.

6) Illustrations

(a) A and B jointly owe 100 rupees to C, A alone pays the amount to C, and B, not knowing this fact, pays 100 rupees over again to C. C is bound to repay the amount to B.

(b) A and B jointly owe 100 rupees to C, A alone pays the amount to C, and B, not knowing this fact, pays 100 rupees over again to C. C is bound to repay the amount to B.

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Answered on 1/23/16, 6:03 am
Fca Prashant Chavan Expert Edge LLP

23.01.2016

Dear Sir / Madam,

Further to what my learned attorney Dr. Katta Venkata Rama Krishna has suggested, I would like to clarify that the Bank should immediately recover the pension from the faltering Bank staff member and credit it to the correct pensioners A/c with the Bank, and that faltering Bank staff member should try and pursuade the student A/c holder to return the money wrongly received by him / her back to the Bank.

Regards,

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Answered on 1/23/16, 7:54 am


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