Legal Question in Consumer Law in India

A company, ABC Co., credits a sum, due to me, electronically to my bank account. However, after a few days, accidentally, ABC Co. credits the same money again to my account. But in the meantime, during the course of five credit and debit transactions that I additionally induced into my account all the funds credited by the ABC Co. are withdrawn by me.

After a few days, ABC Co. calls me and tells me about the erroneous credit. Immediately, I credit back an amount equal to the erroneously credited amount to my account and also immediately issue ABC Co. a cheque for that amount.

However, before informing me about this erroneous credit, apparently, ABC Co. first calls over phone to the bank to inquire about my balance and also verbally informs them about the accidental double credit. When I go to the bank for depositing the money for ABC Co. in my bank account, the bank officials abuse me verbally (Strangely, though, they just stop short of labelling me thief ! ). However, worse than that, without informing either me or ABC Co., the bank officials decide to withhold the money that I have deposited for ABC Co. in my account.

Meanwhile, after getting the cheque from me, ABC Co. presents the cheque to the bank, but since the bank has decided to withhold my money, it dishonours the cheque. Ironically, the bank tells back ABC Co. that I do not have sufficient funds in my account.

ABC Co. gets back to me and tells me that my cheque is dishonoured for insufficient funds and immediately demands a DD instead of the cheque. I immediately arrange more funds from somewhere else and immediately provide a DD for that amount.

In the meantime I also send a letter to the bank requesting an explanation of the cheque dishonour when sufficient funds existed in my account. The bank writes back to me telling that we had withheld your funds to allow for the recovery for the money of the ABC Co. and hence dishonoured the cheque. Further the bank writes, that �now since you have written to us�, we have released your money and now you can tell ABC Co. to present the "same" cheque again for clearance.

Please help me in the following:

1. Now that, I have already paid back to ABC Co., that particular cheque will not be presented again (in fact ABC Co. has given it back to me). However, since the bank has clearly written to me that the cheque favouring ABC Co. is to be presented again. I want to present a new cheque, but do not want it to get bounced. If I will go to the bank, I will be publicly shouted at and humiliated, which has become a routine now.

2. I have never agreed with the bank, whether in writing or otherwise to allow any hold or lein be marked on my account. There is no court order to restrict my money. There is no finance ministry wings' order to seize my account. So how can a bank withhold my money without informing me about withholding? Secondly, how can a bank withhold anyones money at all, without a Government of India's order? Please tell me which Government of India act allows a bank to withhold anyones money without having a government's order for withholding or having a permission from the account holder. Thirdly, can a bank withhold someone's money on complaints of a third party and then refuse to honour the cheque given to that party itself?

3. What is the best route to seek compensation for the cheque dishonour, mental harrasment and subsequent financial implications ?

4. What is the best method to complain for bank officials routinely and excessively misbehaving in the bank ?

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