Legal Question in Banking Law in India

Re: Transaction from Debit Account

There is a mistake in your query. The account you have with the Bank is either savings or current account in which there were amounts standing to your credit and note not debit balance or debit account. The Bank has a right of set off for amounts due to it on the credit card account if both the issuer and the bank in which you have the account are the same. If both are same, the Bank has exercised its right of set off. Normally it is done without any prior notice as giving prior notice would be used by the customer to draw out the balance before the set off is made. However it is necessary and in accord with sound banking practice to give notice of the set off. But failure to do so might not affect the effect of set off. The payee of your cheque can certainly prosecute you under Sec.138 of the N.I.Act, besides having a right to sue for recovery. It won't be worthwhile for you to file a case against the Bank for having exercised its recongnised right of set off. Honesty is the best policy.

Re: Transaction from Debit Account

I have gone through you question. Your question is that the bank has deducted Rs. 15,000/- from your account ?

Firstly : I wanted to know that have you question to the bank what for they have deducted the amount.

Secondly : That bank cannot deducted the amount without informing you.

Third : Yes,You can file a case against bank.

Fourth : Your friend can file a cheque bouncing case and also he can filed a civil suit for recovery of money.

Re: Transaction from Debit Account

The act on part of bank is illegal.Without raising the demand in respect of your past dues and without giving you notice in this regard, the bank can not deduct the ammount on its own accord and that too without any order of attachment issued by a competent court of law.In case of bouncing of cheque your friend can initiate proceeding u/s 138 N.I.Act and also HE CAN file civil suit for recovery of cheque ammount with interest.you can approach consumer court and can lodge comlaint for illegal activities of Bank.