In Brief
A customer obtained three Fixed Deposit Receipts (FDRs) from Bank of Punjab, but the bank refused to encash one FDR for Rs. 2,00,000, claiming it was issued by mistake without proper consideration. The District Consumer Forum ruled in the customer's favour, but the State Commission and National Commission reversed this decision. The Supreme Court held that once a bank issues an FDR receipt to a customer, it must honour it. The customer cannot be required to prove consideration beyond holding the receipt; that is the bank's responsibility. The Court set aside the higher commissions' orders, restored the District Forum's judgment, and allowed the appeal, directing encashment within six weeks."
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