SOVINTORG (INDIA) PVT.LTD. vs STATE BANK OF INDIA, NEW DELHI

The Supreme Court upheld the decision of the National Consumer Disputes Redressal Commission, affirming that the respondent bank was justified in withholding the proceeds of a cheque deposited by the appellant for collection, as it was retained as margin money for a guarantee. The Court noted that the appellant failed to prove the termination date of the guarantee contract, and thus, the claim for compensation and interest at 24% per annum was rejected. The Court emphasized the necessity of establishing negligence to warrant compensation under the Consumer Protection Act, 1986.