Branch Manager,Federal Bank Ltd vs N.S.Sabastian

The Supreme Court upheld the decision of the National Consumer Disputes Redressal Commission, affirming the Kerala State Consumer Disputes Redressal Commission's order to award interest at 18% per annum on Rs. 9.85 lakhs from the date of cheque issuance, 03.04.2000, despite the appellant bank's claims of no deficiency of service. The Court noted that the bank's failure to ensure the safe transit of the cheque constituted a deficiency in service under the Consumer Protection Act. The appeal was dismissed, confirming the lower courts' findings.