BRANCH MANAGER,FEDERAL BANK LTD. vs N.S.SABASTIAN

The Supreme Court addressed the issue of interest awarded by the Kerala State Consumer Disputes Redressal Commission under the Consumer Protection Act, holding that the bank was not liable for deficiency of service as the cheque presented for collection was lost in transit and the complainant failed to obtain a duplicate cheque as advised. The Court emphasized that the bank's obligation was fulfilled by informing the complainant of the lost cheque and advising him to take necessary steps under Section 45A of the Negotiable Instruments Act. Consequently, the Court set aside the award of interest at 18% per annum on the cheque amount of Rs. 9.85 lakhs, ruling that the State Commission's decision was legally unsustainable.