FAQs on Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/-

1. Why is this scheme introduced?

The incidence of fake Indian currency notes in higher denomination has increased. For ordinary persons, the fake notes look similar to genuine notes, even though no security feature has been copied. The fake notes are used for antinational and illegal activities. High denomination notes have been misused by terrorists and for hoarding black money. India remains a cash based economy hence the circulation of Fake Indian Currency Notes continues to be a menace. In order to contain the rising incidence of fake notes and black money, the scheme to withdraw has been introduced.

2. What is this scheme?

The legal tender character of the existing bank notes in denominations of ₹500 and ₹1000 issued by the Reserve bank of India till November 8, 2016 (hereinafter referred to as Specified Bank Notes) stands withdrawn. In consequence thereof these Bank Notes cannot be used for transacting business and/or store of value for future usage. These Bank Notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India or at any of the bank branches or at any Head Post Office or Sub-Post Office.

3. How much value will I get?

You will get value for the entire volume of notes tendered at the bank branches / RBI offices.

4. Can I get all in cash?

No. You will get upto ₹4000 per person in cash irrespective of the size of tender and anything over and above that will be receivable by way of credit to bank account.

5. Why I cannot get the entire amount in cash when I have surrendered everything in cash?

The Scheme does not provide for it, given its objectives.

6. ₹4000 cash is insufficient for my need. What to do?

You can use balances in bank accounts to pay for other requirements by cheque or through electronic means of payments such as Internet banking, mobile wallets, IMPS, credit/debit cards etc.

7. What if I don’t have any bank account?

You can always open a bank account by approaching a bank branch with necessary documents required for fulfilling the KYC requirements.

8. What if, if I have only JDY account?

A JDY account holder can avail the exchange facility subject to the caps and other laid down limits in accord with norms and procedures.

9. Where can I go to exchange the notes?

The exchange facility is available at all Issue Offices of RBI and branches of commercial banks/RRBS/UCBs/State Co-op banks or at any Head Post Office or Sub-Post Office.

10. Need I go to my bank branch only?

For exchange upto 4000 in cash you may go to any bank branch with valid identity proof.

For exchange over 4000, which will be accorded through credit to Bank account only, you may go to the branch where you have an account or to any other branch of the same bank.

In case you want to go to a branch of any other bank where you are not maintaining an account, you will have to furnish valid identity proof and bank account details required for electronic fund transfer to your account.

11. Can I go to any branch of my bank?

Yes you can go to any branch of your bank.

12. Can I go to any branch of any other bank?

Yes, you can go to any branch of any other bank. In that case you have to furnish valid identity proof for exchange in cash; both valid identity proof and bank account details will be required for electronic fund transfer in case the amount to be exchanged exceeds ₹4000.

13. I have no account but my relative / friend has an account, can I get my notes exchanged into that account?

Yes, you can do that if the account holder relative/friend etc. gives you permission in writing. While exchanging, you should provide to the bank, evidence of permission given by the account holder and your valid identity proof.

14. Should I go to bank personally or can I send the notes through my representative?

Personal visit to the branch is preferable. In case it is not possible for you to visit the branch you may send your representative with an express mandate i.e. a written authorisation. The representative should produce authority letter and his / her valid identity proof while tendering the notes.

15. Can I withdraw from ATM?

It may take a while for the banks to recalibrate their ATMs. Once the ATMs are functional, you can withdraw from ATMs upto a maximum of ₹2,000/- per card per day upto 18th November, 2016. The limit will be raised to ₹4000/- per day per card from 19th November 2016 onwards.

16. Can I withdraw cash against cheque?

Yes, you can withdraw cash against withdrawal slip or cheque subject to ceiling of ₹10,000/- in a day within an overall limit of ₹20,000/- in a week (including withdrawals from ATMs) upto 24th November 2016, after which these limits shall be reviewed.

17. Can I deposit Specified Bank Notes through ATMs, Cash Deposit Machine or cash Recycler?

Yes, Specified Bank Notes can be deposited in Cash Deposits machines / Cash Recyclers.

18. Can I make use of electronic (NEFT/RTGS /IMPS/ Internet Banking / Mobile banking etc.) mode?

You can use NEFT/RTGS/IMPS/Internet Banking/Mobile Banking or any other electronic/ non-cash mode of payment.

19. How much time do I have to exchange the notes?

The scheme closes on 30th December 2016. The Specified banknotes can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and RBI till 30th December 2016.

For those who are unable to exchange their Specified Bank Notes on or before December 30, 2016, an opportunity will be given to them to do so at specified offices of the RBI, along with necessary documentation as may be specified by the Reserve Bank of India.

20. I am right now not in India, what should I do?

If you have Specified banknotes in India, you may authorise in writing enabling another person in India to deposit the notes into your bank account. The person so authorised has to come to the bank branch with the Specified banknotes, the authority letter given by you and a valid identity proof (Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff)

21. I am an NRI and hold NRO account, can the exchange value be deposited in my account?

Yes, you can deposit the Specified banknotes to your NRO account.

22. I am a foreign tourist, I have these notes. What should I do?

You can purchase foreign exchange equivalent to ₹5000 using these Specified Bank Notes at airport exchange counters within 72 hours after the notification, provided you present proof of purchasing the Specified Bank Notes.

23. I have emergency needs of cash (hospitalisation, travel, life saving medicines) then what I should do?

You can use the Specified Bank Notes for paying for your hospitalisation charges at government hospitals, for purchasing bus tickets at government bus stands for travel by state government or state PSU buses, train tickets at railway stations, and air tickets at airports, within 72 hours after the notification.

24. What is proof of identity?

Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff.

25. Where can I get more information on this scheme?

Further information is available on our website (www.rbi.org.in) and the website of the Government of India (www.finmin.nic.in)

26. If I have a problem, whom should I approach?

You may approach the control room of RBI by email or on Telephone Nos 022 22602201/022 22602944

Withdrawal of Legal Tender Character of existing ₹ 500/- and ₹ 1000/- Bank Notes

Withdrawal of Legal Tender Character of existing ₹ 500/- and ₹ 1000/- Bank Notes

RBI/2016-17/112 CM (Plg) No.1226/10.27.00/2016-17

In terms of Gazette Notification No 2652 dated November 08, 2016 issued by Government of India, ₹ 500 and ₹ 1000 denominations of Bank Notes of the existing series issued by Reserve Bank of India (hereinafter referred to as Specified Bank Notes) shall cease to be legal tender with effect from 9th November, 2016, to the extent specified in the Notification. A new series of Bank Notes called Mahatma Gandhi (New) Series having different size and design, highlighting the cultural heritage and scientific achievements of the country, will be issued. Bank branches will be the primary agencies through which the members of public and other entities will be exchanging the Specified Bank Notes for Bank Notes in other valid denominations or depositing the Specified Bank Notes for crediting to their accounts, upto and including the December 30, 2016. Therefore, banks have to accord highest priority to this work.

In order to enable the members of public and other entities to exchange their existing ₹ 500/- and ₹ 1000/- notes, the following arrangements have to be made by the banks.

2. Action to be taken on November 09, 2016

i) November 09, 2016 (Wednesday) shall be a non-business working day for all banks. However, branches will function on that day to carry out preparations for implementing the scheme as per this circular.

ii) The Specified Bank Notes stocked in ATMs, Cash Deposit Machines, Cash Recyclers, Coin Vending Machines, any other cash dispensing/receiving machine, CIT Companies and Business Correspondents attached to the branch will have to be called back forthwith. The sponsor banks of White Label ATMs will be responsible for recalling the Specified Bank Notes from the White Label ATMs sponsored by them.

iii) Banks should take steps to stop issuing Specified Bank Notes through their branches, business correspondents from November 9, 2016.

iv) All ATMs, Cash Deposit Machines, Cash Recyclers and any other machine used for receipt and payment of cash shall be shut on 9th and 10th November, 2016.

v) All ATMs and cash dispensing machines will have to be re-configured to disburse bank notes of ₹ 100/- and ₹ 50/- denominations prior to reactivation of the machines on 11th November, 2016; however banks should await separate instructions from Reserve Bank of India on issuing Mahatma Gandhi (New) series Notes through ATMs and cash dispensing machines though they can be issued over the counters from Nov 9, 2016.

vi) Every banking company defined under the Banking Regulation Act, 1949 and every Treasury shall complete and forward a return in the format specified in Annex-1 showing the details of the Specified Bank Notes held by it at the close of business as on 8th November 2016, not later than 13:00 hrs on November 10, 2016 to the concerned Regional Office of Reserve Bank of India under whose jurisdiction the Head office of the bank is located. The return should also include details of Specified Bank Notes recalled from ATMs, Cash Deposit Machines, Cash Recyclers, Coin Vending Machines, CIT Companies, Business Correspondents, etc.

vii) Arrangement should be made by the branches to promptly deposit these Specified Bank Notes with the linked currency chest / RBI and get the amount credited to their account.

viii) Branches should estimate their cash requirement and obtain from the linked / nearby currency chest /RBI Bank Notes of other valid denominations.

ix) Cash Deposits machines / Cash Recyclers should continue to accept Specified Bank Notes upto December 30, 2016.

x) Information Material for educating the public regarding withdrawal of Legal Tender character of the Specified Bank Notes (as per Annex-2) and salient features of the Mahatma Gandhi (New) Series Bank Notes (Annex-3) are required to be printed/copied in adequate quantity and distributed to the public / displayed in the banking hall / ATM kiosks.

xi) Banks should identify the staff for managing the exchange counters and brief them properly about the scheme and the procedure to be followed. A copy of the FAQs provided in Annex-4 may be supplied to the staff manning the exchange counters.

xii) Banks should provide adequate number of note counting machines, UV Lamps, note sorting machines etc. at their counters to take care of the work load and timely detection of counterfeit notes. As already advised vide our circular No DCM (FNVD) No.1134/16.01.05/2016-17 dated October 27, 2016, the banking hall, public areas and counters should be under CCTV surveillance and recording should be preserved.

3. Action to be taken on November 10, 2016

a. Bank branches will commence normal operations on November 10, 2016.

b. Banks have to accord top priority to provide facility for exchanging / accepting deposits of Specified Bank Notes and open additional counters to meet the public demand and keep the counters open for extended hours, if necessary. Maximum staff should be deployed for this purpose. If necessary banks may consider hiring retired employees for a temporary period to take care of additional work load.

c. Provision of Exchange Facility:

The specified bank notes held by a person other than a banking company referred to in sub-paragraph (1) of paragraph 1 or Government Treasury may be exchanged at any Issue Office of the Reserve Bank or any branch of public sector banks, private sector banks, foreign banks, Regional Rural Banks, Urban Cooperative Banks and State Cooperative Banks for a period up to and including the 30th December, 2016, subject to the following conditions, namely:—

(i) the specified bank notes of aggregate value of ₹ 4,000/- or below may be exchanged for any denomination of bank notes having legal tender character, with a requisition slip in the format specified by the Reserve Bank and proof of identity; the limit of ₹ 4,000/- for exchanging specified bank notes shall be reviewed after fifteen days from the date of commencement of this notification and appropriate orders may be issued, where necessary;

(iii) there shall not be any limit on the quantity or value of the specified bank notes to be credited to the account maintained with the bank by a person, where the specified bank notes are tendered; however, where compliance with extant Know Your Customer (KYC) norms is not complete in an account, the maximum value of specified bank notes as may be deposited shall be ₹ 50,000/-;

(iv) The equivalent value of specified bank notes tendered may be credited to an account maintained by the tenderer at any bank in accordance with standard banking procedure and on production of valid proof of Identity;

(v) the equivalent value of specified bank notes tendered may be credited to a third party account, provided specific authorisation therefor accorded by the third party is presented to the bank, following standard banking procedure and on production of valid proof of identity of the person actually tendering, as indicated in Annex-5;

(vi) cash withdrawal from a bank account over the counter shall be restricted to ₹ 10,000/- per day subject to an overall limit of ₹ 20,000/- a week from the date of the notification until the end of business hours on 24th November, 2016, after which these limits shall be reviewed;

(vii) there shall be no restriction on the use of any non-cash method of operating the account of a person including cheques, demand drafts, credit or debit cards, mobile wallets and electronic fund transfer mechanisms or the like;

(viii) withdrawal from Automatic Teller Machines (hereinafter referred to as ATMs) shall be restricted to ₹ 2,000 per day per card up to 18th November, 2016 and the limit shall be raised to ₹ 4,000 per day per card from 19th November, 2016;

(ix) any person who is unable to exchange or deposit the specified bank notes in their bank accounts on or before the 30th December, 2016, shall be given an opportunity to do so at specified offices of the Reserve Bank or such other facility until a later date as may be specified by it.

(x) Business Correspondents (BCs) may also be allowed to exchange Specified Bank Notes upto ₹ 4000/- per person as in the case of bank branches, against valid identity proof and requisition slip. For this purpose banks may, at their discretion, enhance the cash holding limits of BCs at least till December 30, 2016.

(xi) While crediting the value of Specified Bank Notes to Jan Dhan Yojna Accounts, the usual limits will apply mutatis mutandis.

4. Reporting Mechanism

Each bank branch exchanging Bank Notes in the denominations of ₹ 500/- and ₹ 1,000/- shall report at the close of business on each day starting from November 10, 2016 till the closure of the scheme on December 30, 2016 (or till any other date thereafter as may be advised by RBI) by email or Fax to their Controlling Office a statement as per Annex-6 showing the details of Specified Bank Notes exchanged by it and the respective Controlling Offices will aggregate these as per Annex-6A and report to the Department of Currency Management, RBI, Central Office by email on a daily basis.

5. Banks may issue detailed instructions to their branches advising them to strictly adhere to the norms of the scheme and procedures laid down above. The staff at the branch level, particularly the tellers, should be adequately sensitized. For this purpose, information as available at our website (www.rbi.org.in) and Government of India website may be used. Staff should familiarise themselves with the FAQs (as per Annex-4).

6. Banks should make copies of information material (As available at Annex-2, Annex-3 and Annex-4) and distribute these to the public.

7. Bank should issue instructions to BCs, ATM Switch Operators and CIT Companies on various aspects of the above scheme relevant to them.

8. Banks should monitor the implementation of the scheme on a day to day basis through a monitoring cell headed by an Officer not below the rank of a General Manager, who will act as a Nodal Officer. The Contact details of the Nodal officer will be reported to the concerned Regional Office of RBI, with a copy to RBI Central Office, Mumbai through email as indicated below.

9. RBI has opened a Control Room at its Central Office for monitoring the progress and providing guidance to banks and members of public. The email id and telephone numbers of the Control room are as under:

Email id: bankquery@rbi.org.in
Telephone No: 022 22602804 / 022 22602944

Consumer Protection

Arulmighu Dhandayudhapaniswamy Thirukoil, Palani, Tamil Nadu, thr. Its Joint Commissioner Vs. Director General of Post Offices, Department of Posts and others

Consumer Protection - Banking & Finance - Consumer Protection Act, 1986, s. 2(1)(g) - Post Office Savings Bank General Rules, 1981, r. 17 - Post Office Time Deposit - Refund without interest - Deficiency of service - Held, though the appellant claimed interest and insisted for the same on the ground of deficiency in service on the part of 3rd respondent Post Master, in view of r. 17, the respondents were justified in declining to pay interest for the deposited amount since the same was not permissible - In the light of r. 17 of the Rules, as rightly concluded by the State and the National Commission, it could not be held that there was deficiency in service on the part of the respondent Postal Authority, 3rd respondent in particular - Further, in view of impugned letter and in view of r. 17 of the Rules, failure to pay interest should not be construed as a case of deficiency in service in terms of s. 2(1)(g) of the Act.

Meaning of Compounding of Contraventions under FEMA, 1999

What is meant by contravention and compounding of contravention?

Contravention is a breach of the provisions of the Foreign Exchange Management Act (FEMA), 1999 and rules/ regulations/ notification/ orders/ directions/ circulars issued there under. Compounding refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal. The Reserve Bank is empowered to compound any contraventions as defined under section 131 of FEMA, 1999 except the contravention under section 3(a)2 ibid, for a specified sum after offering an opportunity of personal hearing to the contravener. It is a voluntary process in which an Indian citizen or a corporate seeks compounding of an admitted contravention. It provides comfort to any person who contravenes any provisions of FEMA, 1999 [except section 3(a) of the Act] by minimizing transaction costs. Willful, malafide and fraudulent transactions are, however, viewed seriously, which will not be compounded by the Reserve Bank.

Who can apply for compounding?

Any person who contravenes any provision of the FEMA, 1999 [except section 3(a)] or contravenes any rule, regulation, notification, direction or order issued in exercise of the powers under this Act or contravenes any condition subject to which an authorization is issued by the Reserve Bank, can apply for compounding to the Reserve Bank. Applications seeking compounding of contraventions under section 3(a) of FEMA, 1999 may be submitted to the Directorate of Enforcement.

When should one apply for compounding?

When a person is made aware of the contravention of the provisions of FEMA, 1999 by the Reserve Bank or the Foreign Investment Promotion Board (FIPB) or any other statutory authority or the auditors or by any other means, she/he may apply for compounding. One can also make an application for compounding, suo moto, on becoming aware of the contravention.

Source: RBI

LABOUR AND INDUSTRIAL LAWS

PUNJAB AND HARYANA HIGH COURT

Punjab Agriculture University and Anr. Vs. Presiding Officer, Labour Court and Anr., (Decided on 26.05.2011)

Daily wage workers - Services alleged to be terminated illegally - No show cause notice issued, no inquiry conducted and also no payment towards retrenchment compensation made - Management contended that appointment was not against any regular post and jobs were abandoned on own hence there arises no question of reinstatement

Held, the workmen were terminated without any notice, charge-sheet, enquiry or compensation and hence order of termination forming subject matter of references under adjudication cannot be said to be either justified or in order and hence this issue in all the references were decided against the management.

The term "workman" as defined in Section 2(s) mean any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute. A conjoint reading of this provision would reveal that even if a person is engaged on daily wages and has completed the continuous service as defined under Section 25B, then, his services cannot be terminated without following the statutory provisions of Section 25F of the Act, irrespective of the fact that he was not appointed against a regular post as alleged on behalf of the management. Therefore, the contentions as raised by Management held to be as not sustainable.

ENVIRONMENTAL LAWS

UTTARANCHAL HIGH COURT

Matri Sadan Vs. Himalaya Stone Crusher Pvt. Ltd. and Ors., (Decided on 26.05.2011)

Environmental Pollution - Activities of crushing stone boulders and mining from the nearby flowing stream of Ganga in the outskirts of town Haridwar - Right to business as constitutional rights - Exercise thereof

The Constitution does not recognize franchise of rights to business, which are dependent on grants by the State or business affected by public interest. In a galaxy of the cases, Hon'ble Supreme Court has held that these restrictions can be stretched up to prohibition of trade or industry, if its affects are deleterious and dangerous to the society at large. It has almost now been settled that no inflexible answer can be offered as to what industry should be brought to the total prohibition and what not. There are no abstract or fixed principles, which laid the universal application in all cases where the closure of the trade and industry deserve to be enjoined. Each case is to be judged to its on merits. The Court must determine the reasonableness of restriction to be imposed for the closure of the trade or industry by objective standards and not by subjective ones.

A number of deleterious affects which the stone crusher, as in the instant case, is causing to the entire of its surrounding to the extent of being fatal for the poor villagers besides creating an incorrigible hazard affects to the ecology of the region hence in these circumstances, the preservation of the interest of the society at large should take priority as against the profit hunting motives of any individual.

If the Government of Uttarakhand, in exercise of the powers vested under Mela Act, has made the order to extend the Kumbh Mela Area and for closure of activity of mining and running by this crusher including hording of the boulders in large quantity then there is nothing wrong in order of the Government taking note of the changed circumstances and heavy protest from all the corners of the society against the creation of hazard by the crusher. It was held that the stone crusher can not be allowed to run as such because it's very existence in the area is against what has been held by the Hon'ble Apex Court in the case of M.C. Mehta with the result that the order of the Government to close down this crusher at the present location, held to be as sustained.

CONSUMER LAW

National Insurance Co. Ltd. Vs. Venketshwera Distributor Chatta Bazar rep. by its Managing Partner R. Satish Kumar and The Manager State Bank of Hyderabad (Decided on 11.04.2011)

Consumer - Repudiation of Insurance Claim - Challenged - Respondent no. 1 took insurance policy from the Appellant (Insurance Company) in respect of the stock in the shop of Respondent no. 1 - Subsequently, Respondent no. 1 shifted his business from impugned shop to new shop at another place - Due to heavy rains the new shop were filled with water and stock of the Respondent no. 1 was damaged and became useless - Respondent no. 1 filed a claim for compensation - Appellant repudiated said claim of Respondent no. 1 on the ground that there was flagrant violation of the terms of the insurance policy as Respondent no. 1 was under obligation to inform about the date of the intended change of the premises and to obtain proper endorsement on the insurance policy which could permit continuation of the liability by the Appellant - State Commission held that the repudiation of the claim by the Appellant was invalid and improper and Respondent no. 1 was entitled to the amount of insured sum alongwith due interest and costs - Whether Respondent no. 1 was entitled to the insured amount?

Held, Respondent no. 1 gave mere intimation to the Appellant regarding shifting of the impugned shop to new address - There was no valid acceptance of such offer by the Appellant - There was no opportunity for the Appellant to examine whether the business place in new shop was safe enough to continue the insurance cover - Respondent no. 1 could not have assumed acceptance of his proposal without obtaining the necessary endorsement allowing change of the premises by the Appellant - Hence, the compensation ought not to have been granted to the Respondent no. 1 when there was no valid contract subsisting between the Appellant and Respondent no. 1 - Impugned judgment unsustainable - Petition allowed.

Labour Law

Hiru B. Barot Vs.IPCA Laboratories Limited and The Presiding Officer, Labour Court Decided on 13.04.2011

Labour and Industrial - Interim relief - Charge-sheet was issued against workman alleging wilful subordination - In the inquiry workman was held guilty and was dismissed from the service - Workman challenged the said order by filing Reference before the Labour Court - Whether the order passed by the Labour Court was only an interim relief or an interim award within the meaning of Section 2(b) of the Industrial Disputes Act, 1947 and if it was an interim award - Whether the workman was entitled for wages under Section 17- B of the Act from the date of the said interim award ?

Held, for treating a decision of the Labour Court as an interim award, the decision should reflect that relevant point for determination to be answered in part or wholly was formulated and addressed in the decision so as to determine the said controversy - In the instant case, relevant facts to invest jurisdiction in the Labour Court to pass an interim award have not been discussed and deliberated upon in the impugned decision - Impugned decision could not be considered as an interim award as such - Thus impugned decision of the Labour Court, though passed in exercise of Section 10(4) of the Act, was in the nature of interim relief and could not be treated as an interim award - As a result, the application preferred by the workman under Section 17- B of the Act was unavailable - Ordered accordingly.

Labour & Industrial Law

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION NEW DELHI

The Regional Manager Central Warehousing Corporation Vs. Ch. Laxminarayana (Decided on 30.03.2011)

Consumer Protection - Medical Claim - Denial - Challenged - Respondent, a retired employee of the Petitioner corporation, preferred a medical bill for Rs. 1,33,678/- towards reimbursement of medical expenses incurred for the treatment of his dependent son - Petitioner rejected said claim on the ground that son of the Respondent took treatment only after the date of retirement of the Respondent - District Forum allowed complaint filed by the Respondent and directed Petitioner to pay Rs. 1,33,678/- along with interest @ 9% p.a. - State Commission dismissed appeal filed against said order - Hence, the instant appeal - Whether order of the District Forum as affirmed by the State Commission could be upheld?

Held, the procedure followed by the opposite parties in the matter of settlement on medical bills submitted by the Respondent for treatment of his son shows that the Petitioner failed to follow the due process of law - The entire enquiry was conducted behind the back of the Respondent - No notice had ever been given to the Respondent - Moreover, Petitioner failed to produce any proof that the son of the Respondent was otherwise employed on the date of treatment - Hence, order of the District Forum did not suffer from any infirmity - Appeal dismissed.

Niranjan Kumar Yadav Son of Shri Mittal Pd. Yadav Vs. National Insurance Company Limited (Decided on 29.03.2011)

Consumer Protection - Vehicle insurance - Repudiation of claim - Challenged - Complainant purchased an impugned vehicle which was insured with respondent (Insurance Company) and was registered in the name of the Complainant - Impugned vehicle was allowed to be used by the local MLA during the elections where the impugned vehicle was attacked and set on fire allegedly by the supporters of another political party - Complainant made a claim under the insurance policy but with futile results - District Forum dismissed appeal filed against said order on the ground that there was a violation of the terms and conditions of the insurance policy relating to the usage of the vehicle - State Commission confirmed the order of the District Forum - Hence, the instant revision petition - Whether order of the District Forum as affirmed by the State Commission could be upheld?

Held, claim of the complainant that the registration of the impugned vehicle was pending before the Registering Authority loses all credibility as it was held by the State Commission that if permanent registration cannot be done for the delay of the office of the registering authority then it must have temporary registration - Complainant failed to show any temporary registration number - Complainant also failed to show any receipt of the application for registration to prove that he had applied for registration before the mishap - Hence, impugned order of the State Commission upheld - Revision petition dismissed.

Labour & Industrial Law

S.B.I. Vs. Hemant Kumar (Decided on 06.04. 2011) SC/0344/2011

Labour and Industrial - Domestic enquiry - Violation of principles of natural justice - Respondent Cashier-cum-Clerk allegedly misappropriated cash from appellant bank - Respondent was charge-sheeted and enquiry proceedings were initiated - Since respondent was absent on various dates of hearing, enquiry officer passed ex parte order holding that respondent was guilty of charges - - Respondent raised an industrial dispute subsequent to dismissal of Departmental appeal against ex parte order - Industrial Tribunal directed reinstatement of respondent holding that departmental enquiry suffered from violation of principles of natural justice - High Court upheld Tribunal order in appellant's writ petition - Whether there was any violation of principles of natural justice in instant case

Held, principles of natural justice should not be stretched to a point where they would render in-house proceedings unworkable - Respondent had not appeared for enquiry on two earlier dates and he was absent on third appointment day also - Respondent adopted dilatory tactics and in-house proceedings should be conducted expeditiously and without any undue loss of time - Tribunal's observation that three barren dates in an in-house proceeding did not amount to delay, was unfortunate - Further, respondent had already tendered two admissions of guilt in writing and one orally before management witness and there was hardly anything that could be said on his behalf to repel charges - Tribunal's findings, therefore, were wholly unreasonable and perverse and High Court, unfortunately, did not consider matter properly - Hence, impugned orders of Tribunal and High Court were set aside - Appeal allowed.

PROCEDURE OF FILING A CASE - Consumer Complaint

Introduction:

Consumer Complaint, where value of the goods or services and compensation exceeds Rupees One Crore, can be filed with the Registry of this Commission within a period of Two Years from the date on which the cause of action has arisen.

Petition can be filled on all working days between 10.00 A.M. to 4 .30 P.M. at 7th Floor, 'B' Wing, Janpath Bhawan, Janpath New Delhi. Consumer Complaint should be signed by the complainant and supported by an affidavit with four copies, and one set each for Opposite Parties.

The Consumer Complaint along with all the copies should be paginated and duly indexed in the following seriatim:-

Consumer Complaint (CC) – 21(a) (i)

1. Index
2. List of Dates
3. Memo of Parties
4. Complaint with affidavit
5. Limitation, if any (2 years from cause of action)
6. Supporting documents in favour of complaint e.g. Receipt, voucher etc
7. Fee for Rs.5,000/- for making Consumer Complaint (Demand Draft in the name of “The Registrar, NCDRC, New Delhi”)

Note:

1.The documents shall be filed in English language only or translated copy of any other language.

2.If the documents are not filed in order in the format mentioned above the same will be returned to the parties at the counter itself without acknowledgement and will only be registered after removing the defects.

3.After admission hearing, any documents if filed in a case the same has to be served on the other side and be filed with proof of service, well in advance of two days earlier from the date of hearing.

4.Henceforth, the review petition/application for recalling of order will be listed before the bench by way of circulation in chambers.

5.No. of copies to be filed in the Commission 1+3 sets + Number of Opposite Parties. (with File cover)

Regards
PL.Manickam