Observing that the present state of regulations on lockermanagement is inadequate and muddled and saying that banks cannot leave thecustomers in lurch by being oblivious to the content in their locker, the topcourt directed Reserve Bank of India to formulate new rules concerning lockersin six months.
Hearing a case related to United Bank of India, Kolkatabranch, the top court on Friday observed, "Banks are under the mistakenimpression that not having knowledge of the contents of the locker exempts themfrom (the) liability for failing to secure the lockers in themselves as well.In as much as we are the highest court of the country, we cannot allow thelitigation between the bank and locker holders to continue in this vein."
A bank customer Amitabha Dasgupta said they back said hedidn't pay the dues so the bank broke his locker but when the banks returnedhim the items that were taken from his locker, they were incomplete. Reportedly,he was returned only two jewel while he claimed there were seven.
Against the order of National Consumer Disputes RedressalCommission (NCDRC) he moved to the Supreme Court of India. The top court thenfines the United Bank of India (UBI) branch, Rs 5 lakh. It also stated that "(the banks) cannot impose unilateral and unfair terms on consumers."
The court added that fine could be recovered fromofficers who were responsible for breaking the locker if they were still inservice. Court also directed Rs 1 lakh to be paid to the petitioner by the bankas cost of litigation. The apex court also asked, "There is no uniformityin procedure with each bank having its own procedure. What happens if one'slocker broken open by the bank and locker's contents are disputed? Whoseresponsibility is it?"
The Supreme Court laid down some rules and ordered thatthese rules will stay until new rules are framed by the central bank within astipulated period of time. The bench of justices MM Shantagoudar and VineetSaran observed that domestic and international transactions have increasedmultifold and banking institutions play a significant role in the life ofcommon man with the advent of globalisation. It also noted, "we aresteadily moving towards a cashless economy."