. CONSUMER UNITY & TRUST SOCIETY vs CHAIRMAN & MANAGING DIRECTOR. Supreme Court, 31-01-1995

CourtSupreme Court (India)
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 3
PETITIONER:
CONSUMER UNITY & TRUST SOCIETY
Vs.
RESPONDENT:
CHAIRMAN & MANAGING DIRECTOR
DATE OF JUDGMENT31/01/1995
BENCH:
SAHAI, R.M. (J)
BENCH:
SAHAI, R.M. (J)
KULDIP SINGH (J)
MOHAN, S. (J)
CITATION:
1995 SCC (2) 150 JT 1995 (2) 51
1995 SCALE (1)387
ACT:
HEADNOTE:
JUDGMENT:
The Judgment of the Court was delivered by
R.M. SAHAI, J.- The short question that arises for
consideration in this appeal directed against judgment of
National Consumer Disputes Redressal Commission, New Delhi,
is whether a banking company which renders service within
meaning of clause (g) of Section 2 of the Consumer
Protection Act, 1986 (referred in brief as "the Act") is
liable to compensate its customers for loss of service due
to illegal strike by its employees.
2.Reasons for the strike due to enforcement of scheme of
transfer by the Bank and its being illegal due to employees
resorting to it during pendency of conciliation proceedings
before the Commission have not been assailed in this appeal.
Even the finding that the Bank was prevented from rendering
any skeleton service to its customers due to unruly
behaviour of the employees who not only created barricades
by forming human wall before the Bank but even mutilated and
defaced the signature on cheques issued by the Bank to cater
to urgent demands of its customers by colluding with
employees of Reserve Bank of India is well-founded and
unassailable. But what was argued was that since the
customers of the Bank were deprived of the services due to
strike for 54 days, the Bank was liable to pay such amounts
as,
"(a)Interest on overdrafts accounts to be
reimbursed at lending rate during the period
the account was not operative.
(b) Reimbursement of interest at the lending
rate less actual rate of interest creditable
to the saving deposit account holders.
(c) Interest at the lending rate on the
negotiable instruments held in suspense during
this period to be reimbursed to the customers.
(d) Reimbursement of interest at which the

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