Syndicate Bank v. Vijay Kumar

Facts

• A customer of Syndicate Bank suffered loss due to delay and deficiency in the bank's services
• The customer filed a complaint before the consumer forum
• The bank contended that banking transactions do not constitute "service" under the Consumer Protection Act

Issue

1. Whether banking activities constitute "service" within the meaning of the Consumer Protection Act, 1986, making banks amenable to consumer forum jurisdiction.

Held

• The Court held that banking services clearly fall within the definition of "service" under S.2(1)(o) of the Consumer Protection Act, 1986. Services rendered by banks (accepting deposits, granting loans, collection of cheques, remittance) are rendered for consideration (interest differential, charges, commission). Any deficiency in such service gives the consumer a right to approach the consumer forum.

Ratio Decidendi

Banking is a "service" under consumer protection legislation. Banks are "service providers" and customers are "consumers." Deficiency in banking service (delay in cheque collection, wrongful dishonour, failure to execute instructions) constitutes actionable deficiency.