Can a bank impose various conditions if an account holder does not operate his account for long and then wants to withdraw his money? NO, rules a City Court in N. Delhi. Additional District Judge made it clear that a customer’s money would remain his asset forever and a bank, supposed to be acting as its custodian cannot clamp limitations on the period within which he should withdraw it. Directing that a bank give back to an account holder his money on demand and without dictating arbitray terms, the Judge said banks could put forth no legal hurdles in disbursing it. ” If somebody deposits cash in his current or saving accout or by way of a fixed deposit receipt [FDR] with any bank, then the return of the same cannot be subjected to the laws of limitation. There is no limitation in law within which a person has to withdraw his money from his account.” said the Court. ” In case such an account is not actively operated, the maximum a bank can do is to freeze the account and levy some nominal mainenance. But by o stretch of interpretation, can the bank usurp such money, which does not belong to it,” held ADJ Rahi.

[WHAT A REASONABLE JUDGEMENT BY THE DELHI CITY COURT!!! IT IS VERY CLEAR FROM THIS JUDGEMENT THAT BANKS CANNOT ARBITRARILY APPROPRIATE (why not we call it as misappropritate?) A CUSTOMER’S HARD EARNED MONEY. THERE IS NO LAW IN OUR LAND WHICH EMPOWERS THEM TO TAKE SUCH DRASTIC ACTION. SUCH BEING THE LEGAL POSITION, WHY NOT ALL OTHER BANKS ALSO BE DIRECTED BY THE RESERVE BANK OF INDIA, WITH THE APPROVAL OF THE FINANCE MINISTRY IN THE CENTRE, TO REFUND TO ALL CUSTOMERS FROM WHOM THEY HAD APPROPRIATED SUCH SUMS IN THE PAST ALSO, AS SUCH MONEY DOES NOT BELONG TO THEM AS PER LAW IN OUR COUNTRY. IF SUCH A STEP IS TAKEN IMMEDIATELY BY THE RBI AND THE FINMIN, THEN THOUSANDS OF CUSTOMERS WOULD GET BACK THEIR HARD EARNED MONEY.

CITY COURT RULING

VENKATRAMAN RAGGHUPATHY, Web admin.

HIGH COURT JUDGEMENTS LEGAL HURDLES, LIMITATIONS, USURP