Consumer Protection Act, 1986–Section 2–Section 226(3) of the Income Tax Act, 1961–Deficiency in service and unfair trade practice–Tax recovery notice–Banking Services–Unilateral Encashment of Fixed Deposit–Non-Restoration of Accounts–
Complainant (FD) of Rs.2,72,745/- was prematurely encashed by the bank without his consent and after adjusting an amount towards an OD loan, the bank remitted Rs. 2,14,459.61/- to the Tax Recovery Officer–Complaint allowed–Appeal–Held–That, the banks cannot unilaterally encash a Fixed Deposit without the account holder’s consent bank and liable for wrongful encashment and non-restoration of accounts despite the tax attachment being vacated–Failure to restore accounts after the tax demand was set aside, amounts to deficiency in service–Appeal dismissed with costs of Rs. 50,000/- payable to the complainant. (Paras 18 and 19)