| Case ID |
21071dd2-5088-47db-a0c5-3a53e3f8e8cc |
| Body |
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| Case Number |
W.P. No. 24916 of 2020 |
| Decision Date |
Feb 19, 2024 |
| Hearing Date |
Feb 19, 2024 |
| Decision |
The Lahore High Court dismissed the writ petition filed by JS Bank Limited, concluding that the Banking Mohtasib's decision to order the bank to credit the amount of Rs. 200,000/- to the complainant's account was justified. The court emphasized that a deposit made by a customer to a duly authorized bank official is valid, regardless of the bank's internal processes for generating deposit slips. The court found no error in the Banking Mohtasib's jurisdiction and held that the bank was liable for the fraud perpetrated by its employee. The case underscored the principle of vicarious liability, indicating that the bank must bear responsibility for its employees' actions, especially when dealing with an illiterate customer. The court affirmed the Banking Mohtasib's authority to issue directions in such matters, ultimately dismissing the bank's petition due to lack of merit. |
| Summary |
In the case of W.P. No. 24916 of 2020, JS Bank Limited petitioned the Lahore High Court against the Banking Mohtasib's decision that mandated the bank to credit Rs. 200,000/- to a complainant who alleged that her deposit was not credited. The case highlighted essential legal principles such as the validity of deposits made to bank officials and the vicarious liability of banks for employees' fraudulent actions. The court reiterated that the bank's internal procedures for deposit slips do not absolve it of responsibility to its customers, particularly when the customer is illiterate. The decision reinforces the need for banks to ensure their employees adhere to fiduciary duties and protect customers' interests. The court found the Banking Mohtasib's findings to be sound, leading to the dismissal of the bank's petition, which was deemed to lack merit. This ruling underscores the importance of customer protection and accountability in the banking sector. |
| Court |
Lahore High Court
|
| Entities Involved |
JS Bank Limited,
Banking Mohtasib Pakistan,
Muhammad Farhan
|
| Judges |
Shams Mehmood Mirza, J.
|
| Lawyers |
Barrister Muhammad Ahmad Pansota,
Jawed H. Tarar
|
| Petitioners |
JS BANK LIMITED
|
| Respondents |
others,
BANKING MOHTASIB PAKISTAN
|
| Citations |
2024 SLD 3995,
2024 PLJ 80
|
| Other Citations |
United Bank Limited v. Federation of Pakistan and others PLD 2018 Lahore 322,
State Bank of India v. Smt. Shyama Devi (1978) 3 SCC 399
|
| Laws Involved |
Constitution of Pakistan, 1973
|
| Sections |
199
|