BoB held guilty of negligence

She had neither withdrawn money nor issued any cheques. It was found that her brother Suresh Shetty had stolen her cheques when he had come to stay with her during her illness.

Shetty had utilised a number of cheques to withdraw money. Some from his sister’s cheque book and others he fraudulently obtained from the bank with forged signatures.

Rege filed an First Information Report charging that the bank had illegally issued two fresh series of cheque books to Shetty, without ascertaining her signature.

She alleged that she had lost her money because the bank failed to ascertain and verify the signatures and prevent the fraud.

Shetty was arrested. He confessed to fraudulently encashing Rege’s cheques. He also admitted to having fraudulently applied and obtained two additional cheque books. The Vakola police chargedsheeted Shetty and filed a criminal complaint against him. He was convicted by the court.

The Bank of Baroda officials filed their appearance before the advocate but failed to file a written version.

Subsequently the matter was heard ex-parte.

The Bank of Baroda did not dispute Rege’s charges through advocate Jehangir Gai. In an ex-parte order in July 1997, president R J Purandare and member Dr G N Shenoy held Bank of Baroda guilty of deficient service.

They also directed the Bank of Baroda to pay Rege Rs 82,500/- at 15 per cent interest from August 1993 onwards and Rs 500 as cost of the case.