It was a great pleasure for me to read the article today written by Advocate Dr Mahendra Limaye of Nagpur highlighting the need to strengthen the recipient side process of digital payments.
As many of the readers know, Naavi has been pursuing the historical case of S Umashankar Vs ICICI Bank since 2008 in which some money was lost due to unauthorized access of an NRE account at Tuticorin and laundered through another current account of ICICI Bank at Fort Mumbai branch.
In this case the deficiency of security at ICICI Bank at both branches were clearly highlighted. The negligence of the account holding branch at Tuticorin and the negligence and complicity of the Fort Branch were presented with evidence gathered from the Bank’s own records.
The Adjudicator of Tamil Nadu gave the award in favour of the customer based primarily on the negligence of the Tuticorin branch while highlighting the deficiencies of the Fort Branch.
In the appeal, TDSAT highlighted the negligence of the Fort Branch and dismissed the appeal of the Bank once again confirming the award in favour of the customer and against the Bank.
Now the matter is before the Madras High Court and in the final stages of a decision on the further appeal of ICICI Bank. For the time being it is inappropriate to discuss the issues as being presented in the Madras High Court and as we wait for the final decision of the honourable Court.
But what Mr Limaye has written will surely come for further discussion in the Court.
Naavi
