Observing that the present state of regulations on locker management is inadequate and muddled and saying that banks cannot leave the customers in lurch by being oblivious to the content in their locker, the top court directed Reserve Bank of India to formulate new rules concerning lockers in six months.
Hearing a case related to United Bank of India, Kolkata branch, the top court on Friday observed, "Banks are under the mistaken impression that not having knowledge of the contents of the locker exempts them from (the) liability for failing to secure the lockers in themselves as well. In as much as we are the highest court of the country, we cannot allow the litigation between the bank and locker holders to continue in this vein."
A bank customer Amitabha Dasgupta said they back said he didn't pay the dues so the bank broke his locker but when the banks returned him the items that were taken from his locker, they were incomplete. Reportedly, he was returned only two jewel while he claimed there were seven.
Against the order of National Consumer Disputes Redressal Commission (NCDRC) he moved to the Supreme Court of India. The top court then fines the United Bank of India (UBI) branch, Rs 5 lakh. It also stated that " (the banks) cannot impose unilateral and unfair terms on consumers."
The court added that fine could be recovered from officers who were responsible for breaking the locker if they were still in service. Court also directed Rs 1 lakh to be paid to the petitioner by the bank as cost of litigation. The apex court also asked, "There is no uniformity in procedure with each bank having its own procedure. What happens if one's locker broken open by the bank and locker's contents are disputed? Whose responsibility is it?"
The Supreme Court laid down some rules and ordered that these rules will stay until new rules are framed by the central bank within a stipulated period of time. The bench of justices MM Shantagoudar and Vineet Saran observed that domestic and international transactions have increased multifold and banking institutions play a significant role in the life of common man with the advent of globalisation. It also noted, "we are steadily moving towards a cashless economy."