A division bench of Justices Girish Kulkarni and Firdosh Pooniwalla was hearing a petition filed by one Jaiprakash Kulkarni and Pharma Search Ayurveda Private Limited challenging an order passed by the Banking Ombudsman refusing to direct the Bank of Baroda to refund an amount of Rs 76 lakh allegedly transferred from their account through cyber fraud.
MUMBAI: A customer has zero liability when an unauthorized transaction occurs due to a third party breach where the deficiency lies not with the bank or customer but somewhere in the system, the Bombay High Court said on Thursday while directing the Bank of Baroda to refund Rs 76 lakh debited from a company’s bank account fraudulently.
A division bench of Justices Girish Kulkarni and Firdosh Pooniwalla was hearing a petition filed by one Jaiprakash Kulkarni and Pharma Search Ayurveda Private Limited challenging an order passed by the Banking Ombudsman refusing to direct the Bank of Baroda to refund an amount of Rs 76 lakh allegedly transferred from their account through cyber fraud.
The HC bench, which cited a July 2017 circular issued by the Reserve Bank of India, also said Bank Bank of Baroda has a policy called the Consumer Protection Policy (Unauthorized Electronic Banking Transactions) that reiterates the same.