Legal Analysis: Canara Bank vs. Kavita Chowdhary

Citation: 2026 INSC 363
Court: Supreme Court of India
Bench: Justice Ujjal Bhuyan (Division Bench – single judge named, but “we” indicates at least two judges)
Judgment Author: Justice Ujjal Bhuyan
Date of Decision: April 15, 2026
Nature of Judgment: Civil Appeal under Section 23 of the Consumer Protection Act, 1986 / Section 67 of the Consumer Protection Act, 2019 against order of National Consumer Disputes Redressal Commission (NCDRC).

Synopsis of the Judgment

The respondent deposited two cheques totalling ₹1.06 crores into her savings account with Canara Bank. The cheques were returned due to a bank strike. The bank failed to re-present them within the validity period, causing them to become stale. The NCDRC held that there was deficiency in service and awarded 10% of the cheque amount (₹10.61 lakhs) as compensation with 8% interest. The Supreme Court upheld the finding of deficiency in service but reduced the compensation to 6% of the cheque amount (₹6.36 lakhs) with 6% interest, holding that the actual loss from inability to prosecute the drawer under Section 138 NI Act was indeterminate. The Court affirmed that banks acting as collecting agents owe a duty of due diligence; failure to present cheques within validity constitutes negligence and deficiency in service.

1. Basic Information of the Judgment

Field Details Case Title Canara Bank vs. Kavita Chowdhary (with connected appeal) Civil Appeal Nos. 2587 of 2025 and 2588 of 2025 Bench Justice Ujjal Bhuyan (Division Bench)Date of Decision April 15, 2026 Citation 2026 INSC 363 Appeal From Order dated 24.09.2024 of National Consumer Disputes Redressal Commission (NCDRC) in Consumer Complaint No. 123/2019 and connected complaint

2. Legal Framework

Laws Involved:

• Consumer Protection Act, 1986: Section 2(1)(g) (deficiency), Section 2(1)(o) (service), Section 21(a)(i) (jurisdiction of NCDRC).

• Consumer Protection Act, 2019: Section 2(11) (deficiency – expanded definition including negligence and omission), Section 2(42) (service).

• Negotiable Instruments Act, 1881 (NI Act): Section 6 (cheque), Section 64 (presentment for payment), Section 72 (presentment to charge drawer), Section 75A (excuse for delay due to circumstances beyond control), Section 84 (effect of non-presentment and actual damage), Section 105 (reasonable time), Section 138 (dishonour of cheque – conditions precedent).

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