Under the Consumer Protection Act, does a bank that receives cheques for collection and lets them become stale, without any reasonable explanation, commit deficiency in service?

Yes. Such a bank acts as an agent of the customer and is under an obligation to exercise due diligence in presenting the instruments within the prescribed validity period. Failure to do so, resulting in the instrument becoming stale and unsupported by any reasonable explanation, amounts to negligence in the discharge of banking duties and constitutes deficiency in rendering service.

Consumer Protection Act, 1986 — s.2(g) — Consumer Protection Act, 2019 — s.2(11) — Negotiable Instruments Act, 1881 — s.75A — s.105 — s.138 — Deficiency in service — Presentment within validity period — Reasonable compensation — Consumer Protection Act, 1986 — s.2(g) — Bank receiving cheques for collection — Cheque allowed to become stale — Held: A bank receiving cheques for collection acts as an agent of the customer, bound to present them within the validity period. Allowing them to become stale, unexplained, is negligence in the discharge of banking duties and deficiency in rendering service. (¶59) Negotiable Instruments Act, 1881 — s.75A — Delay in presentment — Excuse ceases with its cause — Held further: Delay in presentment is excused only while circumstances beyond the control of the holder operate and are not imputable to his negligence. Once the cause of delay ceases to operate, presentment must be made within a reasonable time. (¶56) Consumer Protection Act, 2019 — s.2(11) — Quantum of compensation — Loss indeterminate — Held further: Compensation must be fair, reasonable and commensurate to the loss or injury proved. Where the loss stays indeterminate, only token compensation is due; 10 percent of the face value was reduced to 6 percent and the appeals disposed of. (¶69, 71, 72)

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