Supreme Court: Consumer Forums Cannot Decide Banking Disputes Involving Fraud or Forgery

The Supreme Court ruled that consumer forums lack jurisdiction to adjudicate banking disputes involving allegations of fraud, forgery, or unauthorized pledges.

The Bench held that while a company can be a "consumer," complex factual disputes requiring detailed evidence must be tried in civil or criminal courts.

The Court noted that proceedings under the Consumer Protection Act are summary in nature and ill-equipped for cases involving criminal wrongdoing.

Although the court clarified that parking surplus funds for interest does not automatically make a transaction "commercial," the serious nature of the fraud allegations in this case necessitated dismissal of the consumer complaint.

[Sant Rohidas Leather Industries v. Vijaya Bank]