The Bombay High Court has ordered Yes Bank to pay ₹50,000 in compensation to Microfibers Pvt Ltd for delaying the opening of a bank account due to an insistence on providing an Aadhaar card, despite it not being mandatory at the time. The court’s decision came after hearing a petition filed by the company in June 2018, after Yes Bank refused to open an account without Aadhaar. The bank eventually opened the account in January 2019, but not before a significant delay from April to September 2018.
During this period, the Supreme Court had granted interim relief, striking down the requirement of Aadhaar for opening bank accounts. The court noted that there was no justification for the bank’s delay in opening the account after September 26, 2018, when the Supreme Court’s verdict was delivered. The petitioner’s counsel argued that the delay had caused significant losses, as the company was unable to rent out its premises in Mumbai for a year, resulting in a loss of ₹1.5 lakh per month.
The counsel sought ₹10 lakh in compensation, but the court found this claim excessive. However, taking into account the bank’s failure to respond to the issue of compensation and the petitioner’s lack of alternate means of income, the court awarded ₹50,000. The bench noted that the circumstances were peculiar and did not want to relegate the petitioner to ordinary remedies. The court directed Yes Bank to pay the amount within eight weeks.
The case highlights the importance of banks following the law and respecting the rights of their customers. The Supreme Court’s verdict on Aadhaar had clearly struck down the requirement for opening bank accounts, and Yes Bank’s insistence on it was incorrect. The court’s decision sends a strong message to banks to ensure that they are not causing unnecessary delays or hardships to their customers. The compensation awarded to Microfibers Pvt Ltd is a recognition of the losses suffered by the company due to the bank’s actions, and it serves as a reminder to banks to be more mindful of their customers’ needs and rights.