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American Express to pay Rs 80,000 as compensation

American Express Banking Corp. has been asked by the Delhi State Consumer Commission to pay Rs 80,000 as compensation to a woman for encashing traveller cheques stolen from her despite being informed about the theft.
The state commission observed that since the bank allowed encashment of the cheques despite receiving information about the theft, its concerned officials ‘in conspiracy’ with others 'deliberately' did not stop payment.

'When the information was received by the appellant/opposite party (American Express) with regard to the theft of the cheques, it was incumbent on the part of the appellant to stop the payment, which has not been done.

Obviously, there is sheer negligence on the part of the appellant and we have no hesitation in saying that (concerned) officials of the appellant bank in conspiracy with others deliberately did not stop the payment and encashed the same,' a bench presided by members V K Gupta and S C Jain said.
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