KS Nagalambika versus Corporation Bank
In this case before National Commission, the plaintiff had deposited money with the bank and obtained fixed deposit receipts in his name. On maturity, the said deposits were not paid by the bank on the ground that the plaintiff was a surety for a loan taken by his wife and the amount of the deposits was accordingly adjusted by the bank towards the loan account of the wife.
Relying upon the decision of the Supreme Court (Syndicate Bank versus Vijay Kumar), the Commission held that the bank undoubtedly had a lien over the deposits. The bank was entitled to withhold the title deed till the loan guaranteed by the complainant was repaid. Hence, the petitioner in the present case did not get any relief from the Commission.