A bank demand draft was dishonoured. Is it a deficiency in service?
Yes. A dishonour of draft is a lapse or omission on the part of the bank which amounts to deficiency of service as under Sec. 2 (1) (g) of the Consumer Protection Act, 1986.
The affected party can successfully prefer a complaint against the bank.
The same view was held in N. Raveendran Nair Vs. Branch Manager, State Bank of India, 1991 (2) CPR 45, p. 47 (Ker. SCDRC)