Many times, money is transferred to the wrong bank account by mistake by the bank or an individual. In such situations, many times people refuse to return the money. Now the question is whether the bank has the legal right to withdraw the money transferred to the wrong account? What will happen if the account holder spends all the money?
If money is transferred to someone's account by mistake, it does not mean that he will become the owner of that money. According to the law, the person is responsible for paying the money back. If someone does not return the money, the bank can file a case against him under section 406 of the Indian Penal Code. If found guilty, the punishment can be up to three years.
What does Section 406 say?
If a person misuses any kind of money after getting it for a short period of time, spends the property or money, gets it transferred to his name wrongly, then action is taken against him under section 406 of the IPC. Is. A case can be registered under this section only if the money received by mistake in the bank account is not returned.
Apart from this, a case for recovery of money can also be registered under Section 406 as well as Section 34 and 36 of the Civil Procedure Code. The court will sentence that person under section 406 of IPC. After this a recovery suit has to be filed in the Civil Procedure Court. After this, the court will look at all types of property of the accused, confiscate it and then the money will be recovered through that property.
(PC: iStock)
