The present complaint has been filed by Sh. Ranjan Vohra enjoined by his son Sh. Suryansh Vohra and daughter Ms. Sonali Vohra (as co-complainants) against the titled opposite party Axis Bank (hereinafter, the OP Bank) alleging unauthorized investment sans any valid instructions by the A/c holders (his son and daughter, the co-complainants) in life-policy products of its tie-up partners M/s Max Life Insurance Co. Pvt. Ltd., in total disregard/ contravention of their instructions for investments in fixed deposit scheme of the Bank.

2.         In brief, the complainant has stated that the co-complainants had their two single separate S.B. A/c with the OP Bank. In March' 2017, they all visited the OP Bank to transfer some surplus funds from the SB A/cs to fixed deposits to earn a somewhat better interest. There, the Branch Manager offered them some better rewarding investment options from the bank's business partners. However, the complainants did opt for the bank's fixed deposits only and the OP1 Manager got their debit authority signed on some blank formats papers. The co-complainants had each opted for 12M fixed deposit of Rs.50,000/- each from their respective accounts. They returned at the assurance that the deposit receipts will be dispatched at their mailing address.

3.         However, no Receipts of the said Fixed Deposits were received by the complainants during the one year deposit period ending in March' 2018 and instead at repeated requests/assurances of good interest rates by the OP1 Manager additional sums of Rs.50,000/- each were deposited in both the accounts for another 12 Months period on the existing terms till March' 2019.

4.         Further, in April' 2019 upon the complainant's strict/firm call-back of their deposits, the OP Bank disclosed having invested their funds in insurance products of their tie-up partner and promised to make available the related receipts to them, shortly. On 12.06.2019, the OP1 Bank delivered them 2 nos. of policies and 2 nos. of renewal receipts also disclosing that the invested funds shall stay jammed-up for a minimum lock-in period of 12 years.

5.         The complainants found that their addresses were intentionally recorded 'wrong & incomplete' over the policies purchased on the strength of debit authority given for fixed deposits to the OP Bank so as these do not reach the investors during the free look-in period. Left with no other better and expeditious relief, the complainants have filed the present complaint praying refund of their funds @ Rs 1.0 Lac per investor with interest @ 12% PA from the date of inception besides Rs.20,000/- as compensation and Rs.20,000/-  as cost of litigation, in the interest of justice. The complaint stands duly accompanied by the Affidavit Ex.Cw1/A deposing its contents and also by Ex.C1 to Ex.C4 the four documents: 2 nos. of policy notes both dated 18/19.03.2017 and 2 nos. of renewal receipts both dated 11.05.2018.                        

6.         Upon summoning, the opposite party appeared and filed written statement through its counsel preliminary objecting therein as to its maintainability being bad for non joiner of the necessary parties.

7.       On merits, the OP Bank has admitted the complainants having held their accounts with bank but have denied their having visited the Branch in March' 2017. Further, the complainants have themselves queried regarding investment with Max Life and it has been the concerned officer Sh. Mohit Mahajan who had apprised them of the benefits of investments in Max Life Co. The complainants, in turn, had made these investments at their own choice and free consent. The terms of policies were duly explained to the complainants who themselves had signed the filled-in applications for purchase and have themselves filed their respective PANs & Aadhars. The policy papers were duly delivered to the holders but they had again requisitioned its duplicate copies after a year before filing of the present complaint. The OP Bank has breathlessly denied all other contents/ allegations as put forth in the complaint and lastly have prayed for its dismissal with costs. In support of its pleadings, the OP Bank has filed the Affidavit (Ex.OP1w/A) of the Branch Head along with along with statement (Ex.OP1 & Ex.OP2) of the two accounts, PAN Card (Ex.OP3) and Aadhars (Ex.OP4 and Ex.OP5) of the two a/c holders/ investors.        

8.         We have carefully examined the documents/ evidence produced on record (along with the scale and scope of ‘adverse inference’ for those ignored to be produced) in order to determine the respective ‘claims’ as pleaded forth by the opposing litigants in the light of the arguments as advanced by their respective learned counsels representing their respective sides.

9.         We observe that the OP Bank has miserably failed to establish its claims pertaining to 'issuance' of the impugned policies. Somehow, the OP Bank has either ignored or failed or not even attempted to produce some documents (as listed hereunder) that would have been vital as well as assistive towards reliability of defense pleadings. 

i).      Affidavit of Sh. Mohit Mahajan the concerned officer (addressed as such) who had explained the benefits of investment with Max Life Co., to the complainants.

ii)      Proof of delivery of the policies to the investors.

10.       We observe that in absence of some cogent evidence, the claims/pleadings by the OP Bank are mere bald pleadings neither admissible nor maintainable, legally. We, in absence of supporting documents, reject the OP Bank's plea that complainants had themselves, at their own with free consent had opted for investment with M/s Max Life Co. and polices were duly delivered to them. We further observe that there have been many other acts/omissions on the part of the OP Bank that are infested with infirmities amounting to deficiency in service on account of adoption of unfair trade practices.

11.       In the light of the all above, we find that the OP Bank has violated the statutory consumer rights of the complainants causing them humiliation, physical harassment, mental agony and financial loss and thus hold the OP Bank liable to an adverse order under the applicable statute. Thus, we order the OP Bank to refund the total amount of Rs.2,00,000/- i.e.  (Rs.1,00,000/- received in each of the two accounts) along with interest @ 7% P A with effect from date of respective debits till realization besides Rs.15,000/-each as compensation and cost of litigation within 45 days of receipt of certified copy of these orders.

12.     The complaint could not be decided within the stipulated period due to heavy pendency of Court Cases, vacancies in the office and due to pandemic of Covid-19.

13.     Copy of the order be communicated to the parties free of charges. After compliance, file be consigned to record.                                                                       

                                                       (Naveen Puri)

                                                             President. 

ANNOUNCED:                             (R.S.Sukhija)

MAY 19, 2022.                                       Member.

YP.