BANGALORE URBAN DISTRICT, NO.8, SAHAKARA BHAVAN, CUNNINGHAM ROAD, BANGALORE – 560 052           

C.C.No.562/2013

DATED THIS THE 12^th MARCH 2014

PRESENT

SRI.J.N.HAVANUR, PRESIDENT

SRI.H.JANARDHANA, MEMBER

Complainant: -                                

                                                Suraj Kumar Gupta,

                                                Flat #6, BMP#25, Narayanappa

                                                Layout, Nagawarapalya,

                                                CV Raman Nagar,

                                                Bangalore-96

V/s

Opposite parties: -       

1.   Branch Manager,

State Bank of India,

Manyata Tech Park,

Nagawara, Bangalore

2.   Branch Manager,

State Bank of India,

Badarpur,

District – Karimganj

Assam-06

ORDER

SRI.J.N.HAVANUR, PRESIDENT

        This is a complaint filed by the complainant against the Ops no.1 and 2, praying to pass an order, directing the Ops no.1 and 2 to refund a sum of Rs.500=00 towards unauthorized deduction from his SB account and to pay compensation of Rs.2.00 lakhs towards loss of earnings, suffering, mental trauma and to give an apology in writing.

2. The brief facts of the complaint can be stated as under.

The complainant is maintaining a SB account no.20101187417 in SBI Manyata Tech Park, Bangalore branch and holding an educational loan account no.10549483885 in SBI Badarpur, Assam branch since 2003. The instalment of educational loan was being deducted from his mother’s pension account on monthly basis. On 18^th April 2012, the complainant has given a request via fax to deduct the same amount from his SB account, SBI, Manyata Tech Park, Bangalore from 3^rd of every month starting 3^rd May 2012. Irrespective of request of deduction from 3^rd of May 2012, the account of complainant was accessed on the every next day i.e. 19-4-2012 and Rs.500=00 was transferred from his SB account exist in SBI, Bangalore branch to SBI Badarpur, Assam educational loan account without his knowledge and permission. The complainant on notice of the above, contacted SBI, Bangalore branch and also gave a written application on 1-5-2012 via registered post for a reply and suitable action, but the complainant did not get any response. The complainant tried to communicate via phone with SBI Badarpur, Assam regarding the above matter but was shocked by rude statements and even threats that as along as the complainant has a loan, the bank can do whatever they feel correct which then forced the complainant to withdraw/close his deposits and transfer the same to another bank for safety of his earnings. The complainant emailed to SBI Chairman, complaint division about this incident and unfortunately, he did not get any response from them and after this the complainant raised a complaint with the RBI banking ombudsman and he was disappointed with the response from RBI banking ombudsman which states that the deduction was towards the overdue of his education loan account. The complainant strongly felt this is not the correct justification for the incident and it makes no sense to deduct Rs.500=00 as an overdue for an outstanding loan of approximately Rs.2,50,000=00 at that point in time. The complainant does not have any overdue/arrears with the education loan and unauthorized access of his SB account by SBI to transfer fund is not at all acceptable. Hence, the complainant has come up with the present complaint.

   3. After service of the notice, the OP no.1 has appeared through its counsel and filed version, but the 2^nd OP did not appear before the forum and he was called out absent and he has been placed exparte.

4. The averments of version of the 1^st OP can be stated as under:

The complainant had availed an education loan at OP no.2 bearing account no.10549483885. The said education loan was sanctioned to the complainant on 4-9-2003 to pursue his higher education and the repayment of the said loan was to start one year after completion of his course or six months after getting employment whichever is earlier. As the complainant did not make the repayment, the operations in the said loan had become irregular. During November 2011, the complainant approached the 1^st OP branch to open a savings bank account and accordingly on 3-11-2011 SB account bearing no.20101187417 was opened in the name of complainant in the 1^st OP branch. By letter dated 18-4-2012 submitted to the 2^nd OP branch the complainant submitted standing instructions recovery of EMI (of Rs.4,000=00 p.m.) deduction of Education loan account no.10549483885 from his SB account no.20101187417 at 1^st OP branch. Thereafter on 19-4-2012 for test/trail purpose an amount of Rs.500=00 was debited from the SB account of the complainant at 1^st OP bank branch to the outstanding in his education loan account at 2^nd OP bank branch. The said transfer/trial happened in the presence of the complainant’s mother at 2^nd OP branch and immediately thereafter the successful transfer of Rs.500=00 was intimated to the complainant by the 2^nd OP branch. In view of the above facts the transfer of Rs.500=00 by the 2^nd OP branch was in consonance with the instructions of the complainant and the 2^nd OP had acted as per the banking procedure and practice. The allegation in the complaint regarding negligence on the part of the 1^st OP is false and misleading. The Ops have acted as per the request of the complainant. In view of the above facts that the banking ombudsman has dismissed the complaint of complainant and has upheld the action of the OP bank. There is no deficiency of service on the part of the 1^st OP and the 1^st OP is not liable to pay any amount to the complainant, so it is prayed to dismiss the complaint against the 1^st OP, in the interest of justice and equity.

5. So from the averments of the complaint of the complainant and version of the 1^st OP, the following points arise for our consideration.

1.                  Whether the complainant proves that, the OPs are negligent and there is deficiency of service on the part of the OP in debiting Rs.500=00 from his SB account and crediting the same to education loan account as stated in the complaint?

2.                  If point no.1 is answered in the affirmative, what relief, the complainant is entitled to?

3.                  What order?

6. Our findings on the above points are;

          Point no.1:  In the Affirmative  

Point no.2:  The complainant is entitled to claim a sum

                   Rs.3,000=00 alongwith cost Rs.2,000=00

from the Ops.

          Point no.3:  For the following order

REASONS

          7. So as to prove the case, the complainant has filed his affidavit by way of evidence and produced three documents alongwith the complaint. On the other hand, one R.S.Kulkarni, Manager working in the 1^st OP bank has filed his affidavit and produced education loan account statement of complainant. We have heard the arguments of both parties and we have gone through the oral and documentary evidence of both sides meticulously

8. One Suraj Kumar Gupta, who being the complainant has stated in his affidavit that, he is maintaining a SB account no.20101187417 in SBI Manyata Tech Park, Bangalore branch and holding an educational loan account no.10549483885 in SBI Badarpur, Assam branch since 2003. The instalment of educational loan was being deducted from his mother’s pension account on monthly basis. On 18^th April 2012, he has given a request via fax to deduct the same amount from his SBI (Manyata Tech Park, Bangalore as above) savings account from 3^rd of every month starting 3^rd May 2012. Irrespective of request of deduction from 3^rd of May 2012, his account was accessed on the every next day i.e. 19-4-2012 and Rs.500=00 was transferred from his SB account to SBI Badarpur, Assam educational loan account without his knowledge and permission, and on notice of the same, he contacted SBI, Bangalore branch and gave a written application on 1-5-2012 by RPAD for a reply and suitable action on the above activity since he had other EMI’s associated with that SB account, but he did not get any response. He tried to communicate via phone with SBI Badarpur, Assam regarding the above matter but was shocked by rude statements and even threats to the fact that as along as he has a loan, the bank can do whatever they feel correct which then forced him to withdraw/close his deposits and transfer the same to another bank for safety of his earnings. He does not have any overdue/arrears with the education loan and unauthorized access of his SB account at SBI Manyata Tech park, Bangalore by SBI Badarpur, Assam to transfer funds is not at all acceptable. So he prayed to pass an order, directing the Ops to retransfer or refund the sum of Rs.500=00 towards unauthorized deduction from his SB account, to pay compensation of Rs.2.00 lakhs and give an apology in writing and hence, he has come up with the present complaint.

9. Let us have a cursory glance at the relevant documents of the complainant. The complainant has produced statement of account of his education loan exists in SBI, Badarpur, Assam and under heading product it is mentioned as TL Education loan and that statement is from 1-1-2012 to 28-4-2012 wherein the amount of Rs.500=00 shown as credit on 19-4-2012 showing under details as deposit transfer from repayment of education loan transfer from 201011 and the balance is shown as Rs.2,66,582=44. Document no.2 of the complainant is copy of account statement of complainant existing in SBI, Manyata Embassy Business park, Bangalore for a period from 16-4-2012 to 23-4-2012 wherein on 19-4-2012 under description column it is stated as transfer repayment of education loan Rs.500=00 and the balance as on 19-4-2012 is Rs.28,634.87. Document no.3 is the copy of letter of complainant dated 18-4-2012 addressed to the SBI, Badarpur, Assam stating that he has an education loan account associated with SBI Badarpur branch and the EMI of Rs.4000=00 is currently being deducted from his mother pension account, and he would like to request the bank to deduct the EMI of Rs.4000=00 from his SB account no.20101187417 on 3^rd of every month starting from 3-5-2012 till the end or closure of the education loan and release the pension account of his mother. Document no.4 is the copy of letter of complainant addressed to the SBI, Manyata Embassy branch, Bangalore stating that, his SB account has been assessed and transferred Rs.500=00 to his education loan account without his knowledge and permission on 19-4-2012. Seeing such kind of breach of privacy and security he was forced to close his RD account linked with the above SB account and transfer the same to his other bank account and he would appreciate a written apology from the person responsible for this act.

10. The said evidence of complainant that his account was accessed on 19-4-2012 and transferred Rs.500=00 from his SB account standing in SBI, Manyata Embassy branch, Bangalore to SBI, Badarpur branch, Assam. Education loan account against his written request to deduct the same on a particular date onwards is corroborated by copies of bank statement of account of the complainant and two copies of letter of complainant produced on behalf of the complainant.     

11. Let us have a cursory glance at the material evidence of the OP. One R.S.Kulkarni who being the Manager working in the OP bank has stated in his affidavit that, the complainant had availed an education loan at OP no.2 SBI Badarpur branch and repayment of the said loan was to start one year after completion of his course or six months after getting employment, and as the complainant did not make the repayment, the operations in the said loan had become irregular. The total outstanding in the education loan account of the complainant as on 19-4-2012 after giving credit to transfer of Rs.500=00 was Rs.2,66,582=00. During November 2011, the complainant approached the 1^st OP branch to open a SB account and accordingly on 3-11-2011 SB account bearing no.20101187417 was opened in his name in the 1^st OP branch. By letter dated 18-4-2012 submitted to the 2^nd OP branch, the complainant submitted standing instructions recovery of EMI from his SB account exist in the 1^st OP bank branch. Thereafter on 19-4-2012 for test purpose an amount of Rs.500=00 was debited from SB account of the complainant at 1^st OP bank branch to the outstanding in his education loan account at 2^nd OP bank branch. The said transfer happened in the presence of his mother at 2^nd OP branch and immediately the successful transfer of Rs.500=00 was intimated to the complainant by the 2^nd OP branch. The transfer of Rs.500=00 by the 2^nd OP branch was in consonance with the instructions of the complainant and the 2^nd OP has acted as per the banking procedure and practice. The 1^st OP has acted as per the request of the complainant, there is no deficiency of service on the part of the 1^st OP and the 1^st OP is not liable to pay any amount to the complainant. So the complaint be dismissed against the 1^st OP, in the interest of justice and equity.

12. The 1^st OP has produced education loan account statement of complainant for a period from 4-9-2003 to 20-4-2012 wherein on 19-4-2012 an amount of Rs.500=00 was credited to his education loan from his SB account in Bangalore branch. It is no doubt true that, the Manager of the 1^st OP has stated in his affidavit that, the alleged transaction of Rs.500=00 has been made on 19-4-2012 as a trial in the presence of mother of complainant. But unfortunately no documentary evidence is produced by the 1^st OP to show that, the said transaction of Rs.500=00 was done in the presence of mother of complainant. When the complainant gave specific instruction letter to the OP to deduct his EMI from his particular SB account from a particular date onwards, it is the duty of the OP bank to obey it and deduct the same from the particular date and instead of doing trial/test earlier to date specified by the complainant. The act of OP in making trial of transfer of amount from the SB account of Bangalore branch to education loan account exists in the SBI, Badarpur, Assam earlier to date  specified by the complainant certainly amounts negligence or deficiency of service on the part of the OP and as such we are of view that, the oral and documentary evidence of the complainant are more believable trustworthy and acted upon than the material evidence of the 1^st OP.  The complainant who come to forum seeking relief has proved with clear cogent and consistent material evidence that, the Ops are negligent and there is deficiency of service on the part of the Ops in making transfer of the amount from his SB account to education loan account against his written instruction letter, and accordingly, we answer this point in a affirmative.

13. In view of our affirmative finding on point no.1, the complainant is entitled to get back the refund of Rs.500=00 from the OP plus nominal compensation of Rs.2,500=00 and cost of litigation of Rs.2,000=00 from the Ops. So the  Ops no.1 and 2 are directed to pay Rs.3,000=00 to the complainant i.e. Rs.500=00 being the amount deducted from the SB account of complainant + Rs.2,500=00 towards compensation within 30 days from the date of receipt of this order, failing which, the Ops no.1 and 2 shall pay the said amount to the complainant alongwith 7% interest per annum on the said amount from the date of this order to till the date of realization, and  the Ops no.1 and 2 are further directed to pay Rs.2,000=00 to the complainant towards cost of litigation, and accordingly, we answer this point. In the result, for the foregoing reasons, we proceed to pass the following order.

ORDER

The complaint of the complainant is partly allowed. The Ops no.1 and 2 are directed to pay Rs.3,000=00 to the complainant i.e. Rs.500=00 being the amount deducted from the SB account of complainant + Rs.2,500=00 towards compensation within 30 days from the date of receipt of this order, failing which, the Ops no.1 and 2 shall pay the said amount to the complainant alongwith 7% interest per annum on the said amount from the date of this order to till the date of realization.

The Ops no.1 and 2 are further directed to pay Rs.2,000=00 to the complainant towards cost of litigation.

          Supply free copy of this order to both parties. 

          (Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Open forum on this the 12^th day of March 2014).

MEMBER                                 PRESIDENT