Orissa

Cuttak

CC/317/2013

Haldhar Samal - Complainant(s)

Versus

Branch Manager,State Bank of India - Opp.Party(s)

R K Rout

15 Feb 2018

ORDER

IN THE COURT OF THE DIST. CONSUMER DISPUTES REDRESSAL FORUM,CUTTACK.

C.C No.317/2013

Haladhar Samal,

Barahipur,PO:Bheda,

Via:Mouda,Dist:Cuttack.                                                                 … Complainant.

 

                Vrs.

 

 

Branch Manager,

State Bank of India,

At/PO:Chasakhanda,Via:Mouda,

Dist:Cuttack.… Opp. Party.

 

Present:               Sri Dhruba Charan Barik,LL.B. President.

Sri Bichitra Nanda Tripathy, Member.

Smt. Sarmistha Nath, Member (W).

 

Date of filing:   31.12.2013

Date of Order: 15.02.2018

 

For the complainant:                Sri R.K.Rout,Adv. & Associates.

For the O.P.                :               Mr.S.C.Biswal,Adv. & Associates.

 

Sri Bichitra Nanda Tripathy,Member                                                     

The case of the complainant is against deficiency in service & unfair trade practice on the part of O.Ps.

1. Shortly the case of the complainant is that the complainant is an agriculturist. He was having an S.B.Account with O.P Bank vide account No.31215010437. (Anenxure-1).  He availed an Agriculture loan under KCC Vide Loan A/C No. 1215010437.  The said loan was also insured under National Agricultural Insurance Scheme for a premium of Rs.1000/- (Annexure-2).  Due to the flood occurred during September,2008; the standing crop of the complainant was washed away and complainant could not repay the KCC loan availed from O.P. Bank.  The complainant approached the O.P Bank for reimbursement of the KCC loan by the concerned Insurance Company since the said crop loan was duly insured.  The O.P Bank vide letter dt.05.10.2009 intimated to the complainant that the insurance premium as deducted was remitted to the National Agricultural Insurance Scheme(NAIS) but the O.P Bank has not received any compensation towards crop loss sustained by the petitioner.(Annexure-3).  The Soil Conservation Officer,Mahanga vide his letter dt.23.01.2010 has intimated to Regional Manager,SBI,Regional Business Office,Region-II,Link Flood,Cuttack that due to high flood occurred in September,2008  Bhede Panchayat of Mahanga Block in the Dist. of Cuttack has sustained more than 80% loss of standing crops.(Annexure-4).  In the agricultural year 2010-11 the O.P Bank has sanctioned Agriculture loan of different sums in favour of the petitioner and has deducted the corresponding outstanding loan sanctioned for agriculture during 2008-09 (Annexure-5).  The aforesaid deductions are highly irregular as because the agriculture loan of 2008-09 was covered under NAIS and the same would have reimbursed from NAIS.  Instead, the O.P Bank has issued demand notice and deducted the same from the loan which was sanctioned for 2010-11 which is meant for Agriculture production.

Aggrieved with such deductions, about 34 persons with similar cases had moved to Hon’ble High Court vide W.P(C) 22002/2010 along with a misc. case no.20130/2010 for stay.The Hon’ble High Court heard the matter and has passed an interim order on 14.11.2011 restraining the O.P Bank from recovery of the loan dues from complainants without leave of the Hon’ble High Court.(Annexure-6).In this situation, the O.P Bank has deducted a sum of Rs.10,000/- from S.B account of the complainant and has credited to his KCC loan Account.(Annexure-7).The wife of the complainant was ill and the complainant wanted to withdraw a sum of Rs.10,000/- for her treatment but he could not know that the amount was already adjusted to his loan Account.He wrote a letter to the O.P. Bank on 17.04.2013 to this effect. (Annexure-8).In spite of the fact that the writ petition filed by the complainant is pending with Hon’ble High Court and in spite of the interim order of Hon’ble High Court dt.14.11.2011 the O.P Bank has deducted a sum of Rs.10,000/- from the S.B. account of the complainant and has not refunded the same, even after notice from the complainant which is illegal and also amounts to unfair trade practice.The complainant has filed this case with this Hon’ble Forum.He has prayed to direct the O.P Bank to refund a sum of Rs.10,000/- as deducted, compensation worth Rs.50,000/- for not paying such amount and a sum of Rs.1,00,000/- towards loss of social stratus and further sum of Rs.10,000/- towards cost of litigation.

2. The O.P Bank vide their written version dt.20.12.14 has denied the charges as framed by the complainant.  The complainant is bound by the terms and conditions of the loan agreement.  The petition filed vide W.P( C) No.22002/2010 in misc. case No.20130/2010 are not applicable to this present loan account and moreover deduction from S.B.Account O.P Bank has stated that the amount from S.B.Account of the complainant was deducted as per Banking rules.  They have  also submitted Banking rules relating to Right to set-off wherein right to set-off means right to adjust any credit in one account of the customer with the debit balance in another account.  The right to combine accounts in order to arrive at the net sum due from the customer i.e. final settlement of liability is called right to set-off.
3. We have gone through the case records in details and heard the advocates at length.  It was observed that the complainant had availed a KCC loan from the O.P Bank during April,2010 vide Account No.31215010437.  The balance outstanding in the said loan account as on 15.03.2013 was Rs.1, 02,415 + interest as learnt from O.P Bank’s letter dt.15.03.2013. Vide the said letter the O.P Bank had also requested the complainant to repay his dues since it was not repaid regularly and the account was irregular.  The O.P Bank had also stated that unless the loan is repaid within a period of 10 days the Bank may transfer the S.B balance to the loan account or may initiate any action as deemed fit.  On 27.03.2013 Bank has transferred a sum of Rs.10,300/- from S.B. account of the complainant and credited/adjusted to the said loan Account since it was not repaid regularly.  The complainant has not produced any record/proof he was entitled to get insurance cover under NAIS towards reimbursement of crop loss for the year 2008-09 rather he has given copy of KCC pass book No.30432666726 which indicates that he had availed a limit of Rs.80,000/- as on 14.10.2009.  He has also not produced any proof that such failure of crop was ever declared by Govt. of Odisha and/or the NAIS/Bank were ever instructed accordingly.  Rather the Bank has indicated to its customers vide letter dt.05.10.2009 that they have not received any compensation from NAIS.

It is a fact that the complainant along with other 51 nos. of persons (total 52) had filed a case with Hon’ble High Court of Odisha vide W.P.( C) No.22002/2010 wherein Hon’ble High Court of Odisha vide order dt. 14.01.2011 has directed the O.P Bank not to deduct the loan dues for the year 2008-09 from the current agricultural loan availed by the petitioner without leave of this court and directs accordingly.But the complainant in the present case has alleged regarding debit of his S.B. account balance towards credit of his loan Account.The bank has made such transfer/debit of his S.B. account and credited the loan account of the complainant under its right to set-off which was not barred by the Hon’ble High Court.Thus is the Bank is not at fault for debiting the S.B. account and crediting the outstanding loan account of the complainant since the account was irregular and was not paid by the complainant irrespective of reminder issued for the purpose..

Basing on the facts and circumstances as stated above, we have observed that the complainant has not produced any official letter/proof to the effect that his crop was affected during flood in 2008 and he was entitled to get coverage under NAIS.The complainant had also not produced any record that in the present case that the Bank was barred to exercise its right to set-off.Thus it is clear that the complainant has failed to prove deficiency in service and unfair trade practice on the part of the O.P Bank.

                                                                                ORDER

The case be and the same is hereby dismissed on contest.

Typed to dictation, corrected and pronounced by the Hon’ble Member in the Open Court on this the 15^th day of February,2018under the seal and signature of this Forum.

              (Sri B.N.Tripathy )

                                                                                                                    Member.

 

                                                                                                                                               

                                                                                                         (  Sri D.C.Barik )

                                                                                                                 President.

 

                                                                                                        (Smt. Sarmistha Nath) 

                                                                                                   Member(W).