ORAL ORDER
Per Hon’ble Mr.S.R.Khanzode, Presiding Judicial Member
This appeal takes an exception to an order dated 07/08/2010 passed in consumer complaint no.83/2010, Koyana Sahakari Dudh Utpadak Prakriya Sangh Ltd. Karad v/s.Central Bank of India; by District Consumer Disputes Redressal Forum, Satara, dismissing the consumer complaint. It was a deficiency in service on the part of respondent/Central Bank of India (herein after referred as ‘Bank’) for not disbursing the amount lying accumulated in Saving Account No.2177 and Current Account No.8517 of the appellant/complainant – Koyana Sahakari Dudh Utpadak Prakriya Sangh Ltd. Karad (‘Society’ in short).
Undisputed facts are that appellant society had opened two accounts in their name with the bank bearing Current Account no.8517 and Saving Account no.2177. These two accounts were opened by the society to handle the funds which they collected from their members -milk growers for a specific purpose to handle the risk to the she buffalos purchased by their members on loan from the bank and for which the society stood as a guarantor to the milk growers/ cultivators. These accounts were operated by Deputy Accountant of the society, namely, Mr.Vishnu Pandurang Mali under the signature of Manager as per the operating instructions to the bank by the society. Finding that the loan accounts of respective milk grower/ cultivators were fully paid from the price of the milk supplied by them, the society decided and, accordingly, requested the bank either to convert amount lying in the above referred accounts into fixed deposit of the society or to refund the same to them. Bank however refused to do so and started putting unwarranted conditions and, therefore, alleging deficiency in service on the part of the bank, consumer complaint was filed on 12/03/2010.
Heard Ms.Preeti Gada-Advocate for the appellant and Mr.Pramod Pawar-Advocate for the respondent. Perused the material placed on record. In the instant case, when we enquired from the respondent-bank as to whether those accounts were opened for their own purpose by the society and where is the material of opening of these accounts e.g. account opening form, etc., bank had no answer This is important since it would have thrown light on the fact as to whether those accounts were opened by the society for its own purpose and they were exclusively operating those accounts as per the operating instructions or otherwise. This would have further helped us to assess the foundation of the bank raising objection not to disburse the amount as per instruction of the society, namely, Koyana Sahakari Dudh Utpadak Prakriya Sangh Ltd. Karad assuming that these amounts since were belonging to respondents- milk growers/ cultivators, no objection from each milk grower/each cultivator was required. The Forum ignored this particular aspect. Similarly, the observation of the forum that society failed to show any evidence about their ownership on the amount of their above referred accounts is, per se, erroneous. In fact, once the accounts are in the name of the society, whatever amount accumulated therein are the amounts belonging to the society. It is for the bank to justify their action in not disbursing an amount as per instructions of the account holder, namely, the society.
From the resolution passed in its meeting dated 26/11/1970 of the society, it reflects that these two accounts were opened for a definite purpose and were operated by the society. If the society desires to act in a particular manner opening these two accounts just to safeguard their own interest vis-à-vis interest of its members-milk growers /cultivators and to cover the risk pertaining to the she buffalos which were purchased by each cultivator by taking loan and to which the society stood as a guarantor, we find this action on the part of the society cannot be faulted with. Since accounts were opened by the society for this purpose and were operating as per instructions given at the time of opening accounts, the Bank acted not in a manner supposed to act viz. to disburse the amount as desired by the account holder and refuse to disburse the amount accumulated in the above referred accounts as per instructions of the account holder, namely, society, amounts to deficiency in service on its part.
As far as another unreasonable demand to obtain no objection from the Registrar of Co-operative society, it appears from the letter 27/08/1998 of the society to the bank that they already even complied with it by obtaining the permission of Divisional Deputy Registrar of Co-operative Societies (Milk), Pune.
For the above referred reasons, deficiency in service on the part of the bank within the meaning of section 2(1)(g) is well established. We hold accordingly and pass the following order:-
ORDER
Appeal is allowed.
Impugned order dated 07/08/2010 is set aside. Respondent /opponent bank to refund the amount standing in balance in appellant society’s Current Account no.8517 and Saving Account no.2177 to the appellant society along with interest accrued thereon. The amount be refunded to the appellant society within a period of 45 days. If not refunded, the bank shall pay interest @ 2% per month over the said accumulated amount till its realization.
Respondent to bear its own cost and pay `25,000/- as costs of this appeal to the appellant society.
Pronounced on 22nd July, 2013.
