THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, AMRITSAR

Consumer Complaint No. 813 of 2013

Date of Institution : 2.12.2013

Date of Decision : 1.09.2015

Gurcharan Singh son of Sh.Dalip Singh , resident of G.T. Road, Beas, District Amritsar

...Complainant

Vs.

Central Bank of India, through its Chairman/Managing Director, service through its Branch Office at G.T. Road, Beas, District Amritsar through its Branch Manager

....Opp.party

Complaint under section 12/13 of the Consumer Protection Act, 1986

Present : For the complainant : Sh. Deepinder Singh,Advocate

For the opposite party : Sh.Y.P. Kwatra,Advocate

Quorum : Sh. Bhupinder Singh, President ,Ms. Kulwant Bajwa,Member &

Sh.Anoop Sharma,Member

Order dictated by :-

Bhupinder Singh, President

1. Present complaint has been filed by Gurcharan Singh under the provisions of the Consumer Protection Act alleging therein that he is having pension account bearing No. 1597024014 with the opposite party bank. According to the complainant, opposite party debited Rs. 7900/- from his pension account against the payment of loan of some other account in which complainant stood guarantor. The complainant immediately approached the opposite party and requested them to collect the aforesaid amount from original borrower. The present account of the complainant is pension account where only pension of the complainant is credited and amount cannot be recovered from the pension of complainant as per Pensioner's Act. But the opposite party did not pay any heed to the request of the complainant. Alleging the same to be deficiency in service complaint was filed seeking directions to the opposite party to refund the entire amount so debited by the opposite party from the pension account of the complainant from 29.6.2013 alongwith interest @ 12% p.a. Compensation of Rs. 50000/- alongwith litigation expenses were also demanded.

2. On notice, opposite party appeared and filed written version in which it was submitted that present complaint is not maintainable as complainant himself stood as a guarantor for the loan advanced to Jasbir Singh and Gursharan Kaur, who are the son and daughter in law of the complainant and the complainant himself has given the letter of authority to the opposite party that “in case of any default in the repayment or over due installment, etc, the same may be deducted from my above pension account and may be treated as standing instructions”. So whatever amount has been deducted from the account of the complainant, that has been deducted as per instructions, undertaking and as per the authority of the complainant and there is no deficiency of service on the part of the opposite party.

3. Complainant tendered into evidence his affidavit Ex.C-1, copy of pass book Ex.C-2.

4. Opposite party tendered into evidence affidavit of Varinder Kumar, Branch Manager Ex.OP1, loan agreement Ex.OP2, letter of guarantee Ex.OP3, letter of authority Ex.OP4.

5. We have carefully gone through the pleadings of the parties, arguments advanced by the ld.counsel for the parties and have appreciated the evidence produced on record by both the parties with the valuable assistance of the ld.counsel for the parties.

6. From the record i.e. pleadings of the parties and the evidence produced on record by both the parties , it is clear that complainant has pension account bearing No. 1597024014 with the opposite party. The complainant submitted that on 29.6.2013 opposite party bank has debited Rs. 7900/- to the account of the complainant against the payment of loan of some other account in which complainant is guarantor . The complainant approached the opposite party and requested them to collect the said amount from original borrower. The present account of the complainant is pension account where only pension of the complainant is credited and this account cannot be attached for the recovery of any loan account or any other amount as per pensioner's Act. But the opposite party did not pay any heed to the request of the complainant and continued to debit the amount of Rs. 7900/- from the said account of the complainant. Ld.counsel for the complainant submitted that all this amounts to deficiency of service on the part of the opposite party qua the complainant.

7. Whereas the case of the opposite party is that the complainant stood as guarantor for the loan advanced to Jasbir Singh and Gursharan Kaur, who are the son and daughter in law of the complainant and the complainant himself has given the letter of authority to the opposite party in which he has categorically written “in case of any default in the repayment or over due installment, etc, the same may be deducted from my above pension account and may be treated as standing instructions”. He has also mentioned his account number in the said letter of authority Ex.OP4. Whatever amount has been deducted from the account of the complainant , that has been deducted as per instructions, undertaking and as per the authority of the complainant. Ld.counsel for the opposite party submitted that there is no deficiency of service on the part of the opposite party qua the complainant.

8. From the entire above discussion, we have come to the conclusion that complainant has pension account bearing No. 1597024014 with the opposite party bank . One Jasbir Singh and Gursharan Kaur who are son and daughter in law of the complainant took loan from the opposite party bank vide loan agreement Ex.OP2. Complainant Gurcharan Singh stood as guarantor and executed letter of guarantee Ex.OP3 and also letter of authority Ex.OP4 in which the complainant has given undertaking that in case of any default for the repayment or overdue installment, etc., the same may be deducted from his aforesaid pension account and may be treated as standing instructions. Opposite party bank had full knowledge that the pension account i.e. amount of pension of the person cannot be attached as per Pensioner's Act Chapter IV Miscellaneous whereby as per section 11 of the Pensioner's Act, 1871 there is exemption of pension from attachment. Section 11 states :-

“No pension granted or continued by Government on political considerations , or on account of past services or present infirmities or as a compassionate allowance , and no money due or to become due on account of any such pension or allowance, shall be liable to seizure, attachment or sequestration by process of any Court at the instance of a creditor, for any demand against the pensioner, or in satisfaction of a Decree or Order of any such Court”.

9. As per section 11 of the Pensioner's Act 1871 no amount of pension can be attached in any proceedings. Opposite party bank had full knowledge about this law. As such opposite party was not justified in debiting the amount of outstanding loan of Jasbir Singh and Gursharan Kaur , son and daughter in law respectively of the complainant to the aforesaid bank pension account of the complainant.

10. However, opposite party may recover the loan outstanding amount of Jasbir Singh and Gursharan Kaur from the loanees as well as guarantor i.e. complainant from his other account or any other property and not from its pension account of the complainant.

11. Resultantly we allow the complaint with costs and the opposite party is directed to refund the entire amount which has been debited to the pension account No. 1597024014 of the complainant with regard to the loan outstanding amount of Jasbir Singh and Gursharan Kaur, within one month from the date of receipt of copy of this order ; failing which opposite party shall be liable to pay interest @ 9% p.a on the entire amount so debited to the account of the complainant, from the date of filing of the complaint till payment is made to the complainant. Opposite party is also directed to pay litigation expenses Rs. 2000/- to the complainant. Copies of the order be furnished to the parties free of costs. File is ordered to be consigned to the record room. Case could not be disposed of within the stipulated period due to heavy pendency of the cases in this Forum.

1.09.2015 ( Bhupinder Singh )

President

( Kulwant Kaur Bajwa) (Anoop Sharma)

/R/ Member Member