Haryana

Ambala

CC/176/2013

JARNAIL SINGH - Complainant(s)

Versus

CENTRAL BANK OF INDIA - Opp.Party(s)

JASWINDER SINGH

13 May 2016

ORDER

 

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, AMBALA.

            Complaint Case No.      : 176 of 2013

Date of Institution         : 12.07.2013

           Date of Decision            : 13.05.2016

Jarnail Singh son of Shri Sardara Ram, aged 65 years R/o village Dahia Majra, P.O. Adhoi, Tehsil Barara, District Ambala.

 

                                                                                                                                     ……Complainant.

                                                                                         Versus

Central Bank of India through its Branch Manager, Barara, District Ambala.

                                                                             ……Opposite Party.

 

Complaint Under Section 12 of the Consumer Protection Act.

 

CORAM:    SH. A.K. SARDANA, PRESIDENT.

                   SH. PUSHPENDER KUMAR, MEMBER.                  

Present:       Sh. Jaswinder Singh, Adv. counsel for complainant.

                   Sh. Anil Singla, Adv. counsel for Op.

 

ORDER.

 

                    Present complaint under section 12 of the Consumer Protection Act, 1986 (hereinafter in short called as the ‘Act’) has been filed by the complainant alleging therein that he is having bank account no.1984143894 with the OP and an amount of Rs.43842/- has been deducted  from the account of complainant  by OP Bank as intimated vide letter dted 03.04.2013 and further adjusted the same in the loan account of one Ram Kishan against whom complainant stood guarantor for Bank Loan.  Said Ram Kishan loanee expired leaving behind his legal heirs and thus agricultural land standing  in his name in village Tola Wali Majri, Tehsil Barara, District Ambala has been inherited by his legal heirs.  As such, the loan amount was required to be legally recovered by the OP Bank from his legal heirs as well as from sale of his land  but OP Bank has wrongly recovered from his bank account. Complainant has contended that he is an ex-serviceman and is drawing pension and the amount  lying in the shape of FDR in the bank is from his pensionary benefits for his livelihood which cannot be deducted/recovered  by the Bank without prior sanction of the President under Rule 93(a) of PRI Part-II. Complainant further averred that recovery shall be made in monthly installment @ 1/3 of the basic pension only after sanction of the competent authority. Thus, the complainant has contended that the amount of Rs.43842/- so recovered by OP Bank is illegal, arbitrary, against the rules and cannot be recovered in the manner so adopted by the bank. Hence, a legal notice dated 20.04.2013 got served upon the OP but of no avail. As such, the complainant has submitted that the Op has played unfair trade practice with him and is also deficient in providing proper services to him and prayed for acceptance of the complaint as per prayer clause.

2.                Upon notice, OP Bank appeared through counsel and filed written statement raising preliminary objections qua non-maintainability of complaint & suppression of material facts by complainant. On merits, it has been admitted that an amount of Rs.43842/- has been deducted from FD amount of the complainant under intimation to him as the complainant stood guarantor for loanee Ram Kishan who expired and the loan amount was recoverable from the said Ram Kishan loanee.  It has been further urged by the OP that complainant Jarnail Singh executed guarantee deed & other documents in favour of OP Bank by giving undertaking to repay the loaned amount in case of failure of borrower to repay the same and as per terms & conditions of the guarantee deed, both borrower as well as the guarantor i.e. complainant were liable to repay the loaned amount jointly & severally. Thus the OP has rightly recovered the amount from complainant being guarantor of Ram Kishan.  As such, the OP has prayed for dismissal of complaint with costs.

3.                To prove his contention, counsel for complainant tendered in evidence affidavit of complainant as Annexure CX alongwith documents as Annexures C-1 to Annexure C-7 and closed the evidence whereas on the other hand, counsel for Ops tendered in evidence affidavit of Sh. Ashok Kalra, Senior Manager, as Annexure RX alongwith documents as Annexures R-1 to R-10 and closed the same.

4.                We have heard learned counsel for the parties and gone through the case file very carefully. Counsel for complainant has argued that OP has deducted an amount of Rs.43842/- from the account of complainant being guarantor of deceased Ram Kishan which is illegal & arbitrary since the deceased Ram Kishan was having agricultural land  which has been inherited by his legal heirs and thus the amount should be recovered firstly by way of attachment  & sale of agricultural land or from the legal heirs of the deceased and if the same was not possible, then the amount should be recovered from him after giving prior notice which the bank has not exhausted first rather deducted the pending loan amount from his account which is illegal.  In support of his case, complainant has placed on record document (Annexure C-1) which is bank account statement showing deduction of Rs.43842/- on 28.03.2013 by the OP from the bank account of complainant. Annexure C-2 is the intimation letter issued by OP bank to the complainant qua recovering of outstanding amount standing due towards the loan account of deceased Ram Kishan. Annexure C-4 is the document whereby the bank has intimated the complainant that the amount of Rs.43842/- have been deducted from his bank account and adjusted in the loan account of deceased Ram Kishan. Annexure C-7 is ‘fard jamabandi’ whereby deceased Ram Kishan has been shown as owner of 2 kanals land.

                   On the other hand, counsel for OP has argued that they have deduced the amount of Rs.43842/- from the FDR of complainant and not from the pension amount of the complainant as alleged by him. To strengthen their case, counsel for OP has placed on record document Annexure R-1 wherein it has been shown that on 16.03.2013, there was credit balance in the account of complainant as Rs.421/- and on 16.03.2013, complainant moved an application (Annexure R-2) whereby he has requested for release of the amount deposited in his two FDRs lying with the bank.  Accordingly, the OP bank on the same day i.e. 16.03.2016 released the amount of said FDR’s to the tune of Rs.97806/- and 1,53,823/- in the account of complainant and thereafter deducted an amount of Rs.43842/- from the account of complainant and adjusted the said amount towards the loan account of deceased Ram Kishan. Counsel for OP has also placed reliance on case law rendered by Hon’ble Supreme Court of India in case titled as United Bank of India Vs. Satyawati Tondon & Ors. 2010(4) Civil Court Cases Pg. 637 wherein it has been observed that “Recovery of Debts Due to Banks and Financial Institutions Act, 1993 Sections 14 & 17, SARFASI Act, Section 13 & 14-Recovery of debts by banks-proceedings against surety and guarantor-Held-liability of guarantor and principal debtor is co-extensive and not in alternative-Bank has the right to proceed  against either for recovery of dues-Bank cannot be compelled to defer its remedy against the sureties and guarantors and to proceed first against the principal debtor’.

                   In view of the facts discussed above, we have come to the conclusion that OP bank has rightly deducted an amount of Rs.43842/- from the account of complainant against loan account of deceased Ram Kishan to whom complainant stood guarantor by executing guarantee deed with the bank and is not deficient in any manner as  alleged.  Therefore, we have no option except to dismiss the present complaint. Accordingly, the complaint is dismissed with no order as to costs.  File after due compliance be consigned to record room.

 

Announced in open Court. 13.05.2016                                                 Sd/-

                                                                                                   (A.K. SARDANA)

                            PRESIDENT       

 

                   Sd/-

    (PUSHPENDER KUMAR)

                                                                                      MEMBER