Judgment : Dt. 8.5.2017
Mrs. Balaka Chatterjee, Member
This petition of complaint is filed under Section 12 of C.P.Act by Sri Anupam Sarkar and Smt. Rupa Sarkar, alleging deficiency in service on the part of the Opposite Parties, namely: (1) Chief Manager, State Bank of India, Tollygunge Branch, (2) Assistant General Manager, S.BI., SMECCC, Ballygunge, (3) Assistant General Manager, S.B.I., SMECCC, 1, Strand Road, Kolkata-19, including Post Master, Regent Park Post Office as Proforma Opposite Party.
The Complainant No.1 is a businessman and runs his business under name and style “Sarkar Sanitary and Hardware”, the Complainant No.2 and one Biswanath Adhikary is the guarantor of a loan which was taken by the Complainant No.1 from OP No.1, Bank with a credit limit of Rs.5,00,000/-, out of which Rs.3,25,000/- was granted on 31.1.2005 through a C. C. Account being No.11129402308 against which OP No.1 took some assets of the Complainant No.1 as collateral security which are as follows:
Land and building at premises No.104, Ananda Paly,
1 No. NSC of Rs.5,000/- dt.29.12.2004 maturity date 29.12.2010, 3No NSC of Rs.10,000/- each dt.29.12.2004 maturity dt.29.12.2010, 2 No NSC of Rs.10,000/- each dt.5.8.2005, maturity dt.5.8.2011
One Fixed Deposit of Rs.25,000/-
One Recurrent Account.
It is stated by the Complainant No.1 that he kept on paying the loan amount and OP No.1 liquidted the loan by encashing entire amount of Fixed Deposit and matured value of 3 NSC of Rs.10,000/- each. Subsequently, the Complainant No.1 requested the OP No.1 to renew the NSCs which were not required to liquidate the loan but OP No.1 did not pay any heed to that request. The Complainant No.1 informed the OP No.2 & 3 about the matter vide letters dt.23.9.2011, 30.6.2014, 22.9.2015 but got no response from their end.
However, OP No.1 issued No Dues Certificate on 19.2.2016 after realization of outstanding loan amount. The Complainant further stated that he requested the OP No.1 to return the remaining three NSCs i.e. 2 nos. of Rs.10,000/- each and one of Rs.5,000/- with matured value and interest accrued thereon. The OP No.1 issued a letter on 24.2.2016 wherefrom the Complainant No.1 came to know that the concerned Post Office issued cheque against those NSCs and sent it to the OP No.1 and the OP No.1 had lost the cheques and subsequently the OP Bank again sent a letter to the Post Office requesting for issuance of Duplicate cheque. The negligent act of OPs caused humiliation and huge monetary loss to the Complainant No.1. So, he filed this case praying for a direction upon the OP No.1 to return the two NSCs of Rs.10,000/- each being No.69EE412090 and 69EE412089 respectively and one NSC of Rs.5,000/- being No.51DD094843 duly renewed till date and alternatively to pay matured amount of the said certificates amounting to Rs.1,00,000/- plus interest, to pay a sum of Rs.1,00,000/- towards compensation and cost.
The OPs have contested the case and filed written version denying and disputing the allegations as made out in the petition of complaint against them stating , inter alia, that the Complainant No.1 being borrower did not pay the loan amount in time and, therefore, the OP Bank after sending several reminders to the Complainant placed the NSCs in question before the Post Office so that the debt may be liquidated. Receiving the said certificate the Post Office issued cheque but, unfortunately the same has been lost.
The OP Nos.1, 2 & 3 reiterated that the Complainant was a defaulter I n making repayment of the said loan and, therefore, the OP Bank took step to encash the said NSCs which were kept as collateral security and placed the same before the Post Office and the Post Office issued cheque in lieu of those NSCs as the said cheques were lost and the Bank made several correspondence to the Post Office to revalidate the said cheque but the Post Office did not do so and, therefore, the Bank has no liability for non-refund of the NSCs in question. Accordingly, the OP Nos.1, 2 & 3 prays for dismissal of the instant case.
The proforma OP – Post Office also filed written version stating the Bank placed three NSCs for encashment which was actually issued in favour of Complainant No.1 having No.69EE41209, 69EE412089 and 51DD094843 and was in custody of the Bank. Receiving those NSCs the Post Office issued the cheques of Rs.40,142/- towards their matured value.
In course of hearing Ld. Advocates for the respective parties narrated their respective cases which were stated in petition of complaint and written versions.
Points for determination
Is there deficiency in service on the part of the OPs?
Are the Complainants entitled to the relief as prayed for?
Decision with reasons
Both points are taken up together for comprehensive discussion and decision.
The Complainants have alleged that 3 numbers of NSCs which were deposited with the OP Bank towards collateral security of a loan with credit limit of Rs.5,00,000/- disbursed by the OP Bank under certain terms of repayment of the same had not been returned to them although the said loan was liquidated. The OP Bank’s defence is that since the Complainant defaulted in making payment the Bank deposited the said NSCs to the Post Office authority who issued cheques accordingly, but, the same were lost from the custody of the Bank. The Proforma OP/ Post Office stated that on receiving the said certificates they issued cheques in favour of Bank.
It is evident from the document i.e. No Dues Certificate issued by the Bank on 19.02.2016 that the loan in respect of A/C No.11129402308 has been liquidated. Further, admitted position is that the OP did not return the said NSCs to the Complainant even after liquidation of the loan in respect of which the said NSCs were retained by the Bank as collateral security. The Bank ought to have returned the said NSCs immediately after liquidation of the loan, but in reality they did not do the same. This is a glaring example of the deficiency in service on the part of the Bank.
It is evident from the Photostat copies of the said certificate that maturity date of the said certificates were as 29.12.2010, 29.12.2010 and 5.8.2011. A considerable long spell of time has been lapse thereafter. Had the said certificate been revalidated for another six years the same would have been matured further and the amount for those three certificates would come up as Rs.1,00,000/-. Therefore, we consider the prayer for payment of Rs.1,00,000/- is a justified prayer. The Bank, although, have stated that they requested the Post Office in writing that the Post Office may issue another cheque since the issued one had been lost but the Post Office turned a deaf ear to that request. It is, however, evidently an inter se dispute between the Bank and the Post Office and, therefore, the Complainants cannot suffer due to the said dispute. Facts remains that the Complainants obtained loan disbursed by the OP Bank against collateral security and even after liquidation of the loan the Bank failed to return the same. Therefore, the Bank is liable to make good for that. Therefore, the Bank is to pay Rs.1,00,000/- to the Complainants. The Bank is also liable to pay compensation to the Complainants sine the Bank harassed them and made them to suffer from loss of interest amount to be accrued on the refundable amount of Rs.1,00,000/- till date of payment. We think it is just and proper if the Complainants get Rs.30,000/- towards compensation. The Bank is also liable to pay Rs.10,000/- since the Bank compelled the Complainants to file the instant case.
In the result, the complaint case succeeds in part.
Hence
Ordered
That the Consumer Complaint being No.CC/317/2016 is allowed in part on contest with costs.
The OP Nos.1, 2 & 3 are directed to pay the Complainants Rs.1,00,000/- towards maturity amount of the NSCs of Rs.10,000/- each having No.69EE412090, 69EE412089 and of Rs.5,000/- being No.51DD094843 within one month from the date of this order.
The OP Nos.1, 2 & 3 are further directed to pay Rs.30,000/- and Rs.10,000/- i.e. Rs.40,000/- in total to the Complainant towards compensation and litigation cost within the aforesaid period. In the event of default, the entire amount (Rs.1,00,000/- + Rs.40,000/- = Rs.1,40,000/-) will carry interest @ 3% p.a. for the default period.
