Order-19.

Date-24/05/2016.

This is an application u/s.12 of the C.P. Act, 1986.

In sort complainant case is that complainant company has its account being Account no.13040400087426, 13040400088655 and 13040400088705 and also 13040400090537 in ops bank for financial year 2014-2015 and company’s has invested a sum of Two cores twenty five lakhs as fixed deposit and it has auto sweep investment in Op-1.

Against the fixed deposit yearly interest of Rs.1072555/- are being accrued from the said fixed deposit amount and accordingly TDS of Rs.107256/- is being deducted from said account by the bank when complainant receives statement of account from the financial year 2014-2015 he was shocked to observe the TDS of Rs.907692/- had been deducted which is nine time more than the actual to be deducted.

After observing that complainant went through this statement of account for the financial year 2014-2015 and found that there is no reflection of said transaction in the current account and when complainant enquired about the same, Op-1 showed email dated 11.09.2015 stating that they adjusted the said TDS.

When the complainant pointed out default and negligent act of op and requested to rectify the same and adjusted balance amount illegally deducted the excess amount of TDS and prayed for refund of the same. Op-1 assured that they shall rectify the same and refund the amount. Ultimately the excess amount so deducted had not been deducted and op did not bother and take no action and in fact illegally and arbitrarily op has deducted such amount of Rs.436/- and that has not been reimbursed.

Such an act is unfair trade practice at the same time negligent and deficient manner of service and at the same time such sort of unfair act of the op complainant has been suffer mental pain and agony and also sustain financial loss etc for which the complainant has filed this complaint for redreessal.

On the other hand op by filing statement submitted already open a current account being account no.13040200025725 for commercial purpose which the Op-1 and complainant company availed of auto sweep facility with regard to current account maintained op and in pursuance of instruction  Op-1 open four FDs account link to the current account for financial year 2014-2015 and some of Rs.Two core twenty five lakhs  was deposited from current account to Fds account with interest of Rs.1072555/- being credited to current account.

OP-1 deposited deducted TDS amount with the Govt. and issued a relevant TDS certificate to the complainant it was collect by the complainant and admittedly a sum of Rs.907692/- had been deducted as TDS from the interest in financial year 2014-2015 in four quarters and complainant did no disputed that and at the same time complainant has not disputed TDS certificate.

Further the amount as deducted as TDS has already been deposited with income tax authority so question of misuse of the op does not arise and further complainant may gate refund the TDS amount if any after filing such prayed for refund of TDS amount if any further filing such prayer for refund and op shall ready and willing to assist to refund for such concern authority and to that effect op has discharged his responsibility towards the complainant by providing every possibility assistants to get the amount from the income tax authority. Lastly it is submitted there is no negligent deficiency of service and financial loss and complainant has not suffered any loss for which prayed for dismissal of the case.

                                                                               Decision with reasons

On and in depth study of the complaint, W.V and particularly the reply of the op against questionnaire of the complainant and also the brief notes of the op it is proved that it is admitted by the op that complainant had four fixed deposits for amount of Rs.Two core twenty five lakhs and complainant is paid yearly interest of Rs.1072555/-.

It is admitted by ops Ld. Lawyer and also in  BNA that in the month of September 2015 complainant reported to the op the mistake in the TDS deduction after scrutiny by the op it is detected that due to technical mistake it was occurred and a sum of Rs.907692/- was deducted what is the defence of the op.

It is also admitted by the op due to error of system mistake occurred which was unintentional but the TDS deducted had already been deposited in the IT department in account of the Complainant.

So at this stage mode of recovery is by way of claim refund due to excess payment due to fault of the system as claimed by the op.

It is also submitted by the op that complainant was requested to request to claim the excess amount of TDS made in his account from Income Tax department which had been deducted as excess TDS by the op however complainant did not agree and filed this case.

It is also admitted by the op in BNA that mistake has been occurred due to error in internet system of bank and it is unintentional and not for wrongful gain and op regretted for that but admitted that complainant is entitled to claim and receive the refund of excess amount from the Income Tax department.

Considering the entire reply of the op against questionnaire and the BNA it is prove that bank has its system for deducting TDS and depositing the same to the Income Tax department by core banking system.

Invariably the system was prepared by the bank and core banking system credits the require amount as TDS after assessing TDS and thereafter it is being generally credited.

But op admitted that an incorrect amount was deducted from complainant’s account. Now question is whether it is error of the system as alleged by the op but in this contest it is to be mentioned that if the argument and admission of the op to be effect that there was error in the system in that case in respect of each and every customer such an erroneous deduction of the TDS would be found but there is no such material produced by the op before this Forum that in respect of other customers same incident happened and most peculiar factor is that op bank has not shown there brevity to prove that in respect of other customer same incident happened when that is the fact then it is clear that there was no defect or error in such system but only in case of the complainant the error of the system is alleged  what simply proves that the bank official did not properly proceed to deduct TDS amount but put a huge amount as TDS for which system operated and transmitted that amount to Income Tax department which no doubt the fault of the op but now ops are trying to accuse the system but whole system is under the control of the bank and if bank staff would be vigilant about deduction of tax in that case there was no chance of the system to suomoto deduct huge amount as TDS when on calculation TDS would be Rs.107256/-.

Show considering the about fact and circumstances and also the admission of the op we are convinced to hold that it is admitted fact that error is on the part of the op and in fact for deduction of such huge amount by the bank no doubt complainant has suffered much and shall suffer much.

It is prove beyond any manner of doubt that for such error of the bank complainant has been suffering much and has been loosing huge amount as interest over the amount of Rs.800436/- but op tried to say that complainant had not suffered any lose but such a defence of the op is nothing but baseless defence and when admittedly for the ops error such an incident took place then it was the duty of complainant to regret by sending a letter to the complainant but that has not been done and no further information was also made to the complainant how and what manner same could be recovered though error was admittedly pointed out by the complainant to op but even then op was silent till this complaint was filed and notices were received by the ops and no doubt such and act on the part of the op is negligent and deficient manner of service and at the same time in this case op tried to show their casual approach in the defense but ultimately broke down when this Forum asked the ops Ld. Lawyer ask bank officer to appear before this Forum to explain the manner of error but ops Ld.lawyer did not show the bravery to place the branch manager to explain their manner and cause of error but by filing BNA everything is admitted but machine and system are made accused of the said act.

Before e-banking system was introduced bank used to take about any faultin discharging their duties accusing the manual system and its error and after introduction of e-banking system machine of the system is being accused but a technical person or computer specialist knows very well that system is created by man not by machine and if wrong system is introduced invariably system shall produce erroneous result and for that who shall be blamed eventually not the machine but the man who introduced the system. But any how bank has tried to discharge there responsibility and duties by accusing the system but that is not the fact in particular case because it is observed if there was any technical error in the system invariably against the other customers also similar error would be found and no such erroneous deduction in respect of other customer is proved.

In the light of the above observation and also observing activities of the staff and officers of the bank we are confirmed that the calculation of deduction was made by the employees and that was inserted to the system so huge amount of TDSdeducted and that is no doubt callous act of the bank and for the callous act particularly complainant suffers monetary loss and no doubt the error was due to ops negligent and deficient manner of service and also for discharging irresponsible discharging their duties.

Fact remains even after pointing out the error by the complainant to the op and even after enquiry made by the op it is established that op did not care to write any letter to the complainant expressing their apology for error on their part but sat idle by sitting in cool chamber and by fixing headphone enjoying music and taking Tea, Coffee during office hours but not entertaining customer about their grievance beyond any manner of doubt.

If bank employees and officers would be devoted in that case at the time of calculation TDS and deduction of TDS such major fault could not be done by the bank as because in a casual manner excess TDS figure was inserted by bank employee in the system so that was transmitted when error is admitted by the op then it is proved that for their (ops) fault complainant is being harassed and no doubt it is undoubtedly a negligent and deficient manner of service on the part of the ops and for which it is the legal duty and responsibility of the bank to take all such steps to get refund of that amount (excess deducted) from the Income Tax department by taking all help of the complainant and from the date of deduction and till its actual credit in the account of the complainant. Op shall have to give 8 percent p.a. interest over the same by crediting the same in the account of the complainant.

It is to be mentioned that it is settled principle of Law for banks failure to discharge his duties or error customer must not have to suffer and relying upon the above principle we are of view that no doubt for latches of the  op and irresponsible manner of discharging duties by the O.Ps.the complainant has been suffering much and truth is that present complainant shall have to further suffer to get refund of the amount for more period when it is deposited by bank in the Income Tax department and no doubt it is for the irresponsible act of the ops .

In the light of the above observation we are of view that complainant has been able to prove the latches , negligent and deficient manner of service against the ops and it is also proved that for such sort of irresponsible act and deficient and negligent manner of service complainant has been suffering mental pain and suffering and also financial loss for which complainant is entitled to get redressal.

In the result the complaint succeeds.

Hence,

Ordered,

That the complaint be and same is allowed on contest with cost of Rs.10,000/- against the ops. Ops are hereby directed to take all such step for refunding the excess deducted TDS amount of Rs.800436/- after taking all legal steps by taking help of the complainant and till actual credit of that amount in the account of complainant. Op shall have to pay interest  at the rate of8 percent p.a since the date of such deduction and till its full payment to the complainant quarterly / monthly.

Regarding refund op shall bear all cost and take all such legal step at their own cost only taking such help of the complainant as an when required.

For harassing the complainant and for negligent and deficient manner of service on the part of the ops . Ops to pay compensation of Rs.20,000/- to the complainant within one month from the date of this order along with litigation cost.

If ops fail to comply the order regarding payment of cost and compensation within stipulated time in that case penal interest  at the rate ofRs.2000/- per month shall be paid by the ops and it shall be deposited to this Forum.

Ops shall comply order positively about refund of excess TDS positively within 90 days from the date of this order failing which penal proceeding shall be started against ops.