Order-25.

Date-08/07/2016.

The instant case relates to an application u/s.12 of the C.P. Act, 1986.

          The case of the complainant, in short, is that the complainants jointly opened four numbers of fixed deposits with the OPs, particulars of whim as mentioned in the petition of complaint.  Each fixed deposits amounted to Rs.3 lakhs for 7 years with the credit rate as furnished in the petition of complaint. Being in urgent financial crisis complainants approached to the OPs verbally for premature withdrawal on 04-07-2014.  On 05-07-2014 complainants applied for refund of the said four numbers of fixed deposits.  The complainants became astonished to see that the HDFC Bank refunded the fixed deposits amounts on 09-07-2014 by deducting huge amount from each deposit.  It appears that the complainants deposited total amount of Rs.12 lakhs and got the refund of Rs.10,71,021/- and total amount of deduction was Rs.1,28,979/-.  The complainants met the Sr. Branch Manager of HDFC at Main Kolkata Office and also the GM of HDFC at his office at 9, Shakespeare Sarani, Kolkata 71 but all in vain.  Complainant No.1 also met with Regional Manager, NHB with written compliant on 08-08-2014 and 16-08-2014 but no result.  It is alleged that the OPs deducted huge amount from the principal amount and as such, the complainants have suffered financial distress.  Complainants have prayed for relief. 

OPs have entered into appearance and have contested the case in filing written version contending inter alia, that the complainants jointly availed four deposits of Rs.3 lakhs each for a time period of 7 years on 04-07-2014.  The complainant applied before the OPs for prematured withdrawal of all the four deposits made by them.  Pursuant to such application, the OPs herein refunded the deposit amount after deducting the appropriate amount structural in consonance with the terms and condition laid down by the National Housing Bank.  It is also alleged that the rates of interest as mentioned on the deposit certificates would have been applicable only if the complainant had kept the amounts for the total time period as agreed at the time of depositing the same.   As the amounts were prematurely withdrawal by the complainants on their own accord, they cannot claim the initial credit rates of interest for the same.  it is also alleged that the National Housing Bank has laid down that in case of any prematurely withdrawal of deposits after the completion of 6 months from the date of deposit the applicable rate of interest in such premature withdrawal will be 2 percent lower than the rate of interest applicable for the period during which the deposit has run.  Complainants were explained all the same at the time of depositing the respective amounts and, as such, they are estoppped from claiming higher interest at the agreed rate. The OP has prayed for dismissal of the case.

Points for Decision

1. Whether the OP practised unfair trade upon the complainants?
2. Whether the complainants are entitled to get the claim as prayed for?

Decision with Reasons

As per the guidelines regarding the repayment of the deposits as laid down in the Housing Finance Companies Directions 2010, in case of a housing finance company at the cost of the depositors repays a public deposit after 6 months but before the date of maturity, the interest rate payable shall be 2 percent lower than the interest rate applicable to a public deposit for the period for which the deposit has run.

          It is argued from the side of the OP, that the deposits made by the complainants have been prematurely withdrawn by them, and they have not completed the initial stipulated term of 84 months and, as such, the applicable rates of interest pertaining to the same shall be 2 percent lower than the agreed rate of interest.  We find that deposit No.CC/6044316 dated 09-04-2010 was active for a period of 9 months and 26 days.  Deposit No.CC6065751 dated 03-05-2010 was active for a period of 50 months and deposit no.CC6069528 dated 05-05-2010 was active for a period of 50 months.  Deposit No.CC 6281094 dated 12-10-2010 was active for a period of 44 months and 23 days only.  The rate of interest of the said FD certificates at the time of commencement was 8.25 percent for the first 3 fds and 8.30 percent for the 4^th one.  As per prematured statement, we find that the refund amount as against the said deposits were Rs.2,65,822/-, Rs.2,66,373/-, Rs.2,66,416/- and Rs.2,72,410/- i.e. totalling Rs.10,71,021/- we find that deduction amount were Rs.34,178/-, Rs.33,627/-, Rs.33,584/- and Rs.27,590/- respectively totalling amount of Rs.1,28,979/-.  It appears from the statement furnished in para 6 of the petition of complaint that the complainant deposited an amount of Rs.12 lakhs and he got refunded of Rs.10,71,021/- and the deduction amount is Rs.1,29,979/-/-.  It is curious to note that complainant deposited Rs.12 lakhs vide 4 fixed deposits and he ran all the deposits for more than 6 months and deduction is made from the principal fixed deposit amount.  He deposited an amount of Rs.12 lakhs but he got back refund of Rs.10,71,021/-.  There is no document forthcoming from the side of OP though the complainant received quarterly interest amount from the end of the OP as against any of the said 4 FDs.  As per the guidelines as laid down by the National Housing Bank, the interest payable shall be 2 percent lower than the interest rate applicable to a public deposit for the period for which the deposit has run for 6 months and if no rate has been specified for that period, then 3 percent lower than the minimum rate at which public deposits are accepted by that housing finance company.  We find that this provision is application in respect of interest but curiously enough the OPs have deducted huge amount as stated earlier from the principal amount of the fixed deposits of the complainants.  Moreover, we find from Annexure – E from the affidavit of evidence on behalf of the OPs that the brokerage is paid upfront for the entire period of deposits to the authorized agents and in case of prematured withdrawal the brokerage as state is payable for the applied period of deposits and excess brokerage is paid recovered from the deposit amount.  We are afraid there is no such provision in the guideline of National Bank.  It is not also desirable.  We find that the OPs have deducted huge amount from the principal amount of deposits and the complainants did not even get back the principal deposit amount Rs.12 lakhs.  There is no guideline laid down in NHB directions 2010 that they would deduct any amount from the principal deposit amount on prematurely withdrawal of the fixed deposits.  We think that such deduction has not been justified.  The OPs can deduct in trust at a rate of 2 percent lower than the agreed rate of interest applicable to a public deposit for the period for which the deposit has run.  In the instant case we find that deduction has been made from the principal deposit amount.  There is also nothing on record that the OP’s commenced payment of quarterly interest in favour of the complainant No.1.  We think that the OPs have acted in an arbitrarily capricious manner in deducting money from the principal amount.  The contention of Para 6 of the petition of complaint has not also been challenged from the side of the OPs.  We think that complainant is entitled to get back the deduction amount at the agreed rate of interest at 2 percent lower than the interest payable to him as he withdrew the fixed deposits prematurely.

Hence,

Ordered

That the instant case be and the same is allowed on contest against the OP with a cost of Rs.10,000/-.

          Complainants are entitled to get interest rate 2 percent lower than the agreed interest rate applicable to the 4(four) FDs as mentioned in the body of this judgement from the OP.

          The OP is directed to refund the excess amount as deducted to the complainant within 30 days from the date of this order i.d. the complainants will be entitled to put the order into execution, as mandated in the C.P. Act.

          The complainants are also entitled to get compensation of Rs.50,000/- to be paid to them by the OP within the stipulated time, for causing mental pain and agony and 50 percent of which to be deposited to this Forum. 

          Failure to comply with this order will entail penalty to the OP  at the rate ofRs.100/- per diem to be paid to this Forum till full and final payment.