Versus
Indian Overseas Bank
Through Roop Nagar Branch
R/o 763, Anna Salai, Chennai,
Tamil Nadu-600002 …Opposite Party
ORDER
31/10/2023
Harpreet Kaur Charya, Member
The present complaint has been filed by Mr.Anil Kumar Gupta, the complainant against Indian Overseas Bank, Roop Nagar Branch, Delhi, OP, with the allegations of negligence and breach of trust.
- Facts necessary for the disposal of the present complaint are that, the father of the complainant, Late Mr. D.P.Gupta, had a fixed deposit bearing no.393210421300012, dated 19/07/2013 vide receipt no.2012/NDRM with Indian Overseas Bank, Roop Nagar Branch, Delhi. It has been stated by the complainant that Late Sh.D.P.Gupta has left behind a registered Will, as per which, he has made the complainant the sole legal heir to his estate. Even, the wife of Late Mr.D.P.Gupta, and mother of the complainant, Mrs. Savitri Devi has bequeathed her entire estate to the complainant.
- It has been further stated by the complainant that on multiple occasions, the complainant requested the Branch manager of OP, to release the sum of the said fixed deposit. Despite the fact, that the complainant had submitted all the requisite documents duly filled, signed and notarised, the Branch Manager insisted on documents like succession certificate issued by court as a requirement for processing the application. As the Branch Manager refused to release the sum in the favour of the complainant, a Legal notice dated 29/03/2022 was issued to OP requesting to release the amount, which was duly replied by the bank, where, again the complainant was advised to procure a probate of the Will along with consent letter from other children of Late Mr. D.P.Gupta.
- Another Legal Notice was also served upon OP on 12/04/2022.
- Feeling aggrieved by the act/omission on the part of OP the complainant has prayed for directions to bank to release the proceeds of fixed deposit of Late Mr.D.P.Gupta without delay in the favour of the complainant, who has been declared as the legal heir of the deceased account holder by virtue of registered Will and compensation of Rs.2,00,000/- on account of mental agony caused to the complainant due to failure and gross negligence of OP.
- The complainant has annexed the copy of the fixed deposit receipt issued by OP Bank, copy of the registered Will of Late Mr.D.P.Gupta, copy of registered Will of Smt.Savitri Devi Gupta, copy of death certificate of Mr.Dharam Prakash Gupta and Smt.Savitri, printout of judgment of Hon’ble Supreme Court pronounced in Kanta Yadav v/s Om Prakash Yadav & Others, Legal notice served to OP dated 29/03/2022 and its reply dated 07/04/2022 and second Legal notice dated 12/04/2022 along with the Aadhar Card and PAN card of the complainant, with the complaint.
- Written statement was filed on behalf of OP upon service of notice. It has been stated that Sh.Dharam Prakash Gupta and Smt.Savitri Devi are having a fixed deposit of Rs.4,00,000/- in their branch. It has been submitted that once Sh.Ankit, claiming to be an advocate of the complainant approached the OP bank and had submitted death certificates of Sh.Dharam Prakash Gupta and Smt Savitri Devi. That was the first time, the OP came to know about the death of Sh.Dharam Prakash Gupta and Smt.Savitri Devi. Sh.Ankit had also given a photocopy of a Will of Late Sh.Dharam Prakash Gupta.
- It has further been submitted that the complainant had never visited the branch to claim the FDR amount nor he had executed any authority letter or power of attorney in favour of his advocate, namely Sh. Ankit. As per records, it is seen that the FDR account is having no registered nomination.
- Sh.Ankit had requested to transfer the proceeds of FDR in the name of the complainant, thereafter, he was explained the entire process of claim with the request to ask Sh.Anil Kumar Gupta, the Complainant to visit the branch. However, the complainant did not visit the branch and the complainant and his advocate threatened the bank official with legal consequences. It has further been submitted that Sh.Ankit, advocate did not carry any Power of Attorney or Authority letter on the behalf of the complainant.
- As per the Standard Operating Procedure of the bank guidelines, pertaining to the cases based on Will, the complainant was required to submit:-
- Consent letter in Bank format of “Annexure N” from all legal heirs whether the Will is probated or not. The claimant has to furnish the same.
- Legal Heirship certificate/survivor membership certificate from the office of area SDM
- Claimant has also not submitted claim papers in prescribed format with satisfactory KYC and documentary proof as per bank guidelines.
- The claimant has not filed claim papers along with consent of all the legal heirs in his favour to the satisfaction of the branch.
- The claimant has to visit personally and verify his KYC.
The above requirements were not complied by the complainant; hence there was no deficiency on the part of OP.It has been denied that the FDR is in the single name of Late Sh. Dharam Prakash Gupta, rather, it was in the joint name of Sh.Dharam Prakash Gupta and Smt. Savitri Devi.OP did not have means to verify the photocopy of Will filed by the complainant and at present the bank is not admitting the Will. It has been specifically denied that the complainant had ever visited the branch and met the branch manager.It has been denied that the bank has asked for succession certificate in fact the only dispute is that the complainant did not follow the procedure as prescribed by the bank.Rest of the content of the complaint have been denied with the prayer of dismissal of the complaint.
- The copy of the Power of Attorney in favour of Ms. Laxmi Devi, copy of Standard of Operating Procedure in case of death claim pertaining the Will, and copy of reply dated 04/06/2022 to the Legal Notice dated 12/04/2022 issued by the complainant has been annexed with the written statement.
- Rejoinder to the written statement was filed on behalf of the complainant. It has been denied that the term deposit bearing No.393210-421300012 was in joint name of Late Mr. D.P.Gupta and Smt. Savitri Devi. It has been denied that Sh. Ankit had ever visited the OP, rather, Sh. Ajay Shukla, partner of Sh. Ankit, Legal Counsel for the complainant had sometime visited the OP in the month of February with the purpose of enquiry for processing the claim in fixed deposit after the demise of account holder, and hence no authority letter was required. Rest of the content of the written statement have been denied as misleading and incorrect.
- Complainant has filed evidence by way of affidavit and has repeated the contents of the complaint. He has got exhibited the copy of the receipt as Ex.CW-1/1; copy of death certificate as of Late Mr.D.P.Gupta and Smt.Savitri Devi as Ex.CW1/2 and Ex.CW1/3 respectively, copy of registered Will of late Mr.D.P.Gupta and Smt.Savitri Devi as Ex.CW1/4 and Ex.CW1/5 respectively. He has got exhibited the transcript of chat between Mr.Ajay Shukla and the branch Manager as Ex.CW1/6. The copy of the judgement of Hon’ble Supreme Court titled as “Clarence Pais and others vs Union of India (AIR 2001 SC 1151)” as Ex.CW1/7 and judgment dated 09/11/2021 by Hon’ble High Court of Kerala as Ex.CW1/8.
- Ms. Laxmi Devi, Senior Manager of Indian Overseas Bank, Roop Nagar Branch, Delhi has been examined on behalf of OP. The copy of the Power of Attorney in favour of Ms. Laxmi Devi has been exhibited as Ex.RW-1/1. She has reaffirmed the contents of their written statement. The copy of the relevant portion of Standard Operating Procedure in case of Will is exhibited as Ex.RW1/2 and copy of reply dated 04/06/2022 to the Legal notice dated 12/04/2022 issued by complainant as Ex.RW-1/3.
- We have heard the arguments on behalf of Ld. Counsel for the complainant and Ld. Counsel for OP. We have also perused the material placed on record.
- The complainant has alleged that OP did not transfer the proceeds of the FDR No. 393210421300012, which was in the name of his father, late Sh.D.P.Gupta. However, it is seen that the said FDR (Ex.CW1/1) was in the joint name of his father and his mother i.e. Sh.D.P.Gupta and Smt. Savitri Devi.
- OP in the defence has denied the allegations and stated that the complainant has never approached in person and has failed to submit claim papers in the prescribed format with satisfactory KYC and documentary proof as per bank’s Standard Operational Procedure for settlement of claims of the deceased depositors, as per which the complainant was required to :-
- Consent letter in Bank format of “Annexure N” from all legal heirs whether the will is probated or not. The claimant has to furnish the same.
- Legal Heirship certificate/Survivor membership certificate from the office of Area SDM.
- Claimant has also not submitted claim papers in prescribed format with satisfactory KYC and documentary proof as per bank extent guidelines.
- The claimant has not filed claim papers along with consent of all the legal heirs in his favour to the satisfaction of the branch as such there is a doubt on the genuineness of the claim.
- The claimant has not personally visited the branch.
- In the event if the claimant comes personally and submit all the above documents as mentioned in clause A to D, my client will not ask for probate.
- Even as per Ex.RW1/3, the reply dated 04/06/2022 to the Legal notice issued by the complainant dated 12/04/2022, the Ld.Counsel for the complainant has been requested that as per circular governing claim settlement, the bank should obtain “Consent cum No Objection Certificate” as Annexure N (Copy enclosed) from all legal heirs irrespective of the fact whether the deposit /credit balance is bequeathed to anyone or more of the legal heirs and settle the claim based on the Will. However, if any one or all the legal heirs refused to give such consent, the settlement can be made only if a probate or letter of administration is produced by the claimant.
Hence, your client maybe advised either to produced appropriate court orders from Competent court declaring the Will as “Last Will” to enable us to act upon the same or to submit consent letter from all the legal heirs as per annexure N as enclosed along with all other claim papers prescribed by the Branch to enable the bank to settle the claim.
- OP has also placed on record the Standard Operational Procedure (Ex.RW1/2), the said SOP has been issued by Indian Overseas Bank, Law Department, Central Office, Chennai, with the subject ‘UNIFORM FORMS IN ALL PUBLIC SECTOR BANKS AS SUGGESTED BY IBA REVISION OF DEATH CLAIM SETTLEMENT PROCEDURE AND FORMS' which is dated 30/09/2019. As per said SOP, in case of claims based on Will, the branches should:
- obtain a consent cum no objection letter to be executed before a Notary Public as per Annexure N from all the legal heirs irrespective of the fact whether the deposit/credit balance is bequeathed to any one or more or to all the legal heirs or to any person(s) who is (are) not legal heir(s) and recommend for settlement of claim based on the Will waiving letter of Administration or Probate.
- However if all or any one of the legal heirs refuse to give such a consent cum no objection letter, branches should insist for a probate or Letter of Administration irrespective of the amount involved, subject to guideline in para 5.1. This Notarised consent cum no objection letter as per Annexure N should be obtained in addition to regular claim paper viz Application, Indemnity, Disclaimer letter, Opinion on Sureties, Inventory (for safe custody and Lockers) and the claim should be admitted by the layer of Authority concerned, prescribed for settlement of claim without legal representation depending on the amount of claim.
- The dispute herein is with effect to the compliance of the directions as required under the SOP, it is pertinent to note that the complainant is bound to submit notarized No objection letter as per ‘Annexure N’ from all the legal heirs and in case if all or any one of the legal heir refused to give such a consent cum no objection letter, branches should insist for a probate or letter of administration irrespective of the amount involved. Simultaneous reading of para 5 & para 6 of the Legal notice dated 12/04/2022 :-
Para 5: That your reply states that our client “failed to disclose the legal heirs of the deceased persons”. For this, please note that the deceased fixed account holder had executed a will in favour of client, which is a registered document and which undeniably makes our client the sole legal heir who can succeed the estate of the deceased.
Para 6 : That your reply further suggests obtaining consent letter from other legal heirs, which is practically no possible owing to the fact that they have no interest in this transaction for the reason of their exclusion from the estate of the deceased account holder.
- Thus, it is clear that the complainant did not comply with the procedure as required for the settlement of the claim. During the course of arguments, it was fairly conceded by the Ld. Counsel for the Complainant that the complainant has not submitted the KYC documents as well as the notarised ‘No objection’ letter of the other legal heirs of Late Sh.D.P.Gupta and Smt. Savitri Devi. It is only in the case of inability to submit the no objection letter; the probate of the Will is required. No document such as No objection letter from other legal heirs of Late Sh.D.P.Gupta and Smt Savitri Devi has been brought on record by the complainant.
- The complainant has placed on record the judgment of Hon’ble Supreme Court of India “Kanta Yadav vs Om Prakash Yadav & Ors (Civil Appeal No.5823 of 2019) but the said judgement does not help the complainant as the facts of the present complaint are different.
- In the present case, the complainant himself has failed to submit the above-mentioned documents, he cannot allege deficiency in service on part of OP. Hence, the present complaint is dismissed being devoid of merits, without order to cost.
Office is directed to supply the copy of this order to the parties as per rules. Order be also uploaded on the website. Thereafter, file be consigned to the record room.
