CONSUMER DISPUTES REDRESSAL FORUM,PALAKKAD
Dated this the 29th Septemeber, 2015
PRESENT : SMT. SHINY.P.R, PRESIDENT
: SMT. SUMA. K.P, MEMBER Date of filing : 26/03/2015
CC /39/2015
Lilly Kuthottil, : Complainant
W/o.Abraham Kuthottil,
Kuthottil House,
Chavadiyur Post,
Attapadi, Palakkad-678 581
(Party in Person)
Vs
Manager,
South Indian Bank, : Opposite party
Goolikadavu, Attapadi, Palakkad-678 581
(By Adv.G.Ananthakrishnan)
O R D E R
By Smt. Suma. K.P, Member,
The above case is filed by the complainant seeking an order to direct the opposite party to pay Rs.67,235/- being the difference in the rate of exchange along with Rs.5lakh as damages for the mental agony suffered by her.
Complainant is an account holder of the opposite party bank. On 22/12/2014 the complainant presented 2 self cheques for collection from her account in France for an amount of 11,000 Euro and 1000 Euro through opposite party bank. The amount was very much essential for her daughter’s marriage which was fixed on 26/1/2015. The complainant was employed as a nurse in France and after her retirement she had settled at Attapady with her family. Her pension amount used to be credited in her account at France and she used to draw the amount by presenting cheques through the opposite party bank. The complainant had on earlier occasion requested for purchase of cheques which were purchased by opposite party bank and amount was credited to the account of the complainant on the very same day. Only on the present occasion, the bank had sent the cheques for collection to France. When the amount was not received after collection, on 23/1/2015, she enquired about it to the opposite party bank. The Manager of the opposite party bank enquired about it over telephone and intimated that the amount will be delivered only on 27/1/2015. Accordingly the amount was credited to her account on 28/1/2015. When she examined the amount, she came to realize that exchange rate was calculated @ 68.66. When she received the statement of accounts from her account at France she came to know that an amount of Euro 11000 was debited from her account on 8/1/2015. The complainant submits that on 8/1/2015 the exchange rate of Euro was @74.0765 rupees. The complainant alleges that since the exchange rate of Euro was falling day by day, the opposite party bank was making profit by delaying the payment under the shelter of “cooling period”. The complainant issued a letter to the opposite party bank with regard to the cause of delay for which opposite party replied stating false allegations. Hence she had filed this complaint.
The notice was served to the opposite party for appearance. Opposite party entered appearance through counsel and filed version contending the following. It is true that the complainant had presented 2 cheques for Euro 11000 and Euro 1000 drawn on banks in France for collection on 22/12/2014. The purchase of cheques and crediting the account is done as per the request of the customer subject to the absolute discretion of the bank since it amounts to release of funds without receiving proceeds from the drawee bank and therefore, it involves the risk of return of cheques for insufficiency of funds or for other valid reasons. As per the guidelines of RBI circulated to all scheduled commercial bank vide their circular No.DBOD.No.Leg.BC.55/09.07.005/2004-05 DTD.01/11/2004, individual banks were given freedom to formulate their own board approval policy with regard to time frame for collection of local / outstation cheques etc. In tune with the guidelines of RBI the Indian Bank’s Association framed a model policy on collection of cheques/instruments which can be made used by member banks of IBI with or without modifications, subject to the approval of individual banks board of directors.
As per the banking practice the correspondent bank gives provisional credit immediately on receipt of the cheques. In this case provisional credit was given on 6/1/2015 later within a period of 21 days known as “cooling period”. The actual status of the cheques will be known on the 21st day. The amount is credited to the account of the complainant and the rate on the 21st day is calculated for giving such credit. The amount would be credited considering the prevailing exchange rate on the 21st day which is the banking practice and procedure followed as per the RBI regulation. The complainant had been credited with the amount calculated at the exchange rate of Rs.68.66 on 27/1/2015. The averment that the bank delayed payment of the cheques either due to negligence or to take advantage of the fall in rate of Euro and that it is for this reason is not correct and hence denied. The complainant is not entitled to get the difference in rate amounting to Rs.67,235/- as there is no deficiency of service and the credit is given on time considering the rules and regulations. In the above circumstances the complaint has to be dismissed.
The complainant and opposite party filed respective chief affidavits.. Ext.A1-A3 was marked from the part of the complainant and Ext.B1-B4 was marked from the part of the opposite party. Evidence was closed and the matter was heard.
The following issues are to be considered.
- Whether there is any deficiency of service on the part of the opposite party?
- If so, what are the reliefs and cost?
ISSUE No. 1
We have perused the documents produced from both sides. The opposite party has produced some guidelines issued by the RBI which was marked as Ext.B1-B4, which supports that 21 days of cooling is must and also refers to US law to grounds its arguments. In our view this argument does not hold good, since US law it is not applicable to France. The complainant had produced statement of accounts which shows that the amount was debited from her account only on 8/1/2015. Hence the argument by the opposite party that the amount was credited on 6/1/2015 cannot be taken in to consideration. From Ext.A3 it is evident that marriage of her daughter was fixed on 26/1/2015. Since the bank has credited the amount on 27/1/2015 the theory of 21 days cooling period can not be believed. The circular produced from the part of the opposite party is dated 2004 and according to the complainant this is the only occasion on which the payment was delayed. So it can be inferred that the circulars produced from the part of the opposite party bank is not implemented in its strict sense. Not only that from the evidence before the forum it is viewed that the opposite party bank has credited the amount to the complainant’s account not on the 21st day, but on the 19th day. Therefore it is viewed that the averments put forth by the opposite party is in correct. The opposite party has committed gross negligence and deficiency of service by delaying the payment to the complainant especially when the exchange rate was falling down day by day. As per Ext.A2 the rate of Euro as on 8/1/2015 was 74.0765, whereas the complainant had received the exchange rate @ 68.66.
From the above circumstances it is clear that complainant had suffered a loss of 67,235/- because of the delay in receiving the amount, and that she could not arrange funds for her daughter’s marriage due to the above act of the opposite party. In view of the above discussions the complaint is allowed. Hence we direct the opposite party to pay an amount of Rs.67,235/- (Rupees Sixty Seven thousand two hundred and thirty five only) being the difference in the rate of exchange and also to pay an amount of Rs.10,000/- (Rupees Ten thousand only) as compensation for the mental agony suffered by her and along with Rs.1,000/- (Rupees One Thousand only) as cost of this proceedings. The aforesaid amount shall be paid within one month from the date of receipt of this order failing which complainant is entitled to get 9% interest for the whole amount from the date of order till realization.
Pronounced in the open court on this the 29th day of September, 2015.
Sd/-
Smt. Shiny.P.R
President
Sd/- Smt. Suma. K.P
Member
A P P E N D I X
Exhibits marked on the side of complainant
Ext.A1 – (Original)Bank Account Statement of complainant dtd. 26/01/2015
Ext.A2 – Photocopy of e-mail showing rate of interest dtd.25/03/2015
Ext.A3 – Invitation card of Anuja and Vipin
Witness marked on the side of complainant
Nil
Exhibits marked on the side of opposite party
Ext.B1- Time Frame for collection of Local/Outstation Cheques/Interest payment dtd.01/11/2004 (Photocopy)
Ext.B2- Frequently asked Questions – print out from website dtd.16/06/2014 (Photocopy)
Ext.B3- Model policy on collection of cheques / instruments (Photocopy)
Ext.B4 - Policy on collection of cheques/instruments (Photocopy)
Witness examined on the side of opposite party
Nil
Cost Allowed
Rs.1,000/- as cost.
