Delhi

New Delhi

CC/494/2014

Bharat Chander Swain - Complainant(s)

Versus

M/S. Corporation Bank Ltd. - Opp.Party(s)

-

25 Feb 2015

ORDER

CONSUMER DISPUTES REDRESSAL FORUM-VI

 (DISTT. NEW DELHI), ‘M’ BLOCK, 1^STFLOOR,

VIKAS BHAWAN, I.P.ESTATE,

NEW DELHI-110002.

 

Case No.CC/494/14                        Dated:

In the matter of:

Sh. Bharat Chandra Swain

S/o Uday Nath Swain,

R/o H.No.22, block-06, Spring Field Colony,

Faridabad, Haryana

……..COMPLAINANT

       

VERSUS

1. Deputy General Manager, (Delhi South),

Corporation Bank,

10^th FL, Hindustan Times House,

K.G Marg, New Delhi-01

 

1. Area Manager,

        Corporation Bank, 50, Vasant Lok,

        Priya Cinema Complex, Vasant Vihar, Delhi-57

 

1. Area Manager,

Axis Bank Ltd.,

Himalya House, Upper Ground Floor & 1^st FL, K.G Marg, New Delhi-01

……..OPPOSITE PARTIES

 

ORDER

Member: S.R Chaudhary

The complainant had availed services of Axis Bank regarding buy-over loan against property earlier mortgaged with Corporation Bank. There was a tri party agreement between Complainant, Builder and Axis Bank to buy over loan amount from Corporation Bank because earlier property was pledged with Corporation bank. The deal was matured and demand draft of Rs.55 lakhs was handed over to Corporation Bank by Axis Bank during April 2014 but Axis bank failed to collect the original documents of property in question from Corporation Bank for which buy-over finance Rs.55 lakhs was given to Corporation Bank by Axis Bank. It was primary duty of Axis Bank to collect original documents from Corporation Bank while handing over Demand draft to Corporation Bank. Later on Axis Bank arbitrarily stopped next installment of Rs.8 lakhs due to complainant, which was not paid to the complainant earlier. consequently complainant frustratedly filed the complaint for justice rather Axis bank served upon a legal notice to complainant for his own mistake to cover up his own blunder despite complainant struggled from pillar to post but one bank alleging other bank to save his own skin but documents was not released neither to complainant nor Axis Bank till filing the complaint.

Both OP’s Axis Bank and Corporation Bank appeared before Forum and filed reply alleging each other to save his skin, remained protecting his own mistake. Corporation had taken a plea that Axis bank never approached bank to collect documents, but ultimately Corporation bank surrendered all original documents on two different dated as per order sheet dated 19.01.15 and 12.02.15. Axis bank was directed to pay Rs.8 lakhs due to complainant last installment which was not paid since last one year due to his own mistake of Axis Bank. Ultimately Axis Bank released Rs.8 lakhs to the Complainant & same was paid before Forum on 16.02.15 after a great struggle of Complainant. While arguments were heard, Corporation bank alleged Axis Bank, that he has never approached us to collect documents whereas Axis bank stated that a number of times our advocate approached official correspondence also exchanged but OP Axis Bank failed to produce the documents in Forum which clearly shows the deficiency on the part of Axis Bank which is sole violation of RBI guidelines framed under policy of Ministry of Finance. The Axis Bank gave instruction to appearing Ld. Counsel as reproduced below:

            “Please collect the following documents before/at the time of handling over the pay order.

 

1. Original payment receipt/any other relevant documents to be collected from the customer/builder before release of pay order.

 

1. Construction/LAP/Resale cases all original property docs to be collected before release of pay order.

 

1. In case of Internal BT the transaction not executed within 15 days from the handling over the DD. The lawyers are requested to confirm the over due’s/Shortfall from the bank and same has to collected in cash and DD before execution of the transaction.”

 

It appears that both OPs arbitrarily declined to honour the norms of Financial Institution Regulation Act 1968 after Nationalization of all Pvt. Sector Banks.

Thus, we direct OP3 Axis Bank to pay Rs.35,000/- to the complainant as litigation and harassment charges as Axis bank being sole responsible not to collect the documents from Corporation Bank while draft was being handed over to Bank official consequently complainant was brought into litigation unnecessarily for last one year due to blunder of Axis Bank. In the meantime, both branch head is warned not to adopt such mal-practices in future to break the Law and violation of RBI guidelines.

The order shall be complied within 30 days of the receipt of the copy of the order; otherwise action can be taken under Section 25 / 27 of the Consumer Protection Act.

File be consigned to record room.

Copy of the order be sent to the parties free of cost.

 

 

        Pronounced in open Court on 25.02.2015

 

 

(C.K.CHATURVEDI)

PRESIDENT

 

 

 

(S.R. CHAUDHARY)                 (Ritu Garodia)

MEMBER                                  MEMBER