Tamil Nadu

South Chennai

CC/197/2017

J.Hanisha Banu - Complainant(s)

Versus

M/s. Indian Overseas Bank, Rep by chief Executive Officer - Opp.Party(s)

M/s.MurugeshnKasivel

08 Aug 2022

ORDER

Date of Complaint Filed :12.04.2017

Date of Reservation      : 22.07.2022

Date of Order               : 08.08.2022

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,

CHENNAI (SOUTH), CHENNAI-3.

 

PRESENT: TMT. B. JIJAA, M.L.,                                           : PRESIDENT

                    THIRU. T.R. SIVAKUMHAR, B.A., B.L.,           :  MEMBER  I 

                    THIRU. S. NANDAGOPALAN., B.Sc., MBA.,   : MEMBER II

 

CONSUMER COMPLAINT No. 197/2017

MONDAY, THE 8^th DAY OF AUGUST 2022

J.Hanisha Banu,

W/o, F. Jabarullah Khan,

No.3/4 Main Road,

Kattumedu,

Thiruthuraipoondi,

Thiruvarur District.                                                                                                                                                            ... Complainant    

..Vs..

1.Indian overseas Bank,

   Represented by Chief Executive Officer,

   Central Office: 6^th Floor, Annex Building,

   No.763, Anna Salai,

   Chennai – 600 002.

   Tamilnadu.

 

2.The Regional Manager,

   Indian Overseas Bank,

   Regional Office:

   Karups Tower, Medical College Road,

   Thanjavur – 613 007.

 

3.The Branch Manager,

   Indian Overseas Bank,

   Kattimedu Branch,

   Thiruthuraipondi Taluk,

   Thiruvarur District.                                                                                                                                                     ...  Opposite Parties

 ******

Counsel for the Complainant        : M/s. Murugesh Kasivel

Counsel for the Opposite Parties   : M/s. Sheela Venkatesh

 

        On perusal of records and on endorsement made by the Complainant to treat the written arguments as oral arguments, we delivered the following:

ORDER

Pronounced by the President Tmt. B. Jijaa, M.L.,

1.      The Complainant has filed this complaint as against the Opposite Parties under section 12 of the Consumer Protection Act, 1986 and prays to repay a sum of Rs. 13,352/- with interest at the rate of 12%, the loss occurred by the Complainant in Deposit No. 421500005, to repay a sum of Rs. 50,000/-, the loss incurred by the Complainant due to the change in the agreed interest rate i.e., 0.5% in the Rs. 1,00,00,000/-, to repay a sum of  Rs.31,349/- with interest at the rate of 12%, the loss occurred by the Complainant in Deposit No. 151500002 for the period from 20.02.2015 to 19.02.2016, to repay the interest, a sum of Rs. 4,050/- in Deposit No. 151500002 for the period from 2016 to 2017, to repay the sum of Rs. 49,885/- charged as pre-mature cancellation charges with interest at the rate of 12% in Deposit No. 421500005,and  Payment of Rs. 5,00,000/-  by way of compensation along with cost.

2.     The averments of Complaint in brief are as follows:-

        The Complainant is a Saving Bank Account holder with the 3^rd Opposite Party bearing Account No.127001000001231 for about 20 years. In the year 2014, the Complainant’s husband returned from abroad to India. As he returned from abroad he had a sum of Rs. 1,00,00,000/- and deposited the same in Fixed Deposit -NRE SFD (M) with the Opposite Party. On 19.02.2015 Rs. 1 Crore Fixed Deposit was matured and the same was renewed on 20.02.2015 to 19.02.2016 with an agreed interest rate of 9% Deposit No. 151500002, Rs. 30 Lakhs Fixed Deposit in Deposit No. 421500005  matured on 06.08.2015 but was renewed on 04.09.2015 with an agreed interest rate of 9% after one month conversation because the Complainant demanded 9% as interest rate as it was given by other banks. That for the Rs. 1 Crore Fixed Deposit, Deposit No. 151500002, the interest rate to be paid is Rs. 9,00,000/- for the period 20.02.2015 to 19.02.2016 but the interest paid was Rs. 8,68,651/- only and a sum of Rs. 31,349/- loss occurred by the Complainant by the 3^rd Opposite Party. While questioning the same he was replied that he was following with the Regional Office and will be cleared soon. On maturity the same was renewed again on 20.02.2016 with the interest rate of 7.5%.  That on the deposit of Rs.30,00,000/- in Deposit No.421500005 interest was credited to the Complainants account only at the rate of 8%. When it was questioned by the Complainant the 3^rd Opposite Party, in a callous and indifferent manner replied that the interest rate was fed into the computer as 8% inadvertently, interest could be paid at the said rate only, but this is an err made by the 3^rd Opposite Party who and as the principal the bank is solely responsible for the loss of interest which amounts to Rs 15,000/- incurred to the Complainant. That the deposit of Rs. 1,00,00,000/-, in Deposit No.151500002, which was renewed on February, 2016 on an agreed interest rate of 7.5%. On 28.02.2016, the Complainant was in need of Rs. 10,00,000/- and hence she approached the 3^rd Opposite Party to cancel Rs.30,00,000/-. However, on signing the papers, the 3^rd Opposite Party called the Complainant and advised that a penal charge of Rs. 50,000/- would be deducted from the deposit amount and he advised the Complainant to avail a loan from the deposit for which the monthly interest would be only Rs. 800/-  and for six months the remaining period for maturity, the interest amount would be Rs. 4,800/- being advantageous the Complainant agreed for the same and being ignorant went off without cancelling the signature made by her. The Complainant was following the 3^rd Opposite Party continuously but on 29.02.2016, while going to the 3^rd Opposite Party instead of availing loan cancelled the Fixed Deposit charging Rs. 49,885/- as premature cancellation charges and credited a sum of Rs. 29,50,115/- to the Complainant’s bank account. On enquiring the same the 3^rd Opposite Party replied that a mistake had happened and that the same cannot be corrected. But the 3^rd Opposite Party informed that mail had been sent to the 2^nd Opposite Party and ensured that the cancellation shall be reversed but he didn't do so. Being deeply agonized the Complainant’s husband questioned the same and for that the 3^rd Respondent replied in an uncivilized manner and hence, being left with no other choice the Complainant left the bank. The interest to be paid to the Complainant for 5 months amounts to Rs. 1,12,500/- but was credited only Rs. 99,148/- the loss of Rs. 13,352/- was not paid for the reason best known to the 3^rd Opposite Party. That being aggrieved by the acts and deeds of the 3^rd Opposite Party the Complainant made representation to the 2^nd Opposite Party as of the difference of interest amount and pre-closure of the fixed deposit arbitrarily on 07.03.2016 and a response dated 31.03.2016 issued by the 2^nd Opposite Party stating "The rate of interest for the Deposit No. 421500005 has correctly entered as per the banks guidelines i.e., 8.00%. Both the deposits are renewed with rate of deposit as per the Banks guidelines" if so, the 3^rd Opposite Party has seduced the Complainant that the interest rate is 9%. Being not satisfied with the reply of the 2^nd Opposite Party the Complainant sent another representation to the 1^st and 2^nd Opposite Party on 07.03.2016. But, reply was send to the Complainant on 31.03.2016 without any proper explanation simply justifying their acts; it clearly shows the irresponsible behavior of the 1^st and 2^nd Opposite Parties. That to utter shock and dismay of the Complainant on May, 2016 the interest rates of Rs. 1,00,00,000/-, in Deposit No. 151500002, which was renewed on February, 2016 on an agreed interest rate of 7.5% were reversed to 7% and since then the interest rate had been credited with interest at 7% only as against the agreed 7.5%. Thus, the Complainant lost the interest at the rate of 0.5% ie., Rs. 50,000/- which was changed arbitrarily by the 3^rd Opposite Party. While questioning the same the 3^rd party stated that the interest rates were revised. The reply makes clear that the wrong is on their side and that they are solely responsible for the same. The reply from K. Parthasarathy, General Manager on 09.05.2016 reads as follows: "All concerned branches are advised to make the necessary rectifications immediately by modifying the applied interest rate  to the then prevailing Bulk deposit rates, without inviting customer complaints if any.We advise you to send your confirmation of rectification to Treasury, CO at the earliest This also clearly shows that they are the one who want to make the wrong right out of their own cost. The mails conversations shown to the Complainant by the 3^rd Opposite Party was annexed herewith as Annexure E.  On 31.08.2016 the Complainant caused a legal notice is going to initiate legal proceedings against the Opposite Parties. And for the same a reply notice was sent by the 3^rd Opposite Party denying all the allegations on 22.09.2016. Subsequently this complaint was filed.

3.Written Version filed by the Opposite Parties in brief are as follows:-

        It is true that the Complainant is the customer of the 3^rd Opposite Party and is having a SB account and also invested Fixed Deposits. It is also true that the Complainant had invested a sum of Rs. 1.30 Crores in two FDs vide

i) Deposit Receipts No: 244770 dated 20.02.2014 for Rs 1 Crore

ii) Deposit Receipts No: 951504 dated 06.08.2014 for Rs. 30 Lakhs for one year. Out of the above deposit the FD for a sum of Rs. 30 Lakhs dated 06.08.2014 got matured on 06.08.2015. At the request of the Complainant and also as per the bank norms, the said FD was renewed for a period till 03.09.2016 and it was also made clear to the Complainant that according to the norms of the bank and also the RBI guidelines, the interest rate applicable for the renewal is the present rate of bank fixed by the bank time to time and not the previous rate of interest. Accordingly the FD was renewed for a period till 03.09.2016 and endorsements were made to that effect on the reverse side of the FD receipts. Hence as per the revision rate of interest the interest for deposits were upto Rs. 1 Crore @ 8% pa till 21.09.2015. Moreover, the Complainant demanded the 3rd Opposite Party to encash the FD for Rs. 30 Lakhs for the reason that she was in need of Rs. 10 Lakhs urgently. The Opposite Party however with an intension to help the Complainant instructed and advised that to avoid loss of interest she can avail a loan on deposits instead of closing the Fixed Deposit. Moreover, the date of maturity was only 03.09.2016 but unfortunately the Complainant and her husband refused to accept the same and shouted at the Manager for the said suggestion so it was understood that the Complainant is not acceptable for the above said proposal. Moreover, the Complainant and her husband insisted for getting back the proceeds of the FDR for a sum of Rs 10 Lakhs and also directed the Opposite Party to do what they actually want. Hence the 3^rd Opposite Party transferred a sum of Rs. 29,50,115/- being the accrued proceed, of the FDR to her Savings Bank account because the Complainant was getting monthly interest for the deposit periodically. Immediately the Complainant also withdrew a sum of Rs. 38,000/- and Rs. 7,24,121 by using Cheque Numbers: 279644 and 279645 on 01.03.2016 itself. In this juncture, the question of reinvestment of Rs. 30 Lakhs does not arise for the reason that no amount was available in her account on 31.03.2016. Moreover, the statement of account for Saving Bank Account No: 1270010000001231 was available with the Complainant and her intention for the reinvestment of the amount is nothing but a lie. Moreover, the premature closure of FDR will not benefit the actual agreed rate of interest. Hence the debit of Rs. 50,000/- from the Deposit amount at the time of redemption was proper and done only in accordance with the usual terms and conditions. Moreover, it is false to state that the fixed deposit will be automatically renewed on their maturity date for subsequent period. Actually, as per the Bank's norms and procedures it is done only at the request of the customers and the renewed deposit will be considered as a New Deposit and the rate of interest will be given as per the prevailing revised rate and not at the agreed rate of interest paid for the previousterm. Hence it is clear that the deposit were renewed only at the request of the Complainant. As far as the rate of interest is concerned, the Opposite Party's Central Office, as per the prevailing investment plans and its nature will periodically change interest payable on the deposits considering the term of investment. Likewise, the aforesaid FDRS were renewed accordingly and interest given is also properly fixed by the Bank and moreover, if there is any wrong charges or debits or credits made in any account the system will automatically reverse the charges wrongly credited or debited. Hence the opposite parties are helpless in doing any changes in this regard. Hence prayed to dismiss the complaint.

4.     The Complainant submitted his Proof Affidavit and Written Arguments. On the side of the Complainant, documents Ex.A-1 to Ex.A-6  were marked.   

5.     The Opposite Parties submitted their Written Version and not filed their Proof Affidavit. Hence Proof Affidavit of Opposite Parties 1 to 3 is closed.

 

Points for Consideration

1. Whether there is deficiency in service on the part of the Opposite Parties?

2. Whether the Complainant is entitled for reliefs claimed?

3. To what other reliefs the Complainant is entitled to?

Point No.1:-

The undisputed facts are that the Complainant was holding a Savings Bank Account with the 3^rd Opposite Party bearing Account No.127001000001231, who deposited a sum of Rs. 1,00,00,000/- on 20.02.2014 in Fixed Deposit -NRE SFD (M)  with interest at the rate of 9.70%  for 12 months, which was matured on 19.02.2015  and the same was renewed on 20.02.2015 to 19.02.2016 and from 20.02.2016 to 20.12.2017 in Deposit No.151500002, and a sum of Rs.30,00,000/- was deposited in Fixed Deposit on 06.08.2014 which got matured on 06.08.2015.

The dispute arose in respect of the interest rate to be paid on Rs.1,00,00,000/- Fixed Deposit, having No. 151500002, and on the cancellation of Fixed Deposit No.951504 for Rs.30,00,000/-. According to the Complainant the interest rate to be paid is Rs. 9,00,000/- on  Rs.1,00,00,000/- Fixed Deposit, having No. 151500002 for the period 20.02.2015 to 19.02.2016 but the interest paid was Rs. 8,68,651/- only and a sum of Rs. 31,349/- loss incurred to the Complainant by the 3^rd Opposite Party and again it was renewed on 20.02.2016 for the period from 20.02.2016 to 20.02.2017 with interest at the rate of 7.50 % whereas on maturity, the maturity amount was given calculated at the rate of 7%. Further, when the Complainant was in need of Rs.10,00,000/- she approached the 3^rd Opposite party on 28.02.2016 to cancel the Fixed Deposit of Rs.30,00,000/- in Deposit No.421500005, who advised that a penal charge of Rs.50,000/- would be deducted and hence to avail loan from the deposit which would be advantageous, which the Complainant agreed, but went off without cancelling her signature. But on 29.02.2016, the 3^rd Opposite Party had cancelled the Fixed Deposit, deducting a sum of Rs.49,885/- as premature cancellation charges and credited Rs.29,50,115/-.

On careful perusal of records it is seen that there is no dispute with regard to the interest rate to be paid on Rs.1,00,00,000/-  Fixed Deposit, for the period 20.02.2014 to 19.02.2015. The contention of the Complainant for the Rs.1,00,00,000/- Fixed Deposit, in Deposit No. 151500002, the interest rate agreed to be paid is at 9% amounting to Rs.9,00,000/- for the period 20.02.2015 to 19.02.2016 but the interest paid was Rs. 8,68,651/- only and a sum of Rs. 31,349/- loss occurred to the Complainant, is not supported by any documentary evidence. From Ex.A-2, Pg 3, it is seen for the period from 20.02.2016 to 20.12.2017 for fixed Deposit No. 151500002, the interest agreed is at 7.50%. However, contrary to the agreed interest rate of 7.5%, the interest rate on Rs.1,00,00,000/- Fixed Deposit in Deposit No. 151500002, the interest rate was reversed to 7% and thus, the Complainant had incurred loss of the interest at the rate of 0.5% ie., Rs. 50,000/-.

In response the communications of the Complainant regarding  change of interest rate, the Opposite Parties had accepted the wrong committed on their side by the e mail of R. Raja, Asst. General Manager, Treasury, Central Office, Chennai on 07.05.2016, Ex.A-3, which is extracted here below:

"Kattimedu Branch has opened a deposit on 20.02.2016 for Rs. 1 crore @ 7.50% for a tenor of 12 months where as the interest rates for deposits of Rs. 1 Crore and above for 12 months tenor as on 20.02.2016 is 7.00% only. The branch had fed the interest rates wrongly Please instruct the branch to make rectification immediately under advice to us"

As regards the  Fixed Deposit for a sum of Rs. 30 Lakhs, which the Complainant wanted to encash on 28.02.2016, for the reason that she was in need of Rs. 10 Lakhs urgently,  the Opposite Parties had advised to avail a loan on deposits instead of closing the Fixed Deposit, though the Complainant had alleged that she had agreed for availing loan it is admitted that, very next day i.e, on 29.02.2016 the FD has been cancelled and the allegation that the Complainant had went off without cancelling her signature for premature withdrawal of  the FDR of Rs.30,00,000/-is not sustainable. Subsequently, the 3^rd Opposite Party transferred a sum of Rs. 29,50,115/- being the accrued proceed of the FDR to her Savings Bank account which was also withdrawn by the Complainant. Hence the Complainant cannot claim Rs.49,885/- charged as pre mature cancellation charges which the Complainant knew to be charged by the Opposite Parties and for the interest and loss on Rs.49,885/- in respect of Deposit No.421500005.

The claim for the sum of Rs.31,349/- for the loss in Deposit No.151500002 for the period 20.02.2015 to 19.02.2016 is not substantiated by proper evidence.

Considering the facts and circumstances of this case and the Exhibits marked on the side of Complainant this Commission is of the view that the Opposite parties having agreed to pay interest at the rate of 7.5% on Rs. 1,00,00,000/- in Deposit No. 151500002, for the period from 20.02.2016 to 20.12.2017 and reversing to 7% and having accepted that wrong has been committed in quoting of interest, and the Complainant having incurred loss of the interest at the rate of 0.5% ie., Rs. 50,000/-, the Opposite parties could not wash away their responsibilities and hence held liable for deficiency in service. Accordingly Point No.1 is answered.

Point No.2 and 3:-

As discussed and decided Point No.1 in favour of the Complainant, the Opposite Party is liable to refund  a sum of Rs.50,000/- being the loss incurred by the Complainant due to change in the agreed interest rate i.e., 0.5% on Rs.1,00,00,000/- (Rupees One Crore Only) and Rs.50,000/- towards the deficiency of service and mental agony caused to the Complainant and also to pay a sum of Rs.3000/- towards cost of the complaint. Accordingly, Point No.2 is answered in favour of the Complainant. As Point Nos 1 and 2 are answered in favour of the Complainant, the Complainant is not entitled for any other reliefs. Accordingly Point Nos.2 and 3 are answered.

 

        In the result the complaint is allowed in part. The Opposite Party is directed to refund  a sum of Rs.50,000/- (Rupees Fifty Thousand Only) being the loss incurred by the Complainant due to change in the agreed interest rate i.e., 0.5% on Rs.1,00,00,000/- (Rupees One Crore Only) and Rs.50,000/- (Rupees Fifty Thousand Only) towards the deficiency of service and mental agony caused to the Complainant and also to pay a sum of Rs.3000/- (Rupees Three Thousand Only) towards cost of the complaint, within 8 weeks from the date if this order, failing which the above amounts shall carry interest at the rate of 6% p.a from the date of this order till the date of payment.  

In the result the Complaint is allowed.

Dictated to Steno-Typist, transcribed and typed by her, corrected and pronounced by us in the Open Commission, on 8^th day of August 2022.

 

 

S. NANDAGOPALAN                 T.R. SIVAKUMHAR                 B.JIJAA

         MEMBER II                               MEMBER I                   PRESIDENT

 

 

List of documents filed on the side of the Complainant:-

 

 

Ex.A1	10.09.2009	Copy of A-Saving account pass book of the Complainants.
Ex.A2	20.02.2014	Copy of B- Deposit Receipts
Ex.A3	07.05.2016	Copy of C-Mail conversations with the Opposite Parties
Ex.A4	31.08.2016	Copy of D-Legal Notice sent to the Opposite Parties
Ex.A5	31.03.2016	Copy of E-Reply Notice sent by the 3rdOpposite Party
Ex.A6	01.03.2016	Copy of Notice by the Complainant sent to the Opposite Party No.3

 

 

List of documents filed on the side of the Opposite Parties:-

 

NIL

 

 

 

S. NANDAGOPALAN                 T.R. SIVAKUMHAR                 B.JIJAA

         MEMBER II                               MEMBER I                   PRESIDENT