ORDER

SRI.H.R. SRINIVAS.  PRESIDENT

1.     This is the Complaint filed by the Complainant against the Opposite Party (herein referred to as OP) under section 12 of the Consumer Protection Act 1986 for the deficiency in service in not paying the remaining amount deposited under Akshaya deposit certificate and for balance of amount along with interest at 15% per annum from 31.08.2002 till the payment of the same and Rs.5 lakhs as compensation for causing hardship, loss and mental agony and for such other reliefs as the Hon’ble District Commission deems fit.

2.     The brief facts of the complaint are that; the complainant along with his father Sri TN Narayana Shetty deposited a sum of Rs.55,000with OP(earlier Vysya Bank, afterwards ING Vysya now Kotak Mahindra Bank) on 31.08.1999 for a period of three years and interest payable at 11% per annum and the maturity date 31.08.2002. Upon maturity, OP was to pay Rs.76,163/-. On 11.08.2016 OP issued a DD for Rs.49,211.68 in favour of his father TN Narayan Shetty which was later changed to his name after surrendering the earlier DD and the said amount was encahsed on 27.09.2016 without prejudice to his right to claim the full maturity value.

3.     It is contended that the amount deposited was to matured on 31.08.2002 after a period of 3 years from the date of deposit and the value of maturity was Rs.76,163/- against which, OP has paid only Rs.49,211.68 and the balance amount has been withheld by the OP even after it became due for payment. Hence OP is liable to pay the said amount along with interest at the agreed rate. 

4.     On 20.03.2017 complainant wrote a letter demanding the payment of balance of amount with interest. In response to the same, OP sent Rs.8,000/- and did not pay the balance of amount along with accrued interest. Upon the calculation, a sum of Rs.58,185.95 is to be paid by the OP. Hence he had to issue a legal notice demanding the same along with penal interest at 15% per annum for withholding the amount illegally. Not paying the entire amount on maturity, amounts to deficiency in service and also unfair trade practice besides illegality and hence prayed the forum to allow the complaint.

5.     Upon the service of notice OP appeared before the commission and filed the version admitting that the complainant along with his father Narayan Shetty deposited a sum of Rs.55,000/- in Akshaya Deposit scheme on 24.02.1997 and the maturity date was on 31.08.2002. The deposit was in joint name of the complainant and his father.  When the complainant approached Op for partial payment of the deposited amount in respect of his share, a sum of Rs.38,081/- was paid to the complainant being his share and the remaining amount continued in the name of TH Narayana Shetty.  Neither the complainant nor his father mentioned auto renewal of the deposit and without specific instructions, OP cannot renew the deposit for further period.  After maturity, in the year 2002, since there was no instruction from the complainant to renew the same even though he had withdrawn his share as per the guidelines of the RBI, they can only pay the interest at the rate payable to the SB account and further if the deposit is not renewed or withdrawn for more than 10 years, as per the Banking Regulation Act 1949 under Section 26(a), the amount would be transferred to the RBI fund. They paid Rs.49,211.68 to the complainant in respect of the share of his father after he approached the OP for release of the same.  OP has not at all withheld the maturity amount whereas, complainant did not come forward to make the claim.  The agreed rate of interest at 11% is only payable till the maturity date i.e. 31.08.2002 and since the same was not renewed, complainant is entitle for only interest at 4% per annum as payable to SB account holders.

6.     To compensate the complainant in respect of the same, they paid Rs.8,154.23 towards the difference in interest. Complainant himself is not diligent in handling the accounts. By denying the allegations made against it in each and every para of the complaint, contended that the complaint filed is with mala fide intention with no truth, and prayed the commission to dismiss the complaint.

7.     In order to prove the case, both the parties filed their affidavit evidence and produced documents. Arguments Heard. The following points arise for our consideration:-

1) Whether the complainant has proved deficiency in service on the part of the Opposite Party?

2) Whether the complainant is entitled to the relief prayed for in the complaint?

8.     Our answers to the above points are:-

POINT NO.1 :   PARTLY IN THE AFFIRMATIVE

POINT NO.2 :   IN THE NEGATIVE

                        For the following.

REASONS

POINT No.1:-

9.     It is not in dispute that, the complainant along with his father deposited Rs.55,000/- in Akshaya deposit certificate scheme on 31.08.1999 to be matured on 31.08.2002 and the interest payable is at 11% per annum and maturity value mentioned is Rs.76,163/- . Ex P1 is the copy of the FD wherein it is mentioned that on 21.06.2004, 50% of 76,163 is paid to the complainant. It is also mentioned therein that remaining 50% i.e. 38,081.50 to be paid after 24.03.2009. When this is taken in to consideration, till 24.03.2009 a sum of Rs.38,081.50 has been renewed at the rate of 11% per annum,. The said amount with accrued interest ought to have been paid to the complainant or to his father on or after 24.03.2009.  It is to be noted here that the complainant after receiving his share (as stated by him) he kept quite till 27.06.2016 and only afterwards he demanded the payment of the amount for which OP issued a DD on 11.08.2016 which was later withdrawn and issued a fresh DD dated 27.09.2016 for a sum of Rs.49,211.68. It is also made clear by the parties that a further sum of Rs.8,000/- has been paid to the complainant by OP. The said amount has been encashed by the complainant. 

10.   The complainant for the first time on 20.03.2017 has demanded the interest from 31.08.2002 till the payment of Rs.49211.68. He has also filed Ex. P8 the calculation details wherein he has calculated interest at 11% on Rs.49,211.68 from the date of maturity i.e. 24.03.2009 till 23.09.2016 the day on which OP paid Rs.49,211 and further a sum of Rs.8,000/- on 23.09.2017. On the other hand, OP has relied on the circular issued by the RBI wherein from the date of death of the depositor, till the date of repayment to the claimants in respect of the deposits, interest at the rate applicable to SB deposit on the date of payment is to be paid.  When this is taken into consideration, we are of the opinion that as per Ex.P1 the complainant is entitle for interest at 11% on Rs.55,000/- till 21.06.2004 the day on which complainant received 50% out of the matured amount i.e. Rs.76,163/- and is entitle for interest at 11% from 21.06.2004 till 24.03.2009 on 38.081.50 and 4% per annum or the prevailing interest payable to the SB account from 24.03.2009 in respect of the accrued amount till the payment of Rs.49,211/- to the complainant i.e. on 27.09.2016. The complainant has not approached the OP in between and as soon as the complainant approached OP for payment of the amount, OP has paid the same to the complainant by way of DD. In view of this, we are of the opinion that, there is deficiency on the part of OP. Only to the extent of not paying interest at 11% per annum on Rs.55,000/- from 21.06.2004, till 24.03.2009 and Rs.38,081.50 till 27.09.2016 In view of this we answer POINT NO.1 PARTLY IN THE AFFIRMATIVE.

POINT NO.2:

11.   In view of the same complainant is not entitle for any of the reliefs prayed in the complaint except that he is entitle for interest at 11% per annum on Rs.55,000/- till 21.06.2004 the day on which complainant received 50% out of the matured amount i.e. Rs.76,163/- and is entitle for interest at 11% from 21.06.2004 till 24.03.2009 on 38,081.50 and 4% per annum or the prevailing interest payable to the SB account from 24.03.2009 in respect of the accrued amount till the payment of Rs.49,211/- to the complainant i.e. on 27.09.2016 less the amount is already paid.  Hence we answer POINT NO.2 IN THE NEGATIVE and pass the following:

ORDER

1. The complaint is dismissed with no cost.

2. OP is directed to pay 11% on Rs.55,000/- till 21.06.2004 the day on which complainant received 50% out of the matured amount i.e. Rs.76,163/- and is entitle for interest at 11% from 21.06.2004 till 24.03.2009 on Rs.38,081.50 and 4% per annum or the prevailing interest payable to the SB account from 24.03.2009 in respect of the accrued amount till the payment of Rs.49,211/- to the complainant i.e. on 27.09.2016 within 30 days.

3. Send a copy of this order to both parties free of cost.

Note: You are hereby directed to take back the extra copies of the Complaints/version, documents and records filed by you within one month from the date of receipt of this order.

(Dictated to the Stenographer over the computer, typed by him, corrected and then pronounced by us in the Open Forum on this day the 09^th day of November 2021)

MEMBER                        PRESIDENT

ANNEXURES

1. Witness examined on behalf of the Complainant/s by way of affidavit:

Copies of Documents produced on behalf of Complainant/s:

Ex P1: Copy of the FD receipt.

Ex P2: Copy of the Death certificate of father of complainant

Ex. P3: Copy of the cheque

Ex P4: Copy of the letter sent to OP

Ex P5: Copy of the another cheque

Ex P6: Copy of the notice

Ex P7: Copy of the pass book

Ex P8: Copy of the statement

Ex P9: Copy of the legal notice,

Ex P10: Copy of the Postal acknowledgment.

Ex P11: Copy of the statement  of TN Manjunatha Shetty.

Ex P12: GPA executed by Manjunath.  

2. Witness examined on behalf of the Opposite party/s by way of affidavit:

RW-1: Sri Deepak Girimath, Branch Operation Manager of OP.

Copies of Documents produced on behalf of Opposite Party/s

Ex R1: Copy of the Reserve Bank circular.

MEMBER                        PRESIDENT

RAK*