CONSUMER DISPUTES REDRESSAL FORUM
PALAKKAD, KERALA
Dated this the 28th day of January, 2012.
Present: Smt. Seena. H, President
: Smt. Preetha. G. Nair, Member
: Smt. Bhanumathi. A.K, Member Date of filing: 12/05/2011
CC / 67 / 2011
P.N. Malini Rajagopal,
W/o. (Late) V.K. Rajagopala Menon,
'Kripa', Main Road, Ottapalam. - Complainant
(BY ADV. R. ASWATHI & P.N. BALAGOPALAN)
Vs
1. Post Master,
Head Post Office,
Ottapalam.
2. Postal Superintendent,
Department of Posts,
Ottapalam Division.
3. Post Master General,
Office of the Post Master General,
Northern Region, Calicut.
4. Union of India,
Rep. By Chief Post Master General,
Department of Posts,
Thiruvananthapuram – 695 033. - Opposite parties
O R D E R
BY SMT. BHANUMATHI. A.K, MEMBER
The case of the complaint in brief:
The husband of the complainant Late V.K. Rajagopala Menon had 2 RD Accounts with account numbers 48265 and 49672 at Ottapalam Head Post office. While he was working abroad he had taken these two accounts and had nominated the complainant for the accounts. The date of death of the account holder is 16/12/2004 and the claim for encashment was made on 03/05/2010. Normally and legally the complainant is entitled to the principal and entire interest up to the date of payment.
Unfortunately, the 1st opposite party returned only the principal amount with the interest up to the date of death of the account holder. Unreasonably the 1st opposite party has denied the interest on the above amount after the date of death of the account holder. 2nd opposite party also confirmed the order of the 1st opposite party. Again the complainant sent a representation to the 3rd opposite party on 25/07/2010. For which, after 8 months delay the complainant received reply stating that complainant's request can't be granted.
The total amount due as interest on the MIS together with interest on RD to the date of maturity will be Rs. 1,83,776.11. Against this, amount paid is Rs. 1,55,164/-. Balance amount due is Rs. 28,612.11. Even after repeated requests there is no reason to deny the payment.
Above act of the opposite parties amounts to deficiency of service on their part.
So the complainant seeking an order directing the opposite parties to pay interest after the date of death of depositor till the date of maturity with interest and cost of the proceeding.
Opposite parties entered appearance and filed version with the following:
Opposite parties admit that the husband of the complainant had two RD accounts with account numbers 48265 and 49672 opened on 11/08/2003 and 11/08/2001 with denomination Rs. 1,040/- and Rs. 960/- respectively at Ottapalam Head Post Office. As per Rule 109(1)(a) of Postal Manual Volume 1, the depositor can avail the facility of automatic transfer of deposits from Savings account to RD accounts. This facility will be provided to the depositors as per their request. Here the depositor Shri. K. Rajagopala Menon had opted this facility for these accounts. Rajagopala Menon had opened MIS A/c 1104840 and 1106298 on 07/07/2003 and 12/07/2004 respectively withstanding instruction to transfer the monthly interest of Rs. 1040/- and Rs. 960/- to his SB A/c 211874 and from these two RD accounts 49672 and 48265. As per condition (b) of Rule 109 of Postal Manual Volume 1, the facility of automatic transfer will cease on the death of depositor.
The depositor expired on 16/12/2004 but the complainant failed to intimate the date of death to the post office. Complainant intimated the same only on 17/04/2010 when she approached the 1st opposite party to claim the maturity amounts in the accounts.
As per Rule 109 (b) of Postal Manual Volume 1, the facility of automatic transfer will cease on the death of the depositor in both cases, from MIS account to SB account and from SB accounts to RD accounts and hence all the deposits made to the RD account automatically after the death of depositor had to be treated as irregular deposits. These amounts were refunded to the claimant without interest while closing the RD accounts, Rs. 63,245/- and Rs. 57,600/- respectively were paid to the complainant at the time of closure of the account on settlement of the claim. Had the depositor continued the accounts he would have been eligible for an amount of Rs. 81,652/- and Rs. 75,372/- in these cases.
As per the Rule of 117 of POSB manual volume 1, if the legal heir desires to continue the RD account she must furnish an application to that effect to the Post Master. Here the complainant had failed to submit any application to that effect. Hence the account was not transferred in her name. If at all the SB account had sufficient balance to meet the deposits in the RD accounts, automatic deposit in RD accounts was not permissible as automatic transfer from SB account to RD account would also cease on the death of the depositor. So that the deposits made in the RD account after the death of depositor are irregular and the complainant is not eligible for any further amount. The contention that either in the application or in the pass book it is not seen that the claimant would be losing interest after the death of the depositor is also untenable. The action of the opposite parties is only according to rules on the subject framed by the Govt. of India and ignorance of the same cannot be a reason for claiming any amount for which the complainant is not legally entitled to. So the opposite parties pray for the dismissal of the complaint with cost.
Both parties filed their respective affidavits. Matter heard
Issues to be considered are:
1. Whether there is any deficiency of service on the part of opposite parties?
2. If so, what is the relief and cost?
Opposite parties have admitted that the husband of the complainant had two RD accounts on 11/08/2003 and 20/08/2004 and he has opted the facility of automatic transfer of deposits from Savings account to RD accounts. Opposite parties also admit that the complainant's husband had opened two MIS account on 07/07/2003 and 12/07/2004 withstanding instructions to transfer the monthly interest of MIS account to his SB account and from here to RD accounts. The depositor K. Rajagopala Menon expired on 16/12/2004. But the complainant has failed to intimate the date of death of the depositor at the post office. Even after the death of the depositor the automatic transfer facility continued.
As per conditions (b) of Rule 109 of Postal Manual Volume 1, the facility of automatic transfer will cease on the death of depositor. So the deposits made in the RD accounts after the death of the depositor are treated as irregular. If the legal heir/nominee desires to continue RD account, she must furnish an application to that effect to the Post Master. Here the complainant failed to do so the same. While closing the RD accounts the amounts were refunded to the claimant without interest.
The complainant says that either in the application or in the relative pass book it is not seen that the claimant would be losing the interest after the date of death of the depositor. Opposite parties contents that the action of the opposite parties is only according to rules on the subject framed by the Govt. of India and ignorance of the same cannot be a reason for claiming any amount. But this version of the opposite parties seems to be incorrect. The customers may not have the knowledge of all Government rules and regulations. It is the boundain duty of the opposite parties to inform the depositors at the time of opening such accounts itself. The opposite parties have no case that they have not received the payments. But it is considered as irregular. Moreover, the principal amount was with opposite parties till the date of payment. So that opposite parties are bound to pay the interest for the amount after the date of death of depositor. Opposite parties have no case that the interest calculated by the complainant is incorrect. Regarding the compensation and cost it can't be considered as it is also the responsibility of the complainant to enquire whether the payments are registered properly or not.
From the above discussions, we are of the view that there is deficiency of service on the part of opposite parties.
In the result complaint partly allowed. The opposite parties are directed to pay an amount of Rs.28,612/- being the balance amount of the interest of the RD accounts to the complainant.
Order shall be complied within one month from the date of receipt of order, failing which the complainant is entitled for 9% interest per annum for the whole amount from the date of order till realization.
Pronounced in the open court on this the 28th day of January 2012
Sd/-
Smt. Seena. H
President
Sd/-
Smt. Preetha.G.Nair
Member
Sd/-
Smt. Bhanumathi.A.K
Member
APPENDIX
Exhibits marked on the side of the complainant
Nil.
Exhibits marked on the side of the opposite parties
Nil.
Witness examined on the side of the complainant
Nil.
Witness examined on the side of the opposite parties
Nil.
