Complaint presented on  :  20.03.2014

                                                                   Order pronounced on  :  22.03.2016

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (NORTH)

    2^nd Floor, Frazer Bridge Road, V.O.C.Nagar, Park Town, Chennai-3

PRESENT: THIRU.K.JAYABALAN, B.Sc., B.L.,         :      PRESIDENT

                    TMT.T.KALAIYARASI, B.A.B.L.,            :     MEMBER II

TUESDAY THE 22nd   DAY OF MARCH 2016

C.C.NO.55/2014

Mr.Kancharla Madhavrao,

No. K-7, 2^nd Main Road,

Anna Nagar East, Chennai – 600 102.

                                                                             ..... Complainant

..Vs..

The State Bank of India,

Rep. by its Branch Manager,

AG – 1, Shanti Colony, Anna Nagar,

Chennai – 600 040.

Date of complaint                                   : 27.03.2014

Counsel for Complainant                       :M/S.A.Suganthini & V.Sandhya

Counsel for   Opposite party                     :M/S C.P.R.Kamarraj

O R D E R

BY PRESIDENT THIRU. K.JAYABALAN B.SC., B.L.,

          This complaint is filed by the complainant u/s 12 of the Consumer Protection Act.1986.

1. THE COMPLAINT IN BRIEF:

          The Complainant had opened a Hindu Undivided Family (HUF) Public Provident Fund (PPF) Account originally on 28.03.1988 in Central Bank of India and subsequently transferred the said account to the Opposite Party on 25.09.2001 and maintained the account till 10.10.2012.  On 05.10.2012 the Complainant received a letter from the Opposite Party to close the above account as per the Government Notification in G.S.R.No. 956(E) dated 07.12.2010 and hence the account was closed on 10.10.2012.  The Opposite Party accepted contribution of Rs.70,000/- in the above account on 05.04.2011 and also  credited the interest amount of Rs.1,10,880/- to his account  on 31.03.2012 and also accepted another sum of Rs. 1,00,000/- contribution on 09.04.2012 in the above account in spite of Government Notification issued in the year 2010 and the Reserve Bank Circular in the year 2011. A total balance amount in HUF account was at Rs.15,63,078.44/- as on 10.10.2012. The account was matured on 15.04.2013. On receipt of letter the Complainant submitted claim form for an amount of Rs.15,63,078.44/-  The Manager of the bank refused  to receive the claim form and stated that to fill only a sum of Rs.14,52,198.44/-  after deducting  a sum of  Rs.1,10,880/- which was cedited towards interest. The Opposite Party issued a cheque to the Complainant for a reduced amount of Rs.14,52,198.44/-. The Opposite Party committed deficiency by deducting the interest amount of Rs.1,10,880/- on 31.03.2012  in his account. The Complainant gave representation to the Opposite Party dated 07.01.2013 and also legal notice dated 22.10.2013. The Opposite Party had not refunded the interest amount and hence the Complainant suffered with mental agony. Therefore the Complainant filed this Complaint for refund of interest amount, compensation with cost of the Complaint.

2.WRITTEN VERSION OF THE OPPOSITE PARTY IN BRIEF:

          Admittedly the account under dispute was opened by the Complainant with Central Bank of India on 28.03.1988 and later on, on 25.09.2001 transferred to the Opposite Party’s Branch and was operated accordingly. Thereafter, the 15 years tenure expired in the year 2003 and the 1^st extension of 5 years was given to the said Account. Again in the year 2008, after the expiry of the 1^st Extension of the said Account , 2^nd extension was also granted which was admittedly valid till 2013. The Government of India has issued a Notification vide G.S.R. 956 (E) dated 07.12.2010 announcing that “… all PPF (HUF) accounts opened prior to 13.05.2005 shall be closed after 15 years from the end of the year in which the initial subscription was made and the entire amount standing at the Credit of the subscriber shall be refunded, after making adjustments, if any, in respect of any interest due from the Subscriber on loan taken by him “ in the present case, as per the guidelines of the Government of India, the said HUF PPF account was closed with effect from 10.10.2012. This closure was duly intimated to the Complainant.  The above Complainant’s alleged remittances were accepted by the Opposite Party but on closure, a sum of Rs.15,63,078.44/- was lying in the said account which included the interest amount of Rs.1,10,880/- granted for the said account, after 31.03.2011 till 10.10.2012. Hence, the said interest amount of Rs.1,10,880/- which was barred to be given by said Notification in G.S.R.No.956(E) dated 07.12.2010 alone was retained by the Opposite Party Bank for the said reason. No interest as wrongly quoted by the Complainant was deducted from his account but the excess interest for which he is not entitled alone retained by the Opposite Party and the actual amount of Rs.14,52,198.44/- for which the Complainant entitled was already given to him. The Complainant cannot claim or seek a Redressal for more than what he is legally entitled. Further he is neither entitled to claim the said sum of Rs.1,10,880/- nor the compensation of Rs.1,00,000/- as falsely claimed by him. Therefore the Opposite Party prays to dismiss the Complaint with cost.

3.POINTS FOR CONSIDERATION:

          1. Whether there is deficiency in service on the part of the opposite party?

          2. Whether the complainant is entitled to any relief? If so to what relief?

4.POINT:1

          The admitted facts are that the  Complainant initially opened an HUF PPF Account  on 28.03.1988 in Central Bank of India and  later the said account was transferred to Opposite Party on 25.09.2001 and he had been maintaining the account till 10.10.2012  and the Complainant  received  Ex.A3 letter dated 05.10.2012 from the Opposite Party  to close the account as per Government Notification dated 07.12.2010  and the said account was supposed to be  closed on 31.03.2011  and when the Complainant submitted claim form, the Opposite Party paid  only  a sum of  Rs.14,52,198.44/- to the Complainant.

          5. The Complainant would submit that the account was closed on 10.10.2012 and on that date a sum of Rs.15,63,078.44/- was available in his account including interest and the Opposite Party after deducting the interest credited in his account paid the balance amount of Rs.14,52,198.44/- establishes that the Opposite Party committed Deficiency in Service.

          6. The Opposite Party would reply that by virtue of Ex.A2 Government Notification the account ought to have been closed by 31.03.2011 and therefore the interest amount of Rs.1,10,880/- credited into the Complainant account is not entitled to him and therefore prays to dismiss the Complaint.

          7. The Government Notification dated 07.12.2010. As per the said notification the HUF Account opened prior to 13.05.2005 shall be closed after expiry of 15 years from the end of the year. Whereas in the case in hand even after notification dated 07.12.2010 the Opposite Party accepted contribution of Rs.70,000/- on 05.04.2011 and also another contribution of Rs.1,00,000/- on 09.04.2012 . The conduct of the Opposite Party accepting the above contribution establishes that the Opposite Party permitted to continue the HUF Account of the Complainant. It is the Opposite Party who should have informed the Government Notification to the knowledge of the Complainant through communication requiring him to close his account. However, ignoring the Government Notification the Opposite Party wrote Ex.A3 letter belatedly on 05.10.2012 and immediately the Complainant filed a claim form on 10.10.2012 to close his account.  Therefore the Opposite Party committed Deficiency in Service without following the Ex.A2 Government Notification to intimate to the Complainant immediately to close his account.

          8. The Opposite Party informed to the Complainant in Ex.A2 letter that the account supposed to be closed by 31.03.2011. The said letter intimated to the Complainant only on 05.10.2012.  Prior to Ex.A2 intimation requiring the Complainant to close his account,  in Ex.B1account of the Complainant the Opposite Party  credited  a sum of Rs.1,10,880/- towards interest for the amount lying in his account.  The Complainant is entitled for such interest since, it was credited in his account for the amount lying in his account as on 31.03.2012.  The Complainant had not committed any fault by not closing the account. As soon as he received the Ex.A3 letter immediately on 10.10.2012 he submitted Ex.A5 claim form for a sum of Rs.15,63,078.44/-. In the said claim form the Opposite Party himself written that  the “Customer has requested to produce fresh form “ and accordingly on the advice of Manager of the Opposite Party, he gave Ex.A6 claim form for a sum of Rs.14,52,198.44/-  after deducting the interest amount. The Complainant is entitled for interest as on 31.03.2012 for the amount lying in his account and the Opposite Party also rightly credited the interest amount of Rs.1,10,880/-  in his account. Therefore the Opposite Party refused to honour the Ex.A5 claim and insisted the Complainant to file Ex.A6 claim after deducting the interest amount and the Opposite Party also  has not paid the interest amount to the Complainant proves that the Opposite Party committed Deficiency in Service.

9. POINT:2

          Since it is held in point.1 that the Complainant is entitled for interest amount and failure to pay the same to the Complainant caused mental agony to him is accepted. Therefore it would be appropriate to order the Opposite Party to refund a sum of Rs.1,10,880/- towards interest amount of HUF PPF Account and also to pay a sum of Rs.5,000/- towards compensation for mental agony , apart  from that a sum of Rs. 5,000/- towards litigation expenses.

          In the result the Complaint is partly allowed. The Opposite Party is order to refund a sum of Rs.1,10,880/- (Rupees one lakh ten thousand  eight hundred and eighty only) to the Complainant and also to pay a sum of Rs.5,000/- (Rupees five thousand only) towards compensation, besides a sum of Rs.5,000/- (Rupees five thousand only) towards litigation expenses. The above amount shall be paid to the Complainant within 6 weeks from the date of receipt of the copy of this order failing which the above said amount shall carry 9% interest till the date of payment.

          Dictated to the Steno-Typist transcribed and typed by her corrected and pronounced by us on this 22^nd   day of March 2016.

MEMBER – II                                                               PRESIDENT

LIST OF DOCUMENTS FILED BY THE COMPLAINANT:

LIST OF DOCUMENTS FILED BY THE OPPOSITE PARTY:

Ex.B1 dated NIL                     Transaction Enquiry

MEMBER – II                                                               PRESIDENT