Tamil Nadu

South Chennai

CC/147/2013

Mr.Ehjaz Elias, - Complainant(s)

Versus

Standard Chartered Bank, - Opp.Party(s)

N.Premalatha

16 May 2019

ORDER

                                                                        Date of Filing  : 29.04.2013

                                                                          Date of Order : 16.05.2019

                                                                                  

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (SOUTH)

@ 2^ND Floor, T.N.P.S.C. Road, V.O.C. Nagar, Park Town, Chennai – 3.

 

PRESENT: THIRU. M. MONY, B.Sc., L.L.B, M.L.                    : PRESIDENT

TR. R. BASKARKUMARAVEL, B.Sc., L.L.M., BPT., PGDCLP.  : MEMBER

 

C.C. No.147/2013

DATED THIS THURSDAY THE 16^TH DAY OF MAY 2019

                                 

Mr. Ehjaz Elias,

S/o. Sri. Y.M. Elias,

No.50/19, II Floor, ABC Trade Centre,

Devi Theatre Compound,

Anna Salai,

Chennai – 600 002.                                                        .. Complainant.                                                

       ..Versus..

Standard Chartered Bank,

Represented by its Manager,

No.26/30, Dr. Radhakrishnan Salai,

Raja Rajeswari Towers,

Chennai – 600 004.                                                    ..  Opposite party.

 

Counsel for the complainant     : M/s. N. Premalatha

Counsel for the opposite party : M/s. R & P Partners

 

ORDER

THIRU. M. MONY, PRESIDENT

       This complaint has been filed by the complainant against the opposite party under section 12 of the Consumer Protection Act, 1986 prays to refund a sum of Rs.1,68,826.20/- being the maturity amount of the deposit in 1997, together with accrued interest from 12.01.1997 till the date of payment and to pay a sum of Rs.5,00,000/- towards compensation for mental agony, hardship, negligence and deficiency in service with cost of Rs.5,000/- to the complainant.

1.    The averments of the complaint in brief are as follows:-

The complainant submits that he invested a sum of Rs.1,50,000/- under 2 in 1 Reinvestment Deposit 1 with the opposite party on 20.01.1996 Account No.016/QV2/04512; it matures on 12.01.1997 and maturity value is Rs.1,68,826.20.  The complainant submits that accordingly, the fixed Deposit shall be renewed automatically on the date of maturity periodically.  Hence, it is the duty of the opposite party to renew the fixed deposit and Reinvestment Deposit 1 periodically.  The complainant submits that as per the terms and conditions of the Deposit Accounts, “in the absence of instructions, the bank will renew the deposit for a similar term at the interest rate prevailing at the time of renewal to safeguard the Deposit Holder from any loss of interest”.  The opposite party has not complied the said condition and taken unwarranted defence cause great mental agony.  The complainant submits that unfortunately, the complainant has misplaced the copy of the original Confirmation of Deposit issued by the opposite party.  Even after repeated representation and requests for the renewal of FDR, the opposite party refused to do that and driven the complainant from pillar to post.  The complainant submits that he is maintaining a Savings Bank Account  bearing No.424-1-000322-7 in the same branch of the opposite party where in, also the opposite party has not credited the maturity amount. 

2.     The complainant submits that even after repeated requests and emails, the opposite party has not responded and sent any reply and not come forward to renew the FDR.   The complainant submits that during the year 2010, the complainant has traced out the Deposit Confirmation issued by the opposite party and met the officials on repeated occasion and on various dates and furnished the copy of the Deposit Confirmation Receipt.  The opposite party officials have promised to take action and settle the claim  but refused to respond do the same.  The complainant submits that on 08.11.2011, he preferred a complaint before the Banking Ombudsman of Reserve Bank of India for due payment of maturity amount for which, the Ombudsman sent a reply dated:14.02.2012 stating that the deposit is time barred and lapsed more than 13 years.  The complainant submits that on 03.01.2013, the complainant has issued legal notice and reminder notice dated:08.04.2013 for which, the opposite party has not sent any reply.   The act of the opposite party amounts to deficiency in service and unfair trade practice which caused great mental agony.  Hence, the complaint is filed.

3.      The brief averments in the written version filed by opposite party is as follows:-

The opposite party specifically denies each and every allegation made in the complaint and put the complainant to strict proof of the same.  The opposite party states that based on the application duly signed by the complainant, the Savings Bank Account No.42410003227 was opened on 03.04.1993.   The complainant invested a sum of Rs.1,50,000/- in the Fixed Deposit bearing No.016/QV2/04612 on 12.01.1996 which matures on 12.01.1997.  The opposite party has agreed to extend the deposit in an auto renewal deposit scheme on every maturity date as per the terms and conditions mentioned in the Confirmation of Deposit.  The opposite party was not able to trace the details of Fixed Deposit for due renewal.  After 13 years, the complainant has approached the opposite party with original Fixed Deposit Receipt claiming the maturity amount.  As per Section 45Y of the Banking Regulation Act 1949 (10 of 1949), the bank is requested to preserve the records relating to the period of not less than 8 years immediately preceding the current calendar year.  As per the Reserve Bank of India circular No.DB0D.AML. BC. No.11/14.01.001/2012-13 dated:02.07.2012, clause 2.21 (ii) (a) Banks should maintain for at least 10 years from the date of transaction between the bank and the client, all necessary records of transactions.  The opposite party was not able to trace any records of the FD since, the opposite party has not maintained the records for a period of over 8 years.   The opposite party not wantonly and deliberately, negligently failed to renew and redeposit the Fixed Deposit.   Therefore, there is no deficiency in service on the part of the opposite party and hence, the complaint is liable to be dismissed.

4.     To prove the averments in the complaint, the complainant has filed proof affidavit as his evidence and documents Ex.A1 to Ex.A13 are marked.  Proof affidavit of the opposite party is filed and documents Ex.B1 to Ex.B3 are marked on the side of the opposite party.

5.      The points for consideration is:-

1. Whether the complainant is entitled to get refund of a sum of Rs.1,68,826.20 being the matured amount of the fixed deposit with accrued interest from 12.01.1997 as prayed for?
2. Whether the complainant is entitled to a sum of Rs.5,00,000/- towards compensation for mental agony, negligence in service with cost of Rs.5,000/- as prayed for?

6.      On point:-

Both parties field their respective written arguments.  Heard their respective Counsels also.  The complainant pleaded and contended that he invested a sum of Rs.1,50,000/- under 2 in 1 Reinvestment Deposit 1 with the opposite party on 20.01.1996 Account No.016/QV2/04512 which matures on 12.01.1997 and the maturity value is Rs.1,68,826.20 as per Ex.A1. Further the contention of the complainant is that accordingly, the fixed Deposit, Ex.A1 shall be renewed automatically on the date of maturity periodically.  The opposite party has not denied the 2 in 1 Reinvestment Deposit 1 scheme.  Hence, it is the duty of the opposite party to renew the fixed deposit and Reinvestment Deposit 1 periodically.  It is also seen from the records that the opposite party has not renewed and reinvested the fixed deposit periodically proves the deficiency in service.  Further the contention of the complainant is that as per the terms and conditions of the Deposit Accounts, “in the absence of instructions, the bank will renew the deposit for a similar term at the interest rate prevailing at the time renewal to safeguard the Deposit Holder from any loss of interest”.   The opposite party has not complied the said condition and taken unwarranted defence which amounts to deficiency in service and unfair trade practice.  

7.     Further the contention of the complainant is that unfortunately, the complainant has misplaced the copy of the original Confirmation of Deposit issued by the opposite party.  Even after repeated representation and requests for the renewal of FDR, the opposite party refused to do that and driven the complainant from pillar to post which caused great mental agony.  Further the complainant contended that he is maintaining a Savings Bank Account  bearing No.424-1-000322-7 in the same branch of the opposite party where in, also the opposite party has not credited the maturity amount proves the unfair trade practice.  Further the contention of the complainant is that even after repeated requests and emails as per Ex.A2 & Ex.A3, the opposite party has not responded and sent any reply and not come forward to renew the FDR.   Further the complainant contended that during the year 2010, the complainant has traced out the Deposit Confirmation receipt issued by the opposite party and met the officials on repeated occasion and various dates and furnished the copy of the Deposit Confirmation Receipt.  The opposite party  officials have promised to take action and settle the claim.  But refused to respond one way or the other.   Further the contention of the complainant is that on 08.11.2011, he preferred a complaint before the Banking Ombudsman of Reserve Bank of India for due payment of maturity amount as per Ex.A7 for which, the Ombudsman sent a reply dated:14.02.2012 as per Ex.A9 stating that the deposit is time barred and lapsed more than 13 years.   But it is not denied that none of the amount on account of the fixed deposit has been settled to the complainant at any point of time which is against natural justice.  Further the contention of the complainant is that on 03.01.2013, the complainant has issued legal notice as per Ex.A10 and reminder notice dated:08.04.2013 as per Ex.A11 for which, the opposite party has not sent any reply.  Hence, the complainant is constrained to file this case claiming of refund of the amount with compensation of Rs.5,00,000/- and cost of Rs.5,000/-.

8.     The learned Counsel cited a decision reported in:

I (2004) CPJ 56 (NC)

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION,

NEW DELHI

Between

Smt. Manorma

-Versus-

The Chairman,

Punjab National Bank

Held that

        “FDR to be matured in 1959 – Complainant applied for payment in 1988 – Forum held, FDR could not be renewed due to lapse on part of complainant – Interest between date of maturity and date of application for payment, denied – Appeal against order dismissed – hence revision – Bank enjoyed money since its maturity – Complainant entitled to interest for period money was with Bank – Order  modified accordingly”.

9.     The contention of the opposite party is that based on the application duly signed by the complainant, the Savings Bank Account No.42410003227 was opened on 03.04.1993. The complainant invested a sum of Rs.1,50,000/- in the Fixed Deposit bearing No.016/QV2/04612 on 12.01.1996 which matures on 12.01.1997.  The opposite party has agreed to extend the deposit in an auto renewal deposit scheme on every maturity date as per the term and conditions mentioned in Ex.A1.  But the opposite party miserably failed to do so and the opposite party was not able to trace the details of Fixed Deposit.  After 13 years, the complainant has approached the opposite party with original Fixed Deposit Receipt claiming the maturity amount.  As per Section 45Y of the Banking Regulation Act 1949 (10 of 1949), the bank is requested to preserve the records relating to the period of not less than 8 years immediately preceding the current calendar year.  As per the Reserve Bank of India circular No.DB0D.AML. BC. No.11/14.01.001/2012-13 dated:02.07.2012, clause 2.21 (ii) (a) Banks should maintain for at least 10 years from the date of transaction between the bank and the client, all necessary records of transactions as per Ex.B1.  The opposite party was not able to trace any records of the FD since, the opposite party has not maintained the records for a period of over 8 years.  But in this case, it is apparently clear from Ex.A1, Confirmation of Deposit for 2-IN-1 Reinvestment Deposit 1, the terms and conditions for Deposit Accounts which reads as follows:

“Kindly furnish us with your instructions for renewal or disbursement of the principal amount of the deposit and interest due thereon upon maturity of the deposit.  In the absence of your instructions the Bank will renew the deposit for a similar term at the interest rate prevailing at the time of renewal to safeguard you from any loss of interest.

Depositors should inform us of any change in their RESIDENT/NON RESIDENT status as and when such changes takes place.  The status declaration on the account opening form shall remain in force until such time as a change is advised to the Bank”.

Thereby, the opposite party is duty bound to renew and redeposit the Fixed Deposit amount on the date of maturity for further term with the same terms and conditions.  The opposite party wantonly and deliberately, negligently failed to renew and redeposit the Fixed Deposit amounts to deficiency in service.  Considering the facts and circumstances of the case, this Forum is of the considered view that the opposite party shall pay a sum of Rs.1,68,826.20 with interest 9% from 12.01.1997 to till date of filing of this complaint and a compensation of Rs.50,000/- towards mental agony with cost of Rs.5,000/- to the complainant.

In the result, this complaint is allowed in part.   The opposite party is directed to pay a sum of Rs.1,68,826/- (Rupees One lakh sixty eight thousand eight hundred and twenty six only) being the maturity amount along with interest at the rate of 9% p.a. from 12.01.1997 till the date of filing of this complaint (i.e.)  29.04.2013 and to pay a sum of Rs.50,000/- (Rupees Fifty thousand only) towards compensation for mental agony with cost of Rs.5,000/- (Rupees Five thousand only) to the complainant.

The aboveamounts shall be payable within six weeks from the date of receipt of the copy of this order, failing which, the said amounts shall carry interest at the rate of 9% p.a. to till the date of payment.

Dictated  by the President to the Steno-typist, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 16^th day of May 2019. 

 

MEMBER                                                                                PRESIDENT

 

COMPLAINANT SIDE DOCUMENTS:-

Ex.A1	20.01.1996	Copy of Confirmation of Deposit
Ex.A2	16.12.2010	Copy of letter of the complainant to the opposite party
Ex.A3	24.12.2010	Copy of email of the complainant to opposite party
Ex.A4	31.12.2012	Copy of reply e-mail to the opposite party
Ex.A5	04.08.2011	Copy of letter of the complainant to opposite party
Ex.A6	23.08.2011	Copy of reply from the opposite party
Ex.A7	08.11.2011	Copy of complaint to the Banking Ombudsman
Ex.A8	16.11.2011	Copy of acknowledgement of the Banking Ombudsman
Ex.A9	14.02.2012	Copy of letter of the Banking Ombudsman
Ex.A10	03.01.2013	Copy of legal notice with acknowledgement
Ex.A11	08.04.2013	Copy of reminder notice
Ex.A12	09.04.2013	Copy of acknowledgment for the receipt of reminder notice
Ex.A13		Copy of statement of accounts

 

OPPOSITE PARTY SIDE DOCUMENTS:-

Ex.B1		Copy of Circular passed by RBI
Ex.B2		Copy of retention period circular of the bank
Ex.B3	07.05.2013	Copy of reply letter by the opposite party to the complainant’s Counsel

 

 

MEMBER                                                                                PRESIDENT