Date of Filing : 03.04.2019
Date of Disposal: 20.07.2022
DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION
THIRUVALLUR
BEFORE TMT. Dr.S.M. LATHA MAHESWARI, M.A.,M.L, Ph.D (Law) .…. PRESIDENT
THIRU.P.MURUGAN,B.Com. ....MEMBER-II
CC. No.20/2019
THIS WEDNESDAY, THE 20th DAY OF JULY 2022
Mrs.B.Rohini,
D/o.G.Balasubramanian,
T2, Jain Ranga Niwas,
6/11-1 Postal colony 2nd Street,
West Mambalam, Chennai -600 033. ……Complainant.
//Vs//
State Bank of India,
Represented by its Chief Manager,
Branch Code 4675, HVF Avadi,
Tank Factory Road,
Avadi, Chennai -600 054. ..........Opposite party.
Counsel for the complainant : Party in Person.
Counsel for the opposite party : Mr.Sushil Kumar, Advocate.
This complaint is coming before us on various dates and finally on 15.07.2022 in the presence of complainant appeared in person and Mr.Sushil Kumar counsel for the opposite party and upon perusing the documents and evidences of both sides, this Commission delivered the following:
ORDER
PRONOUNCED BY TMT. Dr.S.M. LATHA MAHESWARI, PRESIDENT.
This complaint has been filed by the complainant u/s 12 of the Consumer Protection Act, 1986 alleging deficiency in service against the opposite party in the transfer of amount in complainant’s PPF account along with a prayer to direct the opposite party to pay the interest rate as per the notification of the bank for PPF account, to pay a sum of Rs.3,00,000/- as compensation for mental agony, hardships and to pay a sum of Rs.10,000/- towards cost of this proceedings to the complainant.
Summary of facts culminating into complaint:-
The complainant was working as a Scientist and was an account holder of the State Bank of India,HVF Branch Avadi bearing account No.1037 2462 785 and PPF account No.300 872 36840. The complainant was transferred from Hyderabad and was posted to Chennai during 2005 and joined the office at CVRDE, Avadi, Chennai and got retired on 31.05.2015. The complainant’s salary was credited to the Savings Bank Account and the contribution to PPF was done regularly once in a year till 2015. In the year 2006 at the time of transfer the complainant requested to transfer the PPF account from the SBI, Hyderabad to SBI, HVF branch, Avadi and a sum of Rs.2,28,787.53/- was transferred to SBI, HVF Branch, Avadi on 29.08.2006. The SBI, HVF Branch, Avadi on receipt of the same had rounded it off to 2,28,780/- and posted it to PPF account and the balance Rs.7.53/- was put in the Saving Bank Account of the complainant. The request for extension of PPF account was given during the year 2006 as 15 year period was getting over that year. The PPF account was transferred from SBI branch Hyderabad to SBI HVF, Avadi on 29.08.2006. But it was entered in the complainant’s PPF account only on 26.10.2006 with a delay of 60 days without any interest which was also not proper.
The complainant submitted that as per the SBI’s notification, transferred PPF account should be treated as a continuous account without any break. The PPF account was computerized on the same year. After retirement when the complainant wanted to close her PPF account in the year 2015 it was informed that only a sum of Rs.60,000/- was available in the PPF account that was paid at HVF branch from the year 2006 onwards. On verification she found that the said transferred principal amount though manually entered into the PPF account book on 29.10.2006 was omitted to have been included into the computerized PPF account and the said amount was kept in an suspense account without any interest for several years. The opposite party after several efforts was taken by the complainant admitted their mistake that they have credited the principal amount of Rs.2,28,780/- into the Saving Bank account instead of PPF account. In the letter dated 23.11.2017 the opposite party inspite of admitting their mistake had applied a flat rate of interest at 8% on the amount of Rs.2,28,780/- thereon to arrive Rs.92,847.76/- as interest for the period of 26.10.2006 to 31.03.2011. The letter from the opposite party dated 11.12.2017 stated that the complainant’s PPF account was not extended after 31.03.2011 as Form H was not submitted by the complainant. Thus alleging deficiency in service on the part of the opposite party the present complaint was filed for the following reliefs;
a) to pay the interest rate as per notification of the bank in PPF account with respect to the year that the account was in currency till 2017.
b) to pay a sum of Rs.3,00,000/- as compensation for mental agony, hardships, physical strain caused to the complainant;
c) to pay a sum of Rs.10,000/- towards cost of this proceedings.
Defence of the opposite party:
The opposite party filed version disputing the complainant’s allegations contending interalia that the complainant choose to close her PPF account at Hyderabad which was opened on 23.03.1991 at Hyderabad. The PPF account’s duration will be initially for the period of 15 years and renewable for one or more block of 5 years each on application made by the customer. After the expiry of initial terms, the customer has to submit Form H within one year from the date of maturity for subsequent renewals. The opposite party denied that the PPF account from Hyderabad branch was transferred to the SBI Branch at Avadi. As per the condition of default, a subscriber in any year according to the limits may approach the accounts officer for condonation of the default, on payment of Rs.50/- along with an arrear subscription of Rs.500/- for each year as per Clause 7(2) as per the terms and conditions but the complainant has never paid any default fee for the default committed in 2008-2009 and 2009-2010 as per the Statement of Account. It is submitted by the opposite party that the complainant had closed her PPF account maintained at Hyderabad and collected the proceeds and opened the PPF account with SBI HVF Avadi by deposit of the Demand Draft. There is no delay on the part of the opposite party for opening the account. After opening of the account in 2006 for five years, the complainant renewed it for further period. There will not be any new opening for more than Rs.1,50,000/-. The complainant deposited only Rs.20,000/- on 08.12.2016 and the pass book is in the custody of the complainant and she never objected the same at any point of time till 2015. The complainant never verified her account for nearly 09 years and the principal amount of Rs.2,28,780/- was entered manually and since the complainant requested for extension of 5 more years the same was extended for further 5 more years and interest was given credit to. The PPF account will not be renewed automatically and it will be renewed only on issuance of Form H by the account holder. It is submitted that the complainant’s claim for Rs.5,54,941/- was not proper. The statement of account produced by the complainant was not correct. Thus the opposite party submitted that there was no deficiency in service on their part sought for the dismissal of the complaint.
On the side of complainant/Party in person proof affidavit was filed and documents Ex.A1 to Ex.A19 were marked. On the side of opposite party proof affidavit was filed and documents Ex.B1 to Ex.B4 were marked.
Point for consideration:
1. Whether the opposite party Bank had committed any deficiency in service in not transferring an amount of Rs.2,28,780/- from the PPF Account of the complainant at Hyderabad to the PPF account at HVF Branch, Avadi and keeping the same in suspense Account without interest?
2. To what reliefs the complainant is entitled?
Point.1:
On the side of the complainant the following documents were filed in support of the complaint allegations;
PPF book entry dated 29.08.2006 was marked as Ex.A1;
Saving Bank account for entry of Rs.7.53/- dated 26.10.2006 was marked as Ex.A2;
PPF counter foil dated 06.03.2014 was marked as Ex.A3;
The complainant’s final payment in PPF account dated 30.03.2015 was marked as Ex.A4;
The complainant’s letter to the Chief Manager dated 26.09.2016 was marked as Ex.A5;
The complainant’s letter to Banking Ombudsman dated 05.01.2017 was marked as Ex.A6;
Letter of SBI HVF branch dated 15.02.2017 was marked as Ex.A7;
Principal credited in Saving Banking account of Rs.2,28,780/- dated 07.04.2017 was marked as Ex.A8;
Letter of Banking Ombudsman dated 19.05.2017 was marked as Ex.A9;
Letter of Banking Ombudsman dated 20.07.2017 was marked as Ex.A10;
Letter of SBI HVF branch dated 31.07.2017 was marked as Ex.A11;
Letter of SBI HVF branch on interest dated 23.11.2017 was marked as Ex.A12;
Complainant’s letter to branch on interest discrepancy was marked as Ex.A13;
Letter of SBI HVF branch dated 11.12.2017 was marked as Ex.A14;
Reminder sent by the complainant to HVF branch dated 17.04.2018 was marked as Ex.A15;
PPF(Rs.60,000/-) closed at HVF Avadi branch dated 06.12.2017 was marked as Ex.A16;
Interest calculation sheet was marked as Ex.A17;
SBI web site PPF interest rate was marked as Ex.A18;
Legal notice issued by the complainant to HVF branch dated 06.02.2019 was marked as Ex.19;
On the side of the opposite party following documents were filed in support of his contention;
The statement of PPF account was marked as Ex.B1;
Transfer of funds to complainant account with challan was marked as Ex.B2;
PPF account passbook of complainant was marked as Ex.B3;
Interest calculation sheet was marked as Ex.B4;
Heard the oral arguments advanced by the party in person/complainant and the learned counsel appearing for the opposite party and perused the written arguments and documents filed by them. The crux of the arguments advanced by the party in person/complainant was that during 2005 when she got transferred from Hyderabad to Chennai she requested for the transfer of her PPF account with SBI at Hyderabed to transfer the contribution to SBI, HVF Avadi Branch, Chennai. A sum of Rs.2,28,787.53/- was transferred as admitted by SBI HVF Avadi Branch out of which 7.53/- was credited to saving Bank account and Rs.2,28,780/- was credited to the PPF account and the entry was made to the PPF account No.30087236840 at SBI HVF Avadi branch. From that date, the opposite party extended the validity of PPF account from 01.04.2006 to 31.03.2011 and that she was contributing regularly to the said PPF account. After retirement when the complainant verified the PPF account she was shocked to see that a sum of Rs.2,28,780/- was not credited during computerization at the Branch and hence was deprived of the interest on the said amount. Further for the objection by the opposite party/Bank the complainant submitted that the transferred amount from Hyderabad branch on 26.10.2006 manual entry was made in the PPF Bank pass book, but the bank has failed to update in the computerized account. Further the PPF account was extended for five years from 01.04.2006 to 31.03.2011 by HVF Avadi Branch which is evident by the document filed by the opposite party. It is further argued that the PPF account contribution was done till 2018 and the bank never refused accepting the remittance. The complainant submitted that the opposite party by acts, deeds and letters had admitted their fault that it has not credited the transferred amount of Rs.2,28,780/- in 2006 while computerizing the PPF accounts.
On the other hand, the counsel for opposite party argued that the complainant was regularly getting the statement of account from the saving bank account. Further from 2008 no payment was made towards PPF by the complainant and only in 2010 the amount of Rs.1000/- was credited to the PPF account. The opposite party submitted that the complainant has not renewed the PPF account at HVF Avadi Branch for a period of five years and the same will be renewed only on issuance of Form H by the employee on payment of Rs.100/-. Thus contending that there is no deficiency in service on the part of the opposite party and the fault occurred only due to the act of the complainant the counsel for the opposite party prayed for dismissal of the complaint.
On perusing the materials and pleadings we are of the opinion that the fault is on the part of the Bank in not crediting the amount transferred from PPF account Hyderabad SBI Branch to the HVF SBI Avadi Branch. The Bank should have taken care to transfer the amount in PPF account since the employee/PPF account holder will believe that the savings in the PPF amount will be beneficial after their retirement. On perusal of Ex.A12 we could see that the Chief Manager has written a letter upon the interest for the PPF account that the PPF account was opened on 23.03.1991 and was extended for five years from 01.04.2006 and 31.03.2011 and the interest for the amount that is transferred amount from PPF account Hyderabad which was not credited on 26.10.2006 and had been credited on 07.04.2017, the interest rate of 8% will be applicable for the period 26.10.2006 to 31.03.2011 and from 01.04.2011 to 31.03.2017 at the rate of 4% interest will be payable as follows;
“1. The captioned PPF account was opened on 23.03.1991 and the same was extended for five years from 01.04.2006 and 31.03.2011. We have worked out interest for the amount of Rs.2,28,780/- which was not credited on 26.10.2006 and eventually credited on 07.04.2017. Accordingly, the interest amount for PPF interest rate of 8% as applicable for the period from 26.10.2006 to 31.03.2011 is Rs.92,847.76/- with the interest amount compounding annually.
2. Similarly, for the period from 01.04.2011 to 31.03.2017, @ SB interest rate 4% is Rs.85,333.95/-. The total interest amount paid to your SB account No.10372462785 on 23.11.2017 is Rs.1,78,181.71P.”
From the letter we could see that the opposite party has admitted that the transferred amount was not credited to the PPF account in the SBI Avadi Branch and for the same they are ready to pay some interest. Thus it is seen that though the credited amount of Rs.2,28,780/- from Hyderabad to Chennai PPF account SBI was given on 26.10.2006, the actual credit was made only on 07.04.2017 and the rate of interest 8% was credited for the period 26.10.2006 to 31.03.2011 only on 23.11.2017. As per the Ex.A18 wherein in as per clause 6 Transfer of Account in sub-clause (2) it is provided as “The PPF Account so transferred will be treated as a continuous account with the benefits envisaged in the PPF Scheme” which shows that the PPF account is a continuous one even on transfer and the amount in PPF account of the transferor branch is to be credited only towards the transferee branch and the benefits to be accrued to the account holder in an continuous manner. But as per the Ex.A8 it is seen that the amount of Rs.2,28,780/- was credited to the Saving Bank account of the complainant contrary to the established procedure. It is also admitted that the fault occurred only due to computerization. This fault on the part of the opposite party cannot be justified by the defence raised by them contending that it is the fault of the complainant that she did not check the PPF account every year and that she did not raise any doubt while the said amount was credited to her Savings Bank Account. It was proved that the said principle amount was kept in an suspense account from 26.10.2006 and was credited only in the Saving Bank account on 07.04.2017 with 8% interest and if the amount has been credited into the PPF account on 26.10.2006 itself it would have earned interest more than that amount. Thus being the beneficiary of the PPF account the complainant was deprived of the accrued benefit though she was a regular and prompt payer towards PPF account. Further the various rates of interest levied on the PPF account are given in the Bank’s website itself as follows;
Period Rate of Interest
2006-2010 .. 8.5%
2010-2011 .. 9.5%
2011-2012 .. 8.6%
2012 -2013 .. 8.8%
2013-2014 .. 8.7%
2014-2015 .. 8.7%
Therefore the interest rate of 8% levied for the year 2016 to 2017 is not proper and without any basis. Further the opposite party themselves had admitted in their letter dated 31.07.2017 (Ex.A11) that,
“with reference to your Banking Ombudsman complaint dated 20.07.2017, we state that we are in the process of reconciliation of the interest application for your PPF account. We shall revert to you shortly, after resolving the same”
Thus the evidence submitted by the complainant amply shows that the opposite party had admitted his fault. Thus we have no other option but to conclude that the opposite party had committed deficiency in service in not crediting the amount transferred from PPF account at SBI, Hyderabad to PPF account SBI, HVF branch Avadi at the appropriate time. Thus we answer the point accordingly in favour of the complainant and as against the opposite party.
Point No.2:
As we have held above that the opposite party had committed deficiency in service which caused monetory loss along with mental agony and hardship to the complainant, she is entitled to be compensated for the same. Thus we answer the point accordingly holding that appropriate compensation should be awarded to the complainant.
In the result, the complaint is partly allowed directing the Opposite Party
a)to pay the interest rate as per the notification of the bank on PPF account with respect to the years for the amount of Rs.2,28,780/- (Rupees two lakhs twenty eight thousand seven hundred eight only) till 2017 from 26.10.2006;
b) to pay a sum of Rs.25,000/- (Rupees twenty five thousand only) towards compensation for mental agony caused to the complainant;
c) to pay a sum of Rs.5,000/- (Rupees five thousand only) towards litigation expenses to the complainant;
d) The amount arrived at clause (a) to be paid within four weeks from the date of receipt of copy of this order failing which interest at the rate of 6% will be applicable on the said amount from the date of complaint till realization.
Dictated by the President to the steno-typist, transcribed and computerized by him, corrected by the President and pronounced by us in the open Commission on this the 20th day of July 2022.
-Sd- -Sd-
MEMBER-II PRESIDENT
List of document filed by the complainant:-
Ex.A1 29.08.2016 PPF Book entry. Xerox
Ex.A2 26.10.2006 S/B account entry Rs.7.53/- Xerox
Ex.A3 06.03.2014 PPF Counter foil. Xerox
Ex.A4 30.03.2015 The complainant’s payment in PPF account. Xerox
Ex.A5 26.09.2016 The complainant’s to branch sighting issue. Xerox
Ex.A6 05.01.2017 The complainant to banking Ombudsman. Xerox
Ex.A7 15.02.2017 Letter of SBI HVF branch. Xerox
Ex.A8 07.04.2017 Pricipal credited in S/B Rs.2,28,780/- Xerox
Ex.A9 19.05.2017 Letter of banking ombudsaman. Xerox
Ex.A10 20.07.2017 Letter of banking ombudsaman. Xerox
Ex.A11 31.07.2017 Letter of SBI HVF branch. Xerox
Ex.A12 23.11.2017 Letter of SBI HVF branch on interest. Xerox
Ex.A13 06.12.2017 The complainant’s letter to branch on interest descrepancy. Xerox
Ex.A14 11.12.2017 Letter of SBI HVF branch. Xerox
Ex.A15 17.04.2018 Reminder sent by the complainant to HVF branch Xerox
Ex.A16 06.12.2017 PPF (Rs.60000) closed at HVF Avadi. Xerox
Ex.A17 .............. Interest calculation sheet. Xerox
Ex.A18 ........... SBI we site .. PPF interest rate. Xerox
Ex.A19 06.02.2019 Legal notice to HVF branch. Xerox
List of documents filed by the opposite party;
Ex.B1 ........... Statement of PPF account. Xerox
Ex.B2 20.11.2017 Transper of funds to complainant account with challan. Xerox
Ex.B3 PPF account passbook of complainant. Xerox
Ex.B4 Interest calculation sheet. Xerox
-Sd- -Sd-
MEMBER-II PRESIDENT
