BEFORE THE DISTRICT CONSUMER DISPUTES

REDRESSAL COMMISSION, JALANDHAR.

 Complaint No.360 of 2023

      Date of Instt. 05.09.2023

      Date of Decision: 08.01.2024

Amanbir Marwaha aged about 45 years s/o S. Kirpal Singh, Proprietor of Unison Televenture, 499, New Jawahar Nagar, Jalandhar.

..........Complainant

Versus

State Bank of India, Overseas Branch (Earlier known as State Bank of Patiala Overseas Branch) Jalandhar, Through its Chief Manager/Branch Manager.

….….. Opposite Party

Complaint Under the Consumer Protection Act.

Before:        Dr. Harveen Bhardwaj             (President)

                   Smt. Jyotsna                            (Member)                                          Sh. Jaswant Singh Dhillon       (Member)   

Present:       Sh. Deepak Sidana, Adv. Counsel for Complainant.

                   OP exparte.

Order

Dr. Harveen Bhardwaj (President)

1.                The instant complaint has been filed by the complainant, wherein it is alleged that the complainant is a Proprietor of Televenture, Unison Jawahar New 499, Nagar, Jalandhar and the complainant had availed services of the OP for earning his livelihood in the course of self employment and procured bank guarantee bearing No.5069707BG0000008018310, to tune the of Rs.9,00,000/-, against the account credited to the tune of Rs.9,03,449/- by way of STDR (Special Term Deposit Receipts) Bank of Patiala, issued on 29.03.2012 from State Bank of Patiala, Overseas Branch, Jalandhar, in favour of some company from the account of M/s Unison Televenture maintained with State Bank of Patiala Overseas Branch now said bank merged with State Bank of India and as such the complainant is a Consumer. The said company has not invoked the bank guarantee against the company of his client known as Unison Televenture and now there is no liability of M/s Unison Televenture or the complainant being proprietor towards the said company. It is worthwhile to mention here that Said Company in whose favour the said bank guarantee was given has not been invoked by said company as such the said bank guarantee is closed/cancelled and the money so deposited under the said STDR along with interest up to date is entitled to be returned to the M/s i.e. firm Unison Televenture of the complainant or in alternative, to the complainant in his name. The complainant being the proprietor of M/s Unison Televenture, regularly visited branch of OP for release of the amount along with interest lying in shape of STDR, but branch officials of OP are lingering on the matter on one pretext or the other. It is worthwhile to mention here that the complainant has made representation to this effect to opposite party, but OP kept mum for the reasons best known to OP and after some time opposite party called the complainant and directed the complainant to provide the said bank guarantee bearing No. 5069707BG0000008018310 and also put some queries and complainant tried his level best to trace the said bank guarantee, but could not trace the same as the same has been lost then the OP directed the complainant to execute an affidavit to this effect and Police Report be obtained regarding the loss of bank guarantee and give under taking to indemnify the OP and accordingly the complainant replied to the queries put by OP and also executed duly sworn affidavit to this effect and D.D.R to this effect was registered by the Police of P.S. Div. No.6 Jalandhar and the complainant submitted the reply dated 02.12.2022 to the queries as well as copy of the affidavit and copy of DDR with OP and in spite of the fulfilling the requirement of OP, the OP is not releasing the payment along with interest of said STDR to the complainant. The complainant being the proprietor and day to day Incharge of the affairs of the firm M/s Unison Televenture, undertakes/indemnify the opposite party that if any claim/ liability raised in future against this bank guarantee bearing No. 5069707BG0000008018310 then in that eventuality, the complainant personally shall be responsible for that. If any party will claim any amount from the bank, in that eventuality, the complainant being proprietor of M/s Unison Televenture shall be liable to make the payment. The complainant being the proprietor of M/s Unison Televenture, regularly visited branch of opposite party for closing of the bank guarantee and release of the amount lying in the shape of STDR along with interest up to date as the complainant has already fulfilled the requirements of the OP, but branch officials of opposite party have illegally withheld the amount under STDR and are lingering on the matter on one pretext or the other. Having left with no alternative, the complainant got issued Legal notice Dated 23/12/2022 and served upon the Chief Manager of OP calling upon the OP to close the bank guarantee bearing No.5069707BG0000008018310 and to transfer the said amount lying in the shape of STDR to the account No.55000805064 maintained with State Bank of India (Overseas Branch), Jalandhar by the complainant, within fifteen days from the receipt of that notice, but the OP never care to release the amount along with interest to the complainant and the complainant had been running pillar to pillar, but all in vain. The opposite party has got no right to withhold the amount under the said STDR. Till date no reply has been received by the complainant or his counsels from the OP to the legal notice dated 23.12.2022, which clearly complainant was subjected to shows that harassment, the mental agony, botheration at the hands of the OP and the OP willfully and intentionally harassed the complainant and as such, necessity arose to file the present complaint with the prayer that the complaint of the complainant may be accepted and OPs be directed to pay the value of STDR with Interest up to date of realization and close the bank guarantee bearing No.5069707BG0000008018310 and to transfer the said amount to the tune of Rs.9,00,000/- lying under STDR, along with interest up to date till its realization to the account No.55000805064 maintained with State Bank of India (Overseas Branch), Jalandhar by the complainant. Further, the OP be directed to make the payment of Rs.2,00,000/- for causing harassment and mental tension faced along with litigation of Rs.22,000/-.

2.                Notice of the complaint was sent to the OP and accordingly, Mr.Jatinder Sharma, Sr. Associate appeared on behalf of the OP only once and failed to file written statement and also failed to appear again in the Commission since last so many dates and lastly, the OP was proceeded against exparte.

3.                In order to prove his respective version, the counsel for the complainant has produced on the file his respective evidence.

4.                We have heard the arguments from learned counsel for the complainant and have also gone through the case file very minutely.  

5.                The complainant has procured the bank guarantee bearing No.5069707BG0000008018310, to tune the of Rs.9,00,000/-, against the account credited to the tune of Rs.9,03,449/- by way of STDR issued on 29.03.2012 from OP in favour of some company from the account of M/s Unison Televenture maintained with State Bank of Patiala i.e. OP. The complainant has proved on record the account statement Ex.C-2 which shows that STDR was issued on 29.03.2012 and the same was for 181 days upto 10 years auto renewable. This document also shows that the STDR was prepared from the account of M/s Unison Televenture. It has further been alleged by the complainant that the company in whose favour the bank guarantee was given did not invoke the guarantee and the same stood cancelled and in this way, the complainant is entitled to get the money which was deposited by way of STDR, but the OP did not release the amount alongwith interest to the complainant despite number of representations made by the complainant. The complainant has proved on record the representations Ex.C-3 and Ex.C-4 showing that he made request to OP No.1 to close the STDR and release the amount deposited for the bank guarantee. As per the allegations of the complainant, the complainant was asked to produce the bank guarantee, but the complainant could not produce the bank guarantee and as per the requirement of the OP, the affidavit Ex.C-5 was executed by the complainant regarding loss of bank guarantee and the police report Ex.C-6 was also lodged by the complainant, but despite that the OP did not return the money. Affidavit was provided to the bank as per the requirement of the bank undertaking that he is ready to indemnify the bank in case of any claim or liability raised by any third party in respect of the bank guarantee. Legal notice was also sent to the OP Ex.C-6, Postal receipts have been proved as Ex.C-7 and Ex.C-8, but despite that the OP did not release the amount to the complainant. This is clear cut deficiency in service and unfair trade practice. We are supported by the law laid down by the Hon'ble National Commission, in 2005(4) C.P.J. 126, titled as ‘Allahabad Bank Vs. Chandigarh Construction Co. Pvt. Ltd.’. In that case also, FDR was not released even after expiry of the date and bank guarantee stood cancelled as it was not invoked. In the present case also despite representations made by the complainant and the documents submitted by the complainant, the amount has not been returned, which is a clear cut deficiency in service and unfair trade practice on the part of the OP.

6.                On the other hand, the OP has appeared only once and thereafter did not appear to contest the case. Hence, the OP was proceeded against exparte. So, the version of the complainant remained un-rebutted and un- challenged. There is no justifiable reason for the bank to withheld the same when the company did not invoke the bank guarantee, therefore, the deficiency in service and unfair trade practice is proved and the complainant is entitled for the relief.

7.                In view of the above detailed discussion and the law laid down by the Hon'ble National Commission, the complaint of the complainant is exparte partly allowed and the OP is directed to pay the value of STDR  i.e. Rs.9,00,000/- with interest @ 12% per annum from the date of issuance of STDR till realization and close the bank guarantee bearing No.5069707BG0000008018310 and to transfer the said amount lying under STDR to the account No.55000805064 maintained with State Bank of India (Overseas Branch), Jalandhar by the complainant. Further, OP is directed to pay a compensation of Rs.25,000/- for causing mental tension and harassment to the complainant and Rs.10,000/- as litigation expenses. The entire compliance be made within 45 days from the date of receipt of the copy of order. This complaint could not be decided within stipulated time frame due to rush of work.

8.                Copies of the order be supplied to the parties free of cost, as per Rules. File be indexed and consigned to the record room.

Dated          Jaswant Singh Dhillon    Jyotsna               Dr. Harveen Bhardwaj     

08.01.2024         Member                          Member           President