State Bank of India V/S Malkiat Singh - Consumer Court Case

Punjab

Ludhiana

CC/21/311

Malkiat Singh - Complainant(s)

Versus

State Bank of India - Opp.Party(s)

By post

22 Nov 2023

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, LUDHIANA.

Complaint No:311 dated 21.06.2021. Date of decision: 22.11.2023.

Malkiat Singh BDO
Prof. Jaswant Kaur ‘Cheema’

Flat No.521/6, Housefed Complex, SBS Near E-Block, Ludhiana-141013. Phone No.0161-2561032...…Complainants

Versus

The Branch Manager, SBI, P.A.U. Branch, Ludhiana. …..Opposite party

Complaint Under section 12 of the Consumer Protection Act, 1986.

QUORUM:

SH. SANJEEV BATRA, PRESIDENT

SH. JASWINDER SINGH, MEMBER

MS. MONIKA BHAGAT, MEMBER

COUNSEL FOR THE PARTIES:

For complainant : Sh. Mandeep Singh, Advocate.

For OPs : Sh. Rajeev Abhi, Advocate.

ORDER

PER SANJEEV BATRA, PRESIDENT

1. The complaint was received by post. Subsequenty, the compailnant fied a detailed affidavit. The facts of the case curled out from the both documents is as under:-

The OP bank issued four FDRs in the names of the complainants vide FDR No.SCSS A/c. No.31411551917 matured on 14.09.2018, SCSS A/c. No.3169838346 matured on 04.04.2019 both in the name of complainant Malkiat Singh and FDR No.SCSS A/c. No.31412155899 matured on 14.09.2018 and SCSS A/c. No.31698398696 matured on 04.04.2019 both in the name of Jaswant Kaur Cheema. The complainants requested Mr. Purav Ji, the official of the OP to renew/reopen the said FDRs from the date of their maturity who told that the FDR dated 04.04.2019 will be renewed but for remaining FDRs to meet the Manager, who did not meet despite wait. Besides this on 05.08.2019 the complainants through their representative moved four complaints regarding different FDR accounts to Mr. Puran who informed that request has been moved and action will be taken on receiving reply. On 02.09.2019 the complainant visited bank and asked Mr. Purav Ji about four complaints, who returned the complaints and sent him to Ms. Varinder Kaur to whom the four requests were submitted for action who asked the complainant to check after one week on her mobile No.9888638785 but on contacting on said number, no satisfactory reply has been received. In the end, the complainant prayed for redressing their grievance regarding the FDRs.

2. Upon notice OP filed written statement and assailed the complaint by taking preliminary objections on the ground of maintainability of complaint and lack of limitation. The OP averred that the complainant had opened an account under Senior Saving Citizen Scheme being governed by Senior Citizen Saving Scheme Rules 2004 which came into force on the 2^nd day of August, 2004 passed by Central Government in exercise of powers conferred by Section 15 of the Government Saving Banks Act, 1873 (5) of 1873. As per Senior Citizen Saving Scheme Rules 2004 it is clearly stated in section 3, 4, 5, 7, and 8 which are re-produced as under:-

“3.Opening of account:- (1) Any depositor may open an account at any deposit office by making an application in FORM-A along with the amount of deposit as per the pay-in-slip in FORM-D, duly filled in, along with age proof.

(2) A depositor may operate more than one account under these rules subject to the condition that the deposits in all accounts taken together shall not exceed the maximum limit as specified under rule 4;

Provided that more than one account shall not be opened in the same deposit office during a calendar month.

(3) A depositor may open the account in individual capacity or jointly with spouse.

(4) Deposits and withdrawals: (1) There shall be only one deposit in the account in multiple of one thousand rupees not exceeding rupees fifteen lakh:

Provided that deposits by depositors under sub-rule (ii) of rule 2, shall be restricted to the retirement benefits received by them or rupees fifteen lakh, whichever is lower.

Explanation: For the purposes of this sub-rule, "retirement benefits" means any payment due to the depositor on account of retirement whether on superannuation or otherwise and includes Provident Fund dues, retirement / superannuation gratuity, commuted value of pension, cash equivalent of leave, savings element of Group Savings linked Insurance Scheme payable by employer to the employee on retirement, retirement-cum-withdrawal benefit under the Employees' Family Pension Scheme and ex-gratia payments under a voluntary retirement or a special voluntary retirement scheme.'

(2) Except as provided in rule 9, no withdrawal shall be permitted under these rules before the expiry of a period of five years from the date of opening of an account.

(3) The depositor may extend the account for a further period of three years by making an application in FORM-B to the deposit office within a period of one year after the maturity period of five years as specified in sub-rule (2).

Explanation: Extension of account under this sub-rule shall be deemed to have been made from the date of maturity irrespective of the date of application.

(4) A deposit office shall, as soon as it comes to the notice that a deposit exceeds the ceiling prescribed under sub-rule (1), request the depositor in writing, to withdraw the excess deposit immediately.

5. Mode of deposit: (1) The deposit under these rules may be made:

(a) In cash, if the amount of deposit is less than rupees one lakh.

(b) by cheque or demand draft drawn in favor of the depositor and endorsed in favor of the deposit office, or in favor of the deposit office.

(2) Where a deposit is made by cheque or demand draft, the date of deposit under these rules shall be the date of encashment of the cheque or demand draft.

(3) Where a deposit is made by means of an outstation cheque or demand draft, collection charges at the prescribed rate shall be payable along with the deposit and the date of realization of the cheque or demand draft shall be the date of deposit.

7. Interest on deposit: (1) The deposit made under these rules shall bear interest at the rate of nine per cent per annum from the date of deposit.

(2) Interest shall be payable from the date of deposit on 31^st March / 30th June / 30th September / 31st December as the case may be, in the first instance and thereafter, interest shall be payable on 31^st March, 30^th June, 30^th September and 31^st December.

(3) In case any of the dates of interest payment, specified under sub-rule (2), fall on a Sunday or a holiday, the previous working day shall be deemed to be the due date for the purpose of interest payment.

(4) If so authorized, interest payable on the due dates as specified in sub rule (2), shall be credited to the depositor's saving account in the deposit office in which the account exists subject to the condition that by so credit of the interest amount, the maximum limit of balance, if any, in the saving account, is not exceeded.

(5) If the interest payable every quarter is not claimed by a depositor, such interest will not earn additional interest.

(6) Interest shall be rounded off to the interest multiple of rupee one and for this purpose any amount of fifty paise or more shall be treated as rupee one and any amount less than fifty paise shall be ignored.

(7) The excess amount referred to in sub-rule (4) of rule 4, shall carry interest at the rate applicable from time to time to the Post Office Savings Account and such interest shall be payable from the date of deposit of excess amount to the end of the month preceding the month in which the deposit office requests the depositor to withdraw the excess amount; the amount of excess interest, if any, already paid to the depositor, shall be deducted.

(8) In case of an account, continued after maturity under sub- rule (3) of rule 4, the deposit in such account shall earn interest at the rate applicable to the new accounts opened or to be opened under the provisions of these rules on the date of maturity.

(9) In case of an account which is not extended on maturity and closed at any time as per provisions of sub- rule (2) of rule 8, post maturity interest at the rate, as applicable to the deposits under the Post Office Savings Account from time to time, shall be payable on such matured deposits, up to the end of the month preceding the month of closure of the account.

8. Closure of account: (1) The deposit made at the time of opening of account shall be paid by the deposit office at which the account stands to be depositor on or after expiry of five years from the date of the opening of the account on production of the pass book accompanied by a written application (withdrawal form) in FORM-E.

(2) In case the depositor does not close the account on maturity as specified under sub-rule (1), and also does not extend the account under sub-rule (3) of rule 4, the account shall be treated as matured and the depositor will be entitled to close the account at any time subject to the condition that post maturity interest as prescribed under sub-rule (9) of rule 7, shall only be admissible for the period beyond maturity.

(3) ……

(4) ……

(5) ……”

The OP further averred that the complainants had opened the account under Senior Citizen Saving Scheme i.e.

SCSS A/c No.31411551917 which matured on 14.9.2018 in the name of Malkiat Singh.
SCSS A/c No.31698398346 which matured on 4.4.2019 in the name of Malkiat Singh.
SCSS A/c No.31412155899 which matured on 14.9.2018 in the name of Jaswant Kaur Cheema.
SCSS A/c No.31698398696 which matured on 4.4.2019 in the name of Jaswant Kaur Cheema.

According to the OP, the said accounts are governed by the Senior Citizen Saving Scheme Rules. After the expiry of statutory period five years the account holder can avail one time extension of scheme for further three years is permissible under the said rules. The complainant has availed the said extension period of three years. After the expiry of the extension period, the accounts are treated as matured and closed and post matured interest shall be payable on the post matured amount up to the end of the month preceding the month of closure of account at the rate applicable to the deposits under the Post Office Saving Account. The complainant did not visit the branch for further 5-6 months after due date of maturity and as such the complainants are not entitled to any interest after the maturity of account and after completion of three years of extension as per the scheme. The account of complainant is lying in an open status without paying any interest. No FDR account is opened rather an account under the aforesaid scheme is opened. The OP stated that it has acted as per the Senior Citizen Saving Schemes Rules, 2004 which are binding on the parties to the complaint.

On merits, the OP reiterated the crux of averments made in the preliminary objections and facts of the case. The OP has denied that there is any deficiency of service and has also prayed for dismissal of the complaint.

3. In support of their claim, complainant No.1 tendered his affidavit Ex. CA in which he reiterated the allegations and the claim of compensation as stated in the complaint. The complainant also tendered documents Ex. C1 is the copy of complaint dated 03.12.2019, Ex. C2 is the copy of postal receipt, Ex. C3 to Ex. C8 are the copies of the letters written by the complainants to the OP, Ex. C9 to Ex. C12 are the copies of senior citizen schemes, Ex. 13 is the copy of complaint dated 24.03.2021 written by complainants to this Commission, Ex. 14 is the copy of postal receipt, Ex. C15 is the copy of complaint dated 24.07.2021 written to this Commission by the complainants, Ex. C16 is the copy of postal receipt, Ex. C17 is the copy of complaint dated 01.04.2022 written to this Commission by the complainants, Ex. C18 is the copy of postal receipt, Ex. C19 is the copy of discharge summary of complainant Malkiat Singh, Ex. C20 and Ex. C21 is the copy of statement of account of the complainant Malkiat Singh, Ex. C22 and Ex. C23 is the copy of statement of account of the complainant Jaswant Kaur Cheema and closed the evidence.

4. On the other hand, counsel for the OP tendered affidavit Ex. RA of Sh. Shailesh Sinha, Branch Manager of OP bank along with documents Ex. R1 is the copy of notification dated 02.08.2004 of Government of India, Department of Finance, Ex. R2 is the copy of letter dated 13.04.2021 written to Regional Manager of SBI, Civil Lines, Ludhiana by the OP bank and closed the evidence.

5. We have heard the arguments of the counsel for the parties and also gone through the complaint, affidavit and annexed documents and written reply along with documents produced on record by both the parties.

6. Admittedly, four accounts were opened by the complainants with the OP bank, the detail of which is reproduced as under:-

SCSS A/c No.31411551917 which matured on 14.9.2018 in the name of Malkiat Singh.
SCSS A/c No.31698398346 which matured on 4.4.2019 in the name of Malkiat Singh.
SCSS A/c No.31412155899 which matured on 14.9.2018 in the name of Jaswant Kaur Cheema.
SCSS A/c No.31698398696 which matured on 4.4.2019 in the name of Jaswant Kaur Cheema.

The amount of the said accounts were got encashed on 30.03.2022. The complainants are claiming compensation on account of indifferent attitude of and interest accrued w.e.f. date of maturity of each account till date of payment.

7. Perusal of documents shows that accounts in question were opened by the complainants under the Senior Citizen Saving Scheme Rules 2004 and the relevant rues are reproduced as under:-