-::BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, AT BIDAR::
C.C. No.81/2018.
Date of filing: 03.11.2018.
Date of disposal: 12.06.2019.
P R E S E N T:-
(1) Shri. Jagannath Prasad Udgata, B.A., LL.B.,
President.
(2) Shri. Shankrappa (Halipurgi),
B.A.LL.B.,
Member.
COMPLAINANT/S: Manshetty, S/o Siddappa Belkeri,
Age: 65 years, Occ: Pensioner,
R/o H.No. 9-8-414 “Belkeri Bhavan”
BVB College Road, Basava Nagar,
Bidar.
(By Sri. Gurunath Jantikar, Adv.)
VERSUS
OPPONENT/S: State Bank of India,
Branch B.V. Bhoomreddy College Road,
Bidar, Represented by it’s Branch Manager.
(By Sri. Vilas Rao More, Adv.)
:: J UD G M E N T ::
By Shri. Jagannath Prasad Udgata, President.
This comlaint is one alleging deficiency of service in the part ofthe sole O.. U/S. 12 of the C.P. Act,1986. The gist of the complaint is abridged hereunder:
2. The complainant a resident of Bidar maintains Account no. 11063321113 with the Opponent Bank. He had availed a loan from M/s Kalyan Pattina Sauharda Sahakari Society (N) Bidar to meet his domestic needs. On demand from the society, he had issued cheque No. 450755 dt.08.03.2018 for an amount of Rs.2,00,000/- to the said society drawn on the O.P. Bank. By that time he had a balance of Rs.2,28,583.97 p.s. in his account with the O.P. Bank. In spite of that, the O.P. Bank dishonored the cheque with a false endorsement as insufficient funds. On intimation from the society, he had interacted with O.P. Bank and the O.P. admitted the mistake and asked for presentation of the cheque once agaon with a promise of honoring the same. Accordingly the complainant requested the lender society to represent the cheque once again but on such presentation, the cheque got dishonored once again on 16.03.2018 on same false grounds. The complainant states that, he is a respected and honored identity in the society and dishonored of his cheque with false pretexts by the O.P. Bank has dented his reputation in the society. The complainant further submits that, due to the illegal dishonor of the cheque on two consecutive occasions the society concerned is demanding an additional amount of Rs.25,000/- as penalty and he himself is suffering from mental shock due to the deficiency of service and unethical trade practice indulged into by the O.P. Bank. He further canvasses that, the anomaly remains uncertified till the end in spite of his legal notice dt. 03.07.2018 and therefore he is before us claiming a compensation of Rs.1,00,000/- interest @ 12% p.a. form the date of complaint and litigation fees of Rs.5,000/-.
3. The O.P. Bank upon notice has entered appearance and has filed written versions in which it is claimed that, the complainant is devoid of merit, designed to extract money from a nationalized bank and to tarnish it’s image and hence liable to be dismissed. The allegations in the complaint has been denied so also the facts of subsequent interaction of the complainant with the O.P. consequent upon the first dishonor of the cheque.
4. As per the further canvassment of the O.P., the account of the complainant was non-complaint with K.Y.C. directions of the R.B.I. of public notices were issued at several times for compliance, which was not done by the complainant for which the present fiasco has occurred. Ultimately the hold was removed on 18.03.2018 and therefore the O.P. claims it was justified in dishonoring the cheque in spite of sufficient balance maintained. All other allegations have been denied by the O.P. Bank and it prays dismissal of the complaint with costs.
5. Both sides have filed their respective evidence affidavits and only the complainant has submitted few documents.
7. Considering the pleas of the parties, the following points arise for our consideration.
- Does the complainant prove deficiency of service?
- Does the O.P. prove that, he was justified in dishonoring the captioned cheque for insufficient funds ?
- What orders?
7. Our answers to the points raised are as follows:-
- In the affirmative.
- In the negative.
- As per the final orders owing to the following:-
:: REASONS ::
8. Points (a) * (b) are to be taken up for considerations combinedly being correlated to each other. The complainant had issued the instant cheque to discharge his liability towards Kalyan Pattina Souharda Sahakari (N) Bidar and in turn, it was presented to the O.P. Bank and the same was dishonoured first on 12.03.2018 and once again on 17.03.2018 when the cheque was presented for the second time after deliberation on the ground of “insufficient funds”. It is seen from the statement of accounts produced by the complainant as Annexure-C on those dates balance in the account was maintained at Rs.2,27993.97 and Rs.2,27,403.97 respectively in spite of which the cheque was not only dishonoured with a wrong endorsement of ” funds insufficient”. But also penalty amount sof Rs. 590.00 were levied on the account twice. Undoubtedly this is zenith of deficiency of servce and unfair trade practice. The O.P. Bank has taken an abysmal plea that, the account was non K.Y.C. complaint and hence was put un hold. If at all that was a genuine criteria, how at all two other cheques could be honoured on 17.03.2018 and 22.03.2018? Why at all the Bank could not mention the ground of dishonour as K.Y.C. non compliance. The grounds taken by the O.P. bank is flimsy and adds insult to the injury. Hence we answer the points accordingly.
9. The complainant is is canvassing that, on account of dishonour of the cheque, the payee society is demanding a penalty of Rs.35,000/-. However no proof is led regarding the same. Such a penalty is unheard of and uncalled for and ever it happens in black and white, the complainant can approach this Forum for such unfair trade practice. At this moment, it would be unbeeming in our part to give credence to such a deliberation. However since the complainant has suffered by the misfeasances of the O.P. Bank we proceed to pass the following:
::ORDERS::
The complaint is allowed in part.
- The Bank is directed to pay a compensation of Rs.10,000 to the complainant along with a litigation fees of Rs. 2,500/- within clear four weeks time from the date of this order.
- The O.P. Bank failing to adhere the time frame would be saddled with interest payment @ 12% p.a. calculated from the date complaint till realisation.
- The O.P. Bank is refrained perpetually from indulging into similar unfair trade practices.
(Typed to our dictation then corrected, signed by us and then pronounced in the open Forum on this 12th day of June 2019).
Sri. Shankrappa H. Sri. Jagannath Prasad
Member. President.
Documents produced by the complainant
- Annexure.A- Dishonoured cheque No.450755 of O.P. bank (original)
- Annexure.B– Bank’s endorsement dt. 16.03.2018 (copy).
- Annexure.C- computerised statement of account in A/c No.
11063321113.
- Annexure.D– Bank pass book of complainant (copy)
- Annexure.E & F- Representation of the complainant to the O.P. Bank
(copies)
- Annexure.G-Office copy of legal notice with postal receipt.
Document produced by the Opponent.
Witness examined.
Complainant.
- P.W.1- Sri. Manshetty S/o Siddappa Belkeri. (Complainant).
Opponent.
- R.W.1- Sri. Mahesh Kumar S/o Nathmal Chotia Chief Manager,
S.B.I. Udgir Road Bidar.
Sri. Shankrappa H. Sri. Jagannath Prasad
Member. President.
