Date of Filing: 24/05/2016
Date of Order: 22/08/2017
ORDER
BY SRI.SYED ANSER KHALEEM, PRESIDENT
1. This is the complaint is filed under Section 12 of the C.P. Act 1986 against the O.P alleging the deficiency in service and praying for orders to direct the O.P for the following relief:
i) To direct the O.P to pay an interest of Rs.87,100/- @ 8% per annum for six days on the said amount and difference rate of interest of Rs.97,988/- @ 0.15% for one year aggregating to Rs.1,85,088/- towards the loss incurred by the complainant on account of O.P bank negligently for non-receiving the aforesaid amount as fixed deposit and
ii) To pay the amount of Rs.50,000/- towards causing administrative inconvenience and mental agony.
2. The facts of the complaint in brief are that, the complainant Coffee Board has invited a Tender vide letter No. Fin/Pen/FD/2015-16/540 dated 24.09.2015 for the purpose of the investment of term deposits of Coffee Board Employees Pension Fund Account for an amount of Rs.6,53,25,000/- in Fixed deposit for a period of one year and less than one year i.e., for a period of 6 months separately. It is stated that, in the Tender notification, it is mentioned that the interest rate should be valid till 8.10.2015 as the said amount will be transferred to their bank on that date. It is further stated that on the very same date i.e., on 24.09.2015 the Complainant Coffee Board further requested the India Overseas Bank vide letter No.FIN/PEN/FD/2015/533 that the amount of Rs.5,97,03,482/- invested by the Coffee Board in the Indian Overseas Bank Bangalore, Cantonment Branch under Term Deposit Scheme for a period of one year which was due for maturity on 7.10.2015 and the said maturity value of Rs.6,53,24,729/- may be transferred to the account of complainant coffee board held at State Bank of Mysore on 7.10.2015. It is stated that in response to the Tender Invitation, the State Bank of Mysore and the O.P Syndicate Bank, participated in the said tender, the Syndicate Bank quoted an interest rate at the rate of 8% for less than one Crore for a period of one year vide their letter dated 29.09.2015. After evaluating the tender proposals of the above banks the complainant awarded the tender in favour of the Syndicate Bank. It is stated that, the complainant had also issued a letter of acceptance dated 7.10.2015 to the O.P bank for investment of term deposit in the coffee board employees pension fund account of amount of Rs.6,53,25,000/- as per quotation and the confirmation letter dated 7.10.2015 is also given. Thereafter complainant considered it has a best quote offered by Syndicate Bank sent a bank advise to the State Bank of Mysore to transfer the amount of Rs.6,53,25,000/- to the Syndicate Bank through letter dated 7.10.2015. It is stated that on the basis of advice given by the Coffee Board the State Bank of Mysore had also transferred the said amount to Syndicate Bank on 7.10.2015. It is stated that, on verifying the bank statement dated 7.10.2015 it has been found that the said amount has been re-credited to the boards bank Account i.e. Syndicate Bank has declined to receive the said amount as fixed deposit. Subsequently the O.P bank had made endorsement in the complainant’s letter dated 7.10.2015 stating that the interest have changed from 5.10.2015 and hence Syndicate Bank was unable to accept the fixed deposit at the interest of 8% per annum. The O.P bank has also sent one more reply dated 7.10.2015 to the complainant by stating that on one date from single entity the deposit received cannot be split into smaller deposits for the purpose of interest rate of 8% per annum and further as the rates quoted earlier have changed, therefore, the investment cannot be accepted at the rate of 8% per annum quoted on 29.9.2015. It is further alleged that due to the negligence of the O.P bank, the Coffee Board was forced to re-invite quote from other nationalized bank and deposited the said amount at the reduced rate of interest at 7.85% per annum on 13.10.2015 with the delay of six days . Hence stated that complainant suffered loss of difference rate of interest of 0.15% for one year and also underwent administrative inconvenience further stated that the complainant addressed a letter to the O.P bank to pay the interest of Rs.87,100/- at 8% per annum for six days and the difference rate of interest of Rs.97,988/- but the O.P bank has not furnished any reply to the complainant’s demand made in the letter. Hence this complaint.
3. Upon issuance of notice, O.P Bank appeared through its counsel and filed its version. In the version it is contended that, the complainant invited Tender for the purpose of investment of Term deposits as fixed deposits for a period of one year. The complainant offered to deposit a sum of Rs.6,53,25,000/- accumulated under the Employees Fund Account. In reply to the letter of the complainant dated 24.09.2015 the O.P bank vide letter dated 29.09.2015 submitted quotation regarding the rate of interest on Term deposits. In the said letter dated 29.09.2015 the O.P bank submitted information that the rate of interest will be 7.50% p.a. on the amount of deposit of more than one Crore and less than Rs.100 Crores for a period of 180 days to 269 days and the rate of interest will be 7.75% p.a. for a tenure of more than 269 days and up to one year. Subsequently, the rate of interest was changed to 7% p.a. up to 269 days and 7.24% p.a. for more than 269 days and up to one year. This was also informed to the complainant vide letter dated 05.10.2015. It is further contended that the complainant / Coffee Board, vide letter dated 07.10.2015 shown interest in investment of term deposit of Rs.6,53,25,000/- for a period of one year by splitting these deposits into seven Term Deposit receipts which will be beneficial to them since the prevailing rate of interest of the bank was 8% p.a. if the term deposit is for less than one Crore for a period of one year. But, as per the rates quoted by the bank vide letter dated 29.09.2015 and 05.10.2015 the amount of deposit was falling in the category “One Crore to 100 Crore”. But as per the letter dated 05.10.2015 the O.P bank informed the complainant that the rate of interest will be 7.5% p.a. if the term deposit is for less than one Crore for one year. The letter of the complainant dated 07.10.2015 the complainant has informed the O.P bank to open fixed deposit accounts and issue six term deposit receipts for Rs.95,00,000/- and one term deposit receipt for Rs.83,25,000/- totally amounting to Rs.6,53,25,000/- so as to avail the benefit of higher rate of interest. However, the O.P bank has not accepted to issue split deposits as per the request of the complainant at the rate of interest of 8% p.a., proposed by the complainant as the interest of rate was reduced to 7.5% p.a. as per the guidelines of the Head office of the O.P bank and it was duly communicated vide letter dated 05.10.2015. However splitting of the deposit amount for the sake of taking benefit of the higher rate of interest was not permissible.
4. It is further stated that the O.P bank did not accept aforesaid proposal of the complainant and immediately replied to the letter to the complainant dated 7.10.2015 in that letter O.P bank categorically declined to accept the deposit at the rate of 8% per annum informing the rate of interest was reduced with effect from 05.10.2015 and the said fact was informed by way of fax and also over telephone to the complainant. and it is also informed the aforesaid amount credited to the O.P bank was returned to the original bank and credited to their S.B account No.54044623751 dated 07.10.2015 and as such O.P as not committed any deficiency in service and not accepted the aforesaid amount and O.P is not liable to pay interest rate at 8% for six days Rs.97,988/- and the O.P bank has informed situation well in time. Further there is no cause of action arisen to the complainant to file the complaint and there is no customer relationship in the alleged transaction and also there is no privity of contract between the complainant and O.P and on other grounds prays for dismissal of the complaint.
5. In order to substantiate the case of the parties and both parties filed their affidavit evidence and also heard the arguments and the parties have also filed the written arguments.
6. On the basis of the pleadings of the parties, the following points will arise for our consideration:-
(A) Whether the complainant has proved
deficiency in service on the part of the O.P?
(B) Whether the complainant is entitled to
the relief as prayed for in the complaint?
(C) What order?
7. Our answers to the above points are:-
POINT (A) & (B) : In the Negative.
POINT (C): As per the final order
for the following:
REASONS
POINT No. (A) & (B):-
8. On perusing the pleadings of the parties, it is an undisputed fact, that the complainant has invited tenders from the various bank in order to deposit the amount relating to investment of term deposit of Coffee Board Employees Pension fund account of an amount of Rs.6,53,25,000/-. Accordingly tender is accepted in favour of the O.P bank.
9. The allegation of the complainant is that after transferring the amount of Rs.6,53,25,000/- to the O.P bank and the O.P bank declined to take the said amount for fixed deposit and refused to give interest at the rate of 8% per annum for term deposit. Thereafter the complainant board invited once again tender and got fixed the above said amount in other nationalized bank and sustained loss of interest for six days on the said amount and hence the complainant demanded the O.P bank to pay deferential interest for six day for their negligent act.
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10. Per-contra, it is contended that, O.P bank did not accept aforesaid proposal of the complainant and immediately replied by the letter to the complainant dated 7.10.2015 in that letter O.P bank categorically declined to accept the deposit at the rate of 8% per annum informing the rate of interest was reduced with effect from 05.10.2015 and the said fact was informed by way of fax and also over telephone to the complainant and it is also informed the aforesaid amount credited to the O.P bank was returned to the original bank and credited to their SB account No.54044623751 dated 07.10.2015 and as such O.P bank has not committed any deficiency in service and not accepted the aforesaid amount and O.P bank is not liable to pay interest rate at 8% for six days.
11. The crux of the matter is to consider whether the complainant is entitled for the interest for the six days as demanded by the complainant.
12. It is worth to note that the bank functions according to the rules and regulations, norms and guidelines given by the Reserve Bank of India time to time. On perusing the Circular No. 269-2015-BC-P &D-95 dated 2.7.2015 the revision rate of interest on domestic / NRO /NRE term deposit with effect from 2.7.2015, it clearly reads thus:-
Tenors | Revised Rate w.e.f. 05.10.2015 |
Less than Rs.1 Cr | Rs.1 Cr to Less than Rs.10 Cr | Rs.10 Cr to Less Than Rs. 25 Cr | Rs.25 Cr.to Less than Rs.50 Cr. | Rs.50 Cr To less Than Rs.100 Cr | Rs.100 cr And above |
7 to 14days | 5.50 | 5.50 | 5.50 | 5.50 | 5.50 | 5.50 |
15 to 30 days | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 |
31 to 45 days | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 |
56 to 60 days | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 |
61 to 90 days | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 |
91 to 120 days | 6.50 | 6.10 | 6.10 | 6.10 | 6.10 | 6.10 |
121 to 179 days | 6.50 | 6.50 | 6.50 | 6.50 | 6.50 | 6.50 |
180 to 269 days | 7.25 | 7.00 | 7.00 | 7.00 | 7.00 | 7.00 |
270 to 363 days | 7.50 | 7.25 | 7.25 | 7.25 | 7.25 | 7.25 |
364 days | 7.50 | 7.25 | 7.25 | 7.25 | 7.25 | 7.25 |
1 year exact | 7.50 | 7.25 | 7.25 | 7.25 | 7.25 | 7.25 |
Above 1 year to 2 year | 7.50 | 7.25 | 7.25 | 7.25 | 7.25 | 7.25 |
Above 2 to less than 5 yrs | 7.50 | 7.25 | 7.25 | 7.25 | 7.25 | 7.25 |
Exact 5 years | 7.50 | 6.50 | 6.50 | 6.50 | 6.50 | 6.50 |
Above 5 to 10 yrs | 6.75 | 6.75 | 6.75 | 6.75 | 6.75 | 6.75 |
13. According to above table it clearly reveals that if deposited less than one crore for 180 days to 269 days the rate of interest is 7.50%, if it is less than one crore to less than ten crore the rate of interest is 7.750% so also for 270 days to 360 days if the amount is less than is one crore the rate of interest is 7.75% per annum, if one crore to less than ten crore the rate of interest is 7.75% p.a further more for one year exact for less than one crore the rate of interest is 8% p.a. For one crore to less than ten crore the rate of interest is 7.75% p.a. It is worth to note that, the amount of the complainant is come under one crore to less than ten crore and obviously complainant if he had deposited the said amount will get interest at the rate of 7.75% p.a. On perusal of letter dated 29.9.2015 addressed to the complainant Coffee Board. It is clearly mentioned for less than one crore the rate of interest is 8% p.a., for one crore to 100 crore the rate of interest is 7.75% p.a. and hence the grievance of the complainant and the allegation is lame of strength and holds no water. Once the letter dated 20.9.2015 addressed to the Coffee Board the complainant why he has transferred the amount by giving advise to the SBM Bank on 7.10.2015 and the O.P bank rightly declined to honour to keep the amount in deposit and transfered back to the complainant’s account on the same day. Further on perusal of the letter dated 7.10.2015 O.P bank also intimated to the coffee board it reads thus: “We wish to inform that on one date from single entity the deposit received cannot be split in to smaller deposit for the purpose of interest rate and hence it cannot be split and give the interest rate at 8% per annum for you Rs.6,53,25,000/-.” It goes to show that the O.P bank acted fairly and intimated the position and hence we find no fault with the O.P bank. It is pertinent to note that bank acted in according to the rules and regulations and norms of the RBI and discharge its functions accordingly. Hence we find no deficiency in service on the part of the O.P. It is not the case of the complainant that they have called the tender to fix the amount in question in term deposit by spitting into less than one crore and the O.P bank is accepted the same and in the absence of credible evidence we cannot hold O.P bank is deficient in its service. So also on perusing circular NO.420/2015-BC-P&B-134 dated 3.10.2015 with effect from 5.10.2015 and on perusal of the same it reveals that the rate of interest on the term deposit i.e. for less than one crore for 364 days 7.50%, one crore to less than 10 crore the rate of interest is 7.25% p.a . So also for one year exact the rate of interest is 7.50% and 7.25% and hence the allegation of the complainant holds no water. On perusal of the letter correspondence clearly establishes that the O.P bank intimated the fact of the rate of revised interest as per the RBI guidelines to the complainant and the amount transferred on 7.10.2015 and on the same day it was retransferred to the account of the Complainant Coffee Board and the O.P bank not kept the amount for a day only and hence complainant is not entitled for the interest as claimed in the complaint. The O.P bank acted according to the norms of the RBI and the banks obviously governed by the RBI Rules and Regulations. In the light of above discussions and accordingly we answered these Points in the Negative.
POINT (C):
14. On the basis of findings given while answering the Points (A) & (B) and in the result, we proceed to pass the following:-
ORDER
- The complaint is dismissed. No order as to cost.
- Send a copy of this order to both parties free of cost.
(Dictated to the Stenographer, transcribed and computerized by him, corrected and then pronounced by us in the Open Forum on this the 22th Day of August 2017)
MEMBER MEMBER PRESIDENT
*Rak
