Hon’ble Mr. Subhas Ch. Guin, Member.
The sum and substance of the complaint petition is that the Complainant Mr. Ashok Mrug who is a reputed businessmen of Cooch Behar dealing in raw materials of beedi , under name and style of his company M/S LGN& Co. having its office at B.S.Road North went to the Indian Bank, Cooch Behar Branch, West of Madan Mohan Temple, P.O.& Dist.- Cooch Behar to deposit GST through over the Counter ( in short OTC) ) method on 21.10.20. On the same day he deposited a challan having Common Portal identification Number (in short CPIN) 20101900320701 at the counter against GSTIN- 19 AILPMI320NIZO for Rs.1500/- wherein he intends to deposit the said amount by coins. But to his utter surprise the concerned employee of the OP bank refused to accept the aforesaid challan of the complainant as the payment was being made by coins only. This matter of non- acceptance of coin was informed to the Branch Manager of the said bank but he also refused to accept the payment through coins. Later the Complainant requested the OP Bank reportedly to accept the GST through OTC mode by coins but they turned a deaf ear to the words of the Complainant. Ultimately, the complainant sent one letter dated 27.10.20 through speed post vide consignment No:- EW900447331IN asking the reason for non-acceptance of GST Challan paid by coins.
Through OTC mode and also requesting to receive the same before the expiry of the Challan on 05.11.20 which was duly received by the OP Bank. On receipt of the above said letter, the OP-1 sent a reply in which the complainant was asked to route the GST through cash credit account as the GST is implied on proceeds of business sales though the OP bank had not cited any reference of RBI guideline nor was the complainant aware of any such guideline issued by RBI.
The guideline of RBI was issued by a circular No RBI/2017-18 /132 (DCM RMMT) No:- 2945/11.37.01/2017-18 ) dated 15.02.2018 in which the RBI has categorically advised inter alia that none of the bank branches should refuse to accept small denomination notes and or coins tendered at their counters and it was also mentioned to the effect that any non-compliance in this regard shall be viewed as violation of instructions issued by the RBI and action including penal measures as applicable from time to time may be initiated.
Moreover, the section 6 of the coinage Act 2011 states as follows which was cited by the Complainant in his complaint petition.
Coin when a legal tender
- The coins issued under the authority of section 4 shall be a legal tender in payment or on account in one of
- A coin of any denomination not lower than one rupee, for any sum not exceeding one thousand rupees.
- A half rupee coin, for any sum not exceeding ten rupees.
- Any other coin, for any sum not exceeding one rupee.
Therefore in any manner the coins which had been tendered by the complainant for payment of GST in OTC mode could not be refused and or dishonored by the OP bank at its counter.
That finding no other alternatives, the complainants served a legal notice dated 09.11.2020 through speed post asking the OP bank to make necessary arrangement to comply with the circular of Reserve Bank of India and relevant provisions of the coinage Act, 2011 forthwith so that the Complainant could deposit his GST through OTC mode by coins. The said notice was served upon the OP-1 on 10.11.2020 but despite service of notice the OP-1 did not respond which amounted to deficiency in service and unfair trade practice on their part.
Thereafter, the complainant filed this case before this commission for redressal of his graveness having its opposite parties, the Branch Manager, Indian Bank, Cooch Behar Branch, B.S. Road, West side of Madan Mohan Temple( OP-1)and Managing Director and CEO, Indian Bank, Head Office-PB No: 5555,254-260, Avvai Shanmugam Salai, Chennai, Tamil Nadu, PIN-600014 (OP-2) praying for an order directing the OPs to accept GST through OTC mode by coins from the complainant as per rules and regulations laid down by the Central Government. He also prayed for an award of sum of Rs.1,00,000/- against the OPs for mental pain and agony and Rs.1,00,000/- for unfair trade practice and Rs.20,000/- for cost of proceeding. Summons were served upon the OPs. OPs contested the case by filing W/V, evidence on affidavits and written argument. OPs also submitted some documents in the form of firisti. OPs in their defence plea stated that the Complainant is our esteemed customer and we are maintaining a current account in favour of his proprietorship firm M/S LGN & Co. The GST returns are paid from the proceeds of his business for which the Complainant has availed cash credit facility from the banking system. OPs quoted a RBI guideline vide No:- RBI/2020-21/20DoR.No BP.BC/7/21.04.048/2020-21 dated 06.08.20 page No1 & point No (i) which reads “No bank shall open current accounts for customer who have availed credit facilities in the form of cash credit (CC) overdraft (OD) from the banking system and all transaction shall be routed through the CC/OD Account”. OPs also referred a RBI Master circular No:- RBI/2009-10/84-UBD.BPD( PCB) MC. No 5/13.05.000/2009-10 dt.01.07.2009 Page No-15 point No.6.3.1 which states “for units availing credit facility from the banking system diversion of funds would occur if routing of funds through any bank other than the lender bank or members of consortium without prior permission of the lender”.
Therefore, the OPs instructed the complainant to close his current account since the Complainant was availing a cash credit facility from the banking system by a letter No:- BR/Cob/Mise/2020-21/0101 dated 20.10.2020 just to follow the above said guideline of the RBI. Thus OPs did not refuse to accept coins from the Complainant. Therefore, the Complainant petition is totally false, concocted and baseless. So the instant case is liable to be dismissed as claimed by the OPs.
Perused the case record and all documents submitted by the OPs and the Complainant. Heard the argument advanced by the both parties at length. Therefore, the Commission comes to a conclusion to discuss the following points for adjudicating the case.
Points for discussion
- Whether there is any unfair trade practice on the part of the OPs as alleged by the Complainant?
- Whether the Complainant is entitled to get any relief?
Both points are taken up together for discussion as they are interlinked with each other and for brevity of discussion. The refusal of the GST Challan tendered by the Complainant at the counter of the OP -1 bank to deposit coins through OTC mode is the bone of contention between parties. The Complainant being a businessman of repute has current account with the OP-1 bank through which he tried to deposit the GST of his business by coins as his business collects huge coins. He has also availed himself of cash credit facility with a limit of Rs.1.0 crore from the banking system as the GST returns are paid from the proceeds of the business. Ld. Advocate for the Ops referred a RBI guideline in his defence case that no bank shall open current account for customers who have availed credit facilities in the form of cash credit (CC) /over draft (OD) from the banking system and all transactions shall be routed through the CC/OD Account.
In another RBI circular referred by the OPs, they also mentioned about diversion of funds if routing of funds through any bank other than the lender bank or members of consortium without prior permission of the lender. As the GST was being paid by the Complainant out of the proceeds of his business by coins, there would be diversion of fund and at the same time the Complainant was holding dual account e.g. current account and cash credit account which violated the intention of the RBI guideline.
So, the OP-1 bank advised the Complainant to close his current account and to route all his transaction through cash credit account as the complainant was availing cash credit facility from the banking system. Thus by refusing the GST challan paid by coins, Ops wanted to get the complainant complied with the aforesaid circular of the RBI which includes routing of all transaction through cash credit account which the complainant holds with the OP-1 bank.
Therefore, the Commission is of the view that non-receipt of coins at the counter of the OP-1 bank does not tantamount to unfair trade practice on the part of the O.Ps. On the contrary it is compliance of the order of the RBI. Thus the Complainant is not entitled to get any relief as prayed in his complaint petition. Therefore, both points are decided against the Complainant. In the result, the instant case fails.
Hence, it is
Ordered
That the instant case No. CC/49/2020 be and the same is dismissed on contest without cost.
DA to note in the Trial Register.
Let a plain copy of this order be supplied to the parties concerned by hand/by post forthwith, free of cost for information and necessary action, if any.
The copy of the Final Order is also available in the official Website www.confonet.nic.in.
Dictated and corrected by me.
