CONSUMER DISPUTES REDRESSAL FORUM,PALAKKAD

Dated this the 7^th July, 2015

PRESENT :  SMT. SHINY.P.R, PRESIDENT

               :  SMT. SUMA. K.P, MEMBER                     Date  of filing : 24/11/2014

CC /181/2014

Chamukutta Panicker,

Rama Nivas, Kanjiramkunnam,                                 :        Complainant

Kodumbu (P.O), Palakkad.

(Party in person)    

             Vs

1. The Branch Manager,

    Kerala State Financial Enterprises(KSFE),                :        Opposite parties

    Main Branch, Palakkad

    Sudevan Road, Parayil Square,

    Palakkad.

    (By Adv.Girish.K.Nochulli)

2. Senior  Manager,

    Kerala State Financial Enterprises(KSFE),

    Bhadratha, Museum Road,

    Chembukavu, Thrissur-20

   (By Adv.Girish.K.Nochulli)

O R D E R

By Smt. Suma. K.P, Member,

The case of the complainant is that he is one of the customer of the 1^st opposite party and had deposited an amount of Rs.94,424/- with the 1^st opposite party as per FD receipt No.15918 dated  6/6/2011 for a period of 3 years.  While depositing the same the then Manager had explained the benefits available  on Fixed Deposit Scheme and also additional benefits being a senior citizen.  The complainant being a senior citizen and is not an income tax assessee and was only having agricultural income from the paddy fields.  The Manager concerned promised him that there is no question of TDS deductions especially of his income group and being a senior citizen.  After that the monthly interest amount of Rs.791/- was being credited regularly in his Sugama Account No.2340.  In contrary to the above understanding made by the opposite party, they had deducted, the TDS amount of Rs.5,524/- for the entire period of three years at once on the maturity date.  The complainant was really shocked by seeing the debit amount in his Sugama account.  The complainant alleges that the above act of the opposite parties is against law and natural justice.  This was done with a specific intention to make unlawful loss to the complainant.  The act of the opposite party will amounts to deficiency of service.  The complainant is a consumer within the meaning of Consumer Protection Act.  On 1/9/2014 the complainant issued notices to the opposite parties intimating about these facts and requested to refund the same without delay.  The opposite parties did not sent any reply nor credited any amount towards the account of the complainant.  Complainant further submits that inaddition to the loss of TDS amount, complainant is entitled to get compensation of Rs.25,000/- towards mental agony.  Hence he had approached before this Forum to refund the TDS amount of Rs.5,524/- which was deducted from the F.D.receipt with 18% interest from 07/07/2014 till realization along with compensation of Rs.25,000/- (Rupees Twenty Five thousand only) towards mental agony, pain and sufferings and cost of this proceedings.

The notice was served to the opposite party for appearance.  Opposite party entered appearance through counsel and filed version contending the following.  Complainant in this case is a customer of 1^st opposite party branch office.  Complainant was having 2 chitties with the 1^st opposite party.  The prize money amount of the complainant in chitty No.67/2008/A-19 was transferred to FD for Rs.94,424/- (Rupees Ninety four thousand four hundred and twenty four only) on 6.6.2011 which was liened to the chitty future liability. On 11/09/2013, the same FD was also liened to future liability in chitty No.91/2011/B-46.  At the time of chitty payment the complainant had not produced pancard copy and Form 15(H).  Whenever the complainant came to the 1^st opposite party’s office for chitty installments remittance through sugama account No.2340,  the 1^st opposite party reminded the complainant for submitting pancard copy and form 15(H) to exempt tax on interest.  Total interest transferred to his Sugama account (A/c.No.2340)   upto 5.6.2014 was Rs.27,619/-.  Since this FD receipt was in lien to his prized live chitty which was terminating on 9.3.2015, as per the request of the complainant the 1^st opposite party renewed this FD receipt for 3 years more.  The tax on interest @20% was deducted and transferred to Head Office from the complainant’s sugama account No.2340, as per the direction of the H.O. tax departments of the opposite party.  The TDS amount deduction made by the opposite party is legal, and hence the opposite parties are not bound to pay any amount to the complainant.  Hence  above complaint has to be dismissed.

The complainant filed chief affidavit along with documents. Opposite party filed application for cross examination of complainant.  Opposite parties also filed chief affidavit. Complainant was cross examined as PW1.  Ext.A1-A3 was marked.   Complainant filed application seeking permission to cross examine opposite party.  The opposite party was cross examined as DW1. Ext.B1-B3 was marked on the part of the opposite parties. 

The matter was heard.

The following issues are to be considered.

1. Whether there is any deficiency of service on the part of the opposite party?
2. If so, what are the reliefs and cost? 

 ISSUE No. 1

We have verified the documents produced from both sides.  It is admitted that the opposite party has deducted an amount of Rs.5,524/- towards TDS from the F.D.receipt of the complainant.  When DW1 was  cross examined he had stated that the then Manager of the opposite party had specifically told him that TDS will not be deducted for the interest payment being a senior citizen and also the amount in deposit is below and the yearly interest payment will be below the TDS limit.  Only at the date of maturity he came to know that the amount was debited from his sugama account number 2340. During cross examination DW1 deposed that the complainant was informed about the same and he was asked to produce pancard copy  and Form 15(H).  But whenever the complainant came to 1^st opposite party’s office for the remittance of chitty installments they reminded for submitting pancard copy and Form 15(H) to exempt tax on the interest.  This fact was denied by the complainant during cross examination.  DW1 has admitted in cross examination that the TDS was deducted from the pass book of the complainant without his knowledge or permission according to the law.  TDS amount deduct ചെയ്യുന്ന കാര്യം അന്യായക്കാരനോട്  orally അറിയിച്ചിട്ടുണ്ട്.  3 കൊല്ലം കഴിഞ്ഞിട്ടും,  amount deduct ചെയ്തിട്ടും അന്യായക്കാരനെ രേഖാമൂലം  TDS പിടിക്കുന്ന സംഗതി അറിയിച്ചിരുന്നില്ല.

The opposite party had admitted that no intimation was sent to the complainant for deducting the TDS.  This amounts to deficiency of service on the part of the opposite party.    The opposite party ought to have intimated the complainant about the deduction of TDS through a notice individually.  Without doing so opposite party had committed gross negligence and deficiency of service on their part.  However the complainant can approach the Income Tax Authority for the refund of TDS amount deducted by the opposite party. 

Inview of the above observations we directed the opposite party to pay an amount of Rs.2,000/-(Rupees Two thousand only) as compensation for the mental agony caused to the complainant being  a oncology patient and a senior citizen.  We also direct the opposite party to pay an amount of Rs.500/- (Rupees Five hundred only) towards the cost of this proceedings.  The complaint is allowed in part as above.  The aforesaid amount shall be paid within one month from the date of receipt of this order failing which complainant is entitled to get 9% interest for the compensation amount from the date of order till realization.

Pronounced in the open court on this the 7^th  day of July, 2015.

                                                                   Sd/-

                                                                   Smt. Shiny.P.R

                                                                     President

                                                                       Sd/-                                                                                                                    Smt. Suma. K.P

                                                                       Member

A P P E N D I X

Exhibits marked on the side of complainant

Ext.A1 - Sugama Deposit Pass Book A/c.No.2340 (Photocopy)

Ext.A2 - Notice and postal receipts dtd.01/09/2014 (Photocopy)

Ext.A3 – Medical Certificate of complainant issued by Dr.Wesely M Jose, Amritha  Viswa Vidyapeetham dtd.25/04/2013 (Photocopy)  

Witness marked on the side of complainant

PW1- Chamukuttapanicker

Exhibits marked on the side of opposite party

Ext.B1-KSFE Circular No.33/2012(FA) Dtd.03/07/2012 (Original)

Ext.B2-Application for Deposits of complainant dtd.06/06/2011 (Photocopy)

Ext.B3-TDS Credit note cum Annexure Form issued by opposite party dtd.07/07/2014 (Photocopy)

Witness examined on the side of opposite parties

DW1-Muraleedharan

Cost Allowed

Rs.500/- as cost.