D.o.F:13/3/08<br /> D.o.O:30/7/08<br /> IN THE CONSUMER DISPUTES REDRESSAL FORUM KASARAGOD <br /> CC.NO.26/08 <br /> Dated this, the 30th day of July 2008<br /> <br /> PRESENT:<br /> SRI.K.T.SIDHIQ : PRESIDENT<br /> SMT.P.RAMADEVI : MEMBER<br /> SMT.P.P.SHYMALADEVI : MEMBER<br /> <br /> K.Gopalakrishna Shenoy,<br /> R/at Sree Venkatesh, : Complainant<br /> Adiyamboor, Balla,<br /> Po.Kanhangad.<br /> (Adv.K.C.Sashindran)<br /> 1. The Branch Manager,<br /> Canara Bank,Kanhangad Branch,<br /> Kanhangad.<br /> (Adv.I.V.Bhat)<br /> 2. The Deputy General Manager, : Opposite parties <br /> Canara Bank,Circle Officer,<br /> 18/167,2nd floor,P.K.KamalamBuilding,<br /> Jail Road,Kozhikode.673004.<br /> <br /> ORDER<br /> SRI.K.T.SIDHIQ : PRESIDENT<br /> <br /> The only question arises for consideration in this complaint is whether a Banker can unilaterally reduce the rate of interest to be paid to a depositor on the date of maturity of the fixed deposit.<br /> Shri.K.Gopalakrishna Shenoy deposited a sum of Rs.130,000/- in Canara Bank Kanhangad Branch by way of Kamadhenu Fixed Deposit on 30/11/99 for 10 years with effect from 24/7/1997 and the branch manager has issued him a deposit receipt in which rate of interest agreed was 13%. The maturity value also calculated Rs.467246/- and maturity date was 24/7/2007. It is the case of Gopalakrishnan Shenoy that on the date of maturity when he approached the bank to receive the amount stipulated, Banker arbitrarily reduced the rate of interest to 12% and they paid only Rs. 411403/- instead of Rs.467246/- the maturity value. Gopalakrishna Shenoy accordingly had a loss of Rs.55843/-. Hence alleging deficiency in service on the part of Bank, the complaint is filed claiming Rs.55843/- with interest and compensation of Rs.25,000/-.<br /> 2. Branch Manager,Canara Bank Kanhangad branch and the Deputy General Manager,Canara Bank,Kozhikode entered appearance and filed their versions. According to them, the rate of interest for deposits over 3 years were reduced to 12% from 14/7/1997 as per RBI guide lines and the Kamadhenu fixed deposit receipt issued to the complainant was due to a mistake and this mistake was corrected within a year of deposit after duly intimating the complainant. Hence there is no deficiency in service on their part and the complaint deserves a dismissal.<br /> 3. Gopalakrishna Shenoy produced the copy of the F.D.Receipt(Ext.A1) in support of his contention. It is seen that the rate of interest and maturity value is rounded of and corrected. According to him it was done when he approached Canara Bank to renew the deposit on 24/7/07 on the date of maturity of F.D. The counsel for Canara Bank produced Exts.B1 to B3 in support of their contention. Ext.B1 is the letter dtd.11/8/07 issued to the complainant. Ext.B2 is the circular No.145/97 dtd.11/7/1997 and Ext.B3 is the reply notice dtd.14/12/07 issued by the counsel for the bank to the counsel for complainant.<br /> <br /> 4. Both sides were filed notes of argument and the documents were scrutinized carefully.<br /> 5. There is no dispute that Gopalakrishna Shenoy was issued with a Fixed Deposit receipt agreeing to pay him interest @13% from 24/7/97. But according to opposite party the mistake in entry was noted by their audit party within one year of deposit and hence they corrected the mistake within a year of deposit. But no documents produced to show that Gopalakrishna Shenoy was intimated regarding the revision of interest from 13% to 12%. After enjoying the benefits of the amount deposited by Gopalakrishna Shenoy, for 10 years, revision of interest to a reduced rate unilaterally constitute deficiency in service on the part of Canara Bank.<br /> 6. The counsel for Canara Bank placed reliance on the decisions 2008(1)KLT 873, IV(2003) CPJ 179, 1990(2)KLJ 553.<br /> But none of the decisions will help the canara Bank, in view of the decision of Hon’ble Supreme Court reported in AIR 2003 Supreme Court 2125 there the Hon’ble supreme Court held:<br /> The instructions given by head office of the branches were only for their guidance and to safe guard the interest of the Bank in case of dispute . At Any Rate these instructions cannot vary the terms of agreement between the parties.<br /> 7. So it is clear that the Canara Bank has entered into an agreement by way of Kamadhenu fixed deposit receipt to pay 13% interest for the sum deposited by the complainant and the circulars issued by the higher ups of Canara Bank will not alter the terms of agreement with depositors. The revision in interest rate cannot vary the terms of agreement. Further there are no documents produced intimating Gopalakrishna Shenoy regarding reduction of rate of interest within a year as alleged.<br /> So for the foregoing reasons we find deficiency in service on the part of Branch Manager Canara Bank,Kanhangad Branch and Deputy General Manager,Canara Bank Kozhikode<br /> 8. Reliefs & Costs:<br /> According to Gopalakrisna Shenoy the reduction of rate of interest caused him a loss of Rs.55843/-. Definitely sri.shenoy is entitled to get the said amount for the deficient service rendered by the bank to him.<br /> In the result, we allow the complaint and Branch Manager,Canara Bank Kanhnagad branch and Deputy General Manager,canara Bank,Kozhikode are directed to pay Rs.55843/- to Gopalakrishna Shenoy with interest @9% from the date of complaint till payment along with a cost of Rs.2000/-. Time for compliance is 2 months from the date of receipt of copy of the order.<br /> <br /> MEMBER PRESIDENT<br /> EXTS:<br /> A1-Fixed deposit receipt<br /> B1-11/8/07- letter to the complainant<br /> B2-11/7/97- circular<br /> B3-14/12/07- Reply notice<br /> eva/<br />