D.O.F:07/10/2022
D.O.O:20/09/2024
IN THE CONSUMER DISPUTES REDRESSAL COMMISSION KASARAGOD
CC.248/2022
Dated this, the 20th day of September 2024
PRESENT:
SRI.KRISHNAN.K : PRESIDENT
SMT. BEENA. K.G : MEMBER
Shreya Shetty, aged 20 years,
D/o(L) Sreedhara Shetty.
R/at Muttam Hosamanne,
Post Mangalpady – 671324 : Complainant
(Adv: A. Balakrishnan Nair)
And
The Branch Manager,
Formerly Dena Bank (Bank of Baroda)
Kannur Branch -670001 : Opposite party
(Adv: K.K.Mohammed Shafi)
ORDER
SRI. KRISHNAN.K : PRESIDENT
The case of the complainant is that her father died due to a road traffic accident mother of complainant filed W.C before workmen’s Compensation Tribunal and award was passed. Since complainant was a minor her share deposited in Dena Bank by worksmen’s compensation tribunal under Samrudhi deposit scheme on 16/10/2012.
The interest rate offered is 8.75% per annum and maturity dated on 18/10/2019 with total amount of Rs. 8,40,135/-. The Dena Bank merged with Bank of Baroda (OP) and workmen compensation Tribunal now is the industrial Tribunal.
The complainant filed application on 16/08/2021 before the industrial tribunal to declare major and to handover the FD receipt to her. The same was allowed with a direction to Opposite party close the account and issue DD to the complainant with interest complainant approached Opposite party to release the amount with upto date interest. The opposite party released only Rs. 8,40,135/- being maturity amount as on 18/10/2019. The complainant submitted petition before Opposite party up to date interest but Opposite party released only Rs. 45,014/- treating the same as SB account instead of agreed interest 8.75%.
The complainant submits that it is clear violation of order from Industrial tribunal and which amounts deficiency in service and unfair trade practice Opposite party ought to have given the interest at the rate of 8.75% for the whole period of deposit complainant prays for a direction to opposite party to refund Rs. 1,32,379/- being balance amount with future interest and also compensation for damages and mental agony and cost of litigation.
The opposite party filed written version denying the allegations and case of opposite party was that Fixed Deposit opened on 18/10/2021 for an amount of Rs. 4,58,365/ for a period of seven years. The maturity is on 18/102019 with an amount of Rs. 8,40,135/- subject to TDS. The deposit matured on 18/10/2019 with an amount of Rs. 8,26,845/- less TDS amount deducted Rs.13.29. The amount was sent to complainant through DD on 11/10/2021.
Further states that as per guidelines of RBI, Whenever a term deposit matured and not renewed, the deposit will attract interest rate applicable to saving account or the contracted rate of interest on the matured TD whichever is lower. On 24/03/2022 on amount of Rs. 45014 being interest applicable of savings account from 19/10/2019 to 10/10/2021 was paid to complainant. There is no deficiency in service or unfair trade practice and prayed to dismiss the complaint.
Complainant filed chief affidavit and cross examined as PW1. Ext A1 to A3 documents marked Ext A1 copy of order of Industrial Tribunal, Ext A2 copy of FD receipt, Ext A3 copy of request letter. The opposite party filed documents marked as Ext B1 and examined as Dw1 . RBI circular marked as Ext B1.
Following points arised for consideration
- Whether complainant is entitled for the relief sought in the complaint?
- Whether there is any deficiency in service from opposite party?
- Whether entitled for the relief? If so for what relief?
All the points considered together for convenience
In this case the workmen compensation court deposited the amount in Opposite party bank to safe guard the interest of minor claimant minor can claim the amount only after attaining majority and as and when FD handed over to her.
Though date of maturity of FD is in between as long as FD continuous with the bank and since bank did not send any advance information to minor depositor to withdraw or deposit holder is not entitled to interest on the agreed rate, but at SB rate from maturity, there is deemed mandate of continued renewal of the deposit on the originally agreed rate till withdrawal. Bank is liable to pay interest on agreed rate till withdrawal. The Opposite party bank is liable to pay interest on agreed rate and not an SB rate as is done in this case.
Thus there is deficiency in service since complainant is a minor on the date of deposit and knows about deposit only on attaining majority. So complainant is entitled for the relief sought in the complainant.
In the result complaint is allowed in part directing Opposite party to pay the FD amount with agreed interest of interest at 8.75% even after date of maturity ie 18/10/2019 till date of re-payment made. The Opposite party bank shall pay the difference amount with 8% interest from date of complaint till payment. The Opposite party made payments in part, balance alone is payable after adjusting the pay and already made. And also pay Rs. 5000/- for deficiency in service and Rs. 5000/- cost of the litigation to the complainant within 30 days of the receipt of the order.
Sd/- Sd/-
MEMBER PRESIDENT
Exhibits
A1- Copy of order Industrial Tribunal
A2- Copy of FD receipts
A3- Copy of request letter
B1- RBI Circular
Witness Examined
Pw1- Shreya Shetty
Dw1- Anil Kumar.P.A
Sd/- Sd/-
MEMBER PRESIDENT
Forwarded by Order
Ps/ Assistant Registrar
