Tamil Nadu

South Chennai

142/2010

S.R.Charles B.reddy - Complainant(s)

Versus

The Branch Manager,State Bank of india - Opp.Party(s)

M/s.J.Rajendraprasad

08 May 2019

ORDER

                                                                        Date of Filing  : 30.03.2010

                                                                          Date of Order : 08.05.2019

                                                                                  

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (SOUTH)

@ 2^ND Floor, T.N.P.S.C. Road, V.O.C. Nagar, Park Town, Chennai – 3.

 

PRESENT: THIRU. M. MONY, B.Sc., L.L.B, M.L.                    : PRESIDENT

TR. R. BASKARKUMARAVEL, B.Sc., L.L.M., BPT., PGDCLP.  : MEMBER

 

C.C. No.142/2010

DATED THIS WEDNESDAY THE 08^TH DAY OF MAY 2019

                                 

Mr. S.R. Charles. B. Reddy,

S/o. Mr. Royappa Reddy,

9004 – Pecan Tree,

Dr. Baton Rouge,

LA 70810, USA,

At Chennai:

No.93, Rangarajapuram Main Road,

Kodambakkam,

Chennai – 600 024.                                                        .. Complainant.                                                  

     ..Versus..

1. The Branch Manager,

State Bank of India,

Chintadripet Branch,

Chennai – 600 002.

 

3. The General Manager,

State Bank of India,

Circle Top House,

College Road,

Chennai – 600 006.                                             ..  Opposite parties.

 

Counsel for the complainant                  : M/s. J. Rajendra Prasad & 

                                                                  another

Counsel for the opposite parties 1 and  2 : M/s. K. Kumaran & others

 

ORDER

THIRU. M. MONY, PRESIDENT

       This complaint has been filed by the complainant against the opposite parties under section 12 of the Consumer Protection Act, 1986 prays to pay a sum of Rs.4,00,000/- towards compensation for unfair trade practices, deficiency in service etc and to pay a sum of Rs.1,50,000/- towards the loss of one month salary of the complainant and stay expenses of Rs.20,000/-  with cost to the complainant.

1.    The averments of the complaint in brief are as follows:-

The complainant submits that he is having a dual citizenship in USA and India.  He is employed as United States as Shift Supervisor and Auditor drawing salary of US 3000.00 equalent to Rs.1,50,000/-.  The complainant submits that he and his son Arun Antony Reddy are holding on Joint Savings Bank Account with the 1^st opposite party vide Savings Bank Account No.1898, Savings Bank Account No.0119005510 and latest Account Number is 9444953766.  The complainant submits that he is holding Life Insurance Policy with Life Insurance Corporation of India vide policy No.710257774 for an assured sum of Rs.10,000/-.   It will mature in the year 2014 and for which, the premium shall be paid quarterly.  The complainant’s wife M/s. Amrutham Reddy is also having Life Insurance Policy No.712092126 for which, the premium has to be paid annually.   The complainant submits that he has given due instruction to the 1^st opposite party by letter dated: 06.03.2000  and 28.02.2009 requested the opposite parties to pay the premium amount directly to the Life Insurance Corporation in order to keep the policy alive on the customer service of the bank with service charges.  The opposite party has also deducted some premiums from the bank account.  Thereafter, defaulted in deduction and payment of premium.  Thereby, the policy was lapsed.  When the complainant came to India, on verification, the quarterly premium of Rs.116.40 for the policy No.710257774 has not been deducted from the account and credited to the policy.  Thereby, it was lapsed.  Hence, the complainant visited the branch office of the 1^st opposite party who has not replied properly and humiliated which caused great mental agony.   As a Nationalized Bank, it is duty bound to extend the customer service even after accepting letters dated:28.02.2009 & 06.03.2000 defaulted to extend the service.   The 1^st opposite party again and again committed the same default.  Thereby, the complainant had undergone second medical fitness and payment of premium with interest for the revival of policy for which, the complainant stayed in Chennai for one month.  Thereby, a loss of one month salary of Rs.1,50,000/- to him due to negligent act of the opposite parties.   The act of the opposite parties amount to deficiency in service and unfair trade practice which caused great mental agony.   Hence, the complaint is filed.

2.      The brief averments in the written version filed by opposite parties 1 & 2 is as follows:

The opposite parties 1 & 2 specifically deny each and every allegations made in the complaint and put the complainant to strict proof of the same.    The opposite parties 1 & 2 state that the complainant is having a Savings Bank Account No.10063495870 with the Chintadripet Branch of the opposite party.  As per the instructions given  by the complainant, the opposite party periodically remitted the LIC premium for the policy Nos.710257774 & 712092126.  There has not been any default on the part of the opposite parties in remitting the insurance premium when sufficient fund available in the account.  The allegation of the complainant that as per the status report dated:09.03.2010, the opposite party did not remit the insurance premium is false.  The renewal premium receipts obtained by the opposite party from the Life Insurance Corporation of India coupled with entries in the statement of account of the complainant with the opposite party would clearly show that upto date payment of the insurance premium has been made by the opposite party for the relevant insurance policies taken by the complainant.   The opposite parties have not committed any deficiency in service or negligence in rendering service or unfair trade practice as alleged.   Hence, the complaint is liable to be dismissed.

3.     To prove the averments in the complaint, the complainant has filed proof affidavit as his evidence and documents Ex.A1 to Ex.A18 are marked.  Proof affidavit of the opposite parties 1 & 2 is filed and documents Ex.B1 to Ex.B3 are marked on the side of the opposite parties 1 & 2. 

4.      The points for consideration is:-

1. Whether the complainant is entitled to a sum of Rs.4,00,000/- towards compensation for unfair trade practice, deficiency in service as prayed for?
2. Whether the complainant is entitled to a sum of Rs.1,50,000/- towards loss of one month salary and stay expenses of Rs.20,000/- with cost as prayed for?

5.      On point:-

Both parties filed their respective written arguments.  Heard their Counsels also.  The complainant pleaded and contended that he is having a dual citizenship in USA and India.  He is employed in United States as Shift Supervisor and Auditor drawing salary of USD 3000.00 equalent to Rs.1,50,000/-.  Further the contention of the complainant is that he and his son Arun Antony Reddy are holding Joint Savings Bank Account with the 1^st opposite party vide Savings Bank Account No.1898, Savings Bank Account No.0119005510 and latest Account Number is 9444953766.  But the complainant has not produced any record.  Further the contention of the complainant is that he is holding Life Insurance Policy with Life Insurance Corporation of India vide policy No.710257774 for an assured sum of Rs.10,000/-.   It will mature in the year 2014 and for which, the premium shall be paid quarterly.  Ex.A1 is the copy of policy. The complainant’s wife M/s. Amrutham Reddy is also having Life Insurance Policy No.712092126 for which, the premium has to be paid annually.  

6.     Further the contention of the complainant is that he has given due instructions to the 1^st opposite party by letter dated:06.03.2000 and 28.02.2009 as per Ex.A2 & Ex.A6 requesting the opposite parties to pay the premium amount directly to the Life Insurance Corporation in order to keep the policy alive on the customer service of the bank with service charges.  The opposite party has also deducted some premiums from the bank account.  Thereafter, defaulted in deducting and making payment of premium.  Thereby, the policy was lapsed.  When the complainant came to India and on verification, the quarterly premium of Rs.116.40 for the policy No.710257774 has not been deducted from the account and credited to the policy.  Thereby, it was lapsed.  Hence, the complainant visited the branch office of the 1^st opposite party who has not replied properly and humiliated which caused great mental agony.   As a Nationalized Bank, it is duty bound to extend the customer service even after accepting Ex.A2 & Ex.A6, letters and complied for some time and thereafter, defaulting to extend the service amounts to unfair trade practice and deficiency in service.   The 1^st opposite party again and again committed the same default.  Thereby, the complainant was constrained to undergo second medical fitness and payment of premium with interest for the revival of policy as per Ex.A5 for which, the complainant was constrained to stay in Chennai for one month.  Thereby, a loss of one month salary of Rs.1,50,000/- to him due to negligent act of the opposite parties.  But there is no record.  Hence, the complainant is claiming a sum of Rs.4,00,000/- towards compensation for deficiency in service.   But the complainant has not proved the quantum of compensation in the manner known to law. 

7.     The learned Counsel for the opposite parties would contend that the complainant is having a Savings Bank Account No.10063495870 with the Chintadripet Branch of the opposite party.  As per the instructions given  by the complainant, the opposite party periodically remitted the LIC premium for the policy Nos.710257774 & 712092126.  There has not been any default on the part of the opposite parties in remitting the insurance premium when sufficient fund available in the account.  The allegation of the complainant that as per the status report as per Ex.A3 dated:09.03.2010, the opposite party did not remit the insurance premium is false.  The renewal premium receipt dated:08.05.2010 as per Ex.B1 and 21.07.2010 as per Ex.B2 coupled with entries in the statement of account for the period 01.01.2010 to 28.08.2010 as per Ex.B3 clearly proves the date of payment of insurance premium.  But on a careful perusal of records, as per Ex.A5, it is very clear that for the policy No.710054293, the premium has not been paid since 12/2004, the latest due is 6/2006 thereby, the policy was lapsed.  Equally, for the Policy No.710257774 the premium not paid since 04/2003, the latest due is 07/2006 proves that the opposite party bank evenafter receipt of Ex.A2 & Ex.A6, has not remitted the premiums properly after deducting the amount from the complainant’s Savings Bank account.  Further, it is also very clear from the statement of accounts that the complainant is having sufficient amount in his account is also proved from Ex.A9 & Ex.A10 that substantial amount deposited in the bank to pay the policy.  Considering the facts and circumstances of the case, this Forum is of the considered view that the opposite parties 1 & 2 are jointly and severally shall pay a sum of Rs.20,000/- towards compensation for deficiency in service with cost of Rs.5,000/- to the complainant.

In the result, this complaint is allowed in part.   The opposite parties 1 & 2 are jointly and severally liable to pay a sum of Rs.20,000/- (Rupees Twenty thousand only) towards compensation for deficiency in service with cost of Rs.5,000/- (Rupees Five thousand only) to the complainant.  

The above  amounts shall be payable  within six weeks from the date of receipt of the copy of this order, failing which, the said amounts shall carry interest at the rate of 9% p.a. to till the date of payment.

Dictated  by the President to the Steno-typist, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 08^th day of May 2019. 

 

MEMBER                                                                                PRESIDENT

 

COMPLAINANT SIDE DOCUMENTS:-

Ex.A1		Copy of LIC Insurance Policy issued in favour of the complainant
Ex.A2	28.02.2009	Copy of letter given to the 1st opposite party
Ex.A3	09.03.2010	Copy of Status Report of the policy No.71025774
Ex.A4	06.07.2004	Copy of letter given by the 1st opposite party
Ex.A5	15.07.2006	Copy of revival of LIC Policies-Letter from the 1st opposite party to complainant agent Joseph Dhanaraj
Ex.A6	06.03.2000	Copy of letter from the complainant to the 1st opposite party request to pay the LIC Premium
Ex.A7	12.03.2001	Copy of the letter from the complainant to 1st opposite party
Ex.A8	20.12.2003	Copy of the letter from the complainant to 1st opposite party
Ex.A9	08.12.2004	Copy of the letter from the complainant to 1st opposite party
Ex.A10	05.10.2005	Copy of the letter from the complainant to 1st opposite party
Ex.A11	12.02.2002	Copy of the letter from the complainant to 1st opposite party
Ex.A12	03.07.2006	Copy of complaint through Helpline web site
Ex.A13		Copy of Citizen of USA (Passport)
Ex.A14		Copy of Overseas citizenship of India-Certificate of Registration
Ex.A15	20.06.2006	Copy of personal complaint against the 1st opposite party
Ex.A16	05.09.2006	Copy of legal notice to the 1st opposite party
Ex.A17		Copy of acknowledgment (2 nos.)
Ex.A18		Copy of certificate complaint monthly salary (Fax transmission)

 

OPPOSITE PARTIES 1 & 2 SIDE DOCUMENTS:-

Ex.B1	08.05.2010	Copy of renewal premium receipt for the quarterly instalments from January 2010 to June 2010
Ex.B2	21.07.2010	Copy of renewal premium receipt for the quarterly instalments from July 2010 to September 2010
Ex.B3		Copy of Statement of Account for Savings Bank Account No.10063495870 for the period from 01.01.2010 to 28.08.2010

 

 

 

MEMBER                                                                                PRESIDENT