BEFORE THE DISTRICT FORUM: KURNOOL

Present: Sri. T.Sundara Ramaiah, B.Com B.L., President

And

Sri. M.Krishna Reddy, M.Sc., M.Phil., Male Member

And

         Smt. S.Nazeerunnisa, B.A., B.L., Lady Member

Thursday the 12^th day of May, 2011

CC.No 84/2010

BETWEEN:

Smt. Vadde Anjanamma, W/o. Late D.Ramudu,

R/o. B.Thandrapadu Village, Kurnool Mandal and District.                             

…Complainant

                                         -Vs-

The Canara Bank, Represented by its Branch Manager,

Park Road, Near U-Con Plaza, Kurnool.                                             

…Opposite Party

This complaint is coming on this day for orders in the presence of Sri D.Yella Reddy, Advocate for complainant and Sri T.Siva Kumar, Advocate for opposite party for upon perusing the material papers on record, the Forum made the following.

  ORDER

(As per Smt. S.Nazeerunnisa, Lady Member)

                                           CC. No. 84/2010

1.     This complaint is filed under section 11 and 12 of C. P. Act, 1986 praying:-

(a)    To direct the opposite party to pay Rs.80,000/-  with interest at 24% per annum from the date of maturity payable under the fixed deposit amount of the complainant  kept as surety to the loan amount of the M.Bheemudu.           

(b)    To award a sum of Rs.50,000/- towards mental agony suffered by the complainant;    

1. To award future interest;

1. To award costs of the complaint;

And

(e)    To award such other relief or reliefs as the Hon’ble Court feel deem fit and proper in the circumstance of the case.

2.     The case of the complainant in brief is as under:- The complainant made a fixed deposit of 40,000/- in the opposite party Bank for a period of six years during the year 1995 or 1996.  Sri Bheemudu son-in-law in the complainant was unemployed.  The said Sri Bheemudu approached the opposite party Bank through B.C. Corporation, Kurnool for providing loan for the purchase of Auto.  The B.C. Corporation, Kurnool sanctioned a sum of Rs.10,000/- as margin money.  Bheemudu paid Rs.13,000/- to the opposite party Bank.  The opposite party Bank sanctioned and provided a loan of Rs.34,044/-.  It includes future interest.  After obtaining a loan the complainant son-in-law purchased the Auto bearing No.AP21 T 8390.  At the time of sanctioning of the loan to Bheemudu the bank insisted to produce one surety for the payment of loan amount due to the opposite party Bank.  The complainant stood as a surety and gave a Fixed Deposit Bond to the opposite party Bank.  The original borrower of the loan paid the entire amount due to the opposite party Bank.  In total the original borrower paid Rs.37,195/- to the opposite party Bank.  No amount is due to the opposite party Bank by M.Bheemudu.  After discharge of entire loan amount by Bheemudu, the complainant approached the opposite party Bank to return the Fixed Deposit Bond.  Finally on                 18-04-2006 the complainant approached the opposite party Bank and demanded to return the Fixed Deposit Bond.  The opposite party Bank has not returned the Fixed Deposit Bond to the complainant.  The complainant got issued a demand notice on 23-01-2007 demanding the opposite party to pay the maturity amount due under the Fixed Deposit Bond.  The opposite party received the said notice and did not give any reply.  Again on 19-02-2008 the complainant issued another demand notice.  The opposite party gave a reply notice dated                  15-04-20008 with false allegation stating that part of the maturity amount was adjusted to the loan amount and balance amount of Rs.9,012/- was sent to the complainant.  The complainant is entitled to the entire maturity amount, as the original borrower has discharged the entire loan due to Bank.  There is deficiency of service on the part of the opposite party Bank.   Hence the complaint.

3.     Opposite party Bank filed written version stating that the complaint is not maintainable.  Bheemudu son-in-law of the complainant availed loan of Rs.40,000/- on 24-11-1998 for purchasing an auto.  The amount was repayable in 50 monthly installments at Ra.800/- per month plus interest.  The complainant signed the promissory note executed by Bheemudu as a “Guarantor”.  The complainant executed a Guarantee letter in favour of bank.  In the said letter it is mentioned that the bank is authorized to appropriate the balance in the deposit account for due payment of the outstanding balance of the loan amount including interests and charges.   The original borrower has not paid entire amount due to the bank.  The loan has become non-performing asset.  The bank issued reminders to the complainant to clear the loan.  The complainant did not respond for the demand notices got issued by the bank.  Finally the opposite party bank on 17-01-2004 adjusted the deposit of the complainant and surplus proceeds of Rs.9,012/- was sent to the complainant  by way of D.D. on 28-01-2004.  After six years eight months from 28-01-2004 the complainant approached the forum with malafide intention.   The complaint is barred by limitation.  There is no deficiency of service on the part of opposite party.   The complaint is liable to be dismissed.

4.     On behalf of the complainant Ex.A1 to A33 are marked and the sworn affidavit of the complainant is filed.  PW1 is examined and Ex.X1 is marked.  On behalf of the opposite party Ex.B1 to B7 are marked and the sworn affidavit of opposite party is filed.

5.     Both sides filed written arguments.

6.     The points that arise for consideration are:

1.    Whether the complaint is barred by time?

1. Whether there is deficiency of service on the part of the opposite party?

1. Whether the complainant is entitled to the reliefs as prayed for?

        (iv)     To what relief?

7.     Point No.1:- The complainant filed the present complaint praying to direct the opposite party bank to pay maturity amount of Rs.80,000/- with interest under the fixed deposit amount.  The complaint was filed on 08-04-2010.  Admittedly Bheemudu son-in-law of the complainant took loan from the opposite party bank on             24-11-1998 to purchase auto.  The complainant stood as a guarantor.  The complainant  as  well as her son-in-law executed promissory note dated 24-11-1998 in favour of the bank for Rs.40,000/-.  The same is evidence by Ex.B1 promissory note executed by them.  Ex.B4 is the guarantee letter executed by the complainant in favour of the bank.  She also executed Ex.B5.  It is very clear that the complainant pledge her F.D. with the bank as a security for the repayment of the loan by her son-in-law Bheemudu.  It is the copy of bank that Bheemudu committed default in pay of the amount and that the maturity value of deposit was adjusted towards the amount due by Bheemudu. The bank filed Ex.B6 notice dated 01-01-2004 where under the complainant was demanded to clear off the loan amount of Rs.27,510/- and interest of Rs.14,200/-.  As the complainant did not clear off the loan amount the bank adjusted the maturity value of deposit and sent the balance amount of Rs.9,012/- to the complainant on 28-01-2004.  The complainant received the original of Ex.B7 on 10-02-2004.  The postal acknowledgement is dated 10-02-2004.  The complainant did not choose to file the complaint within two years from the date of            Ex.B7 dated 10-02-2004.

8.     It is the case of the opposite party that the complaint is barred by time.  The period of limitation to file the complaint before the District Forum is two years from the date on which the cause of action has arisen.  In the present case the cause of action has arisen in the year 2004 when the opposite party bank closed the loan account and sent the balance of maturity amount of Rs.9,012/- to the complainant. It is submitted by the learned counsel appearing  for the complainant that opposite party gave a reply notices Ex.A33 stating that the bank adjusted deposited amount to the loan account of Bheemudu, complainant son-in-law and surplus proceeds  of Rs.9,012/- was sent to the complainant.   Mere issuance of notices Ex.A28 and A30 do not give fresh cause of action.  The opposite party bank under Ex.B7 informed the complainant that the loan account of her son-in-law was closed by adjusting the maturity amount of the deposit.  It is also mentioned Ex.B7 that the balance amount of Rs.9,012/- was sent to the complainant by pay order.  The complainant received the said registered letter along with pay order on 10-02-2004 as evidence through a postal acknowledgement attached to Ex.B7.  The cause of action has commenced in the year 2004 when the bank informed the complainant that the maturity amount of her deposit was adjusted towards the loan account of her son-in-law.  The complainant leisurely filed the present complaint on 08-04-2010 after lapse of two years from the date on which the cause of action has arisen. The complaint is barred by time.

9.      POINTS 2 and 3:- Admittedly the complainant son-in-law Bheemudu obtained loan from the opposite party bank on 24-11-1998.  The complainant stood as a guarantor and executed a promissory note along with Bheemudu in favour of the bank.  It is the case of the complainant that her son-in-law took loan of Rs.34,044/- from the opposite party bank.  As seen from the demand promissory note and guarantee letter executed by the complainant it is very clear that the complainant son-in-law took a loan of Rs.40,000/- from the opposite party bank.  Ex.B3 is the deed of hypothecation executed by Bheemudu son-in-law of the complainant.  As seen from Ex.B3 it is very clear that Bheemudu agreed to repay the loan in 50 installments at the rate of Rs.800/- per month plus interest.  The complainant filed Exs.A1 to A27 showing the payments made by Bheemudu to the bank.  It is not the case of the opposite party bank that the payments mentioned in Ex.A1 to A27 were not received by it.  According to the opposite party bank Bheemudu committed default in payment of the installments.  As the principal borrower committed default, the bank issued a demand notice to the complainant who is a guarantor demanding her to clear off the loan amount of Rs.27,510/- Ex.B6 is the said  notice dated 01-01-2004.  As the complainant did not clear off loan the bank adjusted the proceeds of the F.D.R towards the loan account of Bheemudu and sent the balance amount to the complainant through pay order. The contention of the complainant that she deposited an amount of Rs.40,000/- for six years in the year 1995 or 1996 is not supported by any evidence.  Ex.B5 letter of pledge dated 24-11-1998 executed by the complainant reveals that she deposited an amount of Rs.20,000/- in F.D.R on 19-04-1995 under Deposit Receipt Number K.D.R. 76/1995.  As entire maturity amount of the F.D.R pledged with the bank was adjusted towards the loan account of Bhemudu, the complainant who stood as a guarantor for the loan taken by Bheemudu is not entitled to any amount from the opposite party bank.  No deficiency of service is found on the part of the opposite party bank.  The complainant is not entitled to the reliefs as prayed for.

9.     In the result the complaint is dismissed without cost. 

        Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the day 12^th of May, 2011.

          Sd/-                                    Sd/-                                   Sd/-

MALE MEMBER                      PRESIDENT                   LADY MEMBER

       APPENDIX OF EVIDENCE

Witnesses Examined

For the complainant : PW1                      For the opposite party: Nill

List of exhibits marked for the complainant:-

Ex.A1                Counter foil of Canara Bank for Rs.1000/-.

Ex.A2.       Counter foil of Canara Bank for Rs.1000/-,

Dated 10-03-1998.

Ex.A3                Counter foil of Canara Bank for Rs.1895/-,

Dated 06-07-1998.

Ex.A4                Counter foil of Canara Bank for Rs.1100/-,

Dated 26-010-1998.

Ex.A5                Counter foil of Canara Bank for Rs.100/-,

Dated 11-11-1998.

Ex.A6                Counter foil of Canara Bank for Rs.2000/-,

Dated 01-12-1998.

Ex.A7                Counter foil of Canara Bank for Rs.1100/-,

Dated 11-01-1999.

Ex.A8                Counter foil of Canara Bank for Rs.1000/-,

Dated 16-02-1999.

Ex.A9                Counter foil of Canara Bank for Rs.1000/-,

Dated 16-02-1999.

Ex.A10       Counter foil of Canara Bank for Rs.1200/-,

Dated 12-05-1999.

Ex.A11       Counter foil of Canara Bank for Rs.1200/-,

Dated 12-05-1999.

Ex.A12       Counter foil of Canara Bank for Rs.1100/-,

Dated 13-12-1999.

Ex.A13       Counter foil of Canara Bank for Rs.1100/-,

Dated 22-01-2000.

Ex.A14       Counter foil of Canara Bank for Rs.1100/-,

Dated 03-03-2000.

Ex.A15       Counter foil of Canara Bank for Rs.1200/-,

Dared 11-04-2000.

Ex.A16       Counter foil of Canara Bank for Rs.1200/-,

Dated 03-07-2000.

Ex.A17       Counter foil of Canara Bank for Rs.1200/-,

Dated 07-08-2000.

Ex.A18       Counter foil of Canara Bank for Rs.1000/-,

Dated 24-08-2000.

Ex.A19       Counter foil of Canara Bank for Rs.1200/-,

Dated 16-09-2000.

Ex.A20       Counter foil of Canara Bank for Rs.1200/-,

Dated 23-10-2000.

Ex.A21       Counter foil of Canara Bank for Rs.1200/-,

Dated 25-11-2000.

Ex.A22       Counter foil of Canara Bank for Rs.1200/-,

Dated 16-01-2001.

Ex.A23       Counter foil of Canara Bank for Rs.1200/-,

Dated 20-02-2001.

Ex.A24       Counter foil of Canara Bank for Rs.1100/-,

Dated 24-09-2001.

Ex.A25       Counter foil of Canara Bank for Rs.1100/-,

Dated 20-02-2002.

Ex.A26       Counter foil of Canara Bank for Rs.4000/-,

Dated 11-07-2002.

Ex.A27       Counter foil of Canara Bank for Rs.4000/-,

Dated 18-12-2002.

Ex.A28       Demand notice issued by the complainant to the

opposite party  dated 23-01-2007.

Ex.A29       Postal receipt No.3683, dated 23.01.2007.

Ex.A30       Demand notice issued by the complainant to the

opposite party dated 19-02-2008.

Ex.A31       Postal Acknowledgement.

Ex.A32       Reply notice issued by the opposite party

Dated 24-03-2008.

Ex.A33       Reply notice issued by the opposite party

Dated 15-04-2008.

Ex.X1        Photo copy of loan ledger No.157 dated 31-03-1998.

PW1         Deposition of K.Nagamuni dated 14-12-2010.

List of exhibits marked for the opposite party:-

Ex.B1        Specimen signature card sanction memorandum loan application along with pronote cum take delivery letter,

Dated 24-11-1998.

Ex.B2                Guarantee covering letter executed by complainant,

Dated 24-11-1998.

Ex.B3                Agreement deed of hypothecation dated 11-11-1998.

Ex.B4                Guarantee letter dated 24-11-1998.

Ex.B5        Letter of pledge-term deposits executed by complainant, Dated 24-11-1998.

Ex.B6                Notice of opposite party to the complainant,

Dated 01-01-2004 along with postal Acknowledgement.

Ex.B7        Notice of the opposite party to complainant with regarding to adjustment and sending surplus proceeds,

Dated 28-01-2004 along with postal Acknowledgement.

        Sd/-                                    Sd/-                                 Sd/-

MALE MEMBER                      PRESIDENT                 LADY MEMBER

// Certified free copy communicated under Rule 4 (10) of the

A.P.S.C.D.R.C. Rules, 1987//

Copy to:-

Complainant and Opposite parties  :

Copy was made ready on             :

Copy was dispatched on               :