Karnataka

Gadag

CC/14/02

Pyara-ali K Bhavanagari - Complainant(s)

Versus

The Manager, Corporation Bank - Opp.Party(s)

P.S.Dharmayat

03 Jan 2014

ORDER

JUDGEMENT DELIVERED BY SRI.B.DURGAPPA, PRESIDENT:

This complaint has been filed under section 12 (a) of Consumer Protection Act, 1986 against the Respondent directing it to pay the F.D. balance amount of Rs.43,064/- deposited in Corporation Bank, Gadag with interest at 18% per annum from the date of Complaint till the date of payment and such other reliefs deemed fit under the circumstances of the case, alleging deficiency in service.

 

2.    The brief facts leading to this Complaint are that the Complainant deposited a sum of Rs.7,67,712/- on 04.05.2002 in F.D. Scheme for a period of 10 years i.e. to be matured on 04.05.2012. The Respondent-Bank agreed to pay interest at 8.5% p.a. in a sum of Rs.17,80,250/- and issued a F.D. Receipt produced along with Complaint. The Complainant submitted the original F.D. Receipt to the Respondent-Bank requesting to pay the matured amount as agreed with interest at 8.5% p.a. The Respondent-Bank surprisingly paid only sum of Rs.17,37,186/- instead of paying Rs.17,80,250/-. Though the Complainant enquired with the Respondent-Bank for the less payment of Rs.43,064/- with gave an evasive reply and ascertain that Complainant is entitled to get only Rs.17,37,186/-. Despite Complainant requesting to pay the balance amount several times, it vent-in-vain. Ultimately, the Complainant got issued legal notice dated: 26.05.2012 it was served upon the Respondent on 28.05.2012, but Bank never replied the same. Hence, this Complaint.   

 

          3.      Notice on the Complaint duly served upon Respondent Sri.S.A.Morbad, Advocate representing it filed counter to the main Complaint  admitting the issuance of F.D. Receipt for having deposited sum of Rs.7,67,712/- on 04.05.2002 to be matured on 04.05.2012. However, it is contended that the Respondent-Bank agree to pay interest only 08% p.a. but by oversight it has been returned in the F.D. receipt as 8.5% p.a. The Complainant is entitled to receive only sum of Rs.17,37,186/- which has already been paid. The Complainant is not entitled to claim sum of Rs.43,064/-. It is also contended in the objection statement that in the name of Complainant’s wife a sum of Rs.7,76,620/- has been deposited in Kshema Nidhi Certificate for a period of three years wherein the date of interest agreed to be paid was 08% p.a. only. The contention that Respondent-Bank is guilty of deficiency of service is false and baseless. With these contentions, it is prayed for to dismiss the Complaint with costs.

 

          4.      The Complainant filed his affidavit in support of his claim and produced attested copy of the Pay Order, Xerox copy of the F.D. Receipt and the copy of the Legal Notice with postal acknowledgement. The Respondent-Bank filed the affidavit of the Senior Manager and produced copy of the F.D. Receipt issued in the name of wife of Complainant. 

          Heard the arguments and perused the documents. The following points that arise for our consideration are; 

1.	Whether the complainant proves the deficiency in service on the part of Respondent?
2.	To what relief the parties entitled?

 

Our findings to the Point No.1 in the affirmative, Point No.2 as per the final Order for the following: 

                          R E A S O N S

    5.  POINT NO.1:  At the outset, it is not in dispute that Complainant deposited sum of Rs.7,67,712/- on 04.05.2002 to be matured on 04.05.2012. The rate of interest agreed to be paid at 8.5% p.a. which is clearly mentioned in the F.D. Receipt produced before the Forum. As on the date of maturity, the Respondent-Bank is agreed to pay in a sum of Rs.17,80,250/- which is also clearly mentioned in the F.D. Receipt itself. As per the Pay Order, copy produced before the Forum makes it clear that the Respondent bank paid only sum of Rs.17,37,186/-. Therefore, it is forthcoming undoubtedly that the Respondent-Bank has not paid balance sum of Rs.40,064/- as agreed. The Complainant is legally entitled to receive the balance sum of Rs.40,064/-. However, the Respondent-Bank paid the maturity amount calculating with interest at 08% p.a. only which is against the Terms and Conditions agreed upon by the parties. The Respondent-Bank itself while issuing F.D. receipt in the name of Complainant categorically mentioned that rate of interest agreed to be paid at 8.5% p.a. But surprisingly the Respondent-Bank in contrary to the Terms and Conditions of payment less paid sum of Rs.40,064/-. It is pertinent to state here that the Complainant after receiving sum of Rs.17,37,186/- not only approached the Respondent-Bank several times requesting to pay the balance but also got issued a legal notice dated: 26.05.2012 which was duly served, but neither replied it, nor the balance amount has been paid.

     6.      The Respondent-Bank in the instant case set up a defence contending that in the name of wife of Complainant Rs.7,76,620/- has been deposited in Kshema Nidhi Certificate on 15.07.1999 to be matured on 15.07.2002. Ofcourse in the said Certificate on 17.07.2002 which was renewed and rate of interest mentioned is 08% p.a. Merely because in the renewed Certificate, the rate of interest agreed to be paid at 08% p.a. in the year 2002 has not relevancy to the Certificate issued in the name of Complainant. It is quite natural that as per the guidelines of R.B.I. the rate of interest goes on changing. The Respondent-Bank in the instant case set up a defence that by oversight while issuing F.D. Receipt in the name of Complainant the rate of interest has been wrongly mentioned at 8.5% p.a. This contention cannot be accepted at all. Absolutely there is no convincing evidence placed on record to show that the rate of interest at 8.5% p.a. has been wrongly mentioned, merely because in F.D. Certificate of wife of Complainant mentioned at 08% p.a. in the year 2002 while renewing it cannot be equated with the Certificate in question issued in the name of Complainant to be taken interest at 08% p.a. only. The contention of the Respondent that oversight rate of interest has been mentioned at 8.5% p.a. wrongly cannot be accepted at all. Viewed from any angle, we do not see any legal evidence on the side of the Respondent that F.D. Receipt in question rate of interest has been wrongly mentioned at 8.5% p.a. We do not see any inconsistency in claiming the balance of Rs.43,064/- in view of Complainant producing the copy of the original F.D. Receipt, copy of the legal notice etc. The only conclusion that arises is that the Respondent-Bank with an intention to make unlawful gain taken-up false defence of mentioning the interest rate in the F.D. Receipt. Hence, for all these reasons, we hold that the Respondent-Bank is guilty of deficiency in service. Accordingly, we answer the Point No.1 in the affirmative.

     7.  POINT NO.2:  The Respondent-Bank in the instant case though agreed to pay interest at 8.5% p.a. but in contrary to the Terms and Conditions only paid interest at 08% p.a. Despite service of legal notice, not only failed to pay the balance amount, but also not replied the legal notice. Therefore having regard to the facts and circumstances of this case, we award sum of Rs.4,000/- towards mental agony and physical inconvenience. Further, we also award sum of Rs.3,000/- towards litigation expenses. In the result, we proceed to pass the following:

//ORDER//

 The complaint is allowed in part;

The Respondent-Bank is directed to pay sum of Rs.43,064/- (Rupees forty-three thousand sixty four) with interest at 10% p.a. from the date of Complaint till the date of payment within two months from the date of this Order.

 

2.      Further, Respondent is also directed to pay compensation of Rs.4,000/- (Rupees four thousand) and cost of Rs.3,000/- (Rupees three thousand) within two months from the date of this order, failing which liable to pay the interest at 10% p.a. till the date of payment. 

 

 (Dictated to the Stenographer, transcribed by him, corrected and then pronounced by me in the Open Court 26^th day of March, 2014)

 

 

Member

President