Punjab

Moga

CC/16/137

Bachan Singh - Complainant(s)

Versus

The Manager, Punjab and Sind Bank - Opp.Party(s)

Sh. Neel Rattan

18 Jan 2017

ORDER

THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, MOGA.

 

 

                                                                                      CC No. 137 of 2016

                                                                                      Instituted on: 17.08.2016

                                                                                      Decided on: 18.01.2017

 

Bachan Singh aged 70 years son of Waryam Singh, resident of House no.234-A, Baba Isher Singh Nagar, Chaki Wali Gali, District Moga (Punjab)

                                                                                ……… Complainant

 

Versus

1.       The Manager, Punjab & Sind Bank, near Guru Nanak College near Railway Bridge Moga, District Moga- 142001.

 

2.       Zonal Office, Punjab & Sind Bank Faridkot, District Faridkot (Pb.), through Zonal Manager.

 

                                                                           ……….. Opposite Parties

 

 

Complaint U/s 12 of the Consumer Protection Act, 1986.

 

 

Quorum:    Sh. Ajit Aggarwal,  President

                   Smt. Vinod Bala, Member

                   Smt. Bhupinder Kaur, Member

 

Present:       Sh. Neel Rattan, Advocate Cl. for complainant.

                   Sh. Jasvinder Singh, Advocate Cl. for opposite parties.

 

 

ORDER :

(Per Ajit Aggarwal,  President)

 

1.                Complainant has filed the instant complaint under Section 12 of the Consumer Protection Act, 1986 (hereinafter referred to as the "Act") against The Manager, Punjab & Sind Bank, near Guru Nanak College near Railway Bridge Moga, District Moga and others (hereinafter referred to as the opposite parties) directing them to auto renew the FDR's of the complainant, to grant renewed FDR's interest after maturity value of FDR's. Further opposite parties may be directed to pay Rs.50,000/- as compensation and Rs.11,000/- as litigation expenses to the complainant.

2.                Briefly stated the facts of the case are that complainant is having saving account bearing no.08391000001874 with opposite parties at Moga. On 08.10.2013, complainant got issued four FDR's bearing no. 08391000001959, 08391000001960, 08391000001961, 08391000001962 for one year at the interest rate of 9.50%. The FDR's were to be matured on 8.10.2014. Unfortunately, in the year 2014, the complainant got paralyzed attack due to which he lost his memory. After a long treatment complainant re-gained his memory and on his recovery he asked his son to inquire about the FDR's from Punjab and Sind Bank, Moga. On 14.06.2016, the complainant visited opposite party no.1 alongwith his son and inquired about the FDR's. He came to know that after the maturity date i.e. 8.10.2014, the FDR's has not been renewed by the bank for further period. As per banking system, if the FDR is not withdrawal on maturity by the person, then the same is automatically renewed for further period, but the same has not been done in the case of complainant for the reason best known to the opposite parties. The Bank Manager told the complainant that he will get saving account interest only after 8.10.2014 i.e. maturity date of his FDR's. On 14.06.2016, the complainant served upon the complaint-cum- application to the manager Punjab & Sind Bank, asking as to why the FDR's has not been renewed for further period and why he will not get the FDR interest after maturity date of his FDR's. In case the bank did not renew the FDR's automatically then it was the duty of the bank to inform complainant in writing that his FDR's has become matured and in case he do not renew then he will get a saving interest only instead of FDR's interest. But the bank had not served any letter to complainant in this regard. The complainant also served a legal notice upon opposite parties. Although the opposite parties replied to the said notice, but the same was not satisfactory one. The reply does not disclose or mention any document in which the complainant had voluntarily not opted for auto renewal of his above stated FDR's. The opposite parties intentionally concealed all material facts from the complainant to save their skin. By not renewing the FDR's of the complainant on the maturity and by giving simple interest on maturity value of the FDR's, amounts to cheating by the opposite parties. It is a clear cut unfair trade practice on the part of opposite parties. Hence this complaint.

3.                Upon notice, opposite parties appeared through counsel and filed joint written reply taking certain preliminary objections that the present complaint is not maintainable; that the complainant is estopped to file the present complaint by his own act and conduct, as the complainant is concealing material facts from this Forum. Actual facts are that the complainant Bachan Singh s/o Waryam Singh R/o Chakki Wali Gali, Moga having FDR a/c no.14/1959, 14/1960, 14/1961, 14/1962 issuing date 08.10.2013 and maturity date 8.10.2014. The above said FDR's were not renewed, as the complainant had not opted for auto renewal and bank has no mandate for automatic renewal. So, when the complainant approached the bank on 14.06.2016 his FDRs were renewed w.e.f 14.06.2016 to 14.06.2017 after paying overdue interest @ 4 % as applicable as per bank norms. As per HO P&D Cirular no.2946 dated 07.01.2014 on the deposit policy of the bank following amendments has been made in deposit policy of the bank in respect of payment of interest on overdue FDRs. As per Circular no.3164 dated 06.04.2015 Renewal of term deposit after 14 days of Maturity;

Where overdue period i.e. from the date of maturity till the date of renewal (both days inclusive) exceeds 14 days, such overdue term deposits shall be renewed with effect from the date of presentation for a minimum period of 15 days or more as specified by the depositor beyond the date of presentation and interest for the overdue shall be paid on the amount being renewed (equal to or less than the maturity value of the original deposit) at the saving Bank rate of interest as applicable from time to time, presently being 4% on the methodology as applicable to saving bank account from time to time.

                   The complainant himself was at fault and he had not approached the Bank for renewal. From the above, it is very clear that the complainant has filed a false and frivolous complaint, which is liable to be dismissed on this score. On merits, all other allegations made in the complaint have been denied and a prayer for dismissal of the complaint with costs has been made.

4.                In order to prove the case, complainant tendered in evidence his duly sworn affidavit Ex. C-1 alongwith copies of documents Ex.C-2 to Ex.C-9 and closed the evidence. 

5.                On the other hand, opposite parties tendered in evidence duly sworn affidavit of Smt. Pallavi Grover, Branch Manager, Punjab & Sind Bank, Moga Ex.OPs-1 and copies of documents Ex.OPs-2 to Ex.OPs-11 and closed the evidence.

6.                We have heard the ld. Counsel for the parties and have very carefully gone through record placed on file.

7.                The case of the complainant is that he deposited certain amount with opposite parties in the shape of four FDRs on 08.10.2013, which was to be matured on 08.10.2014. In the year 2014, the complainant got paralysed attack and after a long treatment, he regained from his ailment and on 14.06.2016, he visited the opposite parties and he came to know that his FDRs were not renewed after 08.10.2014 and now they are only given interest at the rate of saving bank account after 08.10.2014, whereas he is entitled for interest at the rate of FDRs on the overdue period. Copies of FDRs are Ex.C-6 to Ex.C-9. On the other hand, opposite parties admitted that the complainant deposited the amount with them in the shape of FDRs on 08.10.2013, which was to be matured on 08.10.2014. But he did not get renew his FDRs after this period and at the time of opening of FDR account he did not opt for auto renewal of FDRs. So, as per bank norms if the person did not renew his FDR within 14 days from the date of maturity then in that case he is only entitled for the interest on overdue period at the rate of saving bank account. The copy of relevant circular of the bank is Ex.OPs-2. The complainant had not opted for auto renewal of his FDRs and did not approach to the bank within grace period of 14 days for renewal of his FDRs. So, he is only entitled for the interest at the rate applicable for saving bank account.

8.                Admittedly, the complainant had not opted for auto renewal for his FDRs at the time of opening of FDR's account. So, he cannot claim interest on the over due period which is applicable for FDRs. The plea of the complainant for not approaching to opposite parties for renewal of his FDRs on time is that he got paralysed attack in the year 2014 and he was unable to move and only in the year 2016 after a long treatment, he regained from his disease and approached to opposite parties regarding renewal of his FDRs. From the perusal of FDRs in dispute, copies of which are Ex.C-6 to Ex.C-9, it reveals that these FDRs are not in the individual name of the complainant Bachan Singh, rather these are joint accounts of complainant Bachan Singh alongwith his son Sarabjeet Singh and mode of operation is either or survivor, meaning thereby that if one account holder is unable to operate the account in that case other account holder can operate the account and can get renewed the FDRs. Even if we admit the version of the complainant that due to his health condition he was unable to approach the opposite parties for the renewal of his FDRs then in that case also the bank has no obligation to pay excess rate of interest applicable for FDRs on the over due period. The complainant was failed to approach opposite parties for the renewal of FDRs.

9.                Sequel to the above discussion, we found no merit in the present complaint and the same is hereby dismissed. Parties are left to bear their own costs. Copy of the order be supplied to the parties, free of costs. File be consigned to record room.

Announced in Open Forum.

Dated: 18.01.2017.

 

                               (Bhupinder Kaur)                 (Vinod Bala)         (Ajit Aggarwal)

                                          Member                           Member                President