Complaint filed on: 07/02/2023

                                                      Disposed on: 11/03/2024

BEFORE THE DISTRICT CONSUMER DISPUTES

REDRESSAL COMMISSION, TUMAKURU

DATED THIS THE  11^th DAY OF MARCH 2024

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SMT.G.T.VIJAYALAKSHMI, B.Com., LLM., PRESIDENT

SRI.KUMARA.N, B.Sc. (Agri), LL.B., MBA., MEMBER

SMT.NIVEDITA RAVISH, B.A., LL.B.(Spl)., LADY MEMBER

CONSUMER COMPLAINT NO. 14/2023 

Smt. S.M. Asha W/o Late Dr.Shivakumar,

Aged about 36 years, R/at Devi Nilaya,

2^nd Cross, 2^nd ‘B’ Parallel Road,

Jayanagara West, Tumakuru.

……….Complainant

(By Sri. M.D.Suresha, Advocate)

V/s

The Manager,

Equitas Finance Bank Ltd.,

Valmiki Nagara,

Opp: SIT College,

B.H.Road, Tumakuru.

……….Opposite Party/s

(By Sri. Niranjan .R, Advocate)

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BY SMT.NIVEDITA RAVISH –  LADY MEMBER

          This complaint is filed by the complainant under section 35 of Consumer Protection Act, 2019 against the Opposite Party [hereinafter called as “OP”] to direct the OP to settle the claim of complainant for Rs.50,000.00 along with interest and to direct to pay Rs.50,000-00 towards damages and Rs.20,000-00 towards cost of litigation with interest.

2.       The case of the complainant is that, the husband of the complainant namely Dr.Shivakumar was having a S.B. Account bearing No.109448769460, customer ID:8026418 and the said account was not nominated.  Further, husband of the complainant died on 04.09.2020 due to Covid-19 pandemic disease and at the time of death of complainant’s husband, he was having about Rs.50,000.00 in the S.B. account maintained by him at the OP bank.  Further, the husband of the complainant was died leaving his mother, complainant (wife) and two children behind him and the complainant has given requisition to the OP for paying the balance amount of her husband’s SB account with accrued interest with the registered documents like Genealogy tree, Aadhar Card, Death certificate, surviving certificate etc., but the OP has not settled the matter of the complainant.  Though the complainant got issued the legal notice n 05.09.2022, the OP has not settled the claim of the complainant.  Hence, this complaint. 

3.       After receiving the notice from this Commission, the OP appeared before this Commission through counsel and filed the version, wherein the OP has admitted that the husband of the complainant was having SB account in the OP bank, but the complainant has no locus-standi to file the complaint and the OP has never render any service to the complainant.  Further, the OP has admitted that the death of complainant’s husband and asked for the strict proof for the survivors of the deceased husband of the complainant.  Further, the OP has denied all other allegations made by the complainant as false and submitted that the OP is a Financial Institution established under the Banking Regulation Act, 1949 and guided by the Reserve Bank of India.  The account of the deceased husband of the complainant was not nominated and as per banking rules if nominee is not mentioned, then legal heirs of the bank account holders should get legal heir certificate or surviving member certificate from the concerned authority to prove their legal status.  Further, OP has submitted that the complainant not produced the required documents like genealogy tree, Aadhar card, death certificate, surviving certificate etc to settle the matter of the complainant.  The complaint filed by the complainant is frivolous and the OP has not done any deficiency in service.  Further, the OP has submitted that this Hon’ble Court has no jurisdiction to adjudicate the case.  Hence, prayed for the dismissal of the complaint with heavy cost.  

4.       The complainant has filed her affidavit evidence with eleven documents, which are marked as Ex.P1 to P11 and one Shri.Abhilash H.V., Manager of the OP has filed his affidavit evidence with 06 documents, which are marked as Ex.R1 to R6.

5.       We have heard the arguments of the counsel for the complainant and perused the written arguments filed by the OP.  The points that would arise for our determination are:

1. Whether complainant proves the deficiency of service on the part of OP?

2. Is complainant entitled to the relief sought for?

6.         Our findings on the aforesaid points are as under:

Point No.1: In the Negative

Point No.2: As per the final order for the following

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POINT NOS. (1) & (2):-

7.       Counsel for the complainant has argued that the complainant’s husband namely Dr.Shivakumar was having S.B. account in the OP Bank., Ex.P1/copy of the account details pertaining to complainant’s husband reflecting the customer ID as – 8026418, wings account number as, 109448769460, cheque leaves : 25, Debit card number as 47235XXXXXXX1620 and Ex.P1 also reveals the name of the husband of the complainant.  Further, the OP has admitted that the husband of the complainant was having S.B. account in the OP bank.  Further counsel for the complainant has submitted that the complainant’s husband was died on 04.09.2020.  Ex.P6/Death certificate of Dr.Shivakumar i.e. complainant’s husband establishes the same.  Further counsel for the complainant has contended that on the time of death, the complainant’s husband was having Rs.50,000.00 in the S.B.Account maintained by him at the OP bank.  The OP has admitted the same in their version.  Further, counsel for the complainant has submitted that, deceased husband of the complainant is having a wife i.e. complainant, Mother and children, except them there are no legal heirs for the deceased Dr.Shivakumar.  To prove the same, the complainant has produced the Ex.P3/Notarized genealogical tree of deceased Dr.Shivakumar i.e. complainant’s husband and Ex.P3 is establishing that deceased Dr.Shivakumar having wife i.e. complainant, two minor children namely Goushigna and Vashista and Mother namely Smt.Jayalakshmamma W/o late M.L.Channappa, age 77 years.  Further, counsel for the complainant has argued that complainant has been given the requisition with relevant document like, genealogical tree, Aadhar card, death certificate, surviving certificate etc., the OP has not settled death claim of the complainant. 

8.       In contrary, in written arguments, the counsel for the OP is contended that the husband of the complainant was having S.B. account with OP bank and the said account as not provided with any nomination by him.  To prove the same, the OP has produced the Ex.R2/copy of the account opening form for individual is reflecting that the deceased husband of complainant as marked tick (✓) for the option “No” for the nomination column.  Further, the counsel for the OP has contended that as per banking rules, if the S.B. account holder has not nominated any person for settlement of his balance funds that stood in his S.B.account, the legal heir of the account holder who applies for settlement of death claim should obtain a no-objection certificate (NOC) from other legal heirs to release the payment to applying legal heir of the proceeds had to be paid to one of the legal heirs of the account holder and after due enquiry by the OP, it was found that the deceased account holder surviving mother and the complainant has not submitted any no objection certificate from the mother of the deceased to the OP.  Further, the legal heir ship certificate provided by the complainant did not carry the name of the mother.  Therefore the request of the complainant could not be acted upon by the OP.  Point No.25 of Ex.R5/copy of the bank policy is reflecting that “where a nominee is not assigned, the bank may be required to take the issue case by case and proceeds will only be handed over to legal heir(s) or court nominated individual”.  The complainant herself admitted in her complaint that the deceased husband of the complainant is having survival mother.  Ex.P3/genealogical tree, Ex.P6/Death certificate of the complainant’s husband are establishes that Smt.Jayalakshmamma is the survival mother of the deceased husband of the complainant.  Therefore, as per Hindu Succession Act 1956, Mother Smt. Jayalakshmamma is also having right on the asset of the deceased husband of the complainant.  Hence, we have considered that for settlement of death claim towards the complainant, the complainant is liable to produce the no objection certificate from the Mother of deceased husband of the complainant to the OP.  Further, on perusing Ex.P2/surviving family members certificate produced by the complainant, it is found that, the name of Smt.Jayalakshmamma was omitted from Ex.P2.  Ex.R4/copy of e-mail conversations produced by the OP establishes that the OP has inquired about legal heirs of the deceased husband of the complainant.  Further, counsel for the OP has contended that the OP has acted as per the banking rules and submitted that the process followed by the OP with respect to settlement of death claims in compliance with the Master circular issued by RBI on customer service in Banks vide circular number RBI/2015-16/59, DBR No.Leg.BC 21/09.07.006/2015-16 dated 1^st July 2015.  We have perused the above master circular of RBI and point No.20.2 of RBI circular explains as follows:

“ in case where the deceased depositor had not made any nomination or for the accounts other than those styled as “either or survivor” (such as single or jointly operated accounts0, banks are required to adopt a simplified procedure for repayment to legal heir(s) of the depositor keeping in view the imperative need to avoid inconvenience and undue hardship to the common person.  In this context, banks may, keeping in view their risk management systems, fix a minimum threshold limit, for the balance in the account of the deceased depositors, up to which claims in respect of the deceased depositors could be settled without insisting on production of any documentation other than a letter of indemnity. 

The amount which is in the account of deceased husband of the complainant is Rs.50,000.00 and Mother of the deceased husband of the complainant is also having right on it.  Hence, we have not found any deficiency in service on the part of the OP by non settling the death claim towards complainant without receiving the no-objection certificate form Mother of the deceased husband of the complainant.   

9.       Further, it is the liability of the complainant to produce the no-objection certificate of Smt.Jayalakshmamma who is the mother of deceased husband of the complainant to OP for settlement of death claim of Rs.50,000.00 with interest of her deceased husband.  Further, it is also bounden duty of the Op to settle the death claim which is hard earned money of deceased husband of complainant to the legal heirs of the deceased husband of the complainant.  Further, the complainant has prayed for Rs.50,000-00 towards damages and Rs.20,000-00 towards cost of litigation with interest.  But complainant herself not produced the proper documents i.e. no objection certificate of mother of deceased husband of complainant to OP to get settlement of death claim of deceased husband of the complainant.  Therefore, the prayer for damages and litigation cost is not considered.  Hence, we have considered that the complaint is liable to be disposed-off by giving direction to both complainant and OP.  Accordingly, we proceed to pass the following:-

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The complaint filed by the complainant is disposed-off.

The complainant is directed to submit the No-objection certificate of Smt.Jayalakshmamma W/o late M.L.Channappa to the OP.

Further, it is directed that the OP shall settle the death claim of the deceased husband of the complainant within 30 days after receiving the no objection certificate of the Mother of the deceased husband of the complainant. 

Furnish copy of this order to both parties at free of costs.