Karnataka

Bangalore 2nd Additional

CC/1934/2009

Sri Basavaraj.K. S/o Shivaraya - Complainant(s)

Versus

The Manger, State Bank of India - Opp.Party(s)

Prakash Salmani

23 Feb 2010

ORDER


IInd ADDL. DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, BANGALORE URBAN
No.1/7, Swathi Complex, 4th Floor, Seshadripuram, Bangalore-560 020
consumer case(CC) No. CC/1934/2009

Sri Basavaraj.K. S/o Shivaraya
...........Appellant(s)

Vs.

The Branch Manager,
The Manager, State Bank of India
The Manger, State Bank of India
...........Respondent(s)


BEFORE:


Complainant(s)/Appellant(s):


OppositeParty/Respondent(s):


OppositeParty/Respondent(s):


OppositeParty/Respondent(s):




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ORDER

Date of Filing:13.08.2009 Date of Order:22.02.2010 BEFORE THE II ADDITIONAL DISTRICT CONSUMER DISPUTES REDRESSAL FORUM SESHADRIPURAM BANGALORE-20 Dated: 22ND DAY OF FEBRUARY 2010 PRESENT Sri. S.S. NAGARALE, B.A, LL.B. (SPL.), President. Smt. D. LEELAVATHI, M.A.LL.B, Member. Sri. BALAKRISHNA. V. MASALI, B.A, LL.B. (SPL.), Member. COMPLAINT NO: 1934 OF 2009 Basavaraj, S/o Shivaraya Kukanur, R/o C/o Jagadeesh, No. 39, Old No.42, 15th Cross, Temple road, Malleswaram, Bangalore-03. Complainant V/S 1. The Manager, State Bank of India, Malleswaram Branch, No.143, 8th Cross, Margos Road, Malleswaram, Bangalore-03. 2. The Manager, S.B.I, Jalahalli Branch, Bangalore-560 013. 3. The Branch Manager, Karnataka Bank, Chandralayout Branch, Bangalore. Opposite Parties ORDER By the President Sri. S.S. Nagarale This is a complaint filed under Section 12 of the Consumer Protection Act, 1986. The facts of the case are that the complainant is an account holder with SBI, Jalahalli Branch, Bangalore bearing No.10838697708. One Sri. Govardhan Reddy issued a cheque dated 25/06/2009 bearing No.164944 drawn on Axis Bank, Malleswaram for an amount of Rs. 80,000/- in favour of complainant. The said cheque was presented for encashment by way of depositing the same with the opposite party No.1 bank. But unfortunately the cheque amount was not credited to the account of the complainant. Complainant approached opposite party No.1 several time and requested the bank to credit the amount. Complainant has written a letter on 14/07/2009 to the opposite party No.1 stating that cheque amount was not deposited. Complainant approached Axis Bank and issued a Xerox copy of the cheque and told that the amount has been credited in the Karnataka Bank Ltd., Chandra Layout Branch, Bangalore in the name of some other person. The complainant has issued a legal notice to opposite party No.1 calling upon him to credit the cheque amount. Opposite party No.1 has not replied to the legal notice nor credited the cheque amount. Cheque was deposited with opposite party No.1 Bank. Amount was credited in some other name in Karnataka Bank which shows gross negligence on the part of the opposite party No.1. It reflects deficiency of service. Despite several requests and representations, opposite party No.1 Bank has not take any action to credit the amount to the complainant’s account. Opposite party No.1 has misappropriated the cheque amount which attracts penal provisions. Due to non-credit of the amount, complainant undergone heavy loss and suffered mentally. Therefore, the complainant prayed that the opposite parties be directed to credit the cheque amount of Rs.80,000/- with interest and to award damages of Rs.2,00,000/-. 2. After admitting the complaint, notice was issued to the opposite parties. The first and second opposite parties have filed their defence version stating that cheque in question has not been entrusted to this opposite parties for collection, the question of crediting the proceeds of the cheque to the account of complainant does not arise. Cheques presented to the opposite party No.1 and 2 and deposited in the drop box on 25/06/209 have been duly accounted for. Opposite parties No.1 and 2 are not aware as to how the said cheque has been collected by Karnataka Bank Ltd.,. It is true that the complainant is an account holder with opposite party No.2. It is true that the complainant has written letter to opposite party No.1 stating that cheque which is deposited with the bank has not been cleared and the said notice was duly replied by opposite party No.1. There is no deficiency in service on the part of the opposite party No.1 and 2. Opposite parties are not liable to pay compensation and cheque amount. Therefore, the opposite party No.1 and 2 have prayed to dismiss the complaint. 3. Opposite party No.3 has filed separate defence version stating that one Basavaraj S/o Gangadhar opened an account with opposite party No.3 under account No.977. He has presented cheque No.164944 favouring Basavaraj drawn on Axis Bank, Malleswaram Branch, Bangalore for Rs.80,000/- and the same was sent for collection to the Axis Bank. After clearance the amount was credited to his account and it was withdrawn by him through withdrawal slip on 30/06/2009. The remedy of the complainant is against his own bankers, where he has deposited the cheque. The cheque was dropped in the drop box then opposite party No.1 is responsible for deficiency of service. Therefore, the opposite party No.3 prayed to dismiss the complaint. 4. The complainant has filed his affidavit evidence. He has filed affidavit evidence of Govardhan Reddy in support of his case. On behalf of SBI affidavit evidence of Smt. Geetha Dinesh has been filed and affidavit evidence of opposite party No.3 has also been filed. Respective parties have filed documents. I have gone through the documents, pleadings and the affidavit evidence filed by the parties. 5. In the light of the arguments advanced before us, the following points arisen for consideration:- 1. Whether the complainant has proved that he has deposited cheque No.164944 for Rs.80,000/- for collection with opposite party No.1 Bank? 2. Whether the complainant has proved deficiency in service on the part of the opposite party? 3. Whether the complainant is entitled for the cheque amount with compensation? 4. What order and relief? REASONS 6. It is an admitted case of the parties that, the complainant is an account holder with the opposite party No.2 with SB A/c No.10838697708. One Govardhan Reddy had issued cheque dated 25/06/2009 bearing No.164944 drawn on Axis Bank, Malleswaram Branch for an amount of Rs.80,000/- in favour of the complainant. The complainant deposited the above cheque for encashment with opposite party No.1 Bank. But unfortunately the amount was not credited to the account of the complainant till now. The complainant has produced deposit slip of SBI, Malleswaram Branch dated 25/06/2009. In this slip, he has mentioned his account number and also the amount. On this deposit slip there is an initial of clerk of the Bank. The complainant had obtained Xerox copy of the cheque from Axis Bank and the same is produced in this case. By perusing the said cheque it is very clear that the seal of opposite party No.1 Bank can be seen on the back of the cheque. The complainant has given letter to the opposite party No.1 Bank on 14/07/2009 that Kotresh deposited the cheque on 25/06/2009 in cheque clearance box but, the amount has not been deposited to the account holder’s account. He has also stated that amount of Rs. 80,000/- had been debited in the Axis Bank in the account of Mr. Govardhan Reddy who had issued cheque to the complainant. The complainant has produced letter of Chief Manager of SBI, Malleswaram Branch dated 11/07/2009. This letter has been addressed to AGM, CCPC, SBI, Bangalore. It is better to get the entire letter in this judgment for better appreciation of the facts of the case. The AGM, CCPC, SBI, Bangalore Br/62 11.07.2009 Dear Sir CHEQUE PRESENTED ON 25.06.2009 A/C NO.10838697708 OF BASAVARAJ CHEQUE NO.164944 DTD 25.06.2009 FOR RS.80,000/- OF AXIS BANK With reference to the above, we advise that Sri Kotresh, a friend of the customer dropped the cheque at our branch on 25.06.2009 and we presented the cheque in clearing on you (Our seal is available on the back of the cheque image). But, on enquiry we understand that the Cheque has not come to you. 2. Now, we have got the images of the cheque from Axis Bank, Malleswaram, which reveals that the cheque is presented by Karnataka Bank, Chandra layout branch. We have checked at Axis Bank and found that the said cheque amount is debited from the respective account whereas no credit has come to the account of Sri Basavaraju. 3. Sri Basavaraju has no approached us to afford credit to his account and we do not know where the funds are. The service branch of Axis Bank and Karnataka Bank say that there is no reconciliation pending at their end. 4. In this regard please look into the matter and advise. Yours faithfully, Sd/- CHIEF MANAGER CC: To, The Branch Manager, Axis Bank, Malleswaram branch, please look into the matter and advise. CC: To, The Branch Manager, Karnataka Bank, Chandra layout branch, Please look into the matter and advise. Yours faithfully, Sd/ CHIEF MANAGER 7. From the above letter of the SBI Chief Manager, it is more than clear that cheque number 164944 dated 25/06/2009 for Rs. 80,000/- had been dropped in drop box of SBI. It is also clear that the said cheque has been sent to Axis Bank and cheque amount had been debited from the respective account holder and no credit has come to the account of present complainant. The Axis Bank has also given letter dated 20/11/2009 stating that the cheque No.164944 for Rs.80,000/- has been cleared and cheque was honoured in clearing and payment was made to Karnataka Bank. Mr. Govardhan Reddy issued cheque to the complainant and has also filed his affidavit before this fora stating that he had issued cheque bearing No. 164944 dated 25/09/2009 for Rs.80,000/- in favour of complainant who is his friend. So by all the documentary evidence, it is very clear that Govardhan Reddy had issued a cheque to the complainant and the cheque has been dropped in the drop box at opposite party No.1 Bank on 25/06/2009. SBI Bank seal is also available on the back of the cheque image. The Chief Manager of the SBI has clearly admitted in the letter dated 11/07/2009 all these facts. Unfortunately, the cheque amount has not been credited to the account of the complainant even though he has clearly mentioned his account number in the deposit slip and the fact that the complainant’s friend Kotresh had dropped the cheque with opposite party No.1 Bank for clearance. The Chief Manager of the opposite party No.1 has clearly admitted that cheque has been presented by Karnataka Bank, Chandra Layout Branch and the cheque has been cleared. The Chief Manager asked to AGM please look into the matter and advise. When this is the case it is clear case of deficiency in service and negligence on the part of the opposite party No.1 Bank. It is the duty and responsibility of the opposite party No.1 Bank to see that the cheque amount is credited to the account of the complainant when the cheque had been dropped by the complainant with the opposite party Bank. The complainant in nowhere concerned as to how the amount went to Karnataka Bank. The fact that the cheque has been presented by the Karnataka Bank to the Axis Bank and the amount has been debited to the account holder of the person who had issued cheque goes to show that there was a fraud at the level of staff of opposite party No.1 Bank. The opposite party No.1 Bank has to institute a thorough departmental enquiry against the staff of the Bank who was responsible for taking the said cheque to the Karnataka Bank, Chandra Layout Branch. It is very unfortunate and shocking to know that a cheque dropped in the opposite party No.1 Bank went to Karnataka Bank and in turn the Karnataka Bank sent the said cheque to Axis Bank for clearance. The amount of the cheque so far has not been credited to the account of complainant and thereby the innocent complainant has to suffer lot financially and mentally. The primary responsibility in this case to pay the cheque amount and compensation is on the opposite party No.1 Bank because, cheque has been dropped in opposite party No.1 Bank and this fact had been clearly admitted by the Chief Manager by his letter dated 11/07/2009 addressed to AGM, CCPC, SBI, Bangalore. So, under these circumstances the opposite party No.1 Bank had to pay the cheque amount of Rs.80,0000/- to the complainant and not only said amount the opposite party No.1 Bank shall have to pay compensation and cost to the complainant. Due to deficiency in service and culpable negligence on the part of the opposite party No.1 and the staff, the complainant has suffered mental agony, tension, inconvenience and shock. The complainant though dropped the cheque on 25/06/2009 till today he is not able to get the amount. Therefore under the facts and circumstances of the case, it is just, fair and reasonable and proper to direct the opposite party No.1 immediately to pay the cheque amount of Rs.80,000/- along with compensation of Rs.1,00,000/- to the complainant for mental agony. The complainant is also entitled interest on Rs.80,000/- at the rate of 6% p.a., from 30/06/2009 the date of clearance of the cheque from the Axis Bank. The opposite party No.3 Karnataka Bank has also committed a gross negligence and floated all the norms and regulations of RBI because, the opposite party No.3 Bank has produced documents to show that one Basavaraj has opened SB A/c with opposite party No.3 Bank by account opening form. The account has opened on 26/06/2009 by depositing Rs.250/-. In the account opening form nobody has introduced the person who sought opening of account. The introduction column in the form has been fully kept blank. Opposite party No.3 Bank has produced account statement. As per this account statement, the account was opened on 26/06/2009. The cheque in question which is for Rs.80,000/- is dated 25/06/2009. The opposite party No.1 Bank presented the cheque to Axis Bank and the amount of Rs.80,000/- has been cleared on 29/06/2009. On 30/06/2009 on the very next day of clearance of the cheque the account holder Basavaraj withdrew Rs.80,000/- from the Karnataka Bank, Chandra Layout Branch. So, all these facts and sequence of events definitely establish some fraud in the transaction. On the back of the cheque image the seal of opposite party No.1 Bank is available. How could the opposite party No.3 accepted such cheque without verifying the fact and present the said cheque to the Axis Bank for clearance. However, all these matters are not concerned to the complainant because the complainant will not come into picture of Karnataka Bank. He has no transaction with Karnataka Bank. Admittedly, the complainant is having account with SBI, Malleswaram Branch and he is dropped the cheque with opposite party No.1 Bank and this fact has been admitted. The opposite party No.1 is wholly responsible to the complainant. On account of gross negligence and deficiency in service on the part of the opposite party No.1 Bank, the complainant has suffered loss and he is not yet received the cheque amount. Therefore, the complainant is entitled relief from the hands of this Fora. By going through the facts, documents and circumstances of this case, it is very clear that how the things are happen in the Banks, how the staffs of the Banks are committed fraud and cheating the account holders by manipulating the things. This tendency on the part of the Bank staff is really shocking and it is not good either to the Banks or to the customers. Customer is the most important visitor in the premises of the Bank. He is not dependent on the Bank and on the other hand the Banks are dependent on the customer. But in this case, the Banks have done on the face of it deficiency in rendering service to the customers. Therefore, it is very fit case to allow the complainant and direct the opposite party No.1 Bank to pay the cheque amount of Rs.80,000/- with interest along with compensation of Rs.1,00,000/- for mental agony and harassment. The opposite party No.1 and 3 are free to conduct thorough enquiry in this matter and find out the culprit and take departmental action against erring and guilty personnel of the Banks so that such incidents shall not happen in future. In the result, I proceed to pass the following:- ORDER 8. The complaint is allowed. The opposite party No.1 SBI, Malleswaram Branch is directed to pay Rs.80,000/- along with interest at 6% p.a on that amount from 29/06/2009 to the complainant. The complainant is also entitled Rs.1,00,000/- as compensation from the opposite party No.1 Bank for mental agony and harassment. 9. The complainant is also entitled Rs.2,000/- as cost of the present proceeding from the opposite party No.1. 10. The opposite party No.1 Bank is directed to comply the order within 30 days from the date of this order. In the event of non compliance of the order within 30 days, the compensation amount carries interest at 6% p.a from the date of this order till payment/realisation. 11. Send the copy of this Order to both the parties free of costs immediately. 12. Pronounced in the Open Forum on this 22ND DAY OF FEBRUARY 2010. Order accordingly, PRESIDENT We concur the above findings. MEMBER MEMBER rhr.