BEFORE THE MANDYA DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, MANDYA PRESENT: 1. SIDDEGOWDA, B.Sc., LLB., President, 2. A.P.MAHADEVAMMA, B.Sc., LLB., Member, ORDER Complaint No.MDF/C.C.No.93/2008 Order dated this the 20th day of November 2008 COMPLAINANT/S Mr.Amitchandra S/o Late Dr.S.K.Chandrashekar, R/at No.1235, Gangothri Nivas, M.C.Road, Maddur, Mandya District. (By Smt.Rohini K.M., Advocate) -Vs- OPPOSITE PARTY/S The State Bank of Mysore, Maddur Branch, Maddur. (By Sri.H.Madegowda., Advocate) Date of complaint 08.09.2008 Date of service of notice to Opposite party 16.09.2008 Date of order 20.11.2008 Total Period 2 Months & 4 Days Result The complaint is dismissed without costs. However, it is open to the complainant and other deposit holders to approach the Civil Court for the remedy if so advised. Sri.Siddegowda, President 1. This complaint is filed by the complainant against the Opposite party for refund of the FD amount of Rs.4,00,000/- with interest. 2. The brief facts of the complaint are that late Dr.S.K.Chandrashekar the father of complainant was a account holder in the Opposite party Bank, his father had sold property in Maddur, in the year 2006 and on pressure and advice of the Opposite party Manager, had kept FD of Rs.2,00,000/- in his name and Rs.1,00,000/- in the name of his mother K.S.Parimala and Rs.1,00,000/- in the name of his sister M.C.Swetha, in the Opposite party Bank. The Opposite party Bank Manager collected cash from his father at his residence and made them to sign on some pay-in-slip and other challans and forms as his father was bedridden and the complainant went along with the Manager to the Opposite party Bank and collected FD Bonds. The complainants father expired on 04.01.2008 and the complainant had incurred loans for the treatment of his father. Hence, he immediately approached the Opposite party Bank and submitted requisition dated 07.02.2008 along with death certificate of his father to close the FD of his father and to pay the deposited amount along with interest. The Opposite party Bank started dodging the matter on one or the other pretext and finally he denied having collected any money. Again requisition dated 29.02.2008 was sent to the complaint cell, Head Office, State Bank of Mysore, Bangalore, through a Advocate and later the complaint cell gave reply dated 13.03.2008, stating that the matter has been sent to Mysore Zone Office to enquire and inform the complainant. Since he did not receive any information from the Mysore Zone Office again second legal notice dated 10.04.2008 was sent to complaint cell of the Opposite party Bank and on 16.04.2008, the Opposite party sent reply cooking up a story that the complainant has not paid the money towards the FD and they have issued the FD Bonds without collecting money and other untenable replies. Even the Ombudsman Authority in Bangalore has unilaterally replied that the deposits were issued without funding for the same. Now two years after issuing the Bonds, the Opposite party has come up with the story to cheat the complainant. The story that they have not collected the money is unbelievable as the Opposite party Bank is subjected to RBI guidelines and there will be regular internal audits. Therefore, the Opposite party has committed deficiency in service. Hence, the present complaint is filed. 3. The Opposite party has filed version admitting that the father of the complainant by name Dr.S.K.Chandrashekar was an account holder in the Opposite party Bank. It is denied that on pressure and advise of the Opposite party Manager, Dr.S.K.Chandrashekar had kept FD amount of Rs.2,00,000/- in his name and Rs.1,00,000/- each in the name of K.S.Parimala and M.C.Swetha respectively in the year 2006. Denying other allegations, it is pleaded that the requisition was given on 29.02.2008 to the Head Office and reply was given on 13.03.2008 and to the legal notice dated 10.04.2008, reply was sent on 16.04.2008. The allegations of fraud and cheating are denied. According to the Opposite party, Dr.S.K.Chandrashekar his wife K.S.Parimala and daughter M.C.Swetha are the account holders of the Opposite party Bank. All the 3 account holders had sufficient credit balance in their S.B. Accounts to the extent of Rs.3,28,754/-, Rs.3,23,729/- and Rs.2,82,856/- respectively as on 24.08.2006 and on 25.08.2006 father of the complainant and his mother came to the Opposite party Bank and expressed their intention to keep money in FD to the extent of Rs.2,00,000/- in the name of Dr.S.K.Chandrshekar and Rs.1,00,000/- each in the name of K.S.Parimala and M.C.Swetha. Considering their desire, the branch officer prepared the necessary debit slips to the concerned accounts for Rs.2,00,000/-, Rs.1,00,000/-, Rs.1,00,000/- and to transfer the amount to FD account from their S.B.Accounts and by keeping slips the concerned officer issued the deposit certificates, since the father of the complainant was not so doing well and expressed their urgency to return back to their home. The father, mother and sister of the complainant were good customers to the Bank officers and hence were trusted and issued the certificates. Thereafter, due to some problem in connectivity of server of the computer, the amount was not transferred to the FD accounts from S.B. Accounts of all the three and due to inadvertence and due to the rush of work it was forgotten to transfer the amount from S.B. Account. As per the procedure, the RBI norms, if the deposit amount exceeds Rs.50,000/- the cash will not be entertained and only transfer of amount from S.B. Account is permissible. Since, there was no funding to the FD account as no transfer was made from S.B. Accounts due to the above said reasons and thereafter knowing fully well the entire balance is in the S.B. Account, the father, mother and sister of the complainant have withdrawn the amount through ATM and through cheques and they have not at all intimated anything to the Opposite party Bank with regard to not transferring the amount from S.B. Accounts. There is no practice in Opposite party Bank to go to the residence of the customer and collecting the money. If at all, if any amount is paid and then deposit FD receipts are issued it should be entered in the receipt scroll of the Opposite party Bank which is maintained in all the counter of the Opposite party Bank. The receipt scroll of the particular day clearly go to show that no cash was received from the parents and sister of the complainant and after receipt of the reply notice from the bank the complainant has set up a new theory stating that the Manager went to house and collected the cash and that fact is false. The complainant came to the Opposite party Bank with the receipt and requested the Manager to close the FD and to pay the money. At that time, the branch searched out the accounts and came to know that there was no funding made to the FD accounts from the S.B. Accounts and it was satisfactorily explained to the complainant about issue of FD receipts without funding. At that time, the complainant has agreed and undertaken to return the FD receipts within a week or two. Therefore, believing the same the Manager did not pressure him to return the receipts for cancellation. Thereafter, the complainant waited for sometime and thereafter started to write letters and issued notices only with a malafide intention to blockmail the Bank. If really the cash was paid, the complainant could have taken the counterfoils. There is no procedure to take the cash directly to FD accounts and the question of collecting the cash and issue of FD receipts does not arise. The mother and sister of the complainant have not come forward to file this type of complaint, because they are very much aware that there was no funding to their RID accounts. Therefore, the Opposite party has not committed deficiency in service. The complainant is not entitled to any relief sought for and a frivolous complaint is filed directing the Opposite party Bank. Therefore, the complaint is liable to be dismissed with costs. 4. During trail, the Complainant is examined and documents Ex.C.1 to C.12 are marked. On behalf of the Opposite party the Manager is examined and documents Ex.R.1 to R.11 are marked. 5. Both the sides have filed written arguments and the matter was posted for orders fixing the date on 20.11.2008. 6. In the mean while on 18.11.2008, the complainant filed an application to advance the case and also another application to reopen the case to permit the complainant to amend the cause title, on the ground that his advocate has noticed an error in the cause title on 14.11.2008 when she checked the court file, because the name of the complainant is mentioned leaving the names of his mother and sister and the complaint has to be amended and cause title has to be set right according to the documents. The Opposite party has filed objection for the amendment and has relied upon the decision reported in ILR 2004 Karnataka 2215 in the case of Rabiya Bi Kassim M. -Vs- The Country Wide Consumer Financial Service Ltd. In that decision, it is held that once the matter has been heard and posted for judgment, nothing is required to be done by the court except to pronounce the judgment, interlocutory application to reopen the case and record further evidence after the matter is reserved for pronouncement of judgment is not permissible. We have applied our mind to the contentions made in the I.As. and in view of the facts and circumstances of the case and the defence taken by the Opposite party and the documents produced by the complainant, I.A.II to reopen the case deserves to be rejected and accordingly I.A.II is rejected. 7. We have perused the records. Now the points that arise for our considerations are:- 1) Whether the FD receipts Ex.C.1 to C.3 were funded by the depositors? 2) Whether the Opposite party has committed deficiency in service? 3) Whether the complainant is entitled to the relief sought for? 8. Our findings and reasons are as here under:- 9. POINT NO.1:- The undisputed facts are the complainants father Dr.S.K.Chandrashekar was having S.B. Account No.54025501463 and his wife K.S.Parimala was having S.B.Account No.54025517768 and further his daughter M.C.Swetha was also having S.B. Account No.64004217866. It is also undisputed fact that the FD receipt Ex.C.1 for Rs.2,00,000/- in favour of Dr.S.K.Chandrashekar and FD receipt Ex.C.2 in favour of K.S.Parimala for Rs.1,00,000/- and FD receipt for Rs.1,00,000/- in favour of M.C.Swetha were issued on 25.08.2006 for 5 years and the maturity date is 25.08.2011. It is undisputed that Dr.S.K.Chandrashekar the father of the complainant, the account holder of FD receipt Ex.C.1 is dead on 04.02.2008. It is also admitted fact that after death of the father, the complainant approached the Opposite party Bank for early encashment of the FD receipt of his father. 10. According to the complainant, the Manager of the Opposite party Bank started dodging the matter and finally denied having collected any money and though he gave requisition dated 07.02.2008 and so he gave requisition dated 29.02.2008 to the complaint cell, Head Office, State Bank of Mysore, Bangalore and then he got issued legal notices and the complaint cell sent reply on 16.04.2008 that the complainant has not paid the money towards FD and they have issued the FD bonds without collecting money. The complainant has admitted in his evidence that his mother and sister have not filed any petition to the Opposite party Bank for refund of the FD amount, though the FD period is 5 years. It is admitted in the cross-examination by the complainant that at the first instance when he enquired about the FD amount of his father, the bank Manager told that without taking the amount, FD receipts are issued. Of course, as per Ex.C.4 on 07.02.2008 the complainant gave letter to the Opposite party Bank claiming the FD amount of his father by closing the same and submitted the death certificate and copy of the FD receipt. 11. According to the defence of the Opposite party, since the father, mother and sister of the complainant were S.B. Account holders and having sufficient fund in their accounts as on 24.08.2006, the mother and father of the complainant came to the bank and expressed their intention to deposit the amount in FD and therefore they put signature to the pay-in-slips and transfer debit was prepared on 25.08.2006 and as the father of the complainant expressed his illness and to go back to the house, the Officers of the Bank prepared the FD receipts and issued on faith and trust and due to computer server problem the amount was not transferred from their respective S.B.Account to the F.D. Account on that day and it was forgotten and only when the complainant came about the FD amount of his father, they found that the amount was not transferred to the FD account from S.B. Account and the same was informed to the complainant and the theory of payment of cash amount of Rs.4,00,000/- by the father of the complainant to invest the FD is cooked up theory after the correspondences and the reply of the Opposite party Bank. It is further pleaded that cash amount exceeding Rs.50,000/- will not be received by the Bank for FD account and such amount is to be paid by cheque or transfer from the account or the amount should be deposited through challans and in this case as per the Bank receipts scrolled dated 25.08.2006 there is no cash receipt of Rs.4,00,000/- from the father, mother and sister of the complainant and therefore, the FD receipts Ex.C.1 to C.3 are not funded. 12. It is pertinent to note that in Ex.C.4 letter dated 07.02.2008, the complainant claimed the closure of the FD account of his father loan and claimed the FD amount after death of his father. The mother of the complainant and sister Swetha have not filed any petition nor the complainant and his mother and his sister submitted the original FD receipt to the Bank with a letter for closure of the FD account and pay the FD amount. In such a situation, how the complainant has filed the present complaint, seeking direction for payment of the FD amount of his mother and sister is not explained. Even though, the power of attorney executed by his mother and sister is filed and in the cause title the address of his mother and sister is not at all mentioned in the complaint. Who is the nominee for the FD receipt of his father, the complainant does not say and there is no material whether his mother and sister authorized him to draw the FD amount of his father or not. 13. Further, according to the complainant, his father sold property and at the pressure of the Opposite party Bank Manager coming to the house, his father deposited Rs.2,00,000/- in his name and Rs.1,00,000/- in his mother name and Rs.1,00,000/- in his sister name and the cash was collected by the Manager and the complainant went to the Bank and collected FD receipts. It is also pleaded by the complainant that the bank Manager obtained signature to pay-in-slips and challans and other forms in the house, but according to the Opposite party, the complainants father and mother came to the bank on 25.08.2006 and expressed their intention to deposit amount from their SB account and therefore, the signatures to the pay-in-slips were obtained and they are Ex.R.1 and R.2 and Ex.R.3 is the pay-in-slip in respect of Swetha and transfer debit Ex.R.4 for Rs.4,00,000/- was prepared showing the SB account numbers of the 3 depositors with the amount and due to the urgency made by the parents about the illness of father of the complainant, the officers prepared the FD receipts and issued on good faith and due to computer server problem the amounts from the SB accounts were not transferred and later it was forgotten and it came to their notice only when the complainant approached. According to the Opposite party also as per Ex.R.5 to R.7 FD receipts account extract there is no transfer of the amount or payment to the FD account, on that day and even there was no cash deposit by the father of the complainant, because the receipt scroll on 25.08.2006 does not reveal at all cash deposit of Rs.4,00,000/- by the father of the complainant. If we peruse Ex.R.11 the receipt scroll of the bank dated 25.08.2006 there is no cash receipt of RS.4,00,000/- in the name of the parents of the complainant or the sister. Admittedly, the complainant has not produced any challans for having deposited such huge amount. Further, the complainant has not produced any document to show that his father had sold some property immediately prior to the date of deposit and had the cash money. The complainant has not examined his mother and sister to prove that the property was sold and the Bank Manager had come to the house and collected Rs.4,00,000/- in cash obtaining the signatures on the application for FD challans or other forms, if the cash was paid to the hands of the Manager at the house, there is no question of putting signature to the pay-in-slip at all. The complainants father is a Doctor and mother is also educated having SB account and operating the account and they would not have signed to the pay-in-slips Ex.R.1 and R.2. It is the regulation of the bank and also well-known to the customers that if the cash amount is more than Rs.50,000/-, the amount will not be received for issue of FD receipt and such amount exceeding Rs.50,000/- should be deposited in SB account and then pay-in-slip or cheque of the SB account or cheque from other bank should be submitted for issue FD receipt. The perusal of the SB account extract Ex.R.8 relating to Dr.Chandrshekar as on 24.08.2006 there was Rs.3,28,754/-, in fact on 21.08.2006 there was cash deposit of Rs.1,00,000/- and also on the next day there was cash deposit of Rs.20,000/- and thereafter there was withdrawal of Rs.500/-, Rs.100/- and Rs.500/-, Rs.500/- on 22.08.2006, 23.08.2006, 24.08.2006. There was no transaction at all from 25.08.2006 to 29.08.2006 only on 30.08.2006 there was cash withdrawal of Rs.1,100/. Likewise in the account of K.S.Parimala as per Ex.R.9 as on 22.08.2006 there was balance of Rs.2,88,856/-. In fact there was deposited of Rs.2,62,000/- on 31.07.2006 and there was no transaction from 23.08.2006 to 27.08.2006 at all and thereafter so many transactions are made. Likewise in respect of SB account of Swetha M.C. as per Ex.R.10, there was balance of Rs.3,02,379/- as on 30.06.2006. Thereafter, there was no transaction till 25.12.2006 and thereafter so many withdrawals are made by ATM Card. 14. When there is SB account of the depositors, the bank would not receive cash amount exceeding Rs.50,000/- for FD receipt and as per rules, the amount should be deposited to SB account, then by withdrawal slip the amount would be transferred to the FD account. Ex.R. to R.3 are the pay-in-slips for the deposit and there is no mention of currency notes in the columns or the amount, but on the right side of this Ex.R.1 to R.3 the amount of deposit is mentioned and the seal of transfer is affixed. If the cash had been deposited, the cashier would receive the amount and the seal of the bank should have been different. In fact, in Ex.R.4 the total amount of Rs.4,00,000/- is shown in the transfer debit and on the back side the S.B. Accounts of the depositors with amount is mentioned. So under these circumstances, the complainant or his mother and sister have not produced any challans or pay-in-slips for having deposited the amount with the cashier. When the pay-in-slips Ex.R.1 to R.3 contain the seal of transfer and there is transfer debit voucher and when there is no entry in the receipt scroll of 25.08.2006 about the deposit of cash of Rs.4,00,000/- in the name of Dr.S.K.Chandrashekar, Parimala K.S. and Swetha, the Opposite party Bank officials have committed negligence, thereafter to transfer the amount from the S.B. Accounts of these persons from their S.B. account and the explanation of the Opposite party Bank that on that day due to computer server problem and pressure of work the transfer was not made from the S.B. account to FD account. Thereafter it was forgotten and only after the approach by the complainant, they traced that the amount was not transferred from the S.B. Account though FD receipts are issued. Even in the FD receipt register book there is no entry of the amount transferred from S.B. Account or from cash scroll. The complainant has admitted that when he approached first about the deposit, the Bank Manager has informed that the FD receipts are not funded. In fact, the complaint cell of the Opposite party Bank has investigated and sent reply to the complainant that FD receipts are not funded. 15. It is pertinent to note that FD receipts are not submitted to the bank for encashment at all, they are with the complainant Smt.Parimala K.S., mother of the complainant and his sister Swetha have not filed any application with the FD for early closure of the FD account within 2 years, though the term is 5 years and in Ex.C.4, the complainant sought for only the closure of the FD account in respect of his father after his death, though the term is 5 years and he did not submit the original at all, but submitted only Xerox copy of the FD. No bank would pay the FD amount without production of the originals duly signed by the parties. So, the conduct of the parties and the circumstances and reasons mentioned above clearly established that it is impossible to accept that the Bank Manager collected cash of Rs.4,00,000/- from the house of the father of the complainant and issued the FD receipts, when there are SB accounts in the name of these 3 persons and there was sufficient amount and without observing the Mandatory Regulations of the Banks that the amount more than Rs.50,000/- should be deposited through the SB account or through a cheque in order to get FD receipt and it is impossible to accept that when there is SB accounts in the name of these depositors that the doctor would pay cash amount to the Bank Manager in the house without depositing in the SB account in order to get FD amount and that to without obtaining the challans for having deposited the amount in the cash counter. Though, normal presumption is that FD receipts are issued for consideration, but that presumption is rebutted by cogent evidence. Therefore, we hold that the FD receipts Ex.C.1 to C.3 are not funded by cash deposit and even there is no transfer of the amount from S.B. Account of these 3 persons and hence we answer the point no.1 in the negative. 16. POINT NO.2:- The grievance of the complainant is that the Opposite party Bank has failed to pay the FD amount and committed deficiency in service. But the Opposite party has denied the same. First of all as observed under point No.1, the FD receipts Ex.C.1 to C.3 are not funded. Secondly the FD receipts are not returned to the bank with signatures to take action, because it is proved that Ex.C.4 only copy of Ex.C.1 with a letter was submitted. Further, at the first instance the Bank Manager informed that the FDs are not funded and the amount were not transferred from the SB account by the negligence of the officials, in spite of Ex.R.1 to R.4. Under these circumstances, there is no evidence of prove the Opposite party has committed deficiency in service, though there is gross negligence by the Opposite party in issuing Ex.C.1 to C.3. Therefore, we answer the point in the negative. 17. POINT NO.3:- The complainant has sought for direction to the Opposite party to pay the FD amount of Rs.4,00,000/- along with interest. In view of our finding points no.1 & 2, complainant is not entitled to the relief sought for. 18. In the result, we proceed to pass the following order; ORDER The complaint is dismissed without costs. However, it is open to the complainant and other deposit holders to approach the Civil Court for the remedy if so advised. (Dictated to the Stenographer, transcribed, corrected and then pronounced in the open Forum this the 20th day of November 2008). (PRESIDENT) (MEMBER)
