PRESENT

SRI.J.N.HAVANUR, PRESIDENT

SRI.H.JANARDHANA, MEMBER

Complainant: -   

                                                Basheer Ahmed,

                                                Residing at No.536,

                                                18^th Cross, 1^st Block,

                                                RT Nagar, Bangalore – 32

V/s

Opposite parties: -                 

1.   The Manager, Canara Bank,

Benson Town Branch,

Benson town, Bangalore-46

2.   The Regional Manager,

Canara Bank, Head office,

JC Road, Bangalore-02

ORDER

SRI.J.N.HAVANUR, PRESIDENT

        This is a complaint filed by the complainant against the Ops no.1 and 2, under section 12 of the Consumer Protection Act 1986, praying to pass an order, directing the Ops no.1 and 2 to credit interest accrued every quarter as applicable, not to deduct the tax at source and to pay compensation of Rs.20,000=00 and litigation cost of Rs.5,000=00, in the interest of justice and equity.

2. The brief facts of the complaint can be stated as under.

          The complainant is an account holder of the OPs, vide Saving Bank account bearing no.0429101034458 for a long time. The complainant had deposited a sum of Rs.6,06,417=00 in fixed deposit with the Ops to get some benefit as per the banking rules. The deposit was for one year period from the date of deposit i.e. 15-7-2012. The OPs as per his instructions had to credit the interest quarterly in his saving bank account with them for which the amount was deposited. The OPs had agreed to credit the interest amount as and when accrued quarterly on fixed deposit. But the Ops failed to credit the interest as and when it accrued every quarter from the date of deposit i.e. 15-7-2012 till 25-3-2013, inspite of frequent reminder. Atleast after much follow-up and reminders by the complainant a sum of Rs.25,924=00 was credited to his account against actual interest amount of Rs.28,804=00 for two quarters. No explanation was given for this deduction. On 15-4-2013 the third quarter interest was due, again this was not credited. The complainant met the concerned officers and reminded them, and he also cautioned them not to make the mistake of deducting any amount like they did in last quarters, but inspite of this, Ops credited only Rs.13,185=00 against the actual amount of Rs.14,402=00 by deducting Rs.1,217=00 , no explanation was given for this deduction. At the time of opening fixed deposit account, he had furnished all the forms i.e. Form 15 H asking them not to deduct TDS. The complainant is a retired employee and senior citizen solely dependent on this income. Out of terminal benefits and other savings he had deposited the said amount with the Ops to yield some sources of income to eke out his lively hood. The complainant continuously visited the Ops to get this due, but always got evasive reply from the OPs. The complainant had made two representations to the Ops dated 22-4-2013 and 29-4-2013, but the Ops neither replied nor took any action to redress the complainant’s grievances. During one of the follow up the OP, the complainant was told that the amount had gone to suspense account wrongly. Since no action was taken to redress the grievances of the complainant, so the complainant has come up with the present complaint.

          3. After service of notice, the Ops no.1 and 2 have appeared through their counsel and filed version contending interalia as under:

          It is a fact that, Basheer Ahmed has invested Rs.6,06,417=00 on 15-7-2012 in fixed deposit with the OP. The complainant had not submitted form-15H for exemption of TDS on interest earned on term deposits as per section 194A of the Income Tax Act 1961 at the time of opening the fixed deposit on 15-7-2012. The Form no.15H was submitted by him only during April 2013, and accordingly the quarterly interests were credited to the complainant’s SB account as under duly deducting the income tax on the quarterly interest which was due on 15-10-2012 and 15-1-2013 and no tax was deducted from the quarterly interest which was due on 15-4-2013 and 15-7-2013.

The complainant has represented that, there is delay in credit of quarterly interest and also short credit of Rs.2,880=00. The complainant representations letter dated 22-4-2013 and 29-4-2013 has not been replied by the OP and his grievances has not been redressed. In this regard it is submitted that the OP has informed the complainant on several occasions when he visited the branch and the reasons for deducting the income tax from the quarterly interest which was due on 15-10-2012 and he had not submitted form 15H and also the reasons for delay in crediting the quarterly interest as the amount had gone to suspense account due to technical/system problem. The quarterly interest up to April 2013 was credited to the complainant’s account. This was informed to the complainant in person immediately when it came to notice of the OP the same was credited to the complainant’s account on 26-3-2013 and he was informed of the same. There is no deficiency of service on the part of the OP. The complainant can claim refund of the income tax from IT authorities; inspite of clarifying the position, the complainant has approached this forum on frivolous grounds. The complainant is not entitled for any compensation and also towards costs, hence the complaint of complainant be dismissed with cost

4. So from the averments of the complaint of the complainant and versions of the OPs, the following points arise for our consideration.

1.                  Whether the complainant proves that, the Ops are negligent and there is deficiency of service on the part of the Ops in making payment of the first and second quarterly interest amount of fixed deposit to his account as stated in the complaint?

2.                  If point no.1 is answered in the affirmative, what relief, the complainant is entitled to?

3.                  What order?

5. Our findings on the above points are;

          Point no.1:  In the Affirmative

Point no.2:  The complainant is entitled to claim a sum                             of Rs.3,000=00 as compensation and

Rs.2,000=00 towards cost of litigation

          Point no.3:  For the following order

REASONS

          6. So as to prove the case, the complainant has filed his affidavit by way of evidence, and produced two copies of documents alongwith complaint and three more documents alongwith affidavit. On the other hand, one D.Muralidhar, Senior Manager working in the Ops bank has filed his affidavit by way of evidence and produced no documents. We have heard the arguments of both parties and we have gone through the oral and documentary evidence of both sides meticulously. 

7. One Basher Ahmed, who being the complainant has stated in his affidavit by way of evidence that, out of his terminal benefits and other savings, he had deposited a sum of Rs.6,06,417=00 in fixed deposit with Canara bank, Benson town branch for a period of one year from 15-7-2012 to get regular income for his livelihood. At the time of opening the FD account, he had given clear instructions to bank to credit the interest every quarter to his SB account no.0429101034458 wit them and he had given form no.15H duly signed requesting them not to deduct TDS, as he does not come under income tax and as per the bank’s own calculations, he was to get Rs.14,402=00 every quarter. Since he had deposited in fixed deposit on 15-7-2012, the first quarterly interest fell due on 15-10-2012, but it was not credited to his account inspite of his repeated requests. The second quarterly interest of Rs.14,402=00 fell due on 15-1-2013 but this was also not credited to his account inspite of repeated reminders and follows ups. He is a senior citizen, aged 66 years, he does not have any regular income and totally dependent on the interest, he received from his FDs for his livelihood, one can imagine, he is suffering without any income from this FD for 6 to 8 long months. After several visits and requests a sum of Rs.25,924=00 was credited to his account, when he enquired they said it represented two quarterly interest installments. But two quarters interest comes to Rs.28,804=00 so a sum of Rs.2,880=00 was deducted from the total amount of Rs.28,804=00, no explanation was given for this deduction. On 15-4-2013 the third quarterly interest fell due, again this was not credited on due date, he immediately met the concerned and reminded them about the same. On 17-4-2013 a sum of Rs.13,185=00 was credited to his account instead of Rs.14,402=00 deducting a sum of Rs.1,217=00, again no explanation was given for this deduction, and then he submitted written representations to the Manager of bank on 22-4-2013 and 29-4-2013 but the OP neither replied to his letter nor took any action to redress hi problems, he was told that the amount had gone to suspense amount by mistake. The OP has given room for deficiency in service and negligence resulting in monetary loss and mental agony to him by making him to run from pillar to post for no fault for more than one year, so he has come up with the present complaint, praying to pass an order directing the OP to credit the interest accrued every quarter in full as applicable and not to deduct tax at source as Form 15H was given and to pay compensation of Rs.3.00 lakhs and litigation cost of Rs.5,000=00. So the complaint be allowed and pass an order as prayed for.

8. Let us have a look at the relevant documents of complainant. Document no.1 of the complainant produced alongwith the complaint is letter of complainant addressed to the Manager, Canara Bank dated 22-4-2013 stating that, he had given clear instructions in his FD form to credit interest in his SB account every quarter and as per this the interest amount was due on the following dates:

1)       15-10-2012                    Rs.14,402=00

2)       15-01-2013                    Rs.14,402=00

3)       15-04-2013                    Rs.14,402=00

4)       15-07-2013                    Rs.14,402=00

He had given Form no.15H for not deducting TDS, the first quarter interest was not credited to his SB account and the second quarter interest was also not credited during Jan.2013 and he approached FD department frequently and requested for his own money till 25-3-2013 and no interest was credited in his account. When he approached on 26-3-2013, he was told that, the interest has gone into suspense account. On 26-3-2013 an amount of Rs.25,924=00 was credited to his account and that amount was the second quarter installments comes to Rs.28,880=00 but he was given only Rs.25,924=00 i.e. Rs.2,880=00 less and no explanation was given for this less payment. He was asked to give Form 15H again which he gave during the first week of April 2013. On 15-4-2013 his third quarterly interest was due and it was also not credited and he approached them and they accredited a sum of Rs.13,185=00 as against Rs.14,402=00 and again no explanation and requested the bank to look into this mess and rectify the same. The complainant has produced copies of FD receipts issued by the OPs in the name of complainant dated 15-7-2012 and that FD receipt copy shows that the complainant has kept Rs.6,06,417=00 in the OPs bank as FD on 15-7-2012 for one year at the rate of 9.5% interest and the complainant being the senior citizen and interest is to be paid to him quarterly. Document no.2 is the letter of complainant to OPs dated 29-4-2013 stating that, one more FD account for Rs.50,000=00 quarterly interest was due on 23-4-2013. The quarterly interest is of Rs.1,177=00 but an amount Rs. 1,088=00 has been credited i.e. less by Rs.89=00, and inspite of his approach no explanation. The complainant has produced account statement of his SB account for a period from 1-1-2013 to 23-5-2013 wherein it is found that during the month of March 2013 an amount of Rs.25,924=00 was credited to the SB account of complainant being the interest amount of FD, so also in the month of April 2013 an amount of Rs.1,447=00 was credited being the interest amount on FD receipt.

          9. So from the oral and documentary evidence of complainant as mentioned above, it is made manifest that, the complainant has kept an amount of Rs.6,06,417=00 as a fixed deposit in the bank of Ops on 15-7-2012 for one year and interest as per the fixed deposit receipt was 9.5% interest per annum. The complainant being a senior citizen and interest on fixed deposit receipt was payable quarterly and instead of giving interest to the complainant on fixed deposit receipt quarterly, the OPs paid interest of Rs.25,924=00 on 26-3-2013 to the account of complainant being two quarters interest i.e. the first and second quarter. No explanation was given by the OP for crediting the two quarterly interest on 25-3-2013 though it was payable to the complainant on 15-7-2012 and 15-4-2013. It is no doubt true that, the complainant did not submit Form 15H at the time of keeping the amount as fixed deposit in the bank of Ops, but he submitted Form 15H only in April 2013. In view of not submitting the Form 15H by the complainant at the time of making fixed deposit, the TDS was deducted in quarterly interest and paid Rs.25,924=00 being interest amount for the first and second quarterly and whatever deduction made by the Ops towards TDS in the first and second quarterly interest is in accordance with the Income Tax Act and there is no negligence as such on the part of the OPs in making deduction of TDS in the first and second quarterly interest to be payable to the complainant. After submitting the form 15H, no TDS was deducted from the third and forth quarterly interest of the complainant. Since fixed deposit receipt copy produced by the complainant makes it clear that, the complainant is entitled to quarterly interest on fixed deposit receipt, the OP is duty bound to pay the interest on fixed deposit receipt every quarter without making any delay under guises of technical defects or interest amount went to suspense account. The act of Ops in making delay while making payment of the first and second quarterly interest to the complainant without plausible explanation tantamounts to negligence and deficiency of service on the part of the Ops. The oral evidence of complainant that, the Ops are negligent in paying the interest amount due on fixed deposit receipt once in quarterly, despite making request is corroborated by copies of letters of complainant, fixed deposit receipt and SB account of complainant.

          10. At this stage, let us have a look at the material evidence of the Ops. One D.Muralidhar, Senior Manager working in the Ops bank as stated in his affidavit that, the complainant has invested Rs.6,06,417=00 on 15-7-2012 in fixed deposit with the OP for a period of one year with instruction to credit the interest quarterly to the SB account maintained with them. The complainant has not submitted form-15H for exemption of TDS as per section 194A of the Income Tax Act 1961 at the time of opening the fixed deposit. The Form no.15H was submitted by complainant only during April 2013, and accordingly the quarterly interests were credited to the complainant’s SB account deducting the income tax on the quarterly interest which was due on 15-10-2012 and 15-1-2013 and no tax was deducted from the quarterly interest which was due on 15-4-2013 and 15-7-2013. The reason for delay in crediting the quarterly interest as that amount has gone to suspense account due to technical/system problem and immediately on noticing the same on 26-3-2013 the amount of Rs.12,962=00 and Rs.12,962=00 was credited to the complainant’s account by deducing Rs.1,440=00 each towards income tax. The quarterly interest of Rs.14,402=00 was due on 15-4-2013 and it has been credited to the complainant’s account and Rs.13,185-99 was credited on 17-4-2013 and there is no deficiency of service on the part of the OP. The complainant can claim refund of the income tax from IT authorities, so the complainant is not entitled for any relief, so the complaint be dismissed with cost.

          11. But it is required to be noted that, the Ops have not produced any documentary evidence to show that, the interest amount due on 15-10-2012 and 15-1-2013 has gone to suspense account due to technical problem. Moreover, the OPs have not explained clearly either in the version or in the evidence of its employee, the detail meaning of technical problem. Without placing any documentary evidence, it is superfluous to reiterate on the oral testimony of employee of OPs that, due to technical problem the first and second quarterly interest of the complainant went to suspense account. Since the oral evidence of employee of OPs is not corroborated by any documentary evidence, so the oral testimony of employee of Ops is unworthy of belief. So from the oral evidence of the complainant, it is made unambiguously clear that, after depositing the amount in the fixed deposit in the Ops bank  by the complainant, honest and sincere efforts were made by the complainant requesting the Ops to pay quarterly interest in time. Despite making several requests, the Ops did not resolve the problem of complainant and credited Rs.25,924=00 being the first and second quarterly interest at a time to the SB account of complainant in the month of March 2013 without explaining the reason for crediting the interest amount late. But as per the evidence of employee of the Ops, it is disclosed that, the interest amount of complainant went to suspense account, so the first and second quarterly interest of complainant was paid to the complainant on 26-3-2013. But unfortunately no iota of documentary evidence is produced by the Ops to show before the forum that, the first and second quarterly interest of complainant went to suspense account due to technical problems. In view of not producing any documentary evidence, the oral testimony of employee of Ops deserves no much consideration. On making careful scrutiny of the case of complainant on the background of oral and documentary evidence of complainant, it is made unambiguously clear that, the complainant who comes to forum seeking relief has proved with the clear and tangible evidence that, the Ops are negligent and there is deficiency of service on the part of the Ops in not paying the first and second quarterly interest amount on the fixed deposit to him as promised. The act of Ops in not paying the first and second quarterly interest on fixed deposit of the complainant as promised amounts to negligence and deficiency of service on the part of the Ops, and accordingly, we answer this point in a affirmative.

12. In view of our affirmative finding on point no.1, the complainant is entitled to claim a nominal compensation of Rs.3,000=00 and not Rs.20,000=00 as prayed in the complaint. So the Ops no.1 and 2 are directed to pay Rs.3,000=00 to the complainant towards compensation within 30 days from the date of this order,  failing which, the OPs shall pay the said amount to the complainant alongwith 7% interest per annum on the said amount from the date of order to till the date of realization, and the OPs are further directed to pay Rs.2,000=00 to the complainant towards cost of litigation, and accordingly we answer this point. In the result, for the foregoing reasons, we proceed to pass the following order:

ORDER

The complaint of the complainant is partly allowed. The Ops are directed to pay Rs.3,000=00 to the complainant towards compensation within 30 days from the date of this order,  failing which, the OPs shall pay the said amount to the complainant alongwith 7% interest per annum on the said amount from the date of order to till the date of realization.

The OPs are further directed to pay Rs.2,000=00 to the complainant towards cost of litigation.

          Supply free copy of this order to both parties. 

(Dictated to the Stenographer, Got it transcribed and corrected, Pronounced on the Open Forum on this, 17^th day of March 2014).

MEMBER                                  PRESIDENT