Tamil Nadu

South Chennai

CC/298/2018

Asian Bottles - Complainant(s)

Versus

UCO Bank Rep by Manager - Opp.Party(s)

AKM Sam Sunihar

03 May 2023

ORDER

Date of Complaint Filed :10.01.2018

Date of Reservation      : 13.04.2023

Date of Order               : 03.05.2023

          DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,

CHENNAI (SOUTH), CHENNAI-3.

 

PRESENT: TMT. B. JIJAA, M.L.,                                           : PRESIDENT

                    THIRU. T.R. SIVAKUMHAR, B.A., B.L.,              :  MEMBER  I 

                    THIRU. S. NANDAGOPALAN., B.Sc., MBA.,        : MEMBER II

 

CONSUMER COMPLAINT No. 298/2018

WEDNESDAY, THE 3^RDDAY OF MAY  2023

 

Asian Bottles,

Rep. by its Proprietrix,

BismiMarsukka,

W/o. Mr.R.Ismail,

223/109, Thambu Chetty Street,

Chennai 600 001.                                                                 …  Complainant.

..Vs..

The Manager,

UCO Bank,

Triplicane Branch,

Chennai 600 005.                                                                .. Opposite Party.

                                            * * * * *

Counsel for the Complainant   : Mr.A.K.M.Samsunihar, Advocate

 

Counsel for Opposite Party      :  Mr.V.Sudhakar, Advocate

 

On perusal of records and upon treating the written arguments as oral arguments on endorsement made by the Complainant and having heard the oral arguments of the Counsel for the Counsel for the Opposite Party, we delivered the following:

ORDER

Pronounced by the President Tmt. B. Jijaa, M.L.,

 

(i)       The Complainant has filed this complaint as against the Opposite Party under section 12 of the Consumer Protection Act, 1986 and prays to direct the Opposite Party to refund the amount of Rs.19,995/- which was debited from the Complainant account by the Opposite Party and to pay a sum of Rs.5,00,000/- to the Complainant due to negligence, deficiency of service, and for the mental agony and hardships faced by the Complainant and to pay costs. 

I.    The averments of Complaint in brief are as follows:-

 

1.  The Complainant has been supplying empty old bottles successfully for the past one decade and the yearly turnover is more than Rs.2,00,00,000/-.  The Complainant submitted that they are having Current Account with the Opposite Party bank vide Account No.07830210001493 and has been operating the same successfully for the past few years. On 25.09.2017 she approached the Opposite Party bank requesting them to send a sum of Rs.19,995/- through NEFT in favour of one of its Customers M.Gopi, whose account No.4036101000979 with Canara Bank, Dindigul Branch. At the time of furnishing details of Account wrongly mentioned as A/c.No.4936101000979 but the particulars in respect of his name and name of the bank in which he has been operating the account are correct. The staff of the Opposite Party bank sent that amount to a wrong account, but Mr.Gopi did not receive the same till date.

2.     The Complainant submitted that they were getting information from Mr. Gopi that he was not receiving any amount from the Complainant. The Complainant immediately approached the opposite bank, Triplicane Bank and intimated the same but the staff informed the Complainant that they will give information after verifying the same but till date they did not either to send money nor gave any information to the Complainant.

3.     Aggrieved against the inaction of the Opposite Party, the Complainant again approached the Opposite Party to return back the amount in their account which was debited from the Complainant bank but in vain.
4.     The Complainant further submitted that being a public sector bank
the Opposite Party had to immediately fulfil request of the Complainant but they did not do so despite several requests made by the Complainant resulting which the name of the Complainant was spoiled in the mind of one of its valuable Customers. This is due to negligence and deficiency in service of the Opposite Party Bank. The Complainant submitted that the alleged attitude has clearly shown that the Opposite Party services are squarely covered under the negligence of service rendered by them to the Complainant and the same is liable to pay compensation and damages.
5.     The Complainant issued a legal notice dated 14.11.2017 to the Opposite Party. The Opposite Party after receiving the notice neither  credited the amount in the Complainant’s account nor send any reply to the Complainant.  Hence the complaint.

II. Written Version Of Opposite Party  in brief is as follows:-

 

6.     The Opposite Party submitted that on 25.9.2017 the Complainant had sent NEFT (National Electronic Fund Transfer) a sum of Rs. 19,995/- to one M.Gopi, having account in SME Branch,M/s Canara Bank. The application form given by the Complainant on 25.09.2017 clearly reveals the particulars furnished by the Complainant as contained therein. Apparently the Complainant wrongly mentioned the number as 4936101000979 whereas the correct account number of the beneficiary is 4036101000979.

7.     The Opposite Party bank stated that if the amount credited through NEFT to an account which is not intended, the branch has to return the money back, however the beneficiary bank had redirected the amount to another branch with another IFSC number, thus crediting in wrong account instead of Complainant’s account. Hence there is no deficiency of service alleged by the Complainant by the Opposite Party bank.

8.     It is submitted that the complaint is liable to be rejected for non-joinder of necessary parties in as much as beneficiary bank was not made as party in the proceedings and due to mentioning wrong IFSC code by the beneficiary bank the amount did not return to Opposite Party Bank branch. It is therefore prayed to dismiss the complaint.

III. The Complainant has filed his proof affidavit in support of his claim in the complaint and has filed 4 documents which are marked as Ex.A1 to A4. The Opposite Party had submitted his proof affidavit and Ex.B1 marked on its side.  Both side written arguments filed.

 

Points for Consideration:-

 

1. Whether there is any deficiency in service on the part of the Opposite Party?

 

2. Whether the Complainant is entitled for the reliefs sought for?

 

3. To what other relief, the Complainant is entitled to?

 

Point No. 1 :-

 

9.     The contention of the Complainant is that he was having current account No.07830210001493 with the Opposite Party. At the time of transferring funds to one of its customers through NEFT from the account of the Complainant held with the Opposite Party, she had wrongly given the account number as 4936101000979 instead of the correct account No. 4036101000979 with canara bank, Dindigul branch favouring one of its customers M.Gopi.  Though she had furnished other particulars correctly, the Opposite Party had transferred the amount to a wrong person. The Complainant had informed the Opposite Party to refund a sum of Rs.19,995/- to the Complainant’s account which was wrongly sent to the 3^rd party’s account and had also sent a legal notice dated 14.11.2017 which evoked no response.

10.    The Opposite Party contended that the Complainant had wrongly mentioned the account Number as 4936101000979 whereas the correct account number of the beneficiary is 4036101000979. The Complainant while crediting the amount through NEFT mentioned wrong account number of the beneficiary and the beneficiary bank while returning the amount sent it to wrong branch while mentioning a wrong IFSC code and consequently the same was sent to a different branch for which the Opposite Party cannot be held liable. 

11.    The undisputed facts are that the Complainant was maintaining account with the Opposite Party vide account No.07830210001493. It is also not a dispute that on 25.9.2017 the Complainant had sent a sum of Rs.19,995/- to a wrong account No.4936101000979 instead of the beneficiary account No.4036101000979.

12.    A perusal of Ex.B1 would reveal that the Complainant had furnished the following particulars in the National Electronic Funds Transfer Application Form.

1. Name of the beneficiary bank: M/s.Canara Bank
2.  IFSC Code: CNRBO004036
3. Beneficiary name: M.Gobi
4. Beneficiary Account no.4936101000979

13.    Though the Opposite Party contends that the fault lies with the Complainant by giving a wrong account number of the beneficiary which resulted in crediting the amount to the wrong account by the beneficiary bank and further the beneficiary bank had quoted the wrong IFSC number while returning the amount and as a result of which the amount sent to different branch for which the Opposite Party cannot be held liable, the Opposite Party on complaint made by the Complainant on 10.10.2017 as seen from Ex.A2, had not furnished the steps taken by them to reverse the credits for redressing the grievance of the Complainant.

14.    The Opposite Party  had relied upon the order passed by the Hon’ble National Commission, New Delhi in R.P.No.1863/2016, ICICI Bank Limited and another –Vs- SaridaVasist and another passed on 12.10.2017, while it was held that there is no deficiency in service on the part of the bank as the wrong transaction occurred due to the incorrect information about the account number provided by the sender of the money to the Complainant, which case is not applicable to the present case as in the judgement referred by the Opposite Party the bank upon coming to know that her wrong credit had been made in favour of another account holder had taken efforts to reverse the wrong entry and was successful in recovering a considerable sum of money.  However in the instant case the Opposite Party had not taken any steps to recover money from the wrong beneficiary. As per the circular issued by the Reserve Bank of India dated 14.10.2020, it is the responsibility of the bank in case where it was found that the credit has been afforded to a wrong account, bank need to establish a robust, transparent and quick grievance redressal mechanism to reverse such credit and set right the mistake and to return the transaction to the originating bank.

15.    In view of the above discussions and considering the facts and circumstances of the case, when the Opposite Party had found that the IFSC Code was wrong, they would have confirmed with the Complainant, instead having forwarded the amount to a correct IFSC Code is not only arbitrary but sheer negligence on the part of the Opposite Party, and further the opposite party having failed to take any steps to  reverse the wrong credits from wrong beneficiary inspite of the complaint raised by the Complainant about the mentioning of the wrong account number and the wrong credit made  and  having failed to set right the mistake that had occurred when the opposite bank had the responsibility to enquire and redress the grievance of the Complainant on receiving the complaint had been negligent and deficient in rendering service which is to be compensated. Hence this Commission is of the considered view that the Opposite Party had committed deficiency of service.  Accordingly point No.1 is answered in favour of  the Complainant.

Point Nos:2 & 3:-

16.    As discussed and decided in point No.1 against the Opposite Party, the Opposite Party is liable to pay a sum of Rs.19,995/-, which was debited from the Complainant’s account by the Opposite Party and to pay a sum of Rs.10,000/- as compensation for the deficiency in service along with a sum of Rs.5000/- towards costs of the litigation within 8 weeks from the date of receipt of this order, failing which  the above amount of Rs.19,995/- shall carry interest at the rate of 9% per annum from the date of this order  till the date of realisation.

        In the result, this complaint is allowed partly. The Opposite Party is directed to refund a sum of Rs.19,995/- (Rupees Nineteen Thousand Nine Hundred and Ninety Five Only) which was debited from the Complainant’s account by the Opposite Party and to pay a sum of Rs.10,000/- (Rupees Ten Thousand Only) towards compensation for the deficiency in service along with a sum of Rs.5000/- (Rupees Five Thousand Only) towards costs of the litigation within 8 weeks from the date of receipt of this order, failing which  the Complainant  is entitled to recover the above amount of Rs.19,995/- shall carry interest at the rate of 9% per annum from the date of this order  till the date of realisation.

Dictated to Steno-Typist, transcribed and typed by her, corrected and pronounced by us in the Open Commission, on 3^rd  May 2023.

 

S. NANDAGOPALAN               T.R. SIVAKUMHAR                    B.JIJAA

         MEMBER II                       MEMBER I                         PRESIDENT

 

List of documents filed on the side of the Complainant:-

 

Ex.A1		Xerox copy of Complainant’s bank statemeht (Current A/c. 07830210001493.
Ex.A2	10.10.2017	Xerox copy of complaint give by the Complainant.
Ex.A3		Xerox copy of acknowledgement receipt.
Ex.A4	14.11.2017	Xerox copy of legal notice sent by the Complainant to the Opposite Party with acknowledgement.

 

List of documents filed on the side of the Opposite Party:-

 

Ex.B1

25.09.2017

Xerox copy of application form given by the Complainant.

 

 

S. NANDAGOPALAN               T.R. SIVAKUMHAR                    B.JIJAA

         MEMBER II                       MEMBER I                         PRESIDENT