Haryana

StateCommission

A/205/2015

VIKRAM SINGH - Complainant(s)

Versus

VIJAY BANK - Opp.Party(s)

SATYAWAN AHLAWAT

06 Jul 2015

ORDER

STATE CONSUMER DISPUTES REDRESSAL COMMISSION HARYANA, PANCHKULA

                                                 

First Appeal No  :      205 of 2015

Date of Institution:      03.03.2015

Date of Decision :       06.07.2015

 

1. Vikram Singh s/o Sh. Kawal Singh
2. Bhupender Singh s/o Sh. Kawal Singh
3. Pushpender Singh s/o Sh. Kawal Singh, Resident of H.No.1194/19, Sant Nagar, Rohtak.

                                      Appellant-Complainants

Versus

 

1.      Vijaya Bank Head Office 41/2 M.G. Road Banglore-1, through its Managing Director.

 

2.      Branch Manager Vijaya Bank branch office at Narayana Complex, Rohtak.

                                      Respondents-Opposite Parties

 

CORAM:             Hon’ble Mr. Justice Nawab Singh, President.

                             Shri B.M. Bedi, Judicial Member.

                             Shri Diwan Singh Chauhan, Member                                                                                                                      

Present:               Shri Satyawan Ahlawat, Advocate for appellants.

                             Shri P.S. Bedi, Advocate for respondents.

 

                                                   O R D E R

 

B.M. BEDI, JUDICIAL MEMBER

 

This complainants’ appeal is directed against the order dated January 2^nd, 2015 passed by District Consumer Disputes Redressal Forum (for short ‘District Forum’), Rohtak, whereby complaint filed by them was dismissed.

2.      Kawal Singh (since deceased)-father of Vikram Singh, Bhupender Singh and Pushpender Singh-complainants (appellants herein), deposited Rs.7,60,000/-  on September 16^th, 2008 with Vijaya Bank, Rohtak, (hereinafter referred to as ‘the bank’) vide Fixed Deposit Receipt (FDR) Exhibit C-2. The maturity date of the FDR was July 13^th, 2009. The rate of interest payable was 10.75% for the fixed period of 300 days.  Kawal Singh died on January 17^th, 2009. The appellants-complainants approached the bank for refund of the amount. However, the bank insisted for succession certificate. Even after obtaining the succession certificate, the bank did not pay the amount with agreed interest rate.

3.      They filed complaint under Section 12 of the Consumer Protection Act, 1986.

4.      The opposite parties (respondents) contested complaint by filing reply. It was admitted that Kawal Singh had obtained FDR of Rs.7,60,000/- under V-   UTSAV-Deposit Scheme, the maturity date of which was July 13^th, 2009. There was a condition that after the maturity date, the deposit would not get any interest on the FDR amount. It was submitted that the appellants were offered the payment of maturity amount of FDR, however, they insisted for interest at agreed rate after the maturity date also.

5.      After evaluating the evidence of the parties, the District Forum dismissed the complaint.

6.      It is not disputed that Kawal Singh had deposited Rs.7,60,000/- with the bank on September 16^th, 2008 the maturity date of which was July 13^th, 2009. The maturity amount payable was Rs.8,29,481/-. Even rate of interest is not disputed.

7.      The issue involved in the case is as to whether the appellants are entitled to interest after the date of maturity and if so at what rate?

8.      The answer to the proposition can be found in the directions issued by Reserve Bank of India, with regard to the payment of interest on FDRs.

9.      Clause 10A of the directions issued by Reserve Bank of India, reads as under:-

          [

10A	Domestic Term Deposit –where the depositor has died before the date of maturity of the deposit.	Rate of interest	Mode of calculation	Penalty
	(interest will be paid at two rates-one upto date of maturity and another after maturity)	b) Simple interest at Term Deposit rate as prevailing on the date of maturity.	For the period the deposit actually remained with the Bank beyond the date of maturity.

 

10.    Admittedly, in the instant case Kawal Singh (depositor) died on January 17^th, 2009, that is, before the date of maturity (July 13^th, 2009). The deposited amount was Rs.7,60,000/- and the maturity amount was Rs.8,29,481/-. As per clause 10A mentioned above, the appellants are entitled to simple interest on the FDR amount after the maturity date till its actual payment. Even otherwise the bank is engaged in commercial activities and earns interest by advancing loan to its customers. The bank has utilized the amount even after the date of maturity and therefore cannot escape from its liability to pay interest on the maturity amount, as per above circular, till the amount is paid to the appellants.

11.    In view of the above, the appeal is accepted, the impugned order is set aside and the complaint is partly allowed. The respondents-opposite parties (bank) is directed to pay simple interest on maturity amount to the appellants after the date of maturity, that is, July 13^th, 2009 till its actual payment.

 

Announced 06.07.2015

(Diwan Singh Chauhan) Member

(B.M. Bedi) Judicial Member

(Nawab Singh) President

CL