State Consumer Disputes Redressal Commission
The Branch Manager,Indian Overseas ... vs S.M. ... on 16 July, 2010
BEFORE THE STATE CONSUMER DISPUTES REDRESSAL COMMISSION, CHENNAI BEFORE THE STATE CONSUMER DISPUTES REDRESSAL COMMISSION, CHENNAI Present Hon'ble Thiru Justice M. THANIKACHALAM PRESIDENT Tmt. Vasugi Ramanan, M.A.,B.L., MEMBER I Thiru S. Sambandam, B.Sc., MEMBER II F.A.NO.423/2010 (Against order in C.C.NO.2/2004 on the file of the DCDRF, Ramanathapuram) DATED THIS THE 16th DAY OF JULY 2010 The Branch Manager Indian Overseas Bank Thankatchimadam Village Rameswaram Taluk Ramanathapuram District Appellant / Opposite party Vs. S.M. Arumugam S/o.Muthuvel Valasia Street Tankachimadam Rameswaram Taluk Ramanathapuram Respondent / Complainant The Respondent as complainant filed a complaint before the District Forum against the Appellant / opposite party praying for the direction to the opposite party to pay Rs.1,30,880/- towards the savings bank account amount alongwith 12% interest, and compensation of Rs.2 lakhs. The District Forum allowed the complaint. Against the said order, this appeal is preferred praying to set aside the order of the District Forum dt.11.4.2008 in COP No.2/2004. This petition coming before us for hearing today. Upon hearing the arguments of the counsel for appellant, this commission made the following order in the open court: Counsel for appellant/ Opposite party : Ms. R.Sucharitha, Counsel Counsel for Respondent/Complainant : Mr. V. Balaji, Counsel M. THANIKACHALAM J, PRESIDENT (Open court) 1.
By consent of both parties, appeal itself taken for disposal today.
2. The complainant, accusing the bank, as if they have not paid the balance of Rs.1,30,880/-, from his SB Account No.594, has filed the case, not only for a direction to return the amount, but also for interest, in addition to compensation, which was opposed.
3. The District Forum, considering the rival contentions of the parties, concluding that the Bank had committed deficiency in service, directed the opposite party to pay the sum of Rs.1,30,880/-, being the balance in the SB Account of the complainant, with interest thereon, at 9% p.a., from the date of complaint till payment, in addition to a compensation of Rs.5000/-, alongwith cost, as per order dt.11.4.2008, which is under challenge.
4. Heard the learned counsels for both parties, perused the records, and the order of the District Forum.
5. The learned counsel for appellant, would contend, that as per the existing rules, for SB account, the bank is liable to pay only interest @3.36%, whereas the District Forum has granted 9% interest, which is against the rules, liable to be set aside. It is the further submission of the learned counsel for appellant, that in addition to grant of interest, compensation also granted, which is not permissible, which are opposed.
6. As rightly submitted by the learned counsel for complainant/ respondent, the account holder/ complainant is entitled to interest, as per the Rules permissible for the balance of the amount available in the SB Account, which is conceded at 3.36%, and therefore as of right, the account holder is entitled to interest at 3.36%, for the balance amount viz. Rs.1,30,880/-, and for the deficiency caused also, they are entitled to some compensation, which is reasonably quantified at Rs.5000/-, which cannot be disturbed. For these reasons, the appeal is allowed in part.
6. In the result, the appeal is allowed in part, modifying the order of the District Forum in C.C.No.2/2004 dt.11.4.2008, so far as the award of rate of interest alone is concerned, which is modified as 3.36% p.a., instead of 9%, otherwise confirming the order of the District Forum.
There is no order as to cost in this appeal.
S.SAMBANDAM VASUGI RAMANAN M. THANIKACHALAM MEMBER II MEMBER I PRESIDENT NDEX : YES / NO Rsh/d/mtj/FB/Open court-