State Consumer Disputes Redressal Commission
M/S Integrated Institute Of Excellence ... vs Axis Bank on 26 May, 2022
CC. NO.645/2013 D.O.D. : 26.05.2022
M/S INTEGRATED INSTITUTE OF EXCELLENCE SOCIETY VS. M/S AXIS BANK
IN THE DELHI STATE CONSUMER DISPUTES
REDRESSAL COMMISSION
Date of Institution: 10.12.2013
Date of hearing: 31.03.2022
Date of Decision: 26.05.2022
COMPLAINT CASE NO.- 645/2013
IN THE MATTER OF
M/S INTEGRATED INSTITUTE OF EXCELLENCE SOCIETY,
BRANCH OFFICE: A-41, MCIE,
MATHURA ROAD, NEW DELHI- 110044.
(Through: Rohitashva Chakraborty, Advocate)
...Complainant
VERSUS
M/S AXIS BANK,
THROUGH ITS BRANCH MANAGER,
E-146, OPP. PVR ANUPAM,
SAKET, NEW DELHI - 110017.
(Through: Lovleen Goyal, Advocate)
...Opposite party
DISMISSED PAGE 1 OF 10
CC. NO.645/2013 D.O.D. : 26.05.2022
M/S INTEGRATED INSTITUTE OF EXCELLENCE SOCIETY VS. M/S AXIS BANK
CORAM:
HON'BLE JUSTICE SANGITA DHINGRA SEHGAL (PRESIDENT)
HON'BLE SH. RAJAN SHARMA, MEMBER (JUDICIAL)
Present: None for the Parties.
PER: HON'BLE JUSTICE SANGITA DHINGRA SEHGAL
(PRESIDENT)
JUDGEMENT
1. The present Complaint has been filed before this Commission under Section 17 of the Consumer Protection Act, 1986, by the Complainant alleging deficiency in service and Unfair Trade Practice on the part of Opposite Party and has prayed for the following reliefs:
a. "Direct the Opposite party bank to pay the amount of Rs. 33.82 lacs interest due to be paid to the complainant;
b. Direct the Opposite party bank to pay compensation to a tune of Rs. 20 lacs for harassment and mental agony as well as the consequential losses suffered by the Complainant; c. Any other relief/such orders be passed as the Hon'ble State Consumer Dispute Redressal Commission may deem fit in the circumstances of the case."
2. Brief facts necessary for the adjudication of the present complaint is that the Complainant has been operating a Saving Bank Account No. 160010100066954 since 17.03.2005 in Saket Branch of the Opposite party. The Complainant was also maintaining term deposits which are attached with the said Saving bank Account. The details of the term deposits lying in the said Saving bank Account are as follows:
Date of Original Rate of Maturity
FDR NO. FDR Amount Interest Date
(in Lacs)
DISMISSED PAGE 2 OF 10
CC. NO.645/2013 D.O.D. : 26.05.2022
M/S INTEGRATED INSTITUTE OF EXCELLENCE SOCIETY VS. M/S AXIS BANK 9120400516 01.10.2012 250.00 7% 31.12.2012 67157 9120400461 04.09.2012 240.00 8% 04.12.2012 57823 9120400461 04.09.2012 250.00 8.50 29.03.2013 55050 % 9120400461 04.09.2012 250.00 8.50 29.03.2013 53766 %
3. The interest on the above-mentioned FDR and the interest upon the funds which are lying in the said bank account amounting to Rs. 33,82,000/- has not been credited to the Saving bank A/c of the Complainant. The Complainant has informed the Opposite party about the losses suffered by Complainant as the interest was not credited to its bank account. The Opposite party vide the letter dated 26.10.2010 informed the Complainant that due to the request letter dated 22.10.2012 received from O/o Sub Divisional Police Officer, Namchi, Sikkim for freezing the Bank Account u/s 102(1) Criminal Procedure Code, therefore, the said account has been marked as Debit - Freeze.
4. Thereafter, the Complainant immediately reverted to the Opposite party vide letter dated 29.10.2012 that his Bank Account has no connection with the said order of Sub Divisional Police Officer, Namchi, Sikkim as the same pertains to different organization. However, the Opposite party didn't pay any attention in this regard. The Complainant also served a legal notice dated 07.11.2013 upon the Opposite party and the reply to the said legal notice has been recieved vide letter dated 12.11.2013, informing that they are examining the present matter and will respond upon the same within 20 days. However, till date the Opposite party has not settled the issue raised by the Complainant.
DISMISSED PAGE 3 OF 10 CC. NO.645/2013 D.O.D. : 26.05.2022
M/S INTEGRATED INSTITUTE OF EXCELLENCE SOCIETY VS. M/S AXIS BANK
5. Thus, left with no other option, alleging deficiency of service and unfair trade practice on the part of Opposite Party, the Complainant has approached this Commission.
6. The Opposite party has contested the present case and has raised preliminary objection as to the maintainability of the complaint case. The counsel for the Opposite party contended that the present complaint is not maintainable as the Complainant is a Charitable Society and do not come within the definition of "Consumer" as well as "person" as defined under Consumer Protection Act. Pressing the aforesaid contention, the counsel appeared on behalf of the Opposite party submits that there is no deficiency on its part and prayed that the present complaint should be dismissed.
7. The Complainant has filed its Rejoinder rebutting the written statement filed by the Opposite party. Thereafter, both the parties have filed their Evidence by way of Affidavit in order to prove their averments on record.
8. We have perused the material available on record and heard the counsel for the Complainant.
9. The fact that the Complainant has been operating a Saving Bank Account in the Saket branch operated by the Opposite party is evident from record and the Complainant was also maintaining four term deposits attached with the said account which is evident from the documents annexed with the present complaint.
WHETHER COMPLAINANT FALL IN THE CATEGORY OF 'CONSUMER' UNDER THE CONSUMER PROTECTION ACT, 1986?
10. The Opposite Party has contended that as the Complainant is a Charitable Society which does not cover under the definition of 'consumer' and 'person' as defined under Consumer Protection Act, 1986.
DISMISSED PAGE 4 OF 10 CC. NO.645/2013 D.O.D. : 26.05.2022
M/S INTEGRATED INSTITUTE OF EXCELLENCE SOCIETY VS. M/S AXIS BANK
11. To resolve this issue, we deem it appropriate to refer to Section 2(1)m of Consumer Protection Act 1986, wherein it is provided as under:
2(1)(m) "person" includes--
(i) a firm whether registered or not;
(ii) a Hindu undivided family;
(iii) a co-operative society;
(iv) every other association of persons whether registered under the Societies Registration Act, 1860 (21 of 1860) or not;"
12. We further deem it appropriate to refer to Section 2(1)(d) of Consumer Protection Act, 1986, wherein it is provided as under:
(d) "consumer" means any person who,--
(i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or
(ii) hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person but does not include a DISMISSED PAGE 5 OF 10 CC. NO.645/2013 D.O.D. : 26.05.2022 M/S INTEGRATED INSTITUTE OF EXCELLENCE SOCIETY VS. M/S AXIS BANK person who avails of such services for any commercial purpose."
13. We further deem it appropriate to refer to the dicta of the Hon'ble National Commission in Complaint case no. 269 of 2017 titled Capital Charitable and Education Society vs. Axis Bank Limited decided on 09.12.2019, wherein, the Hon'ble National Commission has held as under:
"13. I have given a thoughtful consideration to the arguments advanced by the learned counsel for the parties and perused the record. The complainant has stated in its complaint that complainant is a Charitable Institution and running several schools in Delhi and NCR. It has been stated that the complainant opened account for their school namely, IPGS, Noida with the opposite party bank. The account is being operated by the society and therefore, I find no merit in the objections of the opposite party bank that the complainant does not have any privity of contract with the bank. Further it is seen that the account is a current account being operated by the society officers and therefore, society claims that it is a consumer of the opposite party bank. As the complainant is a Charitable Institution, and is not involved in any profitable activity and therefore, relying upon the case of Hon'ble Supreme Court in Lourdes Society Snehanjali Girls Hostel & anr. Vs. H&R Johnson (India) Limited & Ors. (supra), I find that complainant is a consumer under Section 2(1)(d) of Consumer Protection Act, 1986."
14. From the aforesaid dicta of the Hon'ble National Commission and the analysis of section 2(1)(d) and (m) of the Consumer Protection Act, 1986 leads us to the conclusion that the consumer either individual or society, who availed the services of the service provider will fall under the definition of consumer. Moreover, in the present case, the Complainant has availed the services of Opposite DISMISSED PAGE 6 OF 10 CC. NO.645/2013 D.O.D. : 26.05.2022 M/S INTEGRATED INSTITUTE OF EXCELLENCE SOCIETY VS. M/S AXIS BANK party by maintaining a saving bank account in the Saket Branch of the Opposite party which shows that Opposite party was providing its services to the Complainant in exchange of the consideration in the form of bank charges. Hence, the contention raised by the Opposite party that complainant will not cover under the definition of 'consumer' and 'person' as provided under section 2(1)(d) and 2(1)(m) of the Consumer Protection Act, 1986 is answered in negative.
WHETHER THE OPPOSITE PARTY IS DEFICIENT IN PROVIDING ITS SERVICES TO THE COMPLAINANT
15. Having discussed the preliminary objection raised on behalf of the Opposite Party, the next issue which arises is whether the Opposite Party is actually deficient in providing its services to the Complainant by not crediting the interest which may accrued in favour of complainant if the said term deposits would renewed by the Opposite party during the time when the said account was under
debit- freeze and whether the Opposite party was deficient by freezing the saving bank account of the Complainant in pursuance of the letter dated 22.10.2012 sent by the O/o Sub Divisional Police Officer, Namchi, Sikkim.
16. The said letter dated 22.10.2012 is reproduced below for the ready reference:
"Ref to letter no. 777/SDPO/Namchi dtd 22.10.2012 in connection with Jorethang P.S case no. 51/2012 dtd 1.9.2012 u/s406/420/467/120B/34 IPC against the management of EILM University Sikkim, under the provisions of 102(1) Cr.P.C you were requested freeze account no. 160010100167079, in addition kindly provide the details for DISMISSED PAGE 7 OF 10 CC. NO.645/2013 D.O.D. : 26.05.2022 M/S INTEGRATED INSTITUTE OF EXCELLENCE SOCIETY VS. M/S AXIS BANK the bank transactions made in favor of/ credited to the account no. 160010100167079 from the following - • Radcliff School Education LTD • Brentwood International LTD • Details pertaining to Reliance Income Fund • NCIS (National Centre for Internship Studies) • Rai Foundation • Rai Technology Institute • Integrated institute of Excellence • Directorate Of Distance learning EILM Request to also provide account details of the above and debit freeze the accounts. In addition information as to whether the following hold any account in your branch-
- Mr.O.B Vijayan
- Mrs Mini Juneja
- Col. Alok Bhandari
- W.E.M (World Education Mission
- Swastik Educational charitable Trust If yes, account details and request to freeze the same. Further with regard to any fixed deposit/term deposit related to the all above account holders request to kindly also freeze the same.
Axis bank account no. 160010100167079 belonging to ELM University is suspected of money laundering hence you co- operation in this matter will be greatly appreciated."
17. Perusal of the said letter dated 22.10.2012, shows that the directions in regard to the freezing of account were given to the Axis Bank and the Opposite party relying upon the said direction letter, freezed the DISMISSED PAGE 8 OF 10 CC. NO.645/2013 D.O.D. : 26.05.2022 M/S INTEGRATED INSTITUTE OF EXCELLENCE SOCIETY VS. M/S AXIS BANK Saving Bank Account of the Complainant. However, the interest accrued upon the term deposits and funds lying in the account has been duly credited to the account of the Complainant which is evident from the statement of accounts attached with the written statement filed by the Opposite party.
18. Further it is noted that the Complainant in the present complaint is demanding/seeking the interest which would be applicable to the FDR's if the said term deposits had been renewed by the Opposite party during the Debit-Freeze period. However, the Opposite party on request of the complainant sought clarification regarding the renewal of matured FDR's during debit-freeze period from the Police authorities vide letter dated 16.09.2013, upon which the reply has been received from authorities vide letter dated 05.10.2013, which reproduces as:
"Ref to letter no AXIS/SAKET/13-14/MISC did 16th Sept 2013 concerning conversion of funds lying in the accounts of EIILM, Rai Foundation, DDL, EIILM and IIES in to fixed deposits, request to kindly not permit the same.
As rightly mentioned, that the request was for debit freezing of the concerned accounts, request so made so as to restrict any direct access to the funds or alteration to manipulation of the same by the accused party. Therefore the conversion of lying funds as fixed deposit would enter into the definition of alteration of funds, same not to be permitted.
Thanking you for your timely information and hoping the same co-operation in the future."
19. Perusal of the said letter/reply by the Police authorities, Namchi, Sikkim clearly states that the conversion of the lying funds as fixed deposits would come under the alteration of funds which is not permitted during the debit freezing period of the concerned bank accounts. Therefore, the Opposite party rightly acted in accordance DISMISSED PAGE 9 OF 10 CC. NO.645/2013 D.O.D. : 26.05.2022 M/S INTEGRATED INSTITUTE OF EXCELLENCE SOCIETY VS. M/S AXIS BANK with the letter dated 05.10.2013. However, the interest upon the lying funds in the Saving bank Account has been duly credited by the Opposite party into the said account of Complainant.
20. In these circumstances, we hold that the Opposite Party is not deficient in providing its services to the Complainant by freezing the Saving Bank Account of the Complainant upon the directions of the police authorities and not liable to pay any imaginary interest which may have accrued if the said term deposits of the Complainant would be renewed by the Opposite party during the time when the said bank account was under Debit-Freeze. Consequently, the present Complaint stands dismissed, with no order as to costs.
21. Applications pending, if any, stands disposed of in terms of the aforesaid judgment.
22. A copy of this judgment be provided to all the parties free of cost as mandated by the Consumer Protection Act, 1986. The judgment be uploaded forthwith on the website of the commission for the perusal of the parties.
23. File be consigned to record room along with a copy of this Judgment.
(JUSTICE SANGITA DHINGRA SEHGAL) PRESIDENT (RAJAN SHARMA) MEMBER (JUDICIAL) Pronounced On:
26.05.2022 DISMISSED PAGE 10 OF 10