State Consumer Disputes Redressal Commission
Bachan Singh vs The Manager Punjab And Sind Band on 13 September, 2017
2nd Additional Bench
STATE CONSUMER DISPUTES REDRESSAL COMMISSION,
PUNJAB
First Appeal No.250 of 2017
Date of Institution: 06.04.2017
Date of Decision : 13.09.2017
Bachan Singh aged 70 years son of Waryam Singh resident of House
No.234-A, Baba Isher Singh Nagar, Chaki Wali Gali, District Moga,
Punjab.
.....Appellant/Complainant
Versus
1. The Manager, Punjab & Sind Bank, Near Guru Nanak College,
Near Railway Bridge, Moga, District Moga-142001.
2. Zonal Office, Punjab & Sind Bank Faridkot, District Faridkot
(Pb.) through Zonal Manager.
......Respondents/opposite parties
First Appeal against the order dated
18.01.2017 of the District Consumer
Disputes Redressal Forum, Moga.
Quorum:-
Mr. Gurcharan Singh Saran, Presiding Judicial Member
Mr. Rajinder Kumar Goyal, Member
Present:-
For the appellant : Sh.Rahul Arora, Advocate
For respondent No.1 : Sh.A.S.Kakkar, Advocate
For respondent No.2 : Ex-parte
GURCHARAN SINGH SARAN, PRESIDING JUDICIAL MEMBER
ORDER
The appellant/complainant (hereinafter referred to as 'complainant') has filed the present appeal against the order dated 18.01.2017 passed by the District Consumer Disputes Redressal Forum, Moga (hereinafter referred to as 'District Forum') in Consumer Complaint No.137 of 2016, dated 17.08.2016, vide which the complaint filed by the complainant was dismissed.
2. Complaint was filed by the complainant under Section 12 of the Consumer Protection Act, 1986 (hereinafter referred to as 'the First Appeal No.250 of 2017 2 Act') on the averments that opposite parties issued four FDRs bearing No.08391000001959, 08391000001960, 08391000001961 and 08391000001962 for one year at the interest rate of 9.50% per annum. These were to be matured on 08.10.2014. In the year 2014, the complainant got paralytic attack due to which he lost his memory. After long treatment when complainant regained his memory and on his recovery he asked his son to enquire about FDRs. On 14.06.2016, complainant visited opposite party No.1 and came to know that after 08.04.2014 the FDRs have not been renewed by the Bank, whereas as per Banking system if the FDR is not withdrawn on maturity by any person then the same is automatically renewed for further period. It was not done and the reasons are best known to the opposite parties. On the same date, he moved an application to the opposite parties as to why his FDR was not renewed for further period and that he will be entitled to FDR interest rate even after the date of maturity. In case FDRs were not renewed automatically then a notice in writing was required to be given to the complainant but no such notice was given which amounted to unfair trade practice and deficiency in service on the part of the opposite parties. Alleging deficiency in service on the part of the opposite parties, complaint was filed before the District Forum seeking directions against the opposite parties to renew the FDR's; to grant renewed FDR's interest after maturity value of FDR's; to pay Rs.11,000/- as litigation expenses and Rs.50,000/- as compensation.
3. Complaint was contested by the opposite parties who filed their written reply and took the preliminary objections that complaint is not maintainable and complainant is estopped by his First Appeal No.250 of 2017 3 own act and conduct as he concealed the material facts from the Forum. In fact the complainant was having FDRs A/c Nos.14/1959, 14/1960, 14/1961, 14/1962 issued on 08.10.2013 and maturity date is 08.10.2014. The above said FDR was not got renewed by the complainant and he had not opted for auto renewal and Bank had no auto renewal. When the complainant approached the Bank in the year 2016 his FDRs were renewed from 14.06.2016 to 14.06.2017 after paying overdue interest at the rate of 4% per annum as applicable as per Bank norms. As per Circular No.3164 dated 06.04.2015 renewal of FDR after 14 day, the procedure has been referred as under:-
"Where overdue period i.e. from the date of maturity till the date of renewal (both days inclusive) exceeds 14 days, such overdue term deposits shall be renewed with effect from the date of presentation for a minimum period of 15 days or more as specified by the depositor beyond the date of presentation and interest for the overdue shall be paid on the amount being renewed (equal to or less than the maturity value of the original deposit) at the saving Bank rate of interest as applicable from time to time, presently being 4% on the methodology as applicable to saving bank account from time to time."
On the basis of that policy for the overdue period 4% interest has been awarded to the complainant. On merits, the averments as stated in the preliminary objections were reiterated. It was further reiterated that if overdue period for which the FDR was not got renewed in more than 14 days the interest at the rate of 4% as per the policy is admissible which has already been given to the complainant. No other amount was due to the complainant. There First Appeal No.250 of 2017 4 was no deficiency in service on the part of the opposite parties. Complaint is without any merits and it be dismissed.
4. The parties tendered their evidences before the District Forum.
5. In support of his allegations, the complainant had tendered into evidence the affidavits as Ex.C-1 and documents as Ex.C-2 to Ex.C-9, whereas opposite parties tendered in evidence the affidavit of Ms.Pallavi Grover, Branch Manager, as Ex.OPs-1 and documents Ex.OPs-2 to Ex.OPs-11.
6. After going through the allegations as alleged in the complaint, written reply and evidences by the parties, the complaint filed by the complainant was dismissed as referred above.
7. Aggrieved with the order passed by the learned District Forum, the appellant / complainant has filed the present appeal.
8. It was argued by the appellant/complainant that the evidence on record has not properly appreciated by the District Forum and the guidelines of RBI with regard to payment of FDR. In case it was not auto renewed, he has referred master circular of RBI issued on July, 2014 with regard to "Disposal of Deposits" which reads as under:-
"Disposal of Deposits Advance instructions from depositors for disposal of deposits on maturity may be obtained in the application form itself. Wherever such instructions are not obtained, banks should ensure sending of intimation of impending due date of maturity well in advance to their depositors as a rule in order to extend better customer service."First Appeal No.250 of 2017 5
9. No notice of impending due date of maturity was given to the complainant. However, as per plea taken by the opposite parties in their written reply the complainant had not applied for auto renewed. He has not placed on record his application for auto renewed during the proceedings of the pendency of the complaint. No such application was given by the complainant to the opposite parties to produce his application for auto renewal of FDR. He has further referred to the Circular No.3164 dated 06.04.2015, wherein instructions have been given regarding the renewal of Term Deposit after 14 days of maturity which reads as under:-
Sr.No. Existing Revised Guidelines
XX XX XX XX XX
iii) Renewal of Term Deposit after 14 Renewal of Term Deposit
days of Maturity: i.e. from the date after 14 days of Maturity:
of maturity till the date of renewal Where overdue period i.e. (both days inclusive) exceed 14 from the date of maturity till days, such overdue term deposits the date of renewal (both shall be renewed with effect from days inclusive) exceed 14 the date of presentation for a days, such overdue term minimum period of 15 days or more deposits shall be renewed as specified by the depositor with effect from the date of beyond the date of presentation presentation for a minimum and Interest for the overdue period period of 15 days or more shall be paid on simple basis on the as specified by the depositor amount being renewed (equal to or beyond the date of less than the Maturity Value of the presentation and Interest for Original Deposit) at the rate the overdue period shall be prevailing on the date of maturity or paid on the amount being date of renewal as applicable for renewed (equal to or less the period for which the deposit is than the Maturity Value of renewed, whichever is the least for the Original Deposit) at both categories of FDRs i.e. Simple Savings Bank rate of & Scheme FDRs. interest as applicable from time to time, presently being 4% on the methodology as First Appeal No.250 of 2017 6 applicable to Savings Bank account from time to time.
If such renewed overdue domestic
term deposit is tendered for
If such renewed overdue
premature encashment, overdue
domestic term deposit is
interest shall be recalculated at the
tendered for premature
rate applicable to the period for
encashment, rate of interest
which FDR has run, ruling on the
would be payable for the
date of renewal or date of original
period for which the FDR
maturity, whichever is less. Excess
has run from date of
overdue interest paid, if any, shall
renewal subject to penal
be recovered from the depositor.
interest, wherever
However, Bank shall pay minimum
applicable, from time to
of overdue interest @ Saving Bank
time.
rate applicable from time to time.
XX XX XX XX XX
10. As per the averments in the written reply the complainant visited the opposite parties on 14.06.2016 and his FDRs were from 14.06.2016 to 14.06.2017 after paying overdue interest at the rate of 4% interest as applicable as per the Bank norms. Therefore, for the overdue period saving interest was given as per the instructions of the opposite parties. No contrary instructions have been brought on record by the counsel for the complainant. In case, as per the RBI instructions no notice with regard to date of maturity of the FDR has been given, the original FDRs were in the possession of the complainant and he knew the date of renewal. If due to any medical reason he could not go to the Bank for renewal of the FDRs, for that opposite parties-Bank cannot be penalized.
11. The District Forum rightly appreciated this preposition that the complainant was not entitled anything over and above the Saving Bank interest. No overdue interest rate of FDR is applicable.First Appeal No.250 of 2017 7
Therefore, the findings recorded by the District Forum are justified and the order passed by the District Forum is hereby affirmed.
12. Sequel to the above, we do not find any merit in the appeal and the same is hereby dismissed.
13. The appeal could not be decided within the statutory period due to heavy pendency of court cases.
(GURCHARAN SINGH SARAN) PRESIDING JUDICIAL MEMBER (RAJINDER KUMAR GOYAL) MEMBER September 13, 2017 parmod