State Consumer Disputes Redressal Commission
Branch Manager, State Bank Of India vs Purushottam Chinkumal Israni on 7 December, 2021
1 A/07, 705, 1625/2019
MAHARASHTRA STATE CONSUMER DISPUTE REDRESSAL
COMMISSION,MUMBAI, BENCH AT AURANGABAD.
Date of filing :03.01.2019
Date of order :07.12.2021
1) FIRST APPEAL NO. : 07 OF 2019
IN COMPLAINT CASE NO.: 293 OF 2018
DISTRICT CONSUMER FORUM : AURANGABAD
Branch Manager,
State Bank of India,
Branch Shahagunj,
Aurangabad.
...APPELLANT
VERSUS
Mr.Ramanlal Ganeshlal Kasliwal,
R/o Labour Colony, Vishwas Nagar,
Behind Hanuman Mandir,
H.No.02-10-81/1, Aurangabad. ...RESPONDENT
Date of filing :03.01.2019
Date of order :07.12.2021
2) FIRST APPEAL NO. : 705 OF 2019
IN COMPLAINT CASE NO.: 349 OF 2018
DISTRICT CONSUMER FORUM : AURANGABAD
Branch Manager,
State Bank of India,
Branch Shashtri Nagar,
Aurangabad. ...APPELLANT
VERSUS
Mr. Ravindra Dhondupant Bhortakke,
R/o Plot No.68, Swapn Nagari, Vijay Nagar Road,
Garkheda, Aurangabad. .... RESPONDENT
Date of filing :03.01.2019
Date of order :07.12.2021
3) FIRST APPEAL NO. : 1625 OF 2019
IN COMPLAINT CASE NO.: 571 OF 2019
DISTRICT CONSUMER FORUM : AURANGABAD
i) State Bank of India,
Through Branch Manager ,
2 A/07, 705, 1625/2019
Branch Shahagunj,
Aurangabad.
ii) State Bank of India,
Through Assistant General Manager,
Regional Office, RBO-I, CIDCO,
N-5, Aurangabad. ...APPELLANTS
VERSUS
Mr.Purushottam Chinkumal Israni,
R/o Sindhi Colony,
Aurangabad. ...RESPONDENT.
CORAM : Smt.S.T.Barne, Hon'ble Presiding Judicial
Member.
Mr.K.M.Lawande, Hon'ble Member.
Present : Adv.Anil Tangade Patil for appellant,
Adv.Smt.Dhanshri Patil for respondent in appeal No.07/19,
Adv.Sachin Darwande & Adv.Dhongade in appeal No.705/19,
Adv.M.J.Agrawal in appeal No.1625/2019.
JUDGMENT
(Delivered on 07/12/2021) Per Mr.K.M.Lawande, Hon'ble Member.
1. The appellant State Bank of India (through their officers as appellants 1 & 2 in title clause) have filed three independent appeal Nos. 07/2019, 705/2019 & 1625/2019 against the judgments and orders of District Forum Aurangabad in consumer complaint Nos. 293/2018( passed on 13.11.2018), 349/2018( passed on 24.10.2018) and 571/2019( passed on 08.11.2019).
The subject matter and issue involved being similar, all these appeals are heard together and decided by this common order.
3 A/07, 705, 1625/2019
2. The appellant is the opponent and the respondents are the complainants in complaint before District Consumer Dispute Redressal Forum. The appellant and respondents are hereinafter referred as 'opponent' and 'complainant' as per their status in the complaints and District Consumer Disputes Redressal Forum is referred to as 'District Forum' for the sake of convenience.
3. The brief facts of the consumer complaints are summarised as follow.
(i) The opposite party formerly State Bank of Hyderabad(S.B.H.) promulgated/announced/offered one scheme under the caption "Golden Jubilee Celebration" in year 1992 wherein the depositors depositing Rs.2042/- for 25 years would get Rs.50,000/- after maturity and depositors depositing Rs.4084/- for 50 years would get Rs.1 lac. It was stated that it would be ideal gift for depositors kith and kin whom they love and care for.
(ii) Being attracted by this offer, the complainant Ramanlal Kasaliwal in C.C.No.293/2018 invested (Rs.2042/- for certificate of Rs.50,000/-) and he was issued certificate bearing No.GJC/L No.034816 dt.17/09/92.
However after the maturity the complainant is not paid the amount as in certificate of particular face value of Rs.50,000/- , instead meagre amount of Rs.14621/-is deposited by bank in complainant's account. However, same is also withdrawn by the bank from his account. The bank has explained that the amount is withdrawn due to refusal of 4 A/07, 705, 1625/2019 complainant to receive the amount. It is alleged that the bank have rendered deficiency in service to the complainants. The complainant prayed for directions to opponent bank for payment of Rs.50,000/- with 18% interest p.a. from the date of maturity, Rs.50,000/- towards mental and physical agony and Rs.25,000/- towards cost of litigation.
(iii) C.C.No.349/2018 is filed by one Ravindra Bhortakke where it is alleged that he deposited Rs.4084/- towards purchase of Golden Jubilee Certificate on 30.8.1992. The apparant face value of the certificate No.- GJ6/H004376 is Rs.1 lac. However, after the maturity of certificate, the opponent bank offered only Rs.51,714/- and not explained any reason for not giving the amount agreed. With this the complainant alleged deficiency in service on the part of opponent and filed the complaint. The complainant prayed for direction to opponent bank for payment of Rs.1 lac with 20% interest p.a., Rs.20,000/- towards mental & physical agony Rs.20,000/- and Rs.20,000/- for harassment, Rs.20,000/- towards cost.
vi) C.C.No.571/2019 is filed by one Purushottam Israni who deposited Rs.4084/- on 03.10.1992 towards the purchase of two Golden Jubilee certificate bearing No.GJC/L No.034833 and 034834. The apparent face value of the each certificate is Rs.50,000/- each. He paid Rs.2042/- for each certificate. The opponent bank denied payment of Rs.1 lac in total towards the maturity of these two certificates. It is alleged that opponent committed deficiency in service filed consumer complaint. Complainant prayed for directions to opponent bank for payment of Rs.1 lac with 18% interest p.a., mental agony Rs.20,000/-, cost of litigation Rs.3000/-.
5 A/07, 705, 1625/2019
4. The opponent bank has filed written version separately in all the three complaints and denied the allegations of deficiency in service on the part of bank. It was replied that the rate of interest are applied as per the RBI guidelines of applying existing rate of interest. At the time of launching of the scheme the rate of interest was 13% and the maturity amount after 10 years is calculated in considering 13% interest. It is further contended that as the scheme is subjected to application of prevailing rates of interest at 10th and 20th year, which were applied for calculating the total amount after maturity. It is replied that in C.C.293/2018 the rate of applicable interest existed after 10th year is 6.25% and after 20th year @9.25%.
In C.C.349/2018 the opponent replied in written version that "the certificate contains a clause that the maturity amount shall very depending upon the rate of interest prevailing at the end of 10th year and 20th year. Since the interest rate have gone down the issuance of the certificate in 1992, the maturity proceeds payable at the end of period of the deposit stands at Rs.51,714/- which we have informed the complainant.
In C.C.571 /2019, the opponent replied that rate of applicable interest as per RBI guidelines existed after 10th year is 6.25% and after 20th year @9.25%.
The bank offered the amounts to complainants as below. Sr.No. Consumer Name of complainant Maturity amount complaint No.
1. 293/2018 Ramanlal Kasaliwal Rs.21559/-
2. 349/2018 Ravindra Bhortakke Rs.51,774/-
3. 571/2019 Purushottam Israni Rs.24,162/- each for two certificates 6 A/07, 705, 1625/2019 The opponent denied the allegations of deficiency in service.
5. The District Forum passed the order in respective complaints as below.
i) In C.C.293/2018 vide order dated 01.02.2018 District Forum allowed the complaint partly and directed to pay Rs.50,000/- to the complainant towards the maturity of certificate with further interest @ 13% p.a. The District Forum also awarded Rs.10,000/- towards agony and cost of litigation.
ii) In C.C.349/2018 vide order dated 24.10.2018 District Forum allowed the complaint partly and directed to pay Rs.1 lac to the complainant towards the maturity of certificate with further interest @ 13% p.a. The District Forum also awarded Rs.10,000/- towards agony and cost of litigation.
iii) In C.C.571/2019 vide order dated 08.11.2019 District Forum allowed the complaint partly and directed to pay Rs.24,982/- each towards the two certificates to the complainant towards the maturity of certificate with further interest @ 13% p.a. The District Forum also awarded compensation Rs.20,000/- towards agony and Rs.3000/- towards cost of litigation.
6. Being aggrieved by the impugned order judgment and orders opponent bank have filed these appeals on the ground that the District Forum did not consider the written statement of opponent. The District Forum failed to consider the terms and conditions mentioned in the certificate and also failed to consider that the interest stated for first 10 years was 13% and for renewal of the deposits after 10th & 20th year , the interest was to be applied at the existing rate of interest as per guidelines of RBI. The applicable rate of 7 A/07, 705, 1625/2019 interest at 10th year and 20th year were 6.25 & 9.25% in C.C.No.293/2018. The applicable rate of interest at 10th year and 20th year were 8% & 9% in C.C.No.349/2018. The applicable rate of interest at 10th year and 20th year were 8% & 8.75% in C.C.No. 571/2019. It is contended that the impugned orders are erroneous. The District Forum also wrongly saddled cost for agony and cost of litigation.
7. Heard Adv.Tangade-Patil for appellant/org.opponent. Adv.Smt.Dhanashree Patil for respondent/org.complainant in appeal No.07/2019, Adv.Darwade & Adv.G.M.Dhongade in appeal No.705/19 and Adv.M.J.Agrawal in appeal No.1625/2019.
8. From the submissions of parties, following points arise for our consideration. We have noted them along with findings against it for the reasons to follow.
Points Answers
(1) Whether complainant established deficiency
in service on the part of opponents bank ? ...In partly affirmative.
(2) Whether there requires interference in
the judgement and Order of the Dist.
Forum? ...In negative
(3) What order? ...As per final order
8 A/07, 705, 1625/2019
REASONING
Points 1 to 3:
(9)(i) The advocates of the complainants argued in similar lines of their
complaints, that the opponent Bank announced the scheme under the
name golden jubilee certificate . In the brochure it was stated that, "invest a small amount of Rs.4084/- with any of our branches and take away golden jubilee certificate with a maturity value of Rs.1,00,000/- at the end of 25 years. It is an ideal gift for your kith and kin whom you love and care for. The deposits will be renewed at the tenth year and again at the end of 20th year at the rate of interest prevailing at that time. Deposit will be automatically renewed without your calling at the brand and a separate request. Your deposit is as liquid as cash while earning compound interest at quarterly intervals. You can avail of loan facility rate of 75% of your deposit and accrued interest thereon. Premature withdrawal facility is available. You can open account in your name or jointly with others. Nomination facility is available. The option to encash it at penalty relating to premature withdrawals. The maturity value is stated as Rs.14678/-, Rs.52,758/-/-and 1.0 lac /- after the maturity period of 10 years , 20 years 25 years respectively for the issue price of Rs.4084/-. And the table for maturity value is stating that the maturity value is Rs.7339/- , Rs.26,379/-and 50,000/- after ten years , after 20 years and after 25 years respectively for the issue price of Rs.4042/-."
(ii) It is further argued that the first three lines and the table showing the maturity value are crucial deciding the consumer complaints , as aversions 9 A/07, 705, 1625/2019 of the opponent are specifically stating therein that the maturity value of Rs.50,000/- and Rs.1,00,000/- for the deposit of Rs.2042/- and Rs.4084/- for the period of 25 years. The complainants have believed this brochure by depositing their amounts of Rs.2084 or Rs.4084/- for 25 years. The complainants are small investors who deposited these amounts for their future needs. Opponent have issued certificates in year 1992 showing the apparent face value of certificate as Rs.50,000/- and Rs.1,00,000/- for the deposits of Rs.2042/-and Rs.4084/- respectively.
Therefore the Complaints are entitled to get the amount as shown on the certificate showing the face value. It is further argued that the opponent State Bank of Hyderabad bank was a nationalised bank and it has now got merged into country's one of the reputed Bank , State Bank of India. (10) The Ld Advocate Shri.Tangade-Patil of the opponent argued that the brochure and the certificates are required to be referred for the terms and conditions stated there in.Though the Certificates are showing certain face values of particular amounts after 25 years , there is clause as to rate of interest applicable for first 10 year at the rate of 13% . And the amounts of matured deposits after 10 years , if deposited for next 10 years rate of interest of 13% is not applicable . It is specifically stated in the Certificate and brochure that at the time of renewal ,the existing rate of interest then will be applicable as per the guidelines of Reserve Bank of India. Similarly, it is also provided that the existing rate of interest at the time of renewal after 20 years will also be made applicable likewise. Therefore , it cannot be inferred that complainants are entitled to get the amounts as 10 A/07, 705, 1625/2019 shown in the face value in the certificate after 25 years. The ld.Advocate for appellant further argued that the District Forum erred in appreciating terms and conditions properly and relied only upon the face value shown in the certificates. The district forum failed to consider the calculation sheets submitted by the opponent Bank . The opponent have calculated the maturity amount considering rate of interest 13% for first ten years as provided in the certificate and brochure. Eventually the rates of interest were 6.25% and 9.25% at the time of renewal after 10 and 20 years. These rates are applicable as per the directions of Reserve Bank of India. The ld. Advocate also submitted the Master Circular of Reserve Bank of India dt. 17/09/2004. It is submitted that, said circular stated that, " with effect from October 22 , 1997 , RBI has given freedom to commercial banks to fix their own interest rates domestic term deposits of various maturities with the prior approval of their respective board of directors/ asset liability Management Committee (ALCO)". The ld. advocate also submitted a chart on interest rates on domestic term deposits wherein rate of interest at 13% is applicable from 07/05/1992. Ld. Advocate for appellant also brought the circular of the then State Bank of Hyderabad dt. 27/06/2012 where the existing and revised rate of interest for deposits of 5 years and more is decided to be 9%. The learned Advocate also submitted that the bank has paid the interest on total amount of maturity when it is paid beyond the date of maturity.
It is further argued that the district forum in two consumer complaints directed to pay the face value of the certificates and in other 11 A/07, 705, 1625/2019 consumer complaint directed to pay the amount as per calculation of the bank.
The ld.advocate for appellant also argued that the District Forum awarded/ directed about the compensation for agony and cost of litigation arbitrarily. He also submitted that in C.C. 571/2019 the District Forum directed to pay the maturity amount only. However, directed for heavy payment of Rs.20,000/- and cost of Rs.3000/-. Advocate conclude his arguments with the submission that the bank has not imparted deficiency in service towards the complainants.
(11) (i) It reveals that the opponent Bank accepted deposits of Rs 2042/- and Rs.4084/- in year 1992 and issued certificates in the name of Golden Jubilee Certificates showing the face value of certificates as Rs.50,000/- and Rs.1,00,000/- after maturity of 25 years. The first three lines of the brochure also reads that , invest a small amount of Rs.4084/- with any of our branches , and take away Golden Jubilee Certificate with a maturity value of Rs.1,00,000/- at the end of 25 years. Apparently, this goes on showing that by depositing Rs.4084/- in year 1992, the depositors would get amount of Rs.1,00,000/-. The advocates of the complainants have also argued accordingly . However the advocate of the opponent has specifically argued that the plain reading of title of the certificates and part reading of the brochure for maturity value is not sufficient , instead both the brochure and certificate needs to be read together for the terms and conditions of the scheme. He specifically argued that it is provided in the brochure and certificates that rate of 13 % interest will be 12 A/07, 705, 1625/2019 applicable which was prevailing for first 10 years only, and thereafter existing rates of interest will be applied as per the directions of the Reserve Bank of India. In contracts , the terms and conditions play a role in deciding the fate of contract. The rate of interest @13% for first 10 years is already mentioned in the certificate. During the course of argument the advocate of opponent has also submitted the office compilation maintained by appellant bank of rate of interest on various dates. The compilation shows rate of interest of 7.75% during the year 2002 for the deposits of 3 years and above and interest of 9% for the deposits 8 years upto 10 years. When querried for the respective circulars the ld.advocate submitted that he had already submitted the circular dt.27.06.2012 and further submitted that the circular in year 2002 is not traceable. The advocate also submitted that the office compilation on rate of interest on various dates maintained by the bank which he has already submitted be considered for deciding the appeal. The opponent Bank is dealing with public money, therefore the business record/compilation as maintained in day to day business by the Bank needs to be considered.
The ld.Advcoate Shri.Kasliwal for Adv.Dhanashri Patil and ld.Advocate Shri.Ghongade submitted objection for submission of additional documents in appeal by the appellant. However , the business compilation on interest is already filed during the course of arguments is only being considered in view of pleading of the opponent in written version, when it is required to know the prevailing rate of interest at the relevant time and on maturity in the interest of justice. Also the fact that the opponent bank is dealing with public money. Therefore the record/office compilation maintained during 13 A/07, 705, 1625/2019 the course of business by the bank on rate of interest requires to be considered.
Therefore we are inclined to direct opponent to assess the maturity amount considering rate of interest as 13% for the years 1992 to 2002, 7.75% for the further 10 year i.e. 2002 to 2012 (after 10 years of depositing) and for further 5 years period i.e. 2012 to 2017 at the rate of 9% (after 20 years of depositing) to assess the final amount after maturity of 25 years.
Therefore with aforesaid discussion on documents and RBI guidelines in our opinion, complainant are not entitled to a maturity value/ face value of the certificates, as appearing in the first line of the certificate.
(ii) However, there reveals deficiency in service on the part of the opponent Bank that for misleading the depositors /complainants for attracting the depositors, by mentioning attractive value on the top of certificate, though there were integral additional terms and conditions about payable interest are also specified. Therefore, complainants are entitled to have reasonable compensation towards the deficiency in service on the part of opponent.
(12) The District Forum passed different orders in respective complaints as below.
(i) In C.C.293/18 vide order dated 13/11/2018, District Forum allowed the complaint partly and directed the opponent Bank to pay Rs.50,000/- to the complainant towards the maturity of certificate with further interest at 13%. District Forum also awarded Rs.10,000/-towards the mental agony and cost of litigation.
14 A/07, 705, 1625/2019
(ii) In C.C.349/18 , vide order dated 24/10/2018, District Forum allowed the complaint partly and directed The opponent Bank to pay 1.0 lac to the complainant towards the maturity of certificate with further interest at 13%. District Forum also awarded Rs.10,000/-towards the mental agony and cost of litigation.
(iii) In C.C. 571/19 , vide order dated 08/11/2019, District Forum allowed the complaint partly and directed the opponent Bank to pay Rs.24,982/- to the complainant towards the maturity of certificate , with further interest at 13%. District forum also awarded Rs. 20,000/-towards the mental agony and Rs.3,000/- for cost of litigation. (14) It appears that in first two consumer complaints, the District Forum did not accept the submissions of opponent Bank for interest to be applied and the total amount as per calculation of the bank. However, it appears that the District Forum accepted the calculation of the opponent Bank in C.C.571/2019. There appears contrary views of the District Forum in deciding the Complaints of similar nature of complaints for directions as to amount maturity to be paid when the complaints are decided by the same members of District Forum.
(15) In first two cases/ complaints (C.C.293/18 & 349/18) , the District Forum awarded Rs. 10,000/- towards the cost consumer complaint , in third complaint No.571/19 the Forum awarded compensation of Rs.20,000/- and Rs.3,000/- towards the cost. There appears arbitrary views 15 A/07, 705, 1625/2019 of the District Forum in deciding the Complaints on similar nature of complaints for agony and costs.
(16) In view of our discussion in earlier paras , there requires interference in the impugned orders of the District Forum .
(17) Therefore, we are inclined to direct the opponent Bank to pay the amounts on maturity to complainants as per terms and conditions in the certificates and applicable rate of interest applicable at the time of deemed renewals on the day of maturity and to pay the interest at the rate of @ 9% on the these amounts for the further period till date of payment, if not paid earlier. The opponent Bank is also directed to pay compensation of Rs.10,000/- towards the mental and physical agony and cost of Rs.5000/.
O R D E R (1) Appeal Nos.07/2019, 705/2019 & 1625/2019 are partly allowed. (2) The judgments and orders of District Forum, Aurangabad in C.C.No.293/2018, 705/2019 & 571/2019 are set aside and modified as follow:
(i) Opponent is directed to pay the amounts on maturity to complainants as per terms and conditions in the certificates and applicable rate of interests applicable at the time of deemed renewals, i.e. @13% p.a. for the period of 1992 to 2002, @ 7.75% p.a. for the period of 2002 to 2012, @ 9%
16 A/07, 705, 1625/2019 p.a. for the period of 2012 to 2017 till the date of maturity shown in certificate.
(ii) Opponent is further directed to pay the interest @ 9% on the maturity amounts in year 2017 for the further period till date of payment, if not paid earlier.
(iii) The opponent bank is also directed to pay compensation of Rs.10,000/- towards mental and physical agony and cost of Rs.5000/- to each complainant.
3. No order as to cost in appeals.
Sd/- Sd/- Mr.K.M.Lawande Smt.S.T.Barne, Member Presiding Judicial Member MBM