Sri Gayadhar Jena, aged about 54(fifty four) years, S/o late Purna Chandra Jena, At/Po. Lalamba Dist. Bargarh-768102. ... ... ... Complainant.

- V e r s u s -

1.

The Branch Manager, Sambalpur District Co-operative Central Bank Ltd., Godabhaga Branch, At/Po. Godabhaga Dist. Bargarh.
2.

The Secretary, Sambalpur District Co-operative Central Bank Ltd., Bargarh, At/po/ Dist. Bargarh.

... ... ... Opposite Parties.



-: P R E S E N T :-


The present complaint pertains to deficiency in service as envisaged under the Consumer Protection Act-1986. Its brief history is as follows:-

The Complainant deposited a sum of Rs.10,000/-(Rupees ten thousand) only towards fixed deposit for a period of 10(ten) years on Dt. 10/04/1999 with the Opposite Party No.1(one) Bank on the assurance of the Opposite Party No.1(one) that the maturity amount would be Rs.35,942/-(Rupees thirty five thousand nine hundred forty two) only on completion of the maturity period of 10(ten) years. The Bank issued Fixed Deposit Receipt No. 004864 Dt. 10/04/1999. After 10(ten) years of the deposit, on advice of the Opposite Party No.1(one), the Complainant opened a Saving Bank Account wherein on Dt. 24/04/2009 the Bank deposited Rs. 23,000/-(Rupees twenty three thousand) only towards the maturity amount of the fixed deposit of Rs. 10,000/-(Rupees ten thousand) only made for 10(ten) years.



The Complainant told the Opposite Party No.1(one) that the deposit being a long term one, it should have carried compound interest, the maturity amount totaling Rs. 35,942/-(Rupees thirty five thousand nine hundred forty two) only. The Opposite Party No.1(one) told the Complainant that it will not be more than Rs. 23,000/-(Rupees twenty three thousand) only and consequently the Complainant feels that he has been cheated by the Bank. Hence he prays for payment of compound interest over his fixed deposit in question and pay back the balance amount of Rs.12,942/-(Rupees twelve thousand nine hundred forty two) only by the Opposite Parties along with Rs.20,000/-(Rupees twenty thousand) only towards mental agony and a compensation of Rs. 5,000/-(Rupees five thousand) only.

The Opposite Parties, in their version, question the maintainability of the complaint as the dispute is triable by the Registrar of Co-operative Societies U/S 68 of O.C.S. Act. They deny that the Opposite Party No.1(one) told the Complainant on Dt. 13/04/1999 that the maturity amount of the deposit in question would be Rs. 35,942/-(Rupees thirty five thousand nine hundred forty two) only. It is clearly mentioned in the deposit receipt that 13%(thirteen percent) interest per annum be paid to the deposit amount. The Opposite Parties contend that there are various investment schemes carrying different rate of interest and benefit to the depositor, as for example, in fixed deposit scheme simple interest will be paid on the fixed deposit amount monthly, quarterly, half yearly basis as per choice of the depositor and he (depositor) can withdraw the interest monthly/quarterly/half yearly for his use, but in cash certificate scheme interest will be compounded on quarterly basis on the deposit amount and maturity amount will be paid on or after due date. The depositor cannot encash the interest of the deposit amount before the period of maturity.

The Opposite Parties also claim that the Complaint is barred by limitation as the Complainant has received the fixed deposit receipt on Dt. 13/04/1999. They pray for dismissal of the complaint.

Perused the complaint the version of the Opposite Parties along with the copies of documents filed and find as follows:-

The Opposite Parties rendering banking service and the Complainant being a depositor for earning interest from such services, the complaint is very much triable by this Forum under the provision of the Consumer Protection Act-1986. The date of maturity of the fixed deposit being Dt.13/04/2009 the complaint is not barred by limitation.

The Opposite Parties take a denial plea that the Opposite Party No.1(one) ever told the Complainant that the maturity amount of the fixed deposit would be Rs. 35,942/-(Rupees thirty five thousand nine hundred forty two) only the fixed deposit receipt mentions “the sum of Rs.10,000/-(Rupees ten thousand) only as a deposit @13%(thirteen percent) per annum”. At a simple interest of 13%(thirteen percent) per annum the maturity amount becomes Rs.23,000/-(Rupees twenty three thousand) only. The Opposite Parties contend in their version “ in cash certificate scheme interest will be compounded on quarterly, basis on the deposit amount and maturity amount will be paid on or after due date.


The depositor cannot encash the interest of the deposit amount before the period of maturity”. The case of the Complainant is that the Opposite Party No.1(one) told him that the maturity amount of the fixed deposit of Rs.10,000/-(Rupees ten thousand) only deposited for a period of 10(ten) years would be Rs.35,942/- (Rupees thirty five thousand nine hundred forty two) only. The Opposite Parties admit that in cash certificate scheme interest will be compounded on quarterly basis on the deposit amount and maturity amount will be paid on or after due date. The depositor cannot encash the interest of the deposit amount before the period of maturity.

Admittedly, the Complainant has got the maturity amount deposited in his Saving Bank Account only after the maturity date of the fixed deposit and he has never encashed the interest of the deposit amount before the date of maturity. No wonder, he is very much entitled to receive compound interest on the fixed deposit of Rs.10,000/-(Rupees ten thousand) only made by him for a period of 10(ten) years, the deposit being a long term one and there being no encashment of the interest before the period of maturity which conforms with the bank's own cash certificate scheme.


It is the bounden duty of the Opposite Parties to tender just and proper advice to their customers as regards the investment they make which fetches the maximum benefit allowed under their own scheme. The Opposite Party Bank by not doing so in the present case, has committed deficiency of service towards the Complainant. There is no reason to disbelieve the contention of the complainant that he was told by the Opposite Party No.1 that the maturity amount of deposit would be Rs.35,942/- (Rupees thirty five thousand nine hundred forty two) only. The Fixed Deposit Receipt also does not mention the maturity amount which would enable the depositor to know about such amount.

In the result, the Opposite Parties are directed, jointly and severally, to refund to the Complainant Rs.12,942/-(Rupees twelve thousand nine hundred forty two)only, the balance amount as per compound interest on the deposited amount and cost/compensation Rs.2,000/-(Rupees two thousand)only along with 9% (nine percent interest) on both the amount chargeable with effect from the date of filing of the complaint i.e. Dt.04/05/2009 within thirty days hence, failing which the awarded amount shall carry 18%(eighteen percent) interest per annum till payment.

dear sir, am a account holder of barpali cooperative bank , and here the service we are receving from the branch is very horrable, mr dash bm of this branch, is such an irresponsable person an un orginised way he is running his branch. u just come over this branch and chk out from account holder how he is dealing.