Vizianagaram Co-operative Urban Bank

**Sidhant** · 09-13-2009, 10:25 AM

Pokanati Sreenivas,

S/o P.Surya Rao,

31 years, Private Binder,

R/o Ganesh Nagar,

V.T.Agraharam,

Vizianagaram. …….Complainant.

The Vizianagaram Co-operative Urban Bank Ltd., (No.1358),

A.G.Road, Near Fort, Vizianagaram. ……Opposite Party.

O R D E R

1. This is a complaint filed under Section 12 of the Consumer Protection Act, 1986 seeking for a direction to the opposite party to (a) pay a sum of Rs.31,475/- with accrued interest of Rs.2,360/- from the date of maturity i.e., 07-10-2008 till 05-03-2009 at 18% per annum on Rs.31,475/-, (b) to pay a sum of Rs.20,000/- towards mental agony suffered by the complainant, (c) to pay a sum of Rs.1,000/- towards costs and (d) another sum of Rs.1,000/- towards advocate’s fee.

2. In brief, the case of the complainant is that he deposited a sum of Rs.15,000/- on 22-05-2001 with the opposite party vide fixed deposit receipt bearing No.64480. The date of maturity is 22-02-2008 and maturity amount is Rs.30,195/-. But the opposite party simply renewed the deposit for another six months agreeing to pay with subsequent interest at 7% endorsed on the said fixed deposit receipt. When the complainant again approached for refund of the matured amount on 22-08-2008 the opposite party further renewed for another 46 days agreeing to pay interest at 6%. The maturity amount was Rs.31,475/- on 07-10-2008. But the opposite party failed to make payment on 07-10-2008 also. Therefore the complainant issued a registered notice on 30-01-2009 but the opposite party did not comply the same. The complainant is put to severe mental agony, hardship and loss of money. That there is deficiency of service on the part of the opposite party.

3. Opposite party filed counter denying the material allegations. It is contended that as per directions of the Reserve Bank of India, the opposite party is estopped from accepting new deposits. Further the fixed deposit made by opposite party with the Vasavi Co-operative Bank, Hyderabad was not refunded to the opposite party as such the opposite party is driven to financial crisis. That there is no deficiency of service on the part of the opposite party.

4. The complainant filed his affidavit and marked Exs.A.1 to A.4. The Secretary in-charge on behalf of the opposite party filed his chief affidavit but no documents are marked.

5. Heard both sides. The point for consideration is:- Whether there is deficiency of service?

6. POINT:- Ex.A.1 is original fixed deposit receipt for Rs.15,000/-. The maturity amount is shown as Rs.30,195/- after 22-02-2008. As seen after the date of maturity the fixed deposit was renewed for Rs.30,195/- for 46 days with effect from 22-08-2008. The date of maturity of 46 days is taken into account, it was 07-10-2008. The opposite party inspite of registered notice which is marked as Ex.A.3, has not complied with the same. Thus the material on record is clear the complainant has deposited Rs.15,000/-on 22-05-2001 but thereafter failed to pay to the complainant even after the date of maturity. Therefore we hold there is deficiency of service. Accordingly this point is answered.

7. In the result, the complaint is allowed directing the opposite party to pay Rs.30,195/- (Rupees thirty thousand one hundred and ninety five only) to the complainant with subsequent interest at 9% per annum on Rs.15,000/- from 23-02-2008 till realization. We also direct to pay Rs.1,500/- (Rupees one thousand and five hundred only) towards compensation for mental agony and Rs.1,000/- (Rupees one thousand only) towards costs.

**Sidhant** · 09-13-2009, 03:01 PM

Sukhavasi Satish Kumar,

S/o Late S.B.Nayakulu,

30 years, Residing at Thotapalem,

Vizianagaram. …….Complainant.

The Vizianagaram Co-operative Urban Bank,

Rep., by its Secretary,

A.G.Road, Vizianagaram. ……Opposite Party.

O R D E R

1. This is a complaint filed under Section 12 of the Consumer Protection Act, 1986 for a direction to the opposite party to (a) pay a sum of Rs.50,000/- with interest thereon at 12% per annum from 04-09-2003 till the date of realization, (b) to pay a sum of Rs.25,000/- towards compensation for mental agony and (c) to pay costs.

2. In brief the case of the complaint is that being lured by the opposite party assuring to pay high rate of interest, the complainant deposited a sum of Rs.25,000/- and another sum of Rs.23,500/- on 04-09-2003 for a period of 37 months vide Deposit Certificate Nos. 61160 and 61161. Similarly the complainant deposited a sum of Rs.1,500/- on 15-09-2003 with the opposite party vide Deposit Certificate No.61167 for a period of 37 months. The opposite party has agreed to pay compound interest at 9% per annum on the above deposits. After the stipulated period of deposit the complainant requested for refund of the matured amounts but the opposite party renewed the two deposits namely Rs.25,000/- and Rs.23,500/- on 04-10-2006 for another period of eight months. Similarly on 15-10-2006 the opposite party renewed the deposit for Rs.1,500/- for another period of eight months agreeing to pay 6% compound interest on all the three deposits. That the opposite party failed to pay the amounts even after stipulated dates. That there is deficiency of service causing mental agony.

3. The opposite party filed counter denying the complaint allegations. It is contended that the opposite party cannot pay back the fixed deposit amounts in view of the directions given by the Reserve Bank of India. As per the said directions the opposite party is astopped from accepting new deposits. Further that as a result of non payment of the fixed deposit amounts by the opposite party with Vasavi Co-operative Bank, Hyderabad, there are not sufficient funds with the opposite party bank to make payment of the deposits. That there is no deficiency of service as such prayed to dismiss the complaint with costs.

4. The complainant filed his affidavit and marked Exts.A.1 to A.3. The opposite party represented by the Secretary In-charge filed his affidavit but no documents are marked.

5. Heard the learned counsel for complainant. There was no representation for the opposite party during and after call work. Perused the affidavits and documents. The point for consideration is: Whether there is deficiency of service?

6. POINT:- Exts.A.1 and A.2 are the fixed deposit receipts dated 04-09-2003 for Rs.25,000/- and Rs.23,500/- respectively for a period of 37 months. Ext.A.3 is similar deposit receipt dated 15-09-2003 for a sum of Rs.1,500/- for a period of 37 months. The rate of interest agreed upon is 9% per annum. Exts.A.1 to A.3 also contain on the back side renewal for a period of eight months inspite of expiry of renewal periods also the deposit amounts were not refunded to the complainant which is deficiency of service. Accordingly this point is answered.

7. In the result, the complaint is allowed directing the opposite party to pay the total sum of Rs.50,000/-(Rupees fifty thousand only) to the complainant with interest thereon at 9% per annum from respective dates of deposits (from 04-09-2003 so far Exts.A.1 and A.2 and 15-09-2003 so far Ext.A.3 is concerned) till realization. We also direct the opposite party to pay Rs.8,000/- (Rupees eight thousand only) towards compensation for mental agony and Rs.1,000/- (Rupees one thousand only) towards costs.