D.O.F:26/06/2019
D.O.O:29/07/2022
IN THE CONSUMER DISPUTES REDRESSAL FORUM, KASARAGOD
CC.No.121/2019
Dated this, the 29th day of July 2022
PRESENT:
SRI.KRISHNAN.K :PRESIDENT
SRI.RADHAKRISHNAN NAIR.M : MEMBER
SMT.BEENA.K.G : MEMBER
Sureshan
S/o Vithan Ambu, Peringara, Cheemeni,
Pettikundu P.O, Cheruvathur, : Complainant
Kasaragod Dist
(Adv: Santhosh Thomas)
And
Manager,
Cheemeni Service Co-operative Bank
Cheemeni P.O – 671313 : Opposite Party
(Adv: K.V. Rameshan)
ORDER
SRI.KRISHNAN.K :PRESIDENT
The case of the complainant is that his deceased father deposited Rs. 75,000/- each in the year 2005 as fixed deposit in Opposite Party bank, Cheemeni Branch. Father of Complainant was an active member and also appointed as director and president of this bank. Father of complainant died during January 2009. After the death of his father, complainant along with other legal heirs jointly have withdrawn the FD on 26/12/2018. The total amount received including interest is Rs. 1,93,000/-. The complainant and the other legal heirs ought to have received Rs. 1,75,500/- as interest 9% per annum from 2005 till 2010 and deposit amount Rs. 1,50,000/-and is total Rs. 325500/- there is deficiency in service and negligence from the part of Opposite Party and they claim an amount of Rs. 1,28,200/- as balance amount and Rs. 1,00,000/- as compensation for mental agony and cost of the litigation.
2. The Opposite Party filed written version denying the allegations Opposite Party admits that the complainants father was an active member, director and secretary of Opposite Party bank. The Opposite Party also admits that the complainant’s father deposited Rs. 75,000/- each as deposited during the period aforesaid. It is denied that the interest is calculated at 9% per annum. The interest calculated for savings bank account is 4% per annum. As per section 69 of Kerala Co-operative Society Act 1969 disputes arising from a member, past member and person claiming through member or past member and person claiming through member or past member and deceased member shall be referred to Arbitration court U/s 70 A of Kerala Co-operative Society Act 1969 and this complaint is not maintainable..
3. The complainant filed chief affidavit , marked documents Ext A1 and A2. The Ext A1 is the copy of lawyer notice and Ext A2 is postal acknowledgment. The Opposite Party filed chief examination affidavit marked documents, Ext B1 to B3. Ext B1 is the petition claiming refund, Ext B2 is the RBI circular and Ext B3 is the copy of bye law rules.
4. Following points arise for consideration.
a) Whether complainant is entitled for compensation? If so for what reliefs?
The Opposite Party bank admits the case of complainant that his father is having two fixed deposit of Rs. 75,000/- each. Its maturity dated 09/02/2009. His father died on 05/01/2009, that means death of deposit holder is prior to maturity. Its grievance is that interest rate is calculated at 9% till date of maturity and therefore at 4% per annum till date of repayment. Complainant case is that since deposit holder died prior to maturity legal heirs are entitled to interest rate of 9% agreed.
5. Master circular issued to banks payment of interest on the term deposit of a deceased deposits produced by Opposite Party bank marked as Ext B2 support the case of the complainant.
“ payment of interest on the term deposit of a deceased deposition, please refer to the paragraph 14 of our Directive DBOD No Dir Bc, 46/13 03 00/ 2000-2001 dated November 4,2000 and paragraph 9 of our Directive DBOD No. Dir Bc , 48/130300/2000 -2001 dated November 4, 2000 regarding payment of interest on the deposit of a deceased deposits .
Presently, interest is paid to the claimants of a deceased account holder beyond the date of maturity. The interest rate applicable to the period for which the deposit has remained with the bank up to the date of actual payment, only if the death of the depositor has occurred before the date of maturity of the depositor.
No interest is payable beyond the date of the term deposit, where the death of the depositor has occurred after the maturity of the term deposit, where the death of the deposits has failed to exercise his right to renew the deposit for a further period .
It is clearly stated in clause ‘c’ of the master circular that the interest payable on a deposit account of deceased depositor. “If the amount of the term deposit is claimed after the date of maturity the bank shall pay interest at the contracted rate till the date of payment, the bank shall pay interest as permissible under the directive on interest rates on deposits, operative on the date of maturity. The interest shall be payable on the above basis only if the depositor has died before the maturity of the deposit.
In this particularly case, deposit holder died prior to maturity date the legal heirs are this entitled to interest at contract rate namely 9%. The Opposite Party is liable and complainant is entitled to get principal amount with interest 9% from date of deposit till date of repayment. The Opposite Party bank did not respond to the lawyer notice despite its receipt. Details of deposits details of interest payable, actual amount due reasons for no-payment of contract rate of interest etc, are furnished but not replied, nor paid the amount. Hence there is deficiency in service and negligence on the part of Opposite Party bank. For which Opposite Party is liable to pay compensation. This commission is of the opinion that Rs. 25,000/- will be a reasonable amount of compensation and complainant also liable for cost of the litigation.
In the result complaint is allowed in part, Opposite Party is directed to pay Rs. 1,28,200/- plus interest at 9% per annum from date of filing complaint namely 28/06/2019 till date of payment along with compensation of Rs. 25,000/- with cost of litigation Rs. 10,000/- to the complainant for and on behalf of all legal heirs of deceased deposit holder on production of letter of consent or authorization by all other legal heirs. Time for payment complying the order 30 days from the date of receipt of order.
Sd/- Sd/- Sd/-
MEMBER MEMBER PRESIDENT
Exhibits
A1- Lawyer Notice
A2- Postal acknowledgment card
B1- Petition claiming refund
B2 - RBI circular
B3- copy of bye law rules
Witness Examined
Pw1- Suresan. V
Sd/- Sd/- Sd/-
MEMBER MEMBER PRESIDENT
Forwarded by Order
Assistant Registrar
Ps/
