By Sri. Mohamed Ismayil.C.V, Member
The submission of the complainant as follows:-
The complainant was a customer of the opposite parties . The customer ID was 1/4580. The complainant opened a Day Deposit Account with the opposite parties as the A/C No.1/401571 on 27/07/2016 and a pass book was issued to him. Accordingly complainant used to deposit money and the deposit was accrued to Rs.94,011 on 16/03/2020, after withdrawal . At the same time, on 27/07/2016, the complainant also made two fixed deposits with the opposite parties. One is for Rs.1,50,000/- as FD No.1/466 and another is for Rs.2,08,000/- as FD No.1/467. The opposite parties issued receipts for the fixed deposits, and the rate of interest was fixed @9.75% per annum to the both fixed deposits. After the due date of 27/07/2017, the complainant approached the opposite parties for the withdrawal of both fixed deposits. But he was not permitted to withdraw the fixed deposits, instead the opposite parties informed the complainant that the fixed deposit amount was automatically deposited for another term of two years. So, on or after 27/07/2019 the complainant has to get the amount along with accrued interest at the rate of 9.75% on the date of withdrawal. After 27/07/2017 the complainant approached the opposite parties on several occasion to withdraw the accrued amount in the FD but denied the same. On 08/03/2019, the second opposite party issued an acknowledgement letter to the complainant stating Rs.7,16,820/- as due amount to him. Also, the opposite parties have to return Rs.94,011/- as on 16/03/2019 from the Day Deposit Account to the complainant.
2. After the receipt the acknowledgement letter , the complainant approached the opposite parties on several occasions to get back the amount deposited in Day Deposit Account and Fixed Deposits. But the opposite parties did not release the amount without assigning any reasons. So the opposite parties did not pay the amount to the complainant so far. The act of the opposite parties are highly negligent , cheating, and unscruplulous so amounting to deficiency in service and unfair trade practice . Thus the complainant approached this Commission to address his grievances. The complainant prayed to release two FD account amount with 9.75% of interest from 27/07/2016 onawards, and to return Rs.94,011/- availed in the Day Deposit Account of the complainant with 12% interest from 16/03/2019. The complainant also prayed for compensation of Rs.1,00,000/- to the hardship and mental agony caused due to the act of the opposite parties and to grant Rs. 25,000/- towards the cost of the proceedings.
3. On admission of the complaint, notices were issued to the opposite parties and they entered appearance and filed version.
4. In the version, the contention in the complaint are denied by the opposite parties except some are specifically admitted . It is stated in the version that the complainant deposited amount in the Day Deposit Account and the remaining balance is Rs.94011/- as on 16/03/2019. It is also admitted by the opposite parties that two fixed deposits were done by the complainant as stated in the complaint. The rate of interest availed to the fixed deposits are also admitted by the opposite parties as stated in the complaint. The averments in the complaint are denied that after the due date of 27/07/2017 the complainant approached the opposite parties for withdrawal of fixed deposits and then the opposite parties informed that the fixed deposits are automatically deposited for another term of two years. The opposite parties contended that the renewal of fixed deposits are purely based on written application of the depositors.
5. In the version it is stated by the opposite parties that one of their staff named Abdul Jabar misappropriated the fixed deposit amount of its depositors by fraudulently and dishonestly operating the computer in the office. The above said staff also misappropriated the amount of opposite parties deposited in the MDC Bank, Kottakkal Branch and thereby cheated the opposite parties . The accused staff also stolen 5701.610 grams gold ornaments pledged by the customers as security for loan and the same was recovered by the police from various financial institutions and the seized objects are now under the custody of Hon’ble Judicial First Class Magistrate Court , Malappuram. The customers of the opposite parties are not repaying the loan amount, as result, the institution is not properly functioning. At present no fund is vested with the opposite parties . So there is no situation to repay the deposits to its customers. According to the opposite parties , now the customers, who pledged the gold ornaments approaching the Court to release their gold ornaments after making repayment of loan to the opposite parties. So the repaid amount can be used to make payment to the depositors. It solely depends upon the release of gold ornaments from the court. So the depositors have to be waited . The opposite parties are already requested the complainant to provide some more time to repay the deposit amount by adopting the above said procedure. According to the opposite parties, considering this fact, the prayer to grant Rs.1,00,000/- as compensation and to grand 25,000/- as cost of the proceedings by the complainant need not be answered . There is no wilful latches or negligence from the side of the opposite parties. The Day Deposit Account is a recurring one and so interest rate is solely depends on the deposits. The responsible persons for the malpractices and mis-appropriation of money are undergoing domestic enquiry and they are suspended from the services. It is stated by the opposite parties that the balance in the Day Deposit Account of the complainant is Rs.94,011/- as on 16/03/2020. The submission in the complaint that the opposite parties sent back the complainant when he approached to withdraw the deposited amount is a false allegation . The opposite parties gave assurance to the investors about their responsibilities in returning the amount. Now the opposite parties are not conducting business transaction. The former staffs committed fraud and thereby mismanaged the computer of the opposite party and the details of the transactions could not traced out. The hard disc of the computer was taken by the police and same was produced before the Court. So the opposite parties gave direction to its present secretary to accept claim application from the depositors of the bank. It is the duty of the complainant to produce the documents pertaining to the deposits along with claim application. But so for the complainant did not produce those documents so far. It is not correct to say that cheating was committed by these opposite parties. No cause of action was arised as stated in the complaint. The opposite parties expressed their willingness to repay the deposited amount to the complainant and sought time for the same.
6. Both the complainant and opposite parties filed affidavit. The complainant produced documents and same marked as Ext. A1 to A4. Ext. A1 is the pass book of A/C No.401571 issued to the complainant by the opposite parties. Ext. A2 is the fixed deposit receipt of FD No.1/466 dated 27/07/2016 for Rs.150000/- Ext. A3 is the fixed deposit receipt of FD No.1/467 dated 27/07/2016 for Rs. 2,08,000/-. Ext. A4 is letter of acknowledgment of debt dated 08/03/2019 issued by the opposite parties to the complainant. The opposite parties did not produce document to support this case.
Heard both parties, perused documents. The Points arised for consideration are:-
- Whether the opposite parties committed any sort of deficiency in service or unfair trade practise against the complainant.
- Relief and cost.
7. Point NO.1 and 2
The case put forwarded by the complainant is that he is a customer of the opposite parties and opened a Day Deposit Account in which the balance amount is Rs.94,011/- as on 16/03/2019. The complainant also opened two Fixed Deposit Accounts. One is for Rs.1,50,000/- and another one is for Rs..2,08,000/- . According to the complainant, the maturity due date was on 27/07/2017 for the both fixed deposits and rate of interest was fixed at the rate of 9.75% per annum . The claim of the complainant is supported by the Ext. A2 and A3 documents. Ext. A1 is also shows the Day Deposit Account balance of the complainant is Rs. 94,011/- as on 16/03/2019. These facts are admitted by the opposite parties in the version as well as in the affidavit. Ext. A4 is a letter of acknowledgement issued by the opposite parties to the complainant which undertake the liability of the opposite parties to the complainant.
8. It is pleaded by the complainant that after the due date of 27/07/2017, he approached the opposite parties to withdraw the money from FD Account but his attempt went in vain. Instead of releasing the fixed deposit amount, the opposite parties automatically renewed the fixed deposit for another period of two years as the maturity due date fixed on or after 27/07/2019 and the rate of interest is fixed at 9.75 per annum. It is submitted by the complainant that the renewal of the fixed deposits are taken place without his consent. But according the version of the opposite parties the renewal of the fixed deposits were taken place on the basis of written application of the depositor. But no document is produced by the opposite parties to show that an application was submitted for renewal . So the contention of the complainant is more believable as it was renewed without his consent.
9. In the version and in the affidavit, it is stated by the opposite parties that they did not make wilful annoyance to the complainant. All things happened due to the misappropriation of fund by its former staffs and as a result the function was halted. It is stated by the opposite parties that money and ornaments deposited by the customers in the bank misappropriated and stolen by its staffs and during the course of investigation police recovered gold ornaments. As a part of legal procedure, the police produced recovered objects before the Court, and the assets are in the custody of the Courts. Now the owners of the ornaments are approaching the Court to release their property after making repayment to their defaulted loans . According to the opposite parties those fund can be used to release the fixed deposits and thereby make payment to the depositors like complainant . Those contentions opposite parties cannot taken in to consideration at this point of time. The opposite parties didn’t produce any kind of documents before this Commission to establish the total assets of the bank and its financial capability to sort out the crisis . It can be seen that the opposite parties are soley responsible for the crisis. It was the duty of the opposite parties to protect the interest of its customers . The reliability and financial discipline are the core factors influencing the banking business. When evaluating the evidences adduced by both sides, it can be the seen that the fixed deposits made by the complainant was not released after the maturity period. Moreover opposite parties renewed the FD for two more years without the consent of the complainant. It is evident from the record that the opposite parties did not take any step to release the amount deposited by the complainant . Thus this commission finds that there is deficiency in service on the side of the opposite parties. Thus the case of the complainant stands proved and commission allows the complaint as follows:-
1) The opposite parties shall return Rs.3,58,000/-(Rupees Three lakh fifty eight thousand only) as the amount deposited in the two fixed deposits with interest of 9.75% per annum from the date of 27/07/2016.
2) The opposite parties shall return Rs.94,011/- (Rupees Ninety four thousand and eleven only) along with stipulated interest as the amount deposited in the Day Deposit Account to the complainant.
3) The opposite parties are directed to pay compensation of Rs.50,000/- (Rupees Fifty thousand only) to the complainant for the mental agony and hardship suffered due to the deficiency in service of the opposite parties.
4) The opposite parties are directed to pay Rs.10,000/- as the cost of the proceedings.
The opposite parties shall comply this order within one month from the date of this order, failing which the entire amount will carry additional interest at the rate of 6% per annum from the date of this order till realisation .
Dated this 22nd day of July , 2022.
Mohandasan K., President
PreethiSivaraman C., Member
Mohamed Ismayil C.V., Member
APPENDIX
Witness examined on the side of the complainant: Nil
Documents marked on the side of the complainant: Ext.A1 to A4
Ext.A1: Pass book of A/C No.401571 issued to the complainant by the opposite
parties.
Ext.A2: Fixed deposit receipt of FD No.1/466 dated 27/07/2016 for Rs.150000/-
Ext A3: fixed deposit receipt of FD No.1/467 dated 27/07/2016 for Rs.
2,08,000/-.
Ext A4: Letter of acknowledgment of debt dated 08/03/2019 issued by the opposite
parties to the complainant.
Witness examined on the side of the opposite party: Nil
Documents marked on the side of the opposite party: Nil
Mohandasan . K, President
PreethiSivaraman.C, Member
Mohamed Ismayil.C.V, Member
VPH
