Date of Filing:08.04.2022 Date of Order:07.10.2022 BEFORE THE BANGALORE I ADDITIONAL DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION SHANTHINAGAR BANGALORE - 27. Dated:07th DAY OF OCTOBER 2022 PRESENT SRI.H.R. SRINIVAS, B.Sc., LL.B. Rtd. Prl. District & Sessions Judge And PRESIDENT SRI. Y.S. THAMMANNA, B.Sc, LL.B., MEMBER COMPLAINT NO.108/2022 COMPLAINANT : | | SRI K.HONNAIAH, Advocate, Aged about 66 years No.12, 4th Cross, 2nd Main, Avalahalli New Layout Byatarayanapura, Mysore Road, Bangalore -560 026 Mob: 9980205069. (Complainant-In person) | |
Vs OPPOSITE PARTIES: | 1 | THE PRESIDENT, The BHARAT CO-OPERATIVE BANK LTD., No.30, 15th Cross, 3rd Block, Jayanagara, Bangalore 560 011. | | | 2 | THE SECRETARY, The BHARAT CO-OPERATIVE BANK LTD., No.30, 15th Cross, 3rd Block, Jayanagara, Bangalore 560 011. Ph:26632783 & 2663366 (Sri BC Vijayakumar, Adv for OPs) |
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ORDER
SRI.H.R. SRINIVAS, PRESIDENT
1. This is the complaint filed by the complainant U/S Section 35 of the Consumer Protection Act 2019, against the opposite parties (herein referred in short as OPs) alleging the deficiency in service in not refunding the amount available in his SB Account inspite of request and also not returning the share amount by cancelling his membership and to direct OPs to pay Rs.50,000/- for causing mental agony and torture and Rs.20,000/- towards litigations expenses and for other reliefs as the commission deems fit.
2. The brief facts of the complaint are that; OP-1 and 2 are the president and secretaries of the Bharath Co-operative Bank Limited. The complainant is one of the SB account holder with SB No.02103038096 with ID No. 0000119696. He is also a member of the said co-operative bank having purchased the shares of the bank with share certificate No. 122575.
3. On 07.07.2021 he requested the bank authorities to cancel his membership which was not obliged by OP. They did not receive his application. Again on 29.12.2021 he made an application for cancellation of his membership and closure of his SB account and requested to return the share amount and also the amount available in his SB account. Inspite of repeated request, OPs did not cancel his membership did not return the membership fee, and also did not close the account. Hence he had to issue a legal notice calling upon them to cancel the membership refund the share amount and to close the SB account, for which they have sent an untenable reply on 28.02.2022.
4. As per the rules of the Bank, OP has to settle the dues when the customer is not willing to continue as a member, whereas, OP did not care for the same. Instead of complying the demand made in the notice, they shifted the burden or the RBI that the RBI has stopped them from paying the membership fee. The act of OP has caused nuisance to him and it is deficiency in service. OPs are bound to refund the amount in the SB account on its closure, and also to cancel the membership and refund the share amount. Hence there is deficiency in service and prayed to allow the complaint.
5. Upon service of notice, OPs appeared before the commission and filed the version contending that the complaint is not maintainable either in law or on facts. But have admitted that the complainant is having an SB account in their bank and also is a member having a share certificate bearing No. 122575 and his account No. is 44606. They requested the complainant to give a request letter to close his SB account by surrendering unused cheques if any, the Pass book along with the KYC documents vide their letter No. BCB 1216/2021-22 dated 28.02.2022. OPs have no objection in closing the Saving Bank account of the complainant if the complainant submits the request letter. They have also requested the complainant in writing to submit the said letter for closure of the said account. Further in respect of closing the membership and the share account, there is a direction of the RBI dated 21.06.2021 and they are restrained from closing and refunding the share amount to the shareholders. Hence there is no lapse on their part, no negligence on their part, and have not caused any mental torture to the complainant. Hence prayed the commission to dismiss the complaint by imposing a cost of Rs.35,000/- being the cost of the proceedings.
6. In order to prove the case, both parties have filed their affidavit evidence and produced documents. Arguments Heard. The following points arise for our consideration:-
- Whether the complainant has proved deficiency in service on the part of the opposite parties?
- Whether the complainant is entitled to the relief prayed for in the complaint?
7. Our answers to the above points are:-
POINT NO 1: IN THE AFFIRMATIVE.
POINT NO 2: PARTLY IN THE AFFIRMATIVE.
For the following:
REASONS
POINT NO.1:-
8. It is not in dispute that, the complainant is one of SB account holder with SB account No.02103038096 with ID No. 0000119696. He is also a member of the said co-operative bank having purchased the shares of the bank with share certificate No. 122575. It is the specific case of the complainant that inspite of repeated requests, demand in writing, and also by issuing legal notice OP did not close the SB account and return the amount available in the SB account and so also did not cancel the membership and return the share amount of Rs.20,000/-. Complainant has produced the SB Pass book, wherein a sum ofRs.12,597/- as on 30.06.2021 is available . He has also produced the share certificate in original which shows that he has paid Rs.20,000/- in order to become a shareholder/member of the OPs bank. He has also produced Ex P4, P5, and P6 the letter of correspondences made wherein the complainant has demanded for closure of the SB account and refund of the share amount.
9. In the version itself, OPs have stated that they have requested the complainant to furnish the passbook, unused cheque leaves with KYC so that they will close the SB account. Inspite of the complainant issuing notice in writing itself, and requesting by way of letter prior to it, OP did not close the SB account. Reasons for the same has not been placed before this commission as to why it did not close the SB account of the complainant and did not pay the proceeds of the SB account.
10. Though OP has contended that, the RBI guidelines dated 21.06.2021 has prohibited the bank from closing the membership, the same has not been produced before this commission to know what exactly the said RBI guidelines in respect of terminating or cancelling the membership at request. In the absence of the same, we have to hold that it is a prerogative of the member either to continue or to close his membership as per his wish. In case he do not want to continue the membership, and requests the authorities to cancel the membership, and to return the share amount, Op has to oblige. But in this case, inspite of written request as well as issuing of the legal notice, OP did not comply the demand made in the notice. Hence we are of the opinion that on both counts, there is deficiency in service on the part of OPs. Hence we answer POINT NO.1 IN THE AFFIRMATIVE.
POINT NO.2:
11. In view of the same OPs are bound to return the amount available in the SB account No.02103038096 of the complainant along with accrued interest if not paid so far and also refund the share amount of Rs.20,000/- to the complainant along with interest at 12% per annum on the said share amount from the date of demand i.e. 29.12.2021 till payment of the entire amount.
12. The act of OPs made the complainant to file this complaint by spending time, money and energy for which, we direct OPs to pay Rs.5,000/- towards litigation expenses and Rs.5,000/- towards damage for causing mental agony and hardship and answer POINT NO.2 PARTLY IN THE AFFIRMATIVE and pass the following:
ORDER
- The Complaint is hereby allowed in part with cost.
- OPs 1 and 2 jointly and severally are hereby directed to return the amount available in the SB account No.02103038096 of the complainant along with accrued interest if not paid so far and also refund the share amount of Rs.20,000/- to the complainant along with interest at 12% per annum on the said share amount from the date of demand i.e. 29.12.2021 till payment of the entire amount
- Further Ops are hereby directed to pay Rs.5,000/- towards damages and Rs.5,000/- towards cost of the litigation expenses.
- OPs are directed comply the above order within 30 days from the date of receipt of this order and submit the compliance report to this forum within 15 days thereafter.
- Send a copy of this order to both parties free of cost.
Note: You are hereby directed to take back the extra copies of the Complaints/version, documents and records filed by you within one month from the date of receipt of this order.
(Dictated to the Stenographer over the computer, typed by him, corrected and then pronounced by us in the Open Forum on this day the 7th day of OCTOBER 2022)
MEMBER PRESIDENT
ANNEXURES
- Witness examined on behalf of the Complainant/s by way of affidavit:
CW-1 | Sri K Honnaiah - Complainant. |
Copies of Documents produced on behalf of Complainant/s:
Ex P1: Copy of the Share certificate.
Ex P2: Copy of the pass book
Ex P3: Copy of the request letter.
Ex P4: Copy of the Acknowledgment issued by Op.
Ex P5: Copy of the Legal notice.
Ex P6: Copy of the Reply notice.
2. Witness examined on behalf of the Opposite party/s by way of affidavit:
RW-1: - Nil-
Copies of Documents produced on behalf of Opposite Party/s
- Nil-
MEMBER PRESIDENT
RAK*
