Dr. P.D. Shenoy, Member — The issue involved in this case is whether it was appropriate on the part of the bank to repay only the principal amount bereft of interest on premature withdrawal of the fixed deposits made in the FCNR Account. The answer is no.

Facts of the case :

2. Shri T Shanker, who is the respondents before us had invested in short term deposits on various dates in US Dollars with Hongkong Bank Chennai, the revision petitioner who was the opposite party before the District Forum. Later on he gave a letter to the bank requesting them to consolidate the amounts due to him with accrued interest for the various short term deposits and invest the same in Foreign Currency Non—resident Account (hereinafter be referred as FCNR Account). The bank complied with the request by transferring the amount US $ 23,903.17 to a new Account with effect from 10.06.1994 with a maturity period of three years. Complainant wrote a letter on 27.03.1995 to the bank to repay the principal amount and interest accrued till then. The bank took the stand that the complainant foreclosed the deposit before the maturity period of three years, hence, he is not entitled to payment of any interest an