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2005(3) CPR 128
NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
K.S. Gupta, Presiding Member and Dr. P.D. Shenoy, Member
Charan Singh & Anr- Petitioners
Versus
Central Bank of India-Respondent.
Revision, Petition No. 2637 of 2005,
Decided on 10-11-2005
Counsel for the parties:
For the Petitioners:Shri T.C. Sanduja, Advocate.
For the Respondent: None.
IMPORTANT POINT
Inadvertence on part of bank official recording higher rate of interest on fixed deposit certificates than what was permissible as per RBI circular could be said to constitute deficiency in service.
Headnote:Consumer Protection Act, 1986 sections 12 and 17 - Banking service. Deficiency- Multiple Deposit Certificates purchased by petitioner from respondent bank Certificates were got renewed- As against total maturity amount of Rs. 12,31,122/- bank credited only Rs. 7,87,899 Complaint, claiming deficit amount and Dist. Forum allowed Complaint. State Commission in appeal set aside the order but granted consolidated amount of Rs. 50,000/- as compensation-Revision-Renewals of certificates were after, maturity dates-R. 31 circular provided that renewal of overdue NRI deposit was permitted from date of maturity provided over due period did not exceed 14 days-Petitioners were, entitled to interest for overdue period exceeding 14 days@3% to 5% p.a. depending on overdue period-Allowing interest for over due period also at fixed deposit rates by inadvertence could not be said to be deficiency in service-Order of State Commission called for no interference.(Paras 4 and 5)
Result: Revision dismissed.
K.S. Gupta, Member: In this revisions ion challenge is to the order dated 24-8-2005 at State Commission, Delhi allowing appeal against, the order dated 22-9-2000 of a District Forum and awarding a consolidated amount of Rs. 50,000/- by way, of compensation to the petitioners/complainants.
2.Petitioners, who are NRls, pur-chased Multiplier Deposit Certificates from the respondent opposite party- bank of a sum of Rs. 1,10,000/- on ,1-8-1986 Rs., 35,100/- on 24-7-1984, Rs. 1,25, 600/- on 15-10-1983 and Rs. 11,000/- on 23-10-1986. First three certificates were for a period of, 60• months each while, fourth one for a period of 120 months carrying interest @ 13% per annum. Certificate maturing on 1-8q 991 was renewed for a period 36 months while certificate maturing on 24-9-1989 for 60 months. Likewise, certificate maturing on 15-10-1988 was renewed for 72 months while certificate maturing on 2310-1986 for- 84 months. Rate of interest payable for first two renewed certificates was 13% while for last certificate 11% per annum. These certificates after maturity were further renewed for 833 days, 779 days, 758 days and 1115 days respectively as on 11-11-1996. It was alleged that though the total maturity amount of the certificates was Rs. 12,31,122/- but the respondent bank credited only amount of Rs. 7,87,899.51/- in the saving account of the petitioners. Therefore, alleging deficiency in service complaint was filed by the petitioners which were contested by filing written version by the respondent. District Forum allowed the complaint with direction to the respondent to pay interest at the rate(s) applicable for fixed deposits without any break and also interest @ 12% from the date of actual encashment as also compensation of Rs. 1,500/- and cost holding the respondent bank to be deficient in service. In appeal filed against District Forum's order by the respondent bank while-setting aside part of the order -for payment of interest at fixed deposit rates without any break, a consolidated amount of Rs. 50,000/- was awarded as compensation for deficiency in service holding that respondent bank is-bound on circular No. DIR 347(l) 88 dated 29-7-1988 issued by Reserve Bank of India.
We have heard Shri T.C. Sanduja for petitioners on admission.
3. Circular referred to above has been set out in the order of State Commission. Circular notices that renewal of overdue NRI deposit or a portion thereof is permitted from the date of maturity provided the overdue period from the date of maturity till the date of actual renewal(both days-inclusive) does not exceed 14 days. The rate of interest on the deposit so• renewed should be the appropriate rate for the period of renewal as prevailing on the date of maturity or on the date when the depositor seeks renewal, whichever is lower. In case of overdue deposits, where the overdue exceeds 14 days and if the depositor places the entire amount of overdue deposit or a portion thereof as a fresh NRI deposit, the branch may pay simple interest for the overdue period on the amount so placed as afresh deposit at the following rates of interest:
15 days to 45 days .... 3% per annum
46 days to 90 days .... 4% per annum
91 days and above.... 5% per annum
4. Photostat copies certificates in question are at pp. 92 to 103 on the paper book. Bare perusal of these certificates would show that first renewal was made in March, 1993 while second renewal sometime in the year 1996 much after the dates of maturity of the certificates. Two renewals were made retrospectively from the dates of maturity applying the rate of interest applicable on fixed deposits by the respondent bank, obviously, in breach of said circular of Reserve Bank of India which was binding on all banks. In the decision of Union of India & Anr. v. Manoj Kumar Puranmal Paldiwala, the rate of interest on National Saving Certificates was reduced by 1% vide Notification dated 1-4-1987 by the Ministry of Communication, Department of Posts and the net effect th
