IMPORTANT POINT
Whenever a person withdraws FD, pre-mature charges have to be paid to Bank.

J. M. Malik, Presiding Member—Sh. Jayadhar V., the complainant is a subscriber of chitty in the Karala State Financial Enterprises Ltd.-OP-I. The Branch Manager and the Managing Director are its functionaries and have been arrayed as OPs-2&3. The said Chitty was prized to the complainant and complainant received the prized chitty amount in the sum of Rs.70,000/-. Since security was required to be furnished for the prized amount, the complainant deposited the prized chitty amount in a fixed deposit scheme of OP-1 at the rate of 9.5% interest for a period of three years with facility to draw accrued interest and to adjust to the chitty instalments. The monthly interest for that FDR was Rs.554/-. The monthly interest was transferred into Sugama Account of the complainant every month and he also authorized the OP-2 to withdraw that interest amount in the sum of Rs.554/- from the Sugama Account in the next month to adjust the same in Chitty installment.

2. For operating the Sugama Account passbook, the OP received the passbook on 05.09.2005. He, however, did not return it till 30.09.2005. After receipt of it, the complainant noticed some irregular and illegal transactions entries in the passbook. On enquiry, the OP-2 explained to him that his FD stood matured on 18.04.2005 and they had renewed it for another term of three years with effect from 18.04.2015 at the then standing interest rate of 6.5%. The petitioner/complainant has alleged that this act of renewing the FD without consent of the depositor is itself a deficiency. When objected, the petitioner was informed that as per the terms and conditions, signed by the complainant at the time of pledging the FD, as such his further consent was not required. Further they could not show the said rules and instead started quarrel.

3. Thereafter, the complainant requested the OP-2 to renew the FD w.e.f. 05.09.2005 at the interest rate of 7.5% as applicable on that date. It also transpired that OP-2 had illegally withdrawn a sum of Rs.84/-. Thereafter, negotiations went on between the parties but no settlement could reach.

4. Ultimately, the complainant was forced to close the FD on 13.03.2006 as he was in dire need of the money. The FD was surrendered for encashment. The complainant requested to allow the interest at the rate of 5.5% for the period w.e.f. 18.04.2005 till that date. The 2nd OP closed the said FD worth Rs.70,000/-, but paid a sum of Rs.68,986/- to the complainant. It is contended that the OPs are supposed to add the accumulated interest w.e.f. 18.04.2005 to 13.03.2006 @ 5.5% interest, as per Sugama rules. The petitioner was eligible for an interest in the sum of Rs.3245/- to that period for the amount of Rs.70,000/-. The OPs were supposed to pay him a sum of Rs.71029/- . Thus the complainant suffered a loss in the sum of Rs.2045/-. This complaint was filed by the complainant on 17.04.2006 with the following prayers:-

“I. To direct the opposite parties to pay Rs.2045/-, (the difference of eligible due amount Rs.71,029/- and paid amount Rs.68,984/- in respect of the FD Rs.70,000/-, FD No. 067/4166) with interest at the rate of 12% from the date of closure of the FD, i.e., from 13.03.2006, till realization.

II. To direct the opposite parties to remit Rs.84 in the Sugama account, A/C No. 1393, which was illegally withdrawn from the sugama account (A/C No.1393) of the complainant, with penal interest, Rs.1/- for every 30 days or part thereof, from the date of withdrawal of the amount, i.e., from 05.09.2005, till the date of remittance.

III. To direct the opposite parties to pay the following with interest at the rate of 12% from the date of complaint to the date of realization :-

a) Rs.25,000/- (Rupees twenty five thousand only) as compensation.

b) The expenditure Rs.1,000/- (Rupees one thousand two hundred fifty only) incurred for sending advocate notices, stationary charges, postage charges and transportation charges, etc.

IV. To order cost of the complaint suitably fixed