IMPORTANT POINTS
(1) Minor – The minor’s interest is nowhere defeated, in as much as, it is the receipt of the lawful amount under the fixed deposits negotiated by the parents and accepted by them, which the minor is entitled to receive.
(2) Unlawful – The minor cannot claim protection in respect of anything which was transacted unlawfully, namely the higher rate of interest without sanction of law, and claim something, which cannot be against the interest of minor, if it is against law.

ORDER

The complainant was a minor child aged about 3½ years old when his father on 22.04.1996 and 23.04.1996 invested into 50 Fixed Deposits of Rs.50,000/- each in 25 branches of the respondent Trissur District Co-operative Bank Ltd. (hereinafter referred to as ‘the Co-operative Bank’). Due to some internal family arrangement that was presumably on account of some dispute between the husband and the wife, the mother of the complainant was made the guardian in relation to the said deposits.

2. The deposits matured in the year 2012 that were to bear interest @18% per annum. The matured values, however, were not credited and it was after certain tax deductions that an amount of Rs.2,35,44,305/- was credited in the complainant’s account. Aggrieved, a legal notice was issued calling upon the Bank to answer the same.

3. There is an important fact in this chain of events, which focuses on the bone of contentions of the parties and is stated by the complainant in paragraph 6 of the complaint. The same is extracted herein as under:—

“6. It is submitted that later on the complainant came to know after the maturity period of fixed deposits that while the complainant was a minor ,the opposite party issued a letter to the guardian mother of the complainant on 06.01.1999 demanding her to surrender the fixed deposit receipts for the purpose of reducing the rate of interest from 18% to 15% in all fixed deposits or to close the fixed deposits and accordingly the same was produced before the opposite party. A true copy of the letter dated 06.01.1999 issued by the opposite party to the mother of the complainant being the guardian is produced herewith and marked Annexure A/2.”

4. The letter dated 06.01.1999 as referred to in the aforesaid paragraph is a crucial document for determining the dispute in the present complaint. The same is also extracted herein as under:—

“1. P.B. Vishnu, minor, represented by his mother, guardian and next friend, C.B. Mini, Nirmalyam, Peringavu.

2. Navneeth Vishnu, minor, represented by his mother, guardian and next friend, C.B. Mini, Nirmalyam.

Dear Sirs,

Sub: Information regarding the inability of the bank to grant 18% interest and that legally permissible interest of 15% alone will be granted for those deposits.

Ref: Abhivardhini fixed deposit at the rate of Rs.50,000/- in 25 branches of the bank - total a sum of Rs.12,50,000/- at the rate of 18% interest in the name of P.B. Vishnu and another fixed deposit at the rate of Rs.50,000/- in 25 branches of the bank amounting to another sum of Rs.12,50,000/- at the same interest rate.

Please see the above reference. 25 Fixed Deposits each at the rate of Rs.50,000/- in the Abhivardhini Deposit Scheme was made by you No.1 in 25 different branches of the Thrissur District Co-operative Bank Ltd., on 22-4-96 and 23-4-96 respectively for a period of 192 months.

Another 25 fixed deposits each at the rate of Rs.50,000/- were made by 25 different branches of the Thrissur District Co-op. Bank Ltd., by you No.2 under the Abhivardhini Deposit Scheme for a period of 192 months on 22-4-96 and 23-4-96 respectively.

The maximum percentage of interest allowable for those deposits as per the law on the date of deposit was 15% per annum. At the time of deposit that is on 22-4-96 and 23-4-96 respectively, there is no sanction given by the Board of Directors of the bank to vary or enhance the rate of interest for such fixed deposits. The Board of Directors of the bank alone is competent to either vary or enhance the rate of interest to the fixed deposits. But subsequently as decision No. 8 dated 11-6-96 of the Executive Committee of the Board of Directors of the bank, it has been decided to grant 18% for those deposits held by you. But the Executive Committee of the Board of Directors has no power to enhance or vary the rate of interest payable for fixed deposits. Only the Board of Directors of the bank is competent to enhance or vary the rate of interest. It is obvious that