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A. P. SAHI
P. B. Vishnu alias Navneeth Vishnu – Appellant
Versus
Thrissur District Co-Operative Bank Ltd. – Respondent
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
(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....
Unilateral reduction of interest rates on Fixed Deposit Receipts post-issuance violates contract law, as the terms agreed upon cannot be altered without mutual consent.
The court established that loans against minors' fixed deposits, without the natural guardian's consent, are illegal, affirming joint liability for wrongful appropriation.
The failure of authorities to renew a Fixed Deposit Receipt for a minor claimant led to significant loss of interest, establishing the duty to ensure proper management of judicial awards.
Disputed factual claims regarding fixed deposit entitlements require resolution through civil court, as Article 226 relief is not applicable. Claims may be additionally time-barred.
1. TDS cannot be charged arbitrarily; it can only be calculated on basis of interest accrued.2. Income Tax to be charged as 10% if interest exceeds Rs. 10,000.
Point of Law : Merely because the Bank apprehends an action from the part of the third respondent, the Bank is not entitled to insist that the Fixed Deposit should remain as a lien in favour of the B....
The bank's failure to maintain records leads to liability for non-payment of fixed deposits.
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