TARA SINGH Vs. INDIAN OVERSEAS BANK & ANR

JUDGEMENT

(1.) TARA Singh appellant had deposited a sum of Rs. 1,25,000 with the respondents as fixed deposit for 120 months i.e., for 10 years in the name of his grand daughter Sukhjiwan Kaur on interest at the rate of 13% per annum. An amount of Rs. 4,49,275 was payable by the respondents on 30.4.2007 which was the date of maturity. The respondents paid interest only at the rate of 12% per annum instead of 13% per annum which was agreed. The respondents also recovered income tax on the interest amount. The matter was taken up with the respondents but no attention was paid by them. Hence the appellant filed the complaint in the learned District Consumer Disputes Redressal Forum, Sangrur (in short "District Forum").

(2.) THE factual position was admitted by the respondents in the written reply filed by them. It was also pleaded that the rate of interest was incorporated as 13% per annum by inadvertence instead of 12% per annum which was the prevailing rate of interest. It was further pleaded that the rate of interest from 13.7.1996 to 20.4.1997 was 13% per annum on FDRs for more than 36 months. However, it was revised after 21.4.1997 to 12% per annum which was fixed by the Head Office, Chennai. Hence it was submitted that the interest has been paid at the permissible rate and dismissal of the complaint was prayed.

(3.) THE parties produced the documents.