CENTRAL BANK OF INDIA Vs. JAYANTI KALGO DESSAI

JUDGEMENT

(1.) THE present appeal arises from the judgment and decree dated October 13, 1995, passed in Special Civil Suit No. 294/1992/a by the Civil Judge, Senior Division, Margao, whereby the suit filed by the respondent herein was decreed and the appellant herein was directed to pay to the respondent a sum of Rs. 40,490 with interest thereon at the rate of 10 per cent. per annum from June 27, 1992, till the date of final payment. It is seen from the record that at the time of admission of the appeal, the appellant was directed to deposit all the amount due to the respondent within two weeks from March 22, 1996, and accordingly, the appellant has deposited a sum of Rs. 55,400 in this court on April 16, 1996.

(2.) THE case of the respondent herein is that on December 27, 1985, the respondent deposited with the Cuncolim branch of the appellant-bank herein a sum of Rs. 20,000 in fixed deposit, vide Money Multiplier Deposit Certificate No. 15/373. The deposit was for a period of seven years and was due for maturity on June 27, 1992. On July 24, 1992, the respondent received a letter from the appellant-bank to renew the certificate. Thereupon the respondent presented herself at the appellant-bank and informed that she was not desirous of renewing the said fixed deposit and that instead she wanted to withdraw the entire amount, that is, the maturity value on the fixed deposit. The appellant-bank, however, did not allow the respondent to withdraw the said amount on the ground that the appellant-bank had filed a civil suit against the father of the respondent for recovery of loan granted to him. Since, repeated requests failed to yield any result, the respondent herein sent a notice dated August 21, 1992, requesting the appellant-bank to pay the entire maturity amount and further warning that on failure to do so, the respondent would have recourse to the legal proceedings. The respondent ultimately filed the present suit.

(3.) THE case of the appellant herein is that the respondent had invested with the appellant a sum of Rs. 20,000 against fixed deposit for a period of seven years. It is also not disputed that the said amount deposited for seven years matured on June 27, 1992. It was, however, contended by the appellant that the maturity value on the certificate could not be allowed to be withdrawn by the respondent since the appellant had a lien on the said amount on account of the loan advanced to the respondent's father, which has since remained unpaid. It is further stated by the appellant that the respondent had offered the fixed deposit receipt bearing No. 15/373 as a collateral security for the loan obtained by her father from the appellant-bank and that, therefore, the respondent was not entitled to withdraw the said amount unless the loan and dues were fully repaid.