JAMMU & KASHMIR BANK LIMITED Vs. SHIVAM ENTERPRISES

JUDGEMENT

(1.) THIS is an appeal filed by the O.Ps. against the impugned judgment and order dated 7.10.2004 passed by District Consumer Disputes Redressal Forum -I, U.T., Chandigarh (for short hereinafter to be referred as District Forum) in Complaint Case No. 921 of 2002.

(2.) THE respondent M/s. Shivam Enterprises invested a sum of Rs. 5 lacs in fixed deposits. The Fixed Deposit Receipts (for short hereinafter to be referred as FDRs) were pledged with the Director, Haryana State Lotteries, Chandigarh. The FDR Account was opened for a period of five years. The then Manager of the appellant -Jammu and Kashmir Bank Limited (for short hereinafter to be referred as Bank) is said to have verbally informed the respondent/complainant that the interest available on the five years FDRs was 12% per annum payable quarterly. The said amount of Rs. 5 lacs was deposited on 14.7.1995 and ten FDRs were issued for Rs. 50,000/ - each of the said date 14.7.1995 showing the maturity date of 14.7.2000. At the time of maturity of the FDRs, the complainant approached the Bank and learnt that he had been allowed simple interest of 12% per annum on the deposits. A representation was made to the Bank, which was followed by another representation, which was replied by the appellant Bank on 29.11.2000 vide which it refused to grant compound interest on the amount deposited by the complainant. The complainant found that the attitude of the Bank was adamant and he took up the matter regarding the said dispute of interest being compound on the FDRs before the Banking Ombudsman appointed by the Reserve Bank of India for adjudication. The Banking Ombudsman upheld the claim of the respondent/complainant and directed the appellant Bank to pay to the complainant compound interest minus the interest already paid. The Bank, however, refused to comply with the recommendations of the Banking Ombudsman under Clause 19 of the Banking Ombudsman Scheme 1995. This led to the filing of the present complaint.

(3.) THE complainant prayed for grant of interest upon deposited amount of the complainant by compunding it quarterly. The difference of the amount in this regard was worked out as Rs. 1,00,356/ -. Future interest was also claimed on the amount @ 24% per annum w.e.f. 14.7.2000 till the date of actual ralization. A sum of Rs. 25,000/ - was claimed as mental agony and physical harassment suffered by the complainant due to the deficient services rendered by the Bank. A sum of Rs. 20,000/ - per year w.e.f. August, 2000 was claimed as compensation for loss caused to him as a result of funds lying blocked with the Bank. Besides these amounts, a sum of Rs. 11,000/ - was claimed as legal costs.