PUNJAB & SIND BANK Vs. KAMALJEET SINGH

JUDGEMENT

(1.) ON account of having deducted the loan amount from the pension account of the respondent instead of his and from his wife s salary as agreed at the time of giving loan, the appellant -bank vide impugned order dated 25.7.2006 passed by the District Forum has been found guilty for unfair trade practice and deficiency in service and directed to pay Rs. 10,000 as compensation for causing mental agony and harassment and Rs. 2,000 as cost of litigation. Feeling aggrieved the appellant has preferred this appeal.

(2.) THROUGH this appeal, the impugned order has been assailed mainly on the premise that the bank has exercised its right of general lien over the account which does not amount to deduction but adjustment and further that once the No Objection Certificate is given by the employer of the borrower the loan instalment started coming regularly from the employer itself till the loan is adjusted in full.

(3.) THE case of the respondent leading to the impugned order, in brief, is that he has Saving Bank Account No. 5510 with the appellant through which pension is disbursed to him and appellant -bank has illegally and without any mandate from him deducted a sum of Rs. 1,700 on 3.9.2005 from his account. On inquiry, he was told that he had stood as guarantor for one Sh. Harminder Singh in the loan account of Tilak Nagar Branch of the appellant -bank so the amount of Rs. 1700 were deducted from his account. Respondent thereof sent a legal notice dated 1.10.2005 to the appellant that the deduction from his pension account was illegal but despite the legal notice appellant continues to deduct a sum of Rs. 1,700 every month. The respondent stated that the loan was also guaranteed by borrower s wife Ms. Jaswinder Kaur who is a Librarian in Delhi University and earns more than Rs. 25,000 p.m. as salary and daughter Jasmine Kaur who is working with Sahara Airlines. He further asserted that the post -dated cheques towards instalments of the loan payment were given to the appellant -bank by the borrower along with NOC from the employer of the borrower for deduction of the amount from the salary to be disbursed by the employer. Similar NOC was given to the bank from borrower s wife s employer.