MANAGING DIRECTOR, DHARMAPURI DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD Vs. SPECIAL OFFICER/JOINT REGISTRAR DHARMAPURI DISTRICT CENTRAL CO-OPERATIVE BANK LIMITED

JUDGEMENT

(1.) This complaint coming on before us for hearing finally on 26.04.2011, upon perusing the material documents, and upon hearing the counsels for both the parties, and having stood over till this day for consideration, this Commission made the following order. The complaint filed under F 12 of the Consumer Protection Act- 1986 Complaint praying for the relief against the opposite parties to pay a sum of Rs.30,55,364.38 for the deficiency of service on the part of the opposite parties and for costs.

(2.) The details of complaint in brief as follows : The complainant union is a registered society under the Tamil Nadu Co-operative Societies Acts having its head office at Krishnagiri for the purpose of upliftment of economic status of the members of the Milk Producers of Co-operative Societies in rural area and functioning from the year 1982 with operational area of Dharmapuri and Krishnagiri Districts. For the purpose of business transaction two savings bank account No.2333/6 and CC 0063 M were opened with Dharmapuri District Central Co-operative Bank at Krishnagiri where the complainants head office is situated and another savings bank account No.10914 was opened in DCC Bank of Hosur. The head office for the District Central Co-operative Bank is at Dharmapuri. In the milk sales, more sales is done only in Hosur town. The complainant frequently and suddenly needs money as it has to make milk procurement payments to the milk producers every week.

(3.) Hence the complainant Union gave standing order to the 3rd opposite party with a request to transfer the accumulated funds to their SB account No.10914 at Hosur Branch after retaining minimum balance of Rs.500/- to the Savings Bank Account No.2333/6 with the Krishnagiri Branch in the 4th opposite party by first day of every week on Monday through Mail transfer under intimation to the complainant as per the letter dated 19.5.97. While doing so certain funds in 8 items from 2.4.97 to 29.11.99 for the priod from 1997-98, 1999-2000 for Rs.67,50,000/- was left out for transfer by the 3rd opposite party, while checking reconciliation for annual audit it was found out. Hence the complainant demanded the bank to pay the principal amount with 18% interest in letter dated 19.5.01. During those periods in order to pay the balance milk bill payment due to various co-operative societies the complainant by mortgage milk by products obtained cash credit at the rate of 18% and paid the dues to those societies. If the 3rd opposite party duly corrected the left out amount of Rs.67,50,000/- the complainants savings bank account with the 4th opposite party during the course of funds transfer the complainant could not have obtained cash credit with 18% interest. As per the letter dated 23.5.01, 3rd opposite party stated he was not responsible for the mistake crept in the funds transfer. Further the opposite parties have stated that they are not in a position to give any interests for the amount. In spite of various letters addressed to the opposite parties they have not yielded for the request of the complainant to pay interest at the rate of 18%. But on pointing out the defect the opposite parties have given credit of the amount of Rs.67,50,000/- for the period from 1997-1998, 2000-2001 and Rs.12,00,000/- for 4.6.01 in all Rs.79,50,000/- was credited with SB account No.2333/6 by the 4th opposite party on 25.6.01 and 23.9.01 and the interest at the rate of 18% of Rs.30,55,364.38 was not given credit. Hence the complainant has come forward with this complaint praying for a sum of Rs.30,55,364.38 for the deficiency of service on the part of the opposite parties and for costs.