STATE BANK OF INDIA Vs. P S KRISHNAN

JUDGEMENT

(1.) THE complainant is a retired officer of a Public Sector Undertaking. His retirement benefits amounting to Rs. 8,38,931/ - were credited to the State Bank of India viz., the 1st opposite party on 4.10.1995 out of which a sum of Rs. 8,00,000/ - was later transferred to the Public Provident Fund (PPF) Account in the same branch. The PPF Account was subsequently transferred to the 2nd opposite party at Chennai. Another sum of Rs. 50,000/ - was added to the PPF Account on 3.2.1996. There was thus a sum of Rs. 8,50,000/ - with the opposite parties during the financial year 1995 -96. The 2nd opposite party informed the complainant that interest on the PPF will be remitted to the account for a total amount of Rs. 60,000/ - only. It is true that to avail tax benefit one can invest only upto Rs. 60,000/ -, but it does not mean that the person cannot invest more than Rs. 60,000/ -. The 2nd opposite party returned Rs. 7,90,000/ - without any interest. Thus there was failure on the part of the opposite parties to pay interest even at 15% p.a. for the sum of Rs. 7,90,000/ -. Hence the complaint as there was deficiency in service on the part of the opposite parties.

(2.) THE opposite parties contended that the amounts that were deposited in PPF Account are credited to the Government account and do not form part of the opposite parties deposits. As per rules, under the PPF account, the maximum limit of deposit is Rs. 60,000/ -. The excess deposit of the complainant over and above Rs. 60,000/ - is against the rules and, therefore, it was returned to the complainant without interest. The acceptance of the deposit over and above will not amount to deficiency in service. There was no inducement from the opposite parties to the complainant to make the deposit. The complainant is bound by the rules applicable to the PPF account. Hence, the opposite parties are not liable.

(3.) THE District Consumer Disputes Redressal Forum, Chennai (South) accepted the complaint and directed the opposite parties to pay to the complainant a sum of Rs. 55,932/ - and costs of Rs. 1,000/ - within one month. Aggrieved by the same, the present appeal is filed.