SAMUEL Vs. PRIMARY AGRICULTURAL CO-OPERATIVE BANK

JUDGEMENT

(1.) THE complainants in C.O.P.No.1 of 2004 on the file of the District Forum, Tirunelveli are the appellants herein.

(2.) THE complainants made deposits with the opposite party on the opposite party agreeing to pay interest at 10.5% for the amounts deposited on 13.8.2002,23.8.2002 and 24.8.2002 and at 9.5% for the amounts deposited on the subsequent dates. The total sum invested was Rs. 3,95,313. The opposite party at one stage informed the complainants that interest would be calculated at 8.5% in respect of some of the deposits and at 6.5% in respect of rest of the deposits. The complainants were asked to give their consent. Thereupon the opposite party after reducing interest arrived at Rs. 4,20,463 as the amount payable under the deposits and paid the same to the complainant on 30.8.2003. According to the complainants; they were entitled to receive interest at 10.5% and 9.5% as per the Fixed Deposit Receipts; there was a shortage of Rs. 12,443 and further the opposite party in spite of handing over the money as per the Savings Bank Account on 28.8.2003, made the credit entry only on 30.8.2003 and in the process the complainants lost Rs. 170 the reduction in interest amounted to unfair trade practice and deficiency in service. In these circumstances, the complainants sent a notice calling upon the opposite party to pay Rs. 1 lakh as compensation. The opposite party sent a reply stating that the complainants were in need of money for their family expenses. The complainants also sent a rejoinder. The complaint came to be filed for a direction to the opposite party to pay Rs. 12,443, towards the loss sustained by the complainant, one day interest of Rs. 170 and Rs. 1 lakh towards compensation for mental agony.

(3.) THE opposite party resisted the complaint as follows: The opposite party was governed by the Tamil Nadu Co -operative Societies Act and Bye -laws. As per the provisions of Co -operative Societies Act, 1983, Section 181, the Registrar of the Society used to send circulars as per the Reserve Bank of India guidelines. The financial position of the Co -operative Societies was very poor and, therefore, there was reduction in the rate of interest and this was done as per the direction of the Registrar of Cooperative Societies. The complainants were informed to renew the fixed deposit amounts as per the existing interest rate within 30 days of notice. In case, they failed to comply with the same, the deposits were renewed at the existing rate of interest even before the maturity period. The complainants wanted money for their family expenses. Therefore, the fixed deposit amounts were handed over to them. They did not raise any objection and they received the amount. After exchange of notices between the parties, the opposite party contacted the complainant and altered the interest rate as 1% and adjusted a sum of Rs. 2,766 in the complainant's savings bank account. The interest in the account had been calculated upto 21.8.2002. There was no loss of interest of Rs. 170. There was no deficiency in service.