R.S. RAJU Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) The petitioner/complainant took an education loan from the respondent bank for studying in Stony Brook University, New York. Out of the sanctioned loan of Rs.15 lacs, three Demand Drafts were issued by the bank in favour of the University. Two Demand Drafts were duly encashed when presented by the bank of the University. The third Demand Draft which was dated 13.01.2004 and was for US$ 6030 in favour of the University, was deposited with the University only in August 2004 when it had already become invalid, the validity of the draft being six months and its date being 13.01.2004. The Demand Draft was not encashed and the bank of the University namely JP Morgan Chase informed the University accordingly.

(2.) The complainant discontinued the studies and returned to India. She paid a major part of the loan taken by her and as far as the balance outstanding loan was concerned, she asked the bank to refund the amount of the uncashed Demand Draft of US$ 6030. The bank asked the complainant to return the original draft or in the alternative, No Objection Certificate from the University if the original draft was not available. The original draft could never be returned by the complainant to the bank and eventually, the Bhavani Branch of the Bank issued a cheque of Rs.2,75,209/- in favour of the complainant and sent the same to its Kumarapalayam Branch from where the loan had been disbursed. The said branch however, credited only Rs.1,63,370/- in the account of the complainant and adjusted the remaining amount towards the interest on the amount of the draft. Being aggrieved, the complainant approached the concerned District Forum by way of a Consumer Complaint.

(3.) The complaint was resisted by the respondent bank which inter-alia stated in its reply that there was no negligence or deficiency on its part in rendering services to the complainant.