PATNA COOPERATIVE BANK LTD Vs. HASMUKH B SHAH

JUDGEMENT

(1.) The present revision petition arises out of an order of the Consumer Disputes Redressal Commission, Maharashtra State, whereby the order of the District Forum was reversed and the petitioner Bank was ordered to pay Rs. 25,000/ - being the amount of Fixed Deposit Receipts together with 15% interest thereon from 16.6.1987 till the date of payment. The facts given rise to the dispute in brief are as under :

(2.) ON 29th June, 1987, the depositor wrote to the petitioner Bank as follows :

(3.) EVEN if the complaint had been entertained or appeal had been entertained the question which fell for determination is whether there was any deficiency in not honoring the original FDRs which were presented for encashment in October, 1993. The answer to this cannot be but in the negative, because, there was no money lying with the Bank which was covered by the said FDRs as the Bank had already paid it into the account of the Income Tax Authorities. An FDR is not a negotiable instrument, particularly, when its being not transferable is printed on the face of it and a special mode of transfer is printed on the reverse of it which is not followed. A reference in this connection be made to a catena of authorities discussed in the 19th Edn. Vol. I, Banking Law and Practice in India, (pages 215 to 218). No challenge has been made to the validity of the payment by the Bank to the Income Tax Authorities. In that view, we are of the opinion that the impugned order, in the light of the discussion above, cannot be sustained and is, therefore, set aside, while the order passed by the District Forum is upheld. Further, we also hold that the claim covered by the complaint in the present case was stale and barred by limitation and there is no explanation forthcoming for condonation of delay. On that score also the matter deserved to be rejected.