SHAMLAL Vs. NEW BANK OF INDIA

JUDGEMENT

(1.) Whether the complainant is entitled to compound interest on the Fixed Deposit Receipts inherited by him from the deceased depositors thereof, is the solitary narrow question in this complaint.

(2.) In view of what follows hereinafter, the facts may be noticed with utmost brevity with relevance to the issue aforesaid alone. The complainant is a legal heir of late Smt. Savitri Devi and late Sh. Rajeshwar Dass Gupta who had obtained six Fixed Deposit Receipts of various denominations beginning with the year, 1974. Both the aforesaid persons died on the same day of 17th of February, 1975. The complainant obtained a succession certificate from the Court of the Additional Senior Sub Judge, Kaithal on the 15th of January, 1992. On presentation thereof to the opposite party New Bank of India (hereinafter called the Bank), the latter on the 6th of February, 1992, paid a total sum of Rs.71,154/- comprised of Rs.33,000/- as principal amout and Rs.38,154 as interest. Dis-satisfied with the calculation of the interest the complainant gave a Legal Notice to the Bank who on re-calculation paid a further amount of Rs.7,666/- vide Ann. C.3. The core of the complainant's case is that he is entitled to the payment of compound interest on the Fixed Deposit Receipts and not of merely the contracted rate of interest as calculated by the Bank. On this premise a further sum of Rs.64,115.47 paise was claimed from the Bank and when no redress was made the present complaint was filed to secure the payment of the said amount alongwith Rs.50,000/- as damages for mental suffering and humiliation etc.

(3.) In resolutely defending the complaint, the Bank in their written statement has given the detailed break-up of each Fixed Deposit Receipt and taken the firm plea that the payments made by it were correctly calculated on the contracted rate as also in accord with the relevant instruction therefor. The stand is that the complainant was pointlessly harassing the Bank and the complaint should be dismissed with heavy costs.