A N RAJU Vs. INDIAN BANK

JUDGEMENT

(1.) This is a complaint under Sec.17 read with Sec.12 of the Consumer Protection Act.

(2.) The Complainant is a holder of Saving Bank Account No.4190 of the Indian Bank Branch at Chengam, and has been opera tingthis account mainly for the purpose of encashing the cheque issued in his favour by the Tirupattur Co-operative Sugar Mills, to which the Complainant has been sending Sugar Canes. On 10.4.1991 a cheque for Rs.10,755.63 has been issued in his favour by the Sugar Mills and on 16.4.1991 another cheque for Rs.12,484.96 has been sent to the Complainant's Account and on receipt of these two cheques, the balance in the account and in the pass-book of the Complainant must be Rs.23,269.09, but it has been wrongly shown as 33,269.09. It was negligence on the part of Banking authorities. Without noticingthis error, the Complainant has been operating his account and the banking authorities discovered the mistake entry only on August 1991. The Complainant was called-upon by the bank's agent to repay the excess amount of Rs.10,000/- credited to his account within ten days. It is also alleged by the Complainant he was forced to give a letter. His request for payment in instalment was not accepted. The Complainant was asked to bring his title deeds of his land with a promise to sanctiona loan for adjusting the excess credit. The banking authorities took the documents and did not adjust the loan. The Complainant is put much mental worry and hardship. Subsequently two other cheques for a total sum of Rs.22,830.35 in favour of the Complainant were received from the Sugar Mills and from out of this money, the excess credit was adjusted and the balance in the pass book of the Complainant took at Rs.13,673.46 on 20.5.1992. According to the Com-' plainant on account of the mistake committed by the bank, he was put to great loss and was claimed compensation in the sum of Rs.5.00 lakhs.

(3.) The 2nd has filed a detailed counter and it has been adopted by the 1st. It is stated therein that the cheques issued by the Tiruppattur Co-operative Mills in favour of the were sent directly to the bank and deposited in the account of the. On 10.4.1991 a credit for Rs.10,755.65 and on 16.4.91 another credit for Rs.12,484.96 were made in the 's account. On 19.4.1991 the sum of Rs.12,892/- was transferred to the 's loan account and he also withdraw a sum of Rs.4000/- by cash. The net balance in his account of Rs.4,177.09, but by a clerical error the balance was entered as 14,177.09 showing thereby an excess credit balance of Rs.10,000/-. The mistake was found-out when the books was reconciled and adjusted. On 2.8.1991, the adjustment was made and there was an excess of Rs.9,914.76 drawn by the and this was treated as a temporary overdraft. The was informed of the same and he promised to repay the money in ten days. He also prayed for a loan for adjusting the bank dues. He handed over the documents for his house but did not produce the encumbrance certificate at once no advance was made. Subseqently a cheque for Rs.3,130.57 dated 12.5.1992andanotherchequeforrs.19,699.68 dated 20.5.1992 were received from the Sugar Mills to the Credit of the and the overdrawing was adjusted. There is therefore, no deficiency of service or negligence on the part of the. Subsequently the has also been sanctioned a short term loan of Rs.11,250/-on 20.5.1992. On 9.6.1992 there was a balance of Rs.533.64 only and hence the cheque for Rs.1,700/- could not be honoured. There has been no Illegal practice or illegal act on the part of the.