CHARAN SINGH Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) In this revisions ion challenge is to the order dated 24 -8 -2005 at State Commission, Delhi allowing appeal against, the order dated 22 -9 -2000 of a District Forum and awarding a consolidated amount of Rs. 50,000/ - by way, of compensation to the petitioners/complainants.

(2.) Petitioners, who are NRls, pur -chased Multiplier Deposit Certificates from the respondent opposite party - bank of a sum of Rs. 1,10,000/ - on ,1 -8 -1986 Rs., 35,100/ - on 24 -7 -1984, Rs. 1,25, 600/ - on 15 -10 -1983 and Rs. 11,000/ - on 23 -10 -1986. First three certificates were for a period of, 60 ¢ months each while, fourth one for a period of 120 months carrying interest @ 13% per annum. Certificate maturing on 1 -8q 991 was renewed for a period 36 months while certificate maturing on 24 -9 -1989 for 60 months. Likewise, certificate maturing on 15 -10 -1988 was renewed for 72 months while certificate maturing on 2310 -1986 for - 84 months. Rate of interest payable for first two renewed certificates was 13% while for last certificate 11% per annum. These certificates after maturity were further renewed for 833 days, 779 days, 758 days and 1115 days respectively as on 11 -11 -1996. It was alleged that though the total maturity amount of the certificates was Rs. 12,31,122/ - but the respondent bank credited only amount of Rs. 7,87,899.51/ - in the saving account of the petitioners. Therefore, alleging deficiency in service complaint was filed by the petitioners which were contested by filing written version by the respondent. District Forum allowed the complaint with direction to the respondent to pay interest at the rate(s) applicable for fixed deposits without any break and also interest @ 12% from the date of actual encashment as also compensation of Rs. 1,500/ - and cost holding the respondent bank to be deficient in service. In appeal filed against District Forum's order by the respondent bank while -setting aside part of the order -for payment of interest at fixed deposit rates without any break, a consolidated amount of Rs. 50,000/ - was awarded as compensation for deficiency in service holding that respondent bank is -bound on circular No. DIR 347(l) 88 dated 29 -7 -1988 issued by Reserve Bank of India. We have heard Shri T.C. Sanduja for petitioners on admission.

(3.) Circular referred to above has been set out in the order of State Commission. Circular notices that renewal of overdue NRI deposit or a portion thereof is permitted from the date of maturity provided the overdue period from the date of maturity till the date of actual renewal(both days -inclusive) does not exceed 14 days. The rate of interest on the deposit so ¢ renewed should be the appropriate rate for the period of renewal as prevailing on the date of maturity or on the date when the depositor seeks renewal, whichever is lower. In case of overdue deposits, where the overdue exceeds 14 days and if the depositor places the entire amount of overdue deposit or a portion thereof as a fresh NRI deposit, the branch may pay simple interest for the overdue period on the amount so placed as afresh deposit at the following rates of interest: