CANARA BANK Vs. NEW INDIA ASSURANCE COMPANY LIMITED

JUDGEMENT

(1.) This revision is directed against the order dated 10.11.04 of Consumer Disputes Redressal Commission Jharkhand, Ranchi partly allowing appeal against the order dated 3.7.04 of a District Forum and setting aside the order of forum in regard to compensation of Rs. 50,000. The District Forum while allowing complaint had directed the petitioner/opposite party No. 1 to pay amount of Rs. 1,08,896 to meet the repair cost, Rs. 60,000 to meet the medical treatment cost, Rs. 50,000 as compensation and Rs. 5,000 towards cost of litigation to respondent No. 2/complainant.

(2.) Facts giving rise to this revision lie in narrow compass. Respondent No. 2 was having a SB account with cheque facility with Sindri Branch of the petitioner bank. Car of respondent No. 2 was insured with respondent No. 1/opposite party No 2 insurance company for the period from 3.1.2001 to 2.1.2002. Respondent No. 2 issued a cheque of Rs. 4,916 in favour of respondent No. 1 towards premium for renewal of the policy on 29.4.02. Car met with an accident on 1.5.02. On 29.4.02 only a balance of Rs. 2 was lying in respondent No. 2s SB account. Respondent No. 2 deposited amount of Rs. 4,916 with the said branch of bank on 2.5.02. Cheque was presented to the branch for payment through clearance on 7.5.02. Petitioner alleged that after debiting amount of Rs. 10 towards services charges for violation of non -maintenance of minimum balance, the balance in the said account was Rs. 4,908 and, therefore, the said cheque was returned unpaid for insufficient fund. Respondent No.1 insurance company presumably repudiated the claim arising out of accident dated 1.5.02 on ground of premium not having been paid. Respondent No. 2, thus, alleging deficiency in service on part of petitioner bank filed complaint which was contested by the bank. Complaint by the District Forum and appeal by the State Commission were disposed of in the manner noticed above.

(3.) Adding up the amount of Rs. 4,916 deposited in cash on 2.5.02 to Rs. 2 being balance, makes the credit balance of Rs. 4,918 which was sufficient to pay the cheque amount of Rs. 4,916. Petitioner alleges that the balance in the account was Rs. 4,908 which was less by Rs. 8 to cover the amount of the cheque. Thus, the controversy between the parties mainly revolves around the justification in debiting Rs.10 towards service charges in respondent No. 2s account by the petitioner bank. In support of contention that the bank was entitled to debit this amount as service charges Shri Rajnish Prasad for petitioner invited our attention to the Manual of Instructions issued by the petitioner bank (copy at pages 29 -30). Instruction at serial No. 12.5.05 of this Manual which is material, is reproduced below: