INDIAN OVERSEAS BANK Vs. KLEBERT PIERRE

JUDGEMENT

(1.) The opposite party appeals.

(2.) The case of the complainant was as follows: He made a fixed deposit with 9.5% of interest with the opposite party on 16.7.1990 of an amount of 3,6701.33 US Dollars which was renewed with interest, on 20.1.1992 with interest @ 10.5%, on 19.1.1993 with interest @ 5%, on 17.1.1994 with interest @ 4.5%. It was ultimately renewed on 18.1.1995 for an amount of 51,397.18 US Dollars with interest @ 6.5% adding the interest accrued as calculated by the Bank. When the last deposit was in force the opposite party issued a letter informing the complainant that while renewing the deposit during the year 1992 a mistake crept in favour of the depositor while calculating the interest. The complainant objected for the reduction of the amount deposited by him and closed the account with the opposite party. He then approached the District Forum with the following prayers:

(3.) The version of the opposite party was as follows: There is no deficiency in service on the part of the opposite party which has only carried out the instructions issued by the Reserve Bank of India as per which the interest @ 6.75% p.a. only should have been paid whereas on account of error interest at the rate of 10.5% p.a. was given. That mistake was pointed out by the internal auditors of the opposite party in 1995. When there is wrong payment the bankers can recover the same as per law. The act of the Bank in debiting to the account of the complainant the excess amount paid to him is permissible under law.