IDBI BANK LIMITED Vs. T K NAGARATHNA

JUDGEMENT

(1.) -DISSATISFIED by the order of the State Commission dated 16. 4. 2008 concurring with the decision rendered by the District Forum making the petitioner liable to pay amount of Rs. 25,000 on each bond as on 31. 3. 2007 to the complainant, Industrial Development Bank of India (in short the Bank) has filed this Revision Petition.

(2.) FACTUAL matrix of the case in brief is that complainant had purchased two deep discount bonds by investing an amount of Rs. 2,700 on each certificate. As per the terms of the said bond the amount invested is to be redeemed at the end of five years at Rs. 5,700, at the end of 10 years at Rs. 12,000, at the end of 15 years at Rs. 25,000, etc. It is the case of the complainant that she decided to exercise the last opinion to encash the bond and had requested the bank to send necessary papers for redemption. Though the bank was liable to pay Rs. 25,000 on each bond on 31. 3. 2007, it had failed to fulfil its obligation by not paying the redeemed amount to the complainant. Accordingly, the complainant had filed a complaint before the District Forum. The District Forum after hearing the case and perusing the records of the case held that: "after the receipt of the complainant letter of option to encash the bond, opponent ought to have called for filled redemption form for the payment of the deemed face value at that particular period, but opponent refused to pay interest after March 31st, 2002. Thus opponent committed deficiency in service and liable to pay amount of Rs. 25,000 on each bond on March 31st, 2007 as shown in the bond certificate. "

(3.) PARTLY allowing the complaint the District Forum ordered the Bank to pay Rs. 25,000 on each bond within two months from the date of this order along with 10% interest on the amount of each bond of Rs. 25,000 i. e. 3. 5. 2007 till its realization. In additional Rs. 5,000 was also ordered to be paid as costs to the complainant.