JILA SAHAKARI KENDRIYA BANK Vs. RAMKISHAN PATEL

JUDGEMENT

(1.) APPELLANT has today filed copy of the order dated 28. 6. 2006, passed by Reserve Bank of India under Section 35a of the Banking Regulation Act, 1949. Heard. By the order impugned the Forum below has directed the appellant/jila Sahakari Kendriya Bank Mydt. Sagar, to pay to respondent/complainant the entire amount in balance in his saving bank account with the appellant and also pay to him compensation Rs. 1,000 besides cost Rs. 300. The only contention of the appellant/bank is that no such withdrawal can be permitted by the appellant/bank in view of the order of the Reserve Bank of India made under Section 35a of the Banking Regulation Act, 1949. It is now, too, well settled that the Courts are also bound by any such order passed by the Reserve Bank of India and no direction contrary to the order of Reserve Bank of India can be made for any withdrawal. In the instant case the Reserve Bank of India has restrained the appellant/bank allowing any withdrawal beyond Rs. 1,000, without its permission. However, the appellant/bank has already deposited, obviously, with the permission of Reserve Bank of India, a sum of Rs. 14,975 with the District Forum under Section 15 of the Consumer Protection Act.

(2.) WE thus, dispose of this appeal with the direction that the amount already deposited by the appellant with the District Forum be permitted to be withdrawn by the respondent. For the remaining amount, the respondent may approach the Reserve Bank of India and if so permitted by it, the appellant shall allow withdrawals. However, the order for payment of compensation and cost is set aside and the parties are left to bear their own as incurred in both the Fora. Appeal disposed of.