SYNDICATE BANK JAGATSINGHPUR BRANCH Vs. KASIM KHAN

JUDGEMENT

(1.) The opposite parties of C. D. Case No.01 of 1997 have filed this appeal challenging the orders dated 9.6.1997 of the District Forum, Jagatsinghpur in that C. D case directing opposite party No.1 - the Branch Manager, Syndicate Bank, Jagatsinghpur Branch, Jagatsinghpur, to allow complainant/respondent to withdraw amount under P. D. R.292 with interest till the date of its maturity and to pay further interest @ 18% per annum thereater till the final payment is made to him within one month of the receipt of the copy of the order. Opposite party No.1 is also directed to pay compensation of Rupees 5,000 and cost of litigation to the complainant.

(2.) Facts in brief are that being persuaded by the agent of the Bank of opposite party No.1 - Raghu Mahanta, (opposite party No.2) complainant became daily depositor of Rs.10 per day of the Bank under P. D. No. R-292 dated 11.2.1993. By 1st December, 1995 total amount of his deposit was Rs.9,150. Being in need of money when complainant wanted to withdraw the amount, the Bank/opposite party No.1 did not permit him to withdraw the amount.

(3.) As per their written version, the opposite parties challenged the maintainability of the C. D. case. They say that complainant voluntarily opened the P. D. account and his total deposit as on 1.11.1995 was Rs.9,150. But complainant stood as a surety for one Sk. Sakil who had availed loan of Rs.20,000 under A/c No. OSL/sb/34/95 and executed an agreement with opposite party No.1 on 16.10.1995 with Sk. Sakil thereby agreeing that if borrower fails to pay the loan amount or any amount falls due on the borrower, the Bank would recover the same from the surety viz. the complainant notwithstanding the remedies of the opposite party No.1 Bank against the borrower. Vide letter No.1022/802/pd/96 dated 11.12.1996, opposite party No.1 has intimated complainant that Sk. Sakil has not repaid towards the loan amounting to rupees 17, 398 as on 11.12.1996, for which complainant is not entitled to withdraw the amount from his PDR-292.