STANDARD CHARTERED BANK LTD Vs. B N RAMAN

JUDGEMENT

(1.) LEAVE granted.

(2.) THIS civil appeal, by grant of special leave, is filed by Standard Chartered Bank Ltd. against order dated 14.7.2004 passed by National Consumer Disputes Redressal Commission (for short 'National Commission') dismissing the bank's appeal and confirming the decree passed by the State Consumer Disputes Redressal Commission, New Delhi (for short 'State Commission') under Consumer Protection Act, 1986 (for short'the Act').

(3.) BY written statement, the appellant conceded that the respondent had deposited on 17.8.79 a sum of US$ 5000 in FCNR account for 63 months maturing on 17.11.84 at 9% p.a. However, the appellant contended that prior to the date of maturity the deposit was prematurely withdrawn on 23.11.79. In this connection, reliance was placed on sale/purchase register. Therefore, according to the bank, there was no question of reinvesting of the aforestated amount from time to time, as-alleged by the respondent. The appellant also denied that the deposit receipt was kept in safe custody. In this connection, the appellant submitted that an inquiry into premature withdrawal and the demand for recovery of money after 12 years was beyond time. The bank, however, agreed that in 1984 RBI allowed it to keep FCNR for six years at the rate of 13% p.a. However, the appellant contended that since the amount was prematurely withdrawn, there was no question of reinvesting it for six years at the rate of 13% p.a. The bank denied all factual allegations made by the respondent with regard to reinvestment. BY the objections, apart from the question of limitation, the appellant stated that the respondent was not a consumer as defined under Section 2(1 )(d) of the said 1986 Act. The appellant also contended that under RBI rules, the bank was not bound to retain the records after eight years and, therefore, the matter cannot be decided on presumptions; that the burden was on the respondent to prove the alleged facts regarding reinvestment. BY the written statement, the appellant denied its liability 'to pay a sum of Rs.7,12,337.99 including interest till 17.11.93 and further interest at 18% p.a. on the said amount amounting to Rs. 1,28,220.83.