UNION BANK OF INDIA Vs. CHIVUKULA VENKATA RAMANA
ANDHRA PRADESH STATE CONSUMER DISPUTES REDRESSAL COMMISSION
UNION BANK OF INDIA
CHIVUKULA VENKATA RAMANA
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P.RAMAKRISHNAM RAJU,PRESIDENT -
(1.) THE opposite parties
in C.D. No. 1500/2000 on the file of District Forum -II, Hyderabad are the
appellants. The complainants made certain deposits with Sikkim Bank
Limited on various dates during 1998 -99. The said Sikkim Bank was
amalgamated with the appellants Bank. The total deposits exceeding Rs. 1
lakh are due to the complainants. However, the appellants paid only a sum
of Rs. 1 lakh leaving a balance of Rs. 55,234/ - . Hence, the complaint.
(2.) IN the written version filed by the complainants it is stated that under the scheme framed as per the guidelines of Reserve Bank of
India all the deposits of the complainants were merged and the total
amount payable to the complainants was only Rs. 1 lakh which was already
paid. Hence there is no deficiency in service.
(3.) THE District Forum on consideration of the material on record directed the appellants to calculate the amounts due by emerging the
deposits showing the first complainant as the first depositor as one unit
and the deposits showing the name of the second complainant as the first
depositor as another unit and make payments as per the scheme. Hence the
The appellants contend that out of Savings Bank deposit payable at Rs. 1,77,816.67 ps. insured amount was only Rs. 1 lakh and, therefore,
Rs. 1 lakh was paid. Both the complainants being pensioners made deposits
jointly. They are treated as joint deposits. The learned Counsel for the
appellants submits that under Section 16 of the Deposit Insurance and
Credit Guarantee Corporation Act, 1961 whenever an insured Bank under a
scheme of compromise or arrangement amalgamated, the Corporation shall be
liable to pay to every depositor in accordance with the provisions under
Section 18, an amount equivalent to the difference between the amount so
paid and the original amount or the specified amount whichever is less.
Under Section 18 the depositors should be paid in the manner as may be
specified by the Corporation showing separately deposits in respect of
the each depositor and the amounts set off referred to in Sub -section (3)
of Section 16 and also the amounts paid credited or deemed to have been
paid under the scheme. He draws our attention to Section 45(4) whereunder
the Reserve Bank is empowered to frame a scheme for the re -construction
of the Banking company or for the amalgamation of the said company with
any other Banking institution.;
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