STATE BANK OF INDIA REP. BY ITS BRANCH MANAGER Vs. D.NAGESWARA NAIDU

JUDGEMENT

(1.) The opposite party is the appellant. The appellant challenges the order directing it the amount of Rs.1,01,710/- with interest @9 % p.a. from the date of maturity besides the sum of Rs.!000/- awarded towards compensation.

(2.) The facts of the case as represented by the complainant are that the complainant deposited a sum of Rs.18,000/- on 11.9.1992 with the opposite party under the E.W. Scheme. The amount on maturity is Rs.1,01,710/- and the due date is 11.9.2006. The opposite party issued pass book with A/c No.467. After the date of maturity of the amount, the complainant requested the opposite party to pay the amount due. The opposite party has not paid the amount. The complainant got issued notice through his advocate on 27.9.2006 for which there was no response from the opposite party.

(3.) The opposite party resisted the claim inter alia contending that non payment of the amount does not amount to deficiency in service. As per the provisions of the E.W. Scheme the recurring deposit account was opened and the deposit was treated as term deposit for a period of 10 years and the subsequent three years period was treated as renewal period. The duration of the deposit had been mentioned in the rules of the scheme. As per the rules and circulars issued by the Reserve Bank of India only, the amount would be paid. As per the rules of the scheme the maturity amount is Rs.68,318/-. The complainant failed to produce the documents and sign in the discharge receipts. Several other members of the scheme received the amount of Rs.68,318/- from the opposite party irrespective of the maturity amount mentioned in the ledger. The staff of the opposite party had wrongly mentioned the amount on maturity in the passbook issued to the complainant. As per clause 5.1 of the scheme, Special Term Deposit would initially be issued for a period of 10 years and it would be automatically renewed for a further period of 10 years each @ interest prevailing on the respective maturity dates. Clause 9 of the scheme had provided a table showing the maturity value for different maturity periods worked out on the basis of then prevailing rates of interest on bank deposits subject to clause 6 of the scheme. Clause 6 of the scheme restricts the rate of interest subject to the RBI directions. On the date of deposit, i.e., on 11.9.1993 the rate of interest was 11% per annum. The complainant is entitled to the interest @ 11% per annum for 10 years i.e., till 11.9.2003. The deposit was automatically renewed on maturity for further period and the maximum rate of interest payable is 6% per annum. The complainant is entitled to the amount of Rs.68,318/-.