STATE BANK OF INDIA REP. BY ITS BRANCH MANAGER Vs. C.MADHUSUDHANA REDDY

JUDGEMENT

(1.) The opposite party no.1 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 24TH july, 1992 with the opposite party no.1under the Farmers Welfare Scheme. The amount can be paid in 12 monthly installments @ Rs.1,500/- per month. The amount on maturity is Rs.1,01,710/- and the due date is 24th July, 2006. The opposite party no.1 issued pass book bearing number FWS 72. After the date of maturity of the amount, the complainant requested the opposite party no.1 to pay the amount due. The opposite party no.1 has not paid the amount. The complainant got issued notice through his advocate on 7th November, 2006 for which the opposite party no.1 issued reply dated 15-12-2006 stating that they are ready to pay the sum of Rs.68,318/-. The opposite party no.2 remained exparte.

(3.) The opposite party no.1 resisted the claim inter alia contending that non payment of the amount does not amount to deficiency in service since the opposite party no.1 expressed its readiness to pay the amount of Rs.68,318/- along with interest at the prevailing rate from 25th July,2006.As per the Farmers Welfare Scheme the recurring deposit account was opened for 12 months. The maturity amount was Rs.19,305/-. The amount of Rs.19,305/- was reinvested after completion of the deposit period in STDR for 13 years on 24th July, 1993. At the time of reinvestment of the deposit the prevailing rate of interest was 11% p.a. and the maturity date was 24th July, 2003. On 24th July, 2003, the STDR was renewed for another 36 months with the rate of interest @6% p.a. and the total maturity value was Rs. 68,318/-At the time of the opening account, the complainant had agreed to abide by the terms of the State Bank of India Recurring Deposit Rules. As per the Banking Regulation Act any circular issued by the Reserve Bank of India is a statute. The general publication and affixing in the bank premises would be a deemed notice to all the banking customers. The complainant cannot take advantage of an entry in the RD pass book since the rate of interest mentioned therein was mentioned at the prevailing rate at the relevant time. It was denied that the amount @Rs.1,500/- per month was to be deposited in 12 monthly installments. The entry in the RD pass book in regard to the interest is subject to the rules framed by the Reserve Bank of India from time to time. The District Forum has no jurisdiction to try the matter. The complainant is at liberty to receive the amount of Rs.68,318/- along with interest at the prevailing rate from 24th July,2006.