SOVINTORG INDIA PVT LTD Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THE complainant in Case No. C -1/1990 on the file of the State Commission, Delhi is the appellant before us.

(2.) THE complainant company had an account No. 2283 with the respondent bank at its South Extension, Part -I Branch, New Delhi. In June, 1983, acheque for Rs. 1 lakh was deposited by the complainant with the respondent bank for collection and for the proceeds being credited to its account. Though the proceeds of the cheque were collected by the respondent on June 17,1983 they were not deposited in the account of the complainant. In spite of notices issued by the complainant, the respondent bank had failed to credit the amount realized by the collection of the cheque to the account of the complainant and hence the complainant approached the State Commission with the claim for recovery of Rs. 1 lakh being the amount of the cheque together with Rs. 3,26,000/ - by way of interest at 24 per cent per annum from June 18, 1983 till October 31,1989 and a further amount of Rs. 4 lakhs by way of compensation for alleged losses and damages for loss of prestige, status and mental agony etc.

(3.) THE State Commission did not accept the contention of the respondent that the claim was barred by limitation. The contention put forward by the respondent bank that since the amount of Rs. 1 lakh represented the margin money could not be realized till the guarantee was revoked also did not find favour with the State Commission. Accordingly the State Commission directed the respondent bank to pay to the complainant Rs. 1 lakh with interest at 12 per cent per annum with quarterly rests from the date when the amount was received by the bank till the date of payment. The claim put forward by the complainant for compensation for damges on the ground of alleged loss of prestige and status, mental agony, loss of business etc. was rejected by the State Commission.