VIJAYA BANK Vs. M S NARAYANA RAO

JUDGEMENT

(1.) I .A.No.6457 of 2014

(2.) THE complainant/respondent deposited a sum of Rs.4,00,000/ - with the petitioner bank vide FDR No.049116 dated 02 -07 -2004. The aforesaid FDR was renewed on 25 -07 -2005, 22 -01 -2007 and 26 -03 -2008. The case of the petitioner bank is that the complainants had also taken a loan/overdraft of Rs.3,50,000/ - for their business requirement, offering the aforesaid FDR as a security for the said loan. The case of the complainants is that when they approached the bank for payment of the amount which they had deposited by way of FDR, payment was not made to them and the manager told them that there was a balance amount of Rs.50,000/ - to their credit which had been adjusted towards loan taken by them. The case of the petitioner bank in this regard is that when they asked the complainants, for repayment of the loan taken by them, they wrote a letter to the bank on 12 -06 -2008 authorising it to close the fixed deposit and adjust the maturity amount in their loan account. Accordingly, a sum of Rs.4,47,183/ - which was outstanding in the loan account was adjusted and the balance amount of Rs.47,484/ - was credited to the savings bank account of the complainants.

(3.) THE complainant approached the concerned District Forum, seeking accounts of the FDR in question. They also sought payment of Rs.2,00,000/ - from the bank along with compensation and cost of litigation.