GENERAL MANAGER S B T Vs. KERALA STATE HANDLOOM DEVELOPMENT CORPORATION LTD

JUDGEMENT

(1.) This appeal is by the opposite parties 1 to 3 in O. P. No.514/95 of the Consumer Disputes Redressal Forum, Thiruvananthapuram. By the impugned order the District Forum ordered the opposite parties/appellants to pay 12% interest on Rs.50,000/- from 21.2.1987 to 16.6.1994 and also to pay cost Rs. .500/- within one month from the order. Aggrieved by the said order now the" opposite parties, as indicated, has filed this appeal.

(2.) The facts necessary for disposal of this appeal are : Respondent-complainant transferred Rs.50,000/- by Telegraphic Transfer from Cannanore branch of SBT to Trivandrum branch in favour of the Project Officer, Kerala State Handloom Development Corporation Limited. According to the complainant insisted of crediting in favour of the said beneficiary the appellant bank credited the same in the account of Kerala State Handloom Weaver's Co-operative Society Ltd. It is further the case of the complainant that because of this wrong credit they had taken another loan on 21.2.1987 and had to pay interest at 18% till 16.6.1994. Therefore they sought for an order directing the opposite parties to pay interest 18% and also compensation.

(3.) Opposite parties-appellants filed joined version denying the claim. They contended that the claim is barred by limitation and since the transfer of account itself was vague inasmuch as the description of the beneficiary was incomplete and ambiguous, the amount happened to be wrongly credited. The credit had to be in favour of the Project Officer who had an account at State Bank of Travancore, Medical College Branch, since the description was vague, the amount happened to be credited in the account of M/s. Kerala State Handloom Weaver's Co-operative Society. Therefore they maintained in their version that the bank cannot be put to any liability as the alleged miscredit was occasioned on account of the vagueness in the description of the beneficiary.