A.N.RAJU vs INDIAN BANK

THIS is a complaint under Section 17 read with Section 12 of the Consumer Protection Act.

THE Complainant is a holder of Saving Bank Account No. 4190 of the Indian Bank Branch at Chengam, and has been opera tingthis account mainly for the purpose of encashing the cheque issued in his favour by the Tirupattur Co-operative Sugar Mills, to which the Complainant has been sending Sugar Canes. On 10.4.1991 a cheque for Rs. 10,755.63 has been issued in his favour by the Sugar Mills and on 16.4.1991 another cheque for Rs. 12,484.96 has been sent to the Complainant''s Account and on receipt of these two cheques, the balance in the account and in the pass-book of the Complainant must be Rs. 23,269.09, but it has been wrongly shown as 33,269.09. It was negligence on the part of Banking authorities. Without noticingthis error, the Complainant has been operating his account and the banking authorities discovered the mistake entry only on August 1991. THE Complainant was called-upon by the bank''s agent to repay the excess amount of Rs. 10,000/- credited to his account within ten days. It is also alleged by the Complainant he was forced to give a letter. His request for payment in instalment was not accepted. THE Complainant was asked to bring his title deeds of his land with a promise to sanctiona loan for adjusting the excess credit. THE banking authorities took the documents and did not adjust the loan. THE Complainant is put much mental worry and hardship. Subsequently two other cheques for a total sum of Rs. 22,830.35 in favour of the Complainant were received from the Sugar Mills and from out of this money, the excess credit was adjusted and the balance in the pass book of the Complainant took at Rs. 13,673.46 on 20.5.1992. According to the Com-'' plainant on account of the mistake committed by the bank, he was put to great loss and was claimed compensation in the sum of Rs. 5.00 lakhs. The 2nd has filed a detailed counter and it has been adopted by the 1st . It is stated therein that the cheques issued by the Tiruppattur Co-operative Mills in favour of the were sent directly to the bank and deposited in the account of the . On 10.4.1991 a credit for Rs. 10,755.65 and on 16.4.91 another credit for Rs. 12,484.96 were made in the ''s account. On 19.4.1991 the sum of Rs. 12,892/- was transferred to the ''s loan account and he also withdraw a sum of Rs. 4000/- by cash. The net balance in his account of Rs. 4,177.09, but by a clerical error the balance was entered as 14,177.09 showing thereby an excess credit balance of Rs. 10,000/-. The mistake was found-out when the books was reconciled and adjusted. On 2.8.1991, the adjustment was made and there was an excess of Rs. 9,914.76 drawn by the and this was treated as a temporary overdraft. The was informed of the same and he promised to repay the money in ten days. He also prayed for a loan for adjusting the bank dues. He handed over the documents for his house but did not produce the encumbrance certificate at once no advance was made. Subseqently a cheque for Rs. 3,130.57 dated 12.5.1992andanotherchequeforRs. 19,699.68 dated 20.5.1992 were received from the Sugar Mills to the Credit of the and the overdrawing was adjusted. There is therefore, no deficiency of service or negligence on the part of the . Subsequently the has also been sanctioned a short term loan of Rs. 11,250/-on 20.5.1992. On 9.6.1992 there was a balance of Rs. 533.64 only and hence the cheque for Rs. 1,700/- could not be honoured. There has been no Illegal practice or illegal act on the part of the.

Exhibits A-1 to A-18 and B-1 and B-2 are marked. Proof Affidavit is also filed.

EXHIBIT A-1 is the copy of the Savings Bank Account pass-book of the Complainant. On 31.5.1990 there has been a credit balance of Rs. 28.50 in the said account. On 10.4.1990 a sum of Rs. 10,755.63 has been credited being the cheque issued in favour of the Complainant by the Thirupattur Co-operative Sugar Mills. The credit balance has therefore risen to 10,784.13. On 16.4.1990 an other sum of Rs. 12,484.96 has been credited in the account of the Complainant being another cheque issued by the Co-operalive Sugar Mills. The total credit balance must be Rs. 23,269.09, but by an inadvertant error, the credit balance has been entered as 33,269.09. It is obvious that a sum of Rs. 10,000/- has been wrongly added to the credit balance of the Complainant. Neither the Complainant nor the banking authorities have noticed this discrepancy and have been operating on the account. The Complainant has been drawing several sums of money and credits also have been made. On 29.7.1991, the credit balance is mentioned als Rs. 85.24. On 7th November, 1991 a sum of Rs. 557.87 has been credited into the account of the Complainant. It is on that day the banking authorities have foundout the mistake of excess credit of Rs. 10,000/-. They have immediately adjusted the credit balance of Rs. 85.24 standing on 29.7.1991 and the sum of Rs. 757.87 duly credited on7.11.1991 towards the excess credit of Rs. 10,000/- and the balance of excess credit to Rs. 9,156.89 and this amount has been shown as the debit balance on 7.11.1991. The Complainant has been informed of this debit balance and has been asked to give a letter. According to the Complainant he was ordered to give a letter which is denied by the Opposite Parties. The banking authorities however agreed to advance a sum of Rs. 10,000/- as a loan and adjust the balance, for which the Complainant has handed-over his title deed to the banking authorities. Bui no advance was granted as the Complainant had not furnished the encumbrance certificates. The account has therefore, continued with a debit balance against the Complainant for a sum of Rs. 9,146.89. Sub-sequently in the month of May 1992, two amounts have been credited to the account of the Complainant one for Rs. 3,130.57 and another for Rs. 19,699.78. From out of this amount, the debit account of Rs. 9,156.89 has been adjusted and credit balance has been entered in favour of the Complainant for Rs. 13,673.46. It is cen from the above that an inadvertant clerical error has been crept-in on account of the mistake in crediting a sum of Rs. 10,000/- in excess in the credit balance of the Complainant. This is no doubt a deficiency but this deficiency is not to the detriment of the Complainant, but only to the detriment of the bank. On account of this excess credit entry, the Complainant has been able to draw monies and utilise the same. This mistake has only benefited the Complainant. He cannot therefore say that he was damnifed by this mistake. Subsequently the bank has also advanced a sum of Rs. 11,250/- to the Complainant on 26.4.1992. The case of the Complainant that he has suffered on account of the mistake cannot be accepted. The claim for compensation in the sum of Rs. 5.00 lakhs is whimsical. The complaint must therefore fail. In the result, the complaint fails and is dismissed but without costs. Complaint dismissed.