State Bank of India vs HARISHCHANDRA SINGH

THIS is an appeal against the judgment and order dated 28.4.1997 passed by District Consumer Forum, Raebareili passed in Complaint Case No. 247 of 1996.

THE facts of the case stated in brief are that the complainant filed the complaint praying for payment of Rs. 75,000/- by crediting the amount in the account of the complainant and Rs. 1,00,000/- on account of compensation and Rs. 50,000/- on account of mental tension and agony. THE complainant had, along with his deceased father Sri Virendra Bahadur Singh, an Account No. 3535 in the Bank of Baroda, opposite party No. 1. THE complainant''s father was getting a monthly pension of Rs. 2,250/-. THE complainant''s father had also a family pension account in the State Bank of India, opposite party No. 2. THE cheque book was also issued by opposite party No. 2 for transaction from the account. THE cheques are being issued regularly and the amount is taken out through cheques. Suddenly the complainant''s father became ill on account of brain tumour and heart disease. Money was required for his treatment. He, therefore, issued a cheque for Rs. 75,000/- and deposited the same with opposite party No. 2, Bank of Baroda. When the complainant went to receive the amount, the cheque was returned to him along with the objection that his father used to withdraw money from the Bank through withdrawal forms and not through cheques. Hence the cheque cannot be honoured.

When the health of complainant''s father deteriorated he was shifted to Medical College, Lucknow, but on account of non-withdrawal of money he was helpless and could not get the treatment of his father done properly. His father died on 18.8.1996 for want of medical care. The complainant has prayed for compensation and damages as mentioned above.

THE opposite party No. 1 in the written version has alleged that the complainant had an Account No. 15436. A cheque book of 20 pages was issued. After July, 1989 no payment was taken out by the deceased through the cheques. He used to withdraw the amount through withdrawal slips only. According to banking rules if an account holder does not avail himself the facilities by issuing a cheque, then in those cases the permission of Chief Manager is required. He, after considering the case, can permit withdrawal by cheque. If the account holder does not wish to take money through cheques, then he can take the money out of the Bank through withdrawal slip after taking permission from the Chief Manager of the Bank. Through cheque the last payment was made on 12.7.1989 and therafter withdrawals were made through withdrawal slips. THE account holder has died and, therefore, the payment from his account cannot be made without a valid succession certificate. The opposite party No. 2 admitted the account of the deceased in its Bank. They have admitted the receipt of the cheque on 6.7.1996 which was sent for collection to State Bank of India, opposite party No. 1 but the same was returned with an objection. The opposite party is the collecting Bank and, therefore, there is no deficinecy on its part.

THE parties filed evidence in respect of their contentions before the learned District Forum. THE learned District Forum, after considering the case of the parties, directed for payment of Rs. 75,000/- along with interest at the rate of 18% per annum and Rs. 5,000/- as damages and Rs. 300/- as costs. THE compliance of the order was to be made within 30 days time. Aggrieved against the order of the learned District Forum, opposite party No. 2 State Bank of India has come in appeal and has challenged the correctness of the order passed by the District Forum. We have heard the learned Counsel for the appellant without issuing notice to the opposite parties.

A perusal of the file will go to show that the only contention of the State Bank of India, who is the appellant, is that the complainant''s deceased father was taking money through withdrawal forms. He has for the last two years not utilized the cheque books for taking money. When the cheque was sent for collection to State Bank of India, the State Bank of India put this objection and returned the cheque that if a person for a long time takes money on withdrawal slip, he has to take permission from the Chief Manager of the Bank. No rule or regulation of the Bank has been put up before us to show as to why a person having the cheque book but taking money on withdrawal form cannot be permitted to withdraw the money through a cheque. In the present case the allegations are that the complainant''s father was seriously ill and he required money for which a cheque of Rs. 75,000/- was presented to the opposite party No. 2. The opposite party No. 2 sent the cheque for clearance to State Bank of India, opposite party No. 1. The opposite party No. 1 did not encash the cheque and returned the same with the remarks that if the amount was continuously withdrawn through the withdrawal slips, then the amount cannot be withdrawn through cheque without the prior permission of Chief Manager, State Bank of India. As no rule has been placed before us we cannot say that those rules are there. Moreover, the rules have been framed by the Bank for their internal working. They are not binding on customers as they are not printed on the pass book which is issued by the Bank from time-to-time. Thus we find that the plea taken by the State Bank of India, opposite party No. 1 that the cheque could not be encashed amounted to deficiency in service on behalf of the State Bank of India. The State Bank of India cannot escape its liability by paying the amount and the compensation granted by the learned District Forum. The order of the learned District Forum is perfectly right and requires no interference. The appeal is thus liable to be dismissed. However, the learned District Forum in its order has required to pay Rs. 75,000/-. From this order it is not clear whether the amount of Rs. 75,000/- has been ordered to be paid from the bank account held by the complainant jointly with his father or otherwise. It is made clear that the Bank will honour the cheque of Rs. 75,000/- which was produced before it from the date on which it was tendered for payment to the Bank along with interest and damages, etc. as awarded by the learned District Forum. ORDER The appeal is dismissed and the judgment and order of the learned District Forum are confirmed. There will be no order as to the costs. Let compliance of the order of the learned District Forum be made within two months of the date of this order. Let copy as per rules be made available to the parties. Appeal dismissed.