Bank told to pay Rs15K relief for unfair trade practice

Tribune News Service

Chandigarh, February 22

The State Consumer Disputes Redressal Commission has directed the State Bank of India (SBI) to pay Rs 15,000 as compensation to a local resident for illegally debiting Rs 87,000 from his saving bank account.

Sunil Kumar Wadhwa, a resident of Sector 63, Chandigarh, filed an appeal against the order of the District Consumer Disputes Redressal Forum, vide which, his complaint was dismissed.

Against the loan of Rs 5 lakh availed of by Bhagwant Bhushan Walia, the complainant stood as a guarantor. As there was irregularity in the loan amount to the tune of Rs 2,33,336, the bank issued notice to the borrower with its copy to the complainant, whereby the borrower was requested to regularise the account within seven days from the receipt of the letter. However, while exercising its special right of set off, the bank illegally debited Rs 87,711 from the saving bank account which was a joint account in the name of Anil Kumar Wadhwa, Rajesh Kumar Wadhwa and Sunil Kumar Wadhwa on account of closure of the said loan without any intimation to him.

On the complaint, the Banking Ombudsman held a meeting between the banker and the complainant. In the meeting, the SBI agreed to refund Rs 87,711 as right to set off was executed wrongly and the complainant to ensure payment of Rs 87,711 by cooperating with the bank.

The commission observed that the bank misused its right to set off without fulfilling its condition that right to set off is exercised where name and style of account is of same name and style and if the account of a person shows debit balance, such dues cannot be recovered from his joint account with others. The bank exercising its right illegally debited an amount of Rs 87,711 from the joint account.

Thus, the aforesaid act of the bank amounted to deficiency in rendering service as also indulgence into unfair trade practice. The complainant certainly has suffered physical harassment and mental agony.

“Despite clear cut deficiency in rendering service and unfair trade practice on the part of the bank, the forum wrongly dismissed the complaint. The order passed by the forum being illegal and arbitrary is liable to be set aside,” observed the commission and directed the bank to pay Rs 15,000 as compensation for mental agony and physical harassment and Rs 5,000 as costs of litigation to the complainant.

To cough up Rs 5,000 as litigation cost

• The commission observed that the bank misused its right to set off without fulfilling its condition that right to set off is exercised where name and style of account is of same name and style and if the account of a person shows debit balance, such dues cannot be recovered from his joint account with others.
• It directed the bank to pay Rs 15,000 as compensation for mental agony and physical harassment and Rs 5,000 as costs of litigation to the complainant.