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Judgment
THIS is an appeal preferred by the opposite party in CD. No. 134/1998 on the file of Visakhapatnam District Forum questioning the order of that District Forum dated 15.6.1999 allowing the complaint preferred by the respondent in this appeal, i.e. Mr. Donald Charles, and directing the appellant to pay interest on Rs. 21,540/- @ 18% per annum for 65 days to the complainant and also costs of Rs. 1,000/-.
PURSUANT to our notice the respondent/ complainant, Mr. Donald Charles, is present before us. We heard him. He has placed before us a copy of the counter. We find that this appeal has to be allowed for more than one reason. The facts are in a brief compass. The respondent and his uncle, Mr. Samuel Charles, together were having joint account S.D. No. 475 with the appellant Bank. Mr. Samuel Charles received an account payee Cheque No. 171868 drawn in his favour for Rs. 21,540/- on Bombay Branch of Catholic Syrian Bank and deposited it with the appellant''s Bank for collection on 10.12.1997. The respondent''s grievance was that the amount covered by the cheque was not credited to the joint account within a reasonable time. He approached the appellant Bank enquiring about the delay and finding that there was no proper response from them he closed that account on 16.1.1998 by withdrawing the balance to their credit of Rs. 10,253.45 ps. Subsequently the appellant informed Mr. Samuel Charles on 2.3.1998 that the Bank received a demand draft bearing No. 214866 dated 2.3.1998 from the Federal Bank, Visakhapatnam stating that the Federal Bank received that amount by way of demand draft bearing No. 033023 from the Catholic Syrian Bank for Rs. 21,378/-, i.e. Rs. 162/- less towards commission by the Federal Bank. In the counter of the appellant filed before the District Forum it was stated as follows : "On 10.12.1997 Sri Samuel Charles depo- sited the Ch. No. 171868 for Rs. 21,540/- for collection. It was an account payee cheque drawn in favour of Samuel Charles on the Catholic Syrian Bank, Mumbai Branch and it was transmitted to that Bank on 11.12.1997 for payment of any branch of any Bank at Visakhapatnam by D.D. The said cheque has shutteled between the Mumbai Branch of the Chatholic Syrian Bank in Vijayawada Branch and Rajahmundry Branch on account of negligence of the Mumbai Branch of the Bank in not forwarding the D.D. as required by the opposite party on any Branch of any Bank at Visakhapatnam. It was only after prolonged correspondence that the Rajahmundry Branch of the Catholic Syrian Bank remitted an amount of Ch. No. 171868 less Rs. 100/- towards commission under D.D. No. 033023 dated 18.2.1998 drawn on Federal Bank, Visakhapatnam."
Under the circumstances we do not see how the appellant can be blamed for the delay in realisation of the amount on the account payee cheque in favour of Mr. Samuel Charles for Rs. 21,540/-. The delay was really of the Mumbai Branch of Catholic Syrian Bank. We find that the District Forum grossly erred in directing the appellant to pay interest for 65 days @ 18% per annum on Rs. 21,540/- and also costs of Rs. 1,000/- : We are satisfied that the appellant Bank cannot be faulted for the delay. The account S.D. 475 was closed by the respondent on 16.1.1998 itself. In spite of that, Mr. Samuel Charles was informed by the appellant on 2.3.1998 immediately on receipt of demand draft bearing No. 214866 dated 2.3.1998 from the Federal Bank, Visakhapatnam. Thus ultimately the Catholic Syrian Bank sent the amount covered by Cheque No. 171868 dated 10.12.1997 on 18.2.1998 through Federal Bank, Visakhapatnam. In the result, we set aside the order of the District Forum and dismiss the complaint. The appeal is accordingly allowed. No costs. Appeal allowed.