Janardhan Mohapatra vs Branch Manager, Bank of Baroda

THIS miscellaneous case arises out of this Commission''s order dtd. 14.7.94 in CD. Appeal No. 335 of 1992. The petitioners in this case (1) Janardan Mohapatra and (2) Jatindra Mohapatra, who were the appellants before this Commission in the appeal afore-mehtioned having alleged that the Opp. Party, Bank of Baroda represented through the Branch Manager of its Bapuji Nagar Branch, Bhubaneswar which was respondent in the above appeal has, in violation of this Commission''s order 14.7.1994, not released interest on the matured amount of term deposit for the period from 11.5.91 to 9.12.92.

THE facts of the case are that the above petitioners had a joint term deposit with the Respondent-Bank, it was not released on maturity. THE petitioners, therefore, approached the Bhubaneswar District Forum. THE Forum ordered that 50% of the matured amount being the share of Janardan Mohapatra be withheld and the rest 50% being the share of Jatindra Mohapatra, the son of Janardan Mohapatra, be released. Against that order of the Forum, the petitioners carried an appeal before this Commission. After hearing the petitionerappellants this Commission in an exparte order held that the Bank should release the amount payable to the appellant No. 1, Janardan Mohapatra with simple interest @ 10% per annum till the date of payment. THE bank, as alleged, has released the deposit to appellant No. 1 but has refused to pay the interest accrued from 11.5.91 when the term deposit matured till 9.12.92. That is how the Bank has not complied with the order of this Commission & the cause of action for this miscellaneous case has arisen. The respondent-bank did not make appearance even after receipt of notice sent by this Commission. Therefore, on 2.9.94 another notice was issued to the Bank to show cause as to why coercive steps as available under law, shall not be taken to realise the money. The date of hearing was fixed to 23.9.94. On 23.9.94 one D. Mohapatra appeared before this Commission with an authorisation from the Senior Branch Manager of Bank of Baroda the respondent. The said D. Mohapatra prayed for time to file a reply to the petition filed by the appellants and stated that the copy of the petition filed by the said appellants though received and acknowledged by the Bank has been misplaced & that he undertakes to collect a xerox copy of the petition from the petitioner-appellants. On his prayer the case was adjourned to today (6.10.94) for final hearing with direction that counter, if any be filed in the meantime with copy to the petitioners and that no further time would be granted.

In spite of an opportunity given to the respondent to state his case, he did not make appearance today. As already stated he did not make appearance in the appeal too for which the appeal was heard ex~parte. Since the respondent has neither appeared nor has filed any counter in pursuance of the show cause notice we hold that the respondent bank has nothing to say in its defence and accordingly we proceed to decide the case ex-parte.

THE Appellants who have invested their money in the Bank are lawfully entitled to get interest on the deposit. On the other hand the Bank which earns profit by way of interest obtained from its borrowers has no right to enrich itself at the cost of the investors in this case the Appellants. We are of the considered opinion that the Bank has not only unlawfully withheld the payment of interest but also has intentionally failed to comply with the direction of this Commission. We are accordingly satisfied that this is a fit case for imposition of penalty u/Sec. 27 of the Act. We thus impose a fine of Rs. 2000/- on the respondent in CD. Appeal No. 335/92 namely, Bank of Baroda, Bapuji Nagar, Bhubaneswar, who is the opp .party in this case, and direct that the fine be paid within 15 days from the date of receipt of this order. We further direct that the interest payable on the term deposit made by the petitioner and accrued with effect from 11.5.91 to 9.12.92 and payable as on 31.7.94 be compounded and paid to the petitioners with interest @ 18% till it is paid. This compounded interest shall be paid by the Bank within 15 days from the date of receipt of .this order.

MISC. Case is disposed of with the afore-said direction. Application disposed of.