TATANAGAR COLD STORAGE COMPANY PVT. LTD. vs UCO BANK

THIS application is filed on behalf of the complainants/applicants for modification/clarification of the judgment and order dated 19.9.2002 passed by this Commission. Brief facts of the case are : Two demand drafts were purchased by complainants - Tatanagar Cold Storage Company from the Jamshedpur Branch of UCO Bank for Rs. 50,000/- each. These drafts were presented to the drawee Bank at Calcutta for payment.

THE opposite party Bank had not honoured these drafts for two reasons : (i) signatures not in record and (ii) signatures not tallied.

The complainant''s case is that the Bank had taken unduly long time and raised objections for cancellation of endorsement and of crossing by the Calcutta Branch. This is the internal control of the Bank and it is incumbent on the Bank to honour the draft on presentation. The complainant aggrieved by gross deficiency in service on the part of the Bank claiming for : (a) sum of Rs. 50 lacs as pleaded in paragraphs 28 and 29; (b) a sum of Rs. 1 lakh being the value of the demand drafts; (c) such other and further order(s) as this Commission may deem fit and proper. After hearing both the parties the Commission decided in favour of complainant, extract of which is given below :

"We think that the complainant has established a case for deficiency in service on the part of the Bank and the ends of justice would be met, if the complainant is paid interest on this amount from the date of the purchase of the demand draft till the date of payment, i.e., from 20.4.1995 to 3.9.1997 and 24.4.1995 to 3.9.1997. The complainant will also be entitled to costs assessed at Rs. 2,000/-. This complaint is disposed of in the above terms."

THE complainant now filed this application for clarification of the rate of interest which has not been mentioned in the above order. The learned Counsel for the Bank has stated that interest has been paid alongwith draft amount from 1995-97 to the complainant. It is evident that there is a mistake apparent on face of record i.e., in the order where specific rate of interest is missing. The Bank has stated that 4.5% interest is the saving bank rate and fixed deposit rate is 12% at that relevant time. After hearing both the parties we find that 4.5% interest that has been paid is inadequate and we increase it to 12% which was the rate of interest at that relevant time during 1995-97.

WE modify the order of our Commission dated 19.9.2002 by directing the Bank to pay interest at the rate of 12% p.a. for the period 1995-97. If any interest has already been paid that could be adjusted accordingly.