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Judgment
Arindam Sinha, J
Mr. Chhinchani, learned advocate appears on behalf of petitioners and with reference to record of submission in order dated 14th December, 2021, demonstrates that his clients, husband and wife, had in their names two short term deposit receipts (STDRs), respectively dated 4th February, 2016 and 20th February, 2016 of Rs.5,00,000/- each. The first STDR had maturity value of Rs.5,20,455/- due on 3rd August, 2016. The second STDR had same maturity amount, due on 19th August, 2016. He submits, on maturity several letters were written to opposite party bank but there was no response. Ultimately by communication dated 7th November, 2019 the bank said that as per instruction received from Regional Office, Rayagada to their letter dated 5th November, 2019, the STDRs amount had been adjusted to their loan accounts under right to set off clause.
On 14th December, 2021, inter alia, following was recorded in the order.
“Mr. Rao, learned senior advocate appears on behalf of opposite party-Bank and submits, documents to demonstrate the set off clause and authority of the bank to appropriate the proceeds will be furnished on adjourned date.”
Today Mr. Rao draws attention to paragraph-3 in the counter statement, from where relied upon passage is extracted and reproduced below.
“TD A/C No.84024080803 and TD A/C 84024267600 were opened on 04.02.2016 and 20.02.2016 respectively for Rs.500000.00 each at Kujendri Branch where the petitioner was the Branch Manager and he continued there as such till 17.01.2017 (date of receipt the suspension order). The TD accounts were opened in the single name of the Petitioner only and not as joint account with his wife Y Annapurna. The copy of the statement of account are enclosed herewith as Annexure-A and B, The copy of the transaction inquiry enclosed herewith as Annexure-C and D.and account details are enclosed herewith as Annexure-E and F. In the CBS system TD A/C No.84024080803 and TD A/C 84024267600, all of which reflects the name of the Petitioner only as account holder. At the request of the Petitioner the “I-Ds were entered to open the account in his name and were authorized/authenticated by him as Branch Manager. The TDs were written and signed by him. From the date of issue the TDs were kept by him as the depositor and are still with him. OD A/C No 12291000598 is the account of the Petitioner where the salary and allowances and all other receivable amount from the Bank is deposited, which constitute the income of the Petitioner. So, the TDs were raised from the salary income of the Petitioner only and not from income/earning of his wife Smt. Y Annapurna.”
He submits, the original receipts are with his client. On them, name of the wife has been inserted by fabrication caused by the husband, who was Branch Manager.
It is clear that the bank has dealt with the fixed deposits maturity value, respectively due on 3rd August, 2016 and 19th August, 2016 at aggregate Rs.10,40,910/-. The bank, by its communication dated 7th November, 2019 addressed Sri Y. Ganapati and others. made clear its contention that the amounts stood adjusted to loan accounts under right to set off clause. No document has been disclosed by the bank to show that the two STDRs were kept as security for repayment of loans taken by either the husband or both husband and wife. There has been no disclosure to show that the adjustment was made in August 2016 at the outstanding on the dates against loan account(s). As late as on 7th November, 2019, the bank did not say anything about interpolation in the STDRs. Instead argumentative counter has been filed. The bank being in possession of the original STDRs has not explained its omission to have taken action, including before the criminal Court or by disciplinary proceeding launched against the husband. Nothing has been pointed out to Court.
The proper officer of Regional Office Rayagada Branch, Utkal Grameen Bank duly authorized in that behalf, is directed to be present in Court on adjourned date. The officer is to carry all relevant papers including the document conferring right to set off the maturity values of the STDRs and consequently the primary documents to show the set off was effected on the dates of maturity, on the authority granted by the borrower to use the proceeds as the security for repayment.
List on 21st March, 2022 marked at 2.00 p.m.
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