Cpa: For Payments Not Leading To Allotment

A decision on this point is available via an order dated January 3, 1996 of the Haryana State Commission (HSC). In this case, Central Bank of India (CBI) approached the HSC in appeal against the order of the Panipat District Forum where the bank along with UTI had been told to refund a person Rs 10,000 along with interest at the rate of 18 per cent annum.

The Facts: UTI sought to allot units under the UTI-Mastergain -92 scheme, which was open till July 31, 1992. A person submitted his application for units under this scheme on May 18, 1992 and deposited Rs 10,000 with the CBI branch at Panipat. When he did not receive the requisite units, he made enquiries and was informed on September 22, 1994 that his application could not be traced in their record.

The applicant approached the Panipat District Forum for the refund of the amount deposited by him along with interest. But the bank said that he had failed to submit the application along with the amount. Hence, the bank could not be held responsible for the non-receipt of the units. UTI simply pleaded ignorance regarding the persons payment and application.

The district forum concluded that there had been a deficiency in service on part of the bank in not forwarding the application along with the amount which had been deposited by the person. The district forum further held that both the bank and UTI were jointly liable for the refund of Rs 10,000 as well as interest at the rate of 18 per cent per annum from May 18, 1992. The district forum also awarded the person Rs 2,000 as damages and for the cost of proceedings.

Appeal: The bank appealed to the HSC and contended that once the amount has been credited to UTIs account, it was for them to send the necessary units to the person. In short, the bank contended that there was no deficiency in their service as they were only a collecting agent for UTI. While dismissing the appeal, the HSC held that the bank too was jointly liable along with UTI and if the bank could receive the amount, it could certainly have it refunded to the person with interest and it was between the bank and UTI to adjust the reimbursement of the interest amount.

Where to complain: Consumers will have to file a complaint in the consumer forum if despite depositing their cheque with a bank for the issue of shares/units these are not alloted to him. For claims of compensation below Rs 5 lakh, the complaint will have to be filed in the district forum. The relevant address can be obtained from either of the two addresses:

President, National Consumer Disputes Redressal Commission, A Wing, 5th floor, Janpath Bhawan, New Delhi 100 001.

Secretary, Minsitry of Consumer Affairs, Government of India, Room number 366, Krishi Bhawan, New Delhi 110 001.