Axis Bank to pay Rs 6.1L for not paying maturity amount on FDR

Oct 17 2012, 19:28 IST
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SummaryAxis Bank has been asked by consumer commission to refund one of its customers.

Axis Bank has been asked by the apex consumer commission to refund one of its customers Rs six lakh deposited for a fixed term with it, following its failure to pay the requisite sum after maturity of the Fixed Deposit Receipt.

The National Consumer Disputes Redressal Commission (NCDRC) also imposed a fine of Rs 10,000 on Axis Bank for not complying with the orders of the subordinate fora which had directed the bank earlier to refund the amount.

The NCDRC order came on a plea by the Axis Bank against the two concurrent orders of the district consumer forum and the state consumer commission to refund the money.

"It is apparent from the record that the only intention of the petitioner (Axis Bank) is to delay and not comply with the orders passed by the district forum as well as that of the state commission and to harass the respondent.

"Under these circumstances, present revision petition being without any legal basis is hereby dismissed with costs of Rs 10,000. Petitioner is directed to deposit the cost in the name of Consumer Legal Aid Account," the bench presided by Justice V B Gupta said while dismissing the Axis Bank's plea.

As no one had appeared on behalf of Axis Bank in the state commission, it had dismissed the Bank's appeal against the district forum's verdict directing it to refund Rs six lakhs invested in FDR by complainant Jagdish Chander Kudesia, a Delhi resident.

The district forum's order had come on Kudesia's plea that the bank had not paid the maturity amount after the FDR had matured in May 2005.

The NCDRC also said that Axis Bank had mislead it into granting an interim stay against the state commission's order by seeking time to submit an interim order of the state commission, which the bank never submitted.

"In spite of undertaking given by counsel for petitioner to file the relevant interim order of the state commission within a week, petitioner has not complied with above order.

It has been enjoying the ex-parte stay obtained from this commission by misleading it," the NCDRC said.

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