TMI Blog2020 (9) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... rity till the date of payment. The said interest is paid by the second respondent Bank only as per the Circular of the RBI binding on them. The maturity value of the deposit as on 29-1-2013 was ₹ 1,06,65,755/-. According to the petitioner, the interest payable for 773 days from 29-1-2013 to 13-3-2015 was ₹ 18,29,630/-, but what was given was only ₹ 8,13,168 and thus after deducting TDS, they suffered loss of interest to the tune of ₹ 10,16,462/-. This Court is of the view that the petitioner is not entitled to the said amount claimed from the second respondent Bank for various reasons : (i) as per the Circular No. 415, dated 18-9-2012 referred to above, for the overdue deposits, the depositor is entitled only for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank, by considering the representation submitted by the petitioner Trust dated 22-9-2015, within a time frame. 3. The petitioner is a Trust founded by one Mr. PMM. Nandagopal and after his demise, the Vice-Chairman had become the Chairman of the Trust. The Founder Chairman had deposited a sum of ₹ 1 Crore in five numbers of Fixed Deposits (FDs) with the second respondent - Karur Vysya Bank by transferring the money from the Trust Account in Punjab National Bank, Tirupattur. The above said amount was deposited in the second respondent Bank to meet the expenditure for repayment of loan instalments availed by the Trust for establishing educational institutions. The said FDs were made on 4-4-2012 for a period of 300 days, which matur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... second respondent had transferred the fund invested in the FDs to the Trust account with rate of interest at 9% p.a., as agreed till the date of maturity, i.e., till 29-1-2013 and for the remaining period from 30-1-2013 to 13-3-2015, the rate of interest was calculated at 4% p.a. and thus, the money transferred with rate of interest for the said period of 773 days. 5. The case of the petitioner is that after the date of maturity of the FDs, the Bank had retained the amounts with them. Though the petitioner also had made representation for the transfer of the loan account, after the maturity, it was not considered by the second respondent Bank and the money was not transferred, as requested, and therefore, they were constrained to file t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithout renewal, the proceeds are eligible for savings bank rate of interest from the date of original maturity to the date of payment (simple interest). Accordingly, Branches shall first request customers to renew the overdue deposits as per norms and avail interest from the maturity date. In case the customers do not opt to renew the deposit, then interest shall be paid from the date of maturity till the date of payment (payment date excluded) at SB rate (presently 4%) on half-yearly compounding basis. ..... The policy is placed in our website. .... 7. The second respondent also stated that as the original Founder Chairman and Trustee of the Petitioner Trust died on 24-6-2012, the Vice-Chairman was appointed as the Chairman of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t respondent and Mr. A.V. Radhskrishnan, learned counsel appearing for the Karur Vysya Bank - the second respondent and perused the materials placed before this Court. 9. Admittedly, when orders were passed by this Court in W.P. No.22979 of 2014 on 13-2-2015 seeking a writ of Mandamus directing the second respondent Bank to transfer the funds to the loan account with the third respondent Bank, the petitioner had not sought for payment of interest for the overdue deposit. It is also pertinent to mention that the same set of counsels appeared for both, the petitioner and the Bank in the earlier round of litigation. In fact, the earlier order was silent about even the payment of 4% interest from the date of maturity till the date of payment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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