Post-maturity fixed deposit interest is limited to overdue-deposit rates when renewal is not sought and higher interest is claimed later.
A depositor who does not seek renewal of a matured fixed deposit is entitled only to the savings bank rate or other applicable overdue-deposit interest under the governing banking policy and RBI circular, from maturity until payment. A later claim for interest at the original fixed-deposit rate for the post-maturity period was rejected where the matured amount had not been renewed and the applicable overdue interest had already been paid. The text also notes that internal trustee disputes and the absence of an earlier claim for higher interest supported the refusal of further monetary relief.
Issues: Whether the petitioner Trust was entitled to claim interest at 9% per annum for the period after maturity of the fixed deposits, after having received interest at the savings bank rate on the overdue deposit.
Analysis: The claim was examined against the bank's policy and the RBI circular governing overdue deposits, under which the depositor, in the absence of renewal of the fixed deposits, was entitled only to interest at the savings bank rate from the date of maturity till payment. The petitioner had sought transfer of the matured amount but had not sought renewal of the deposits or claimed such higher interest in the earlier writ petition. The withholding of the amount was also explained by disputes among the trustees following the founder trustee's death, and the bank had already paid the applicable overdue interest.
Conclusion: The petitioner was not entitled to interest at 9% per annum for the post-maturity period and the claim was rejected.
Final Conclusion: The writ petition failed because no further monetary relief could be granted beyond the interest already paid on the overdue deposits.
Ratio Decidendi: A depositor who does not seek renewal of a matured fixed deposit is entitled only to the interest applicable to overdue deposits under the governing banking policy, and cannot later claim a higher contractual rate for the post-maturity period on the same cause of action.
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