2020 (9) TMI 548

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....s Court in W.P. No. 22979 of 2014, dated 13-2-2015, at the rate of 9% up till the date of transfer of funds to the Trust Account on 13-3-2015 by remitting a sum of Rs. 10,16,462/- in the petitioner Trust Account in the third respondent 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 Rs. 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 dep....

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....rsuant to the said order, the second respondent Bank had transferred the fund lying in the FDs into the loan account of the petitioner lying with the Bank of India, Anna Nagar, Chennai-third respondent on 13-3-2015. Admittedly, the 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 als....

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....e Deposits in the following manner : "I. Payment of Interest on overdue deposits : As advised by RBI and as per our bank's Policy on Bank Deposits', when a request is made by the customer for payment of overdue deposit without 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 ba....

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....t. The maturity amount was withheld by the second respondent Bank only in the above backdrop and facts and it was not deliberate. 8. Heard Mr. C. Mohan for M/s. King and Patridge, learned Counsel appearing for the Reserve Bank of India - the first 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 t....