BENGALURU: The Consumer Commission directed Canara Bank to refund Rs 10.19 lakh along with 10 per cent interest per annum, in addition to payment of compensation of Rs 1 lakh together with litigation expenses of Rs 10,000, to a businesswoman. The bank froze the joint savings account she was having with her spouse, without prior intimation, causing her serious financial inconvenience.
Partly allowing the complaint filed by Pushpalatha, resident of Jayanagar 4th T Block, the Bangalore Urban Second Additional District Consumer Disputes Redressal Commission passed the order, as the bank did not allow her to withdraw money from the frozen account though it has accepted deposits from her.
"In view of the freezing of the joint account, the complainant was unable to pay salary and provident fund to her employees. She had to borrow loans from private financiers with 2 per cent interest. Had the bank informed them about the freezing of the joint account immediately, she would not have transferred Rs 10 lakh through RTGS to the joint account from her firm's account. This is a clear case of deficiency of service on the part of the bank which is responsible for loss and mental agony suffered by the complainant", the Commission comprising president M Shobha, Members B Devaraju and V Anuradha, said.
The complainant had registered her mobile number with the bank which charged for SMS alerts. For the issues over payment of service tax by her husband, who wound up his firm due to loss, the bank froze the joint account on July 15, 2019, after receiving communication from the Service Tax Department but it has not apprised the complainant. However, the bank received Rs 10 lakh transferred by her through RTGS from her firm's account to a frozen account. She only came to know the blocking of accounts when she was not permitted to transfer money online.
Contending that the bank has no authority to freeze the joint account for the financial issues of her husband, as she running a business separately, she pleaded it amounts to deficiency of service. The counsel of the bank appeared after the notice was issued but not filed the bank's version.