Banking — Date of maturity of fixed deposit lapsed — Yet payment of maturity value should be along with interest @ 6% p.a.

(Tausif Ali v. State of
Jharkhand & Ors., AIR 2010 Jharkhand 108)

The savings made from the
daily earnings of the petitioner’s father, deposits of amount were made by the
petitioner’s father in the name of the petitioner, with the bank. As per the
terms of the deposit, the period of fixed deposits was for one year and on the
date of maturity, the amount of the fixed deposits together with interest
accrued, was to be paid to the nominee. Upon maturity of the fixed deposits,
when the demand for payment of the amounts was made, the manager of the
respondent bank refused to make payment. The petitioner thereafter approached
the Registrar, Co-operative Societies, since the bank was registered under the
Co-operative Societies Act, but the Registrar also did not entertain the
petitioner’s claim.

The Court observed that the
date of maturity of the fixed deposits had long lapsed, yet the payment of the
maturity value had not been made by the respondent bank to the petitioner.

The respondent bank was
directed by the Court to pay the maturity value of the fixed deposit to the
petitioner along with interest calculated at the rate of 6% per annum on the
maturity value, within four weeks from the date of receipt of a copy of the
Court order.