The Karnataka State Consumer Disputes Redressal Commission has upheld the district commission’s order and said Manager of Padavu Seva Sahakari Sangha’s branch in Yeyyadi in the city cannot withhold release of maturity value of two fixed deposits of the deceased to his nominee.
Yogish, 29, a resident of Koppalakadu in Yeyyadi in Mangaluru, filed a complaint with the Dakshina Kannada District Consumer Disputes Redressal Forum, Mangaluru, following refusal of the branch manager of the sangha to release the proceeds of fixed deposit receipts (FDR) for ₹48,789 and for ₹40,131 held by his father Ramesh Acharya, following the latter’ death on November 24, 2015.
Mr. Yogish contended he was the nominee for the two FDRs and the cooperative society had failed in releasing the FDR proceeds to him.
The society contended before the district forum that it appointed, in May 2000, Mr. Ramesh as the appraiser, who issued certificates for gold ornaments pledged by society’s customers or intending loan applicants.
As the society found two certificates issued by Mr. Ramesh in July 2015 were not genuine and that the legal heirs of the deceased had assured of settling the issue, it had withheld release of the FDR proceeds.
The district forum in January 2018 directed the society to release the FDR proceeds to Mr. Yogish. The society filed an appeal before the State Commission.
Upholding the district commission’s order, the State Commission said there is dispute over the death of Mr. Ramesh and over Mr. Yogish being the nominee for the two FDRs. Unless there are specific court orders, the society cannot contend that Mr. Yogish is not the sole legal heir of Mr. Ramesh. Moreover, none of legal heirs of Mr. Ramesh have opposed to release of FDR proceeds to Mr. Yogish.
“In this regard OP (society) at the most with abundant caution may insist to execute an indemnity bond but it cannot withhold the maturity value payable to nominee,” the State Commission noted in its order dated August 2.
