Failure To Credit Pension For 7 Years, Sangrur District Commission Holds SBI Liable For Unfair Trade Practices And Deficiency In Services

The District Consumer Disputes Redressal Commission, Sangrur (Punjab) bench comprising of Jot Naranjan Singh Gill (President) and Sarita Garg (Member) held State Bank of India liable for deficiency in services and unfair trade practices for not crediting the pension in the Complainant's account for seven years. The bench directed it to pay Rs. 15,000/- as compensation and Rs. 10,000/- for legal costs to the Complainant.

Brief Facts:

Mrs Balvir Kaur (“Complainant”) was a family pensioner of the Government of Punjab, receiving family pension and other dues following the death of her husband, Sh. Labh Singh, who was employed in the office of the Executive Engineer, Water Supply and Sanitation Division, Sangrur. The family pension was being paid by the State Bank of India (“SBI”) in her savings bank account. The Accountant General (AG) Punjab sanctioned a pension and death gratuity in her favour, along with her son and minor daughters. Despite the completion of formalities for payment, SBI failed to forward the sanction letter to the zonal branch of SBI, thereby, making credit of the pension in her bank account impossible. The Complainant made several communications with SBI but didn't receive a satisfactory reply from it. Feeling aggrieved, the Complainant filed a consumer complaint against SBI in the District Consumer Disputes Redressal Commission, Sangrur, Punjab (“District Commission”).

In response, SBI raised preliminary objections, asserting that the Complainant didn't approach the District Commission with clean hands and suppressed material facts in the complaint. It argued that there was no basis for the complaint, and it was not maintainable, false, frivolous, and vexatious. It further claimed that the Complainant failed to address the lapse of the pension orders issued and did not seek revalidation or inform the bank about the non-receipt of pension payments. It further contended that, upon discovering the non-payment, it traced and revalidated the pension order and credited the amount to the Complainant's account and other stakeholders. Additionally, it argued that the Complainant never visited its office for payment of the pension.

Observations by the Commission:

The District Commission held that it was evident from the evidence that SBI delayed the payment for over seven years without offering any satisfactory explanation to the Complainant, despite her persistent efforts to obtain her rightful dues. The District Commission held that it was only after the Complainant filed a consumer complaint, SBI took action. Therefore, the District Commission held SBI liable of deficiency in service and unfair trade practices.

Regarding the entitlement to interest, the District Commission held that the Complainant should be awarded interest at the rate of 7% per annum on the amount of Rs. 3,49,325/- from 1.1.2014 till 1.2.2021. Additionally, recognizing the mental tension, agony, and harassment endured by the Complainant, the District Commission directed the SBI to pay her Rs. 15,000/- as compensation to her. Furthermore, SBI was directed to reimburse the Complainant Rs. 10,000/- towards litigation expenses incurred by her.

Case Title: Balvir Kaur vs State Bank of India and Anr.

Case No.: Complaint No. 492

Advocate for the Complainant: Shri Amit Goyal

Advocate for the Respondent: Shri Ashi Goyal

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