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NEW DELHI: A district consumer commission in
Kerala has directed Bank of India to pay Rs 10,000 compensation and Rs 5,000 litigation costs to an elderly man after finding deficiency in service and unfair trade practice in the delayed release of his deceased wife's savings. The order was passed on August 31, 2026.
Why did the man approach the consumer commission?According to the commission order, the complainant's wife died on September 2, 2022, leaving Rs 62,541 in her savings account with Bank of India's Kuruppampady branch. Their son, who was the nominee, had also died.
The complainant approached the bank seeking release of the money and produced the relationship certificate and death certificates. The bank insisted on a legal-heirs certificate, which he obtained on August 5, 2023. He alleged that payment was still deferred on the ground that legal opinion was required.
He then sent a representation to the bank's zonal office on August 18, 2023. The branch asked him to complete further documentation on August 25 and the amount was eventually credited on September 4, 2023.
The complainant alleged that he had to make repeated visits and suffered financial hardship and mental agony.
The bank denied any delay or deficiency and said the complainant had initially submitted an unsigned application without the required legal-heirship certificate or Certificate of Administration. B. Binu and members V. Ramachandran and Sreevidhia T.N. said the bank was justified in verifying the lawful claimant because the nominee had died.
"At the same time, legitimate verification cannot become a justification for an opaque, undocumented or unnecessarily burdensome procedure. The commission also noted that the bank's main defence was that the complainant had submitted an unsigned application in May 2023. "A pleading is not evidence merely because it contains a factual assertion. The commission also considered the complainant's age and his inability to understand English.
It partly allowed the complaint and directed the bank to pay Rs 10,000 compensation and Rs 5,000 towards litigation costs.
