STANDARD CHARTERED BANK LTD. versus DR. B.N. RAMAN

Citation: [2006] SUPP. 3 S.C.R. 558 · Decided: 14-07-2006 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Case Partly allowed

Judgment (excerpt)

-. 
A 
STANDARD CHARTERED BANK LTD. 
v. 
DR. B.N. RAMAN 
JULY 14, 2006 
B 
[ARIJIT PASAYAT AND S.H. KAPADIA, JJ.] 
Consumer Protection Act, 1986-Section 2(1)(d), (g) and (o)-Business 
transaction between Bank and Customer, a non-resident lndian-Deposit by 
c Customer in Foreign Currency Non-Resident Account-Reinvestment of the 
matured amount from time to time-On enquiry about status of the amount 
after 12 years of initial deposit, told by Bank that the amount prematurely 
withdrawn just after 3 months of initial deposit-Complaint for deficiency in 
service-Claim for decree of the final matured amount after conversion of 
foreign currency and interest@ 18% p.a. till realization-State Commission 
D decreeing the claim-Decree upheld by National Commission-On appeal, 
held: Factual findings of the Courts below are upheld-However as the rate 
of interest@ 18% was on the higher side and since the courts below have 
not examined the question regarding selection of appropriate date for ftxing 
the rate of exchange, matter remitted to State Commission for reconsideration 
E 
on these points. 
Banking-Customers of Bank-Whether consumers-Held: They are 
consumers with the meaning of Section 2(/)(d)(ii) of Consumer Protection 
Act-Statutory bodies are within the purview of the Act as their functions 
come under the term 'service '---Consumer Protection Act, 1986-sections 
F 2(/)(d)(ii) and 2(/)(o). 
Words and Phrases-'Banking'-Meaning of 
Respondent-Consumer, a non-resident Indian had admittedly deposited 
US Dollars in Foreign Currency Non-Resident (FCNR) Account in August 
G 1979 with appellant-Bank. The same was to mature in November 1984. In 
June 1984 the consumer got intimation that he should reinvest the entire 
:, 
amount on maturity for a further period of 6 years at 13% p.a. interest. The 
said reinvestment was to mature in November 1990. In 1986, on visit to India, 
when the consumer visited the office of the Bank he was assured that 
everything was in order. In September 1990, he again requested the Bank to 
H 
558 
STANDARD CHARTERED BANK LTD. v. DR. 13.N. RAMAN 
559 
reinvest the entire amount on maturity in the FCNR account for a further A 
period of3 years. Consumer when visited India in 1992 enquired about the 
status of his deposits, which was not replied to. On complaint, he received a. 
letter from Bank, stating that there was no outstanding amount in the account 
as the same was prematurely withdrawn in November 1979. 
Consumer filed a complaint before State Commission stating therein B 
that he could not have withdrawn the amount, as he was not in India on the 
relevant date and the original deposit memo was retained by the Bank in safe 
custody. He claimed money decree with interest@ 18% p.a. till realization. 
State Commission decreed the claim holding that the facts stated by the 
consumer were proved and there was no evidence to show that the amount C 
deposited was prematurely withdrawn and also to show that the records were 
destroyed on completion of eight years; that the deposit was reviewed from 
time to time, and hence was within limitation. The appeal of the Bank to 
National Commission was dismissed confirming the order of State 
Commission. Hence the present appeal. 
Partly allowing the appeal and remitting the inatter to the State 
Commission, the Court 
D 
HELD: I.I. The Court is in agreement with the factual findings of the 
impugned judgment. However, the claim of the respondent for money decree 
with interest at the rate of 18% p.a. till realization appears to be on the higher E 
side and inflative. The rate of exchange, which is indicative of price and which 
constantly varies from time to time, has not been examined. [564-D-F[ 
1.2. In an action to recover an amount payable in a foreign currency, 
five dates compete for selection by the court as the proper date for fixing the 
rate of exchange at which the foreign currency amount has to be converted 
into the currency of the country in which the action has been commenced and 
decided. These dates are - the date on which the amount became due and payable; 
F 
the date of the commencement of the action; the date of the decree; the date 
when the court orders execution to issue; and the date when the decretal 
amount is paid or realized. The court has to select a date which puts the G 
plaintiff in the same position in which he would have been, had the defendant 
discharged his obligation when he ought to have done, bearing in mind that 

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