payment of interest on deposits
P.ESAKKIMUTHU
(Querist) 01 February 2011
This query is : Resolved
I have deposited Rs.5 lac as fixed deposit for one year with TN Power Finance Corpn.Dev.Corporation- a statutory body of Govt.of Tamilnadu.The Fixed deposit has conditions that there will be a minimum lock period of 3 months and there will not be any interest for the deposit if it is withdrawn within 6 months. This being the position,I withdraw the Fixed deposit after the lock period of 3 months.The TN Power Fin.Corporation refused to pay interest to me as the withdrawal of deposit is within 6 months.I think such a condition of forgoing interest for fixed deposit if withdrawn within 6 month is unjust and illegal.Whether I am entitled to claim interest for 3 month period during which the fixed deposit is at the hands of the TN Power Fin.Corporation.Whether the Interest Act,1978 will come to my rescue.If I am entitled for interest, to whom I shall approach for remedial action
Raj Kumar Makkad
(Expert) 01 February 2011
As you invested the amount after agreeing to the terms and conditions attached thereto so there is no scope to claim desired interest if withdrawn amount within 6 months.
M V Gupta
(Expert) 02 February 2011
sec. 3(3) of the Interest Act, provides that the Act does not apply to cases where there is written agreement providing for payment of Interest or barring payment of Interest. Hence, under the FD conditions u do not have any right to claim interest since u have retired the deposit within 6 months.
S Elaya Kumar
(Expert) 02 February 2011
At the time of depositing the amount you have agreed to the terms and conditions of Tamil Nadu Power Finance Corporation Ltd., that you are not eligible for interest if the deposit is withdrawn within 6 months. By signing in the application you have accepted the condition. As such you cannot have any legal claim for non payment of interest.
Guest
(Expert) 02 February 2011
(1) The information shared by you through your query in this forum raise one's eyebrows!
(2) Your grievance is genuine one as an investor. The Government Body is obliged to pay you interest while it earns benefit of your investment.
(3) You may file a PIL before the High Court. You may be rescued by the High Court.
(4) But you should primarily challenge the Scheme itself for not offering any interest at all, when the Corporation accepts your money as a "deposit". Then only you would succeed and get nod of the High Court atleast to modify the Scheme designed by the Government fooling the investors.
(5) All the Experts have viewed it as a Contract between the Corporation and you. They are certainly correct.
(6) But the Scheme has to be challenged by a person like you who participated in the Nation's development by investing in a Government Company. You should be encouraged first, but alas, you are cheated!!
malipeddi jaggarao
(Expert) 03 February 2011
I agree with all experts and support the suggestion of Mr.Gurunarayanarao. At least it might put an end to arbitrary clauses while mobilizing the deposits from public especially with a tag of Government.
Advocate. Arunagiri
(Expert) 03 February 2011
The lock in period means that you can not withdraw within that period.
No interest period (six months) means, if you withdraw the money within that period you are not entitled for interest.
In your case, you have withdrawn after the lock in period, but before the 6 sixmonths. so you are not entitled for interest.
