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State Consumer Commission – Liability of Employees Coop Credit Society for Undisclosed and Unilateral Restrictions on Premature Withdrawal of Deposit of Retired Employee

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The complainant – senior citizen and employee of Hindustan Petroleum Corporation retired on 30.11.2017 – invested Rs.9 lakhs in its monthly income scheme.

In 2017, the complainant requested for premature withdrawal of the deposit.  However, the credit society refused to encash the deposit relying on the internal circular dated 24.12.2015 that the premature withdrawal is not permissible.

The complainant has challenged the said unilateral and undisclosed conditions as unfair practices & deficiency in service.

When a financial institution receives money from a consumer,
it must disclose the material terms in clear writing at the inception.
A restriction like “no premature withdrawal” is a material and
onerous condition. If such a restriction is intended, it must be
expressly mentioned in the deposit application/receipt or in a
document acknowledged by the depositor. The consumer parts with her money on the faith of the written instrument issued by the service provider.

Consumer Commission – Liability of Employees Coop Credit Society for Undisclosed and Unilateral Restrictions on Premature Withdrawal of Deposit

Judgment dated 27.1.2026 of the Maharashtra State Consumer Disputes Redressal Commission, Mumbai, in Consumer Complaint No.SC/27/CC/18/2018 of Shruti Sudhir Kirtane vs.  HP Employee’s Cooperative Credit Society Ltd

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