COMPLAINT FILED: 27.06.2009 <br /> DISPOSED ON: 19.08.2010<br /> <br /> BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE (URBAN)<br /> <br /> 19TH AUGUST 2010<br /> <br /> PRESENT:- SRI. B.S.REDDY PRESIDENT <br /> SMT. M. YASHODHAMMA MEMBER <br /> SRI.A.MUNIYAPPA MEMBER <br /> <br /> COMPLAINT NO.1527/2009<br /> <br /> COMPLAINANT<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> Sukesh Kumar Srivastava<br /> Flat No.103, Yashasvi Apartments,<br /> 16-A Main Road, 1st Cross,<br /> Jayanagar 4 (East) Block,<br /> Bangalore – 560 011.<br /> <br /> In Person<br /> <br /> V/s.<br /> <br /> OPPOSITE PARTY ABN Amro Bank N.V.<br /> ‘Prestige Towers’,<br /> Ground Floor,<br /> 99 & 100 Residency Road,<br /> Bangalore – 560 025.<br /> <br /> Advocate: <br /> Smt. Meena Venugopal<br /> <br /> O R D E R<br /> <br /> SRI. B.S.REDDY, PRESIDENT<br /> <br /> The complainant filed this complaint seeking direction against the OP Bank to pay compensation to an extent of Rs.3,00,000/- on an allegation of deficiency in service on the part of the OP.<br /> <br /> 2. In the complaint it is stated that the complainant is software professional and employed with Tata Consultancy Services since January – 2006. Since then he is maintaining the savings salary account with OP Bank. The savings bank account No.1176343. The complainant issued two cheques against his credit cards payment dated 04.01.2007 and 25.05.2007 and also expected to get his salary during May/June’ 2007. The credit of the salary should have been by June 1st 2007, the same was delayed by 23 days. The complainant expected his salary in the account as automated credit from his employer’s account to his account as direct load during May/June’ 2007 which also did not take place because the account has been frozen for debits as well as credits without any written/oral request from the complainant or any regulatory body’s instruction. By not honouring the cheques which are complete in all stipulated manners, and also freezing the account without any request from the complainant and because of that automated credit of salary had also not taken place. As a result the complainant has incurred tremendous problem in managing the day to day expenses, question on credibility by credit card Bank was (as cheques got bounced) penalty imposed by them and enormous mental agony for couple of weeks together as OP has almost kept silent on the issue. The account was freezed, two cheques of credit card payment not honoured, the same has not been communicated to the complainant either through phone call, e-mail or written mail/letter. The complainant came to know all these only after his other credit card bank called him and told that his payment cheques had been bounced after getting the e-mail from his corporate officials that salary for the month had not been credited to given account as the automated credit has failed due to invalid account status. Upon writing to the OP; higher officials reply is not adequate at all, rather it is just saying that it is their internal procedures. When the complainant asked the officials of the OP whether RBI has given powers to freeze the account without any customers request. The officials bluntly told that this is none of his business to ask him this. To get the account in active status took around more than 10 days. The complainant raised his grievance before RBI Ombudsman and finally had a meeting with Honorary Secretary, in that meeting which was pointed out that it is purely bank fault, if cheque are complete in all respect funds are available how cheque can be bounced. The honorary secretary told the complainant that to settle any compensation is beyond their purview but still he will forward to RBI main office Mumbai. The complainant traveled to USA on urgent official assignment. He could not file the complaint, after his return in May’2009 he has decided to file this complaint. Thus the complainant claimed compensation of RS.3,00,000/-against the OP on account of lapse on the part of the OP in freezing the account in consequence there of two cheques being bounced and return of salary credit; depriving complainant from operating his account for day to day expenses for more than a week time which forced him to take credit from his friends including mental agony. <br /> <br /> 3. OP on appearance filed version contending that the complaint is not maintainable and denying all the averments of the complaint that are not specifically admitted in the version. It is contended that the complainant has filed this complaint after lapse of 2 years from the date of cause of action and has not filed any papers for the limitation. On this ground the complaint is to be dismissed. It is admitted that the complainant is having Saving Bank account with OP. It is submitted that the complainant requested OP over telephone through Bank by phone service on 01.05.2007, for changing his mailing address from residence address to employment address. As per the banking regulations any address modification on the account requested by the customer over the phone is intimated to the account holder through a letter sent to the new as well as the old address to ensure that the customer himself has called the Bank and taking care to see that fraudulent attempts are not made by unscrupulous persons. The address change letter sent to complainant’s new mailing address was returned on 08.05.2007 with the reason ‘Person left the job’. The OP has made several attempts to reach the complainant over his mobile number provided to the Bank but unable to establish contact with the complainant. Hence, as per OPs Banking process total freeze was taken placed on the account same day to safeguard from any misuse of the funds in the account of the complainant. OP has received two cheques for inward clearing and has returned the same with reason ‘account is frozen’ and not as account closed as alleged by the complainant. The OP has credited to the account of the complainant the penalty imposed by the Banks for his cheques got bounced. As per Bank regulation the Bank is not bound to inform the customers on any cheque bounce. The account of the complainant is freezed only to safeguard the account from misuse and has been done to protect the customer and not with any malafide intentions. The Bank has taken care to protect the customer and hence there is no deficiency of service as alleged by the complainant. As per RBI guide lines the Bank is not authorized to provide information related to account by e-mail due to security reasons. The Banking Ombudsman had registered a complaint OP has completely investigated the case and had also arranged for a meeting with the complainant and provided all the clarification which lead the Bank not to credit the salary reasoning and resolutions were provided. The issue of the salary credit was resolved, the account was activated and efforts were made to see that the issues were resolved. Hence it is prayed to dismiss the complaint.<br /> <br /> 4. The complainant filed reply by way of rejoinder to the version filed by OP stating that the case was filed with RBI, Banking ombudsman within two months of cause of action and that is after not getting any adequate reply from OP side including their internal ombudsman. After hearing RBI-Banking Ombudsman during October – 07, the complainant moved to USA on long term assignment from his employer and upon returning from abroad, the complaint has been filed without any significant delay. The request is not for change of address but it is flip of mailing address from residence to office address, then why the OP has termed it as change of address. On the sufficient proof of identity and address has already been collected at the time of opening the saving (salary) account. OP had also taken the additional documents like letter from employer, photo ID card, copy of the employer etc., before offering zero balance accounts. Why OP had sent the confirmation letter to only office address without any letter being sent to the residence address of the complainant. Why OP used courier service and not Indian post / registered post which is more secure and approved mode of communication by regulatory authorities. The statement of the OP that courier agency has mentioned in the letter they had attempted the delivery thrice and always told by the gate security that the employee has left the job. This is totally baseless remark, as nowhere security personals have the access to check the employee database to determine whether employee is ‘still working’ or ‘left the job’. Since January – 2006, till date complainant is working with the same employer and posted in same city / location, that will be proved by the fact that his salary for the month of May-2007 has not been accepted / credited by OP because account was freezed for credits. OP has not tried to reach the complainant on his office land line phone which is also there in records and no attempt had been made sending an e-mail or SMS just to revert to bank, without disclosing any financial details. The term ‘account closed’ has been used by the complainant because the credit card statement what he received from other bank has mentioned the reason of cheque bounce as ‘account closed’. The important point is why the freeze has been placed that too for credits, which created enormous problems for the complainant to establish with employer’s head office that the account is active in all respect and ready to accept credits, then request them to issue a physical cheque instruments against the salary for the said month and then wait for receiving the cheque from head office and then for clearing to get the funds effected to use for day to day expenses. This whole process took around 23 days and for such a long duration the complainant has to manage the expenses from borrowing the money from friends and took enormous pain and felt guilty with not even its slightest fault from his side. <br /> <br /> 5. In order to substantiate the complaint averments, the complainant filed affidavit evidence and produced documents. Sri. B. Suresh, authorized signatory of OP-Bank filed affidavit by way of evidence and produced documents. <br /> <br /> 6. Parties filed written arguments, arguments on both sides heard. Points for consideration are: <br /> <br /> Point No.1:- Whether the complaint filed is within the <br /> period of limitation?<br /> Point No.2:- Whether the complainant proved the<br /> deficiency in service on the part of the <br /> OP?<br /> <br /> Point No.3:- Whether the complainant is entitled for<br /> the relief’s now claimed?<br /> <br /> Point No.4:- To what Order?<br /> <br /> 7. We record our finding on the above points:<br /> <br /> Point No.1:- Affirmative. <br /> Point No.2:- Affirmative. <br /> Point No.3:- Affirmative in part.<br /> Point No.4:- As per final Order.<br /> <br /> R E A S O N S<br /> <br /> 8. The complainant is savings bank account holder with OP bank with his SB account No.1176343. The complainant requested OP over telephone through bank-by-phone service on May, 01 2007 for changing his mail address from residence address to employment address. OP-Bank is stated to have sent confirmation letter to the employment address of the complainant and the said confirmation letter was returned on 08.05.2007 with the reason ‘person left the job’ then OP is stated to have made attempts to reach the complainant over his mobile number, but were unable to establish the contact with the complainant, hence total freeze was placed on the account of the complainant on the same day i.e. on 08.05.2007. <br /> <br /> 9. The complainant has produced the letter dated 26.10.2007 received from RBI ombudsman stating that in the matter of complaint dated 27.08.2007 against OP-Bank, the compensation in matters other than credit card complaints are not admissible as per the provisions of Banking Ombudsman Scheme – 2006. Hence they are unable to consider the compensation claimed in the complaint. Accordingly the complaint is treated as attended and closed in their books. It may be noted that after the complainant came to know freezing his account, he has addressed e-mails to the head personal banking of OP and banking ombudsman, RBI complaining that without there being any justification, his account has been freezed. OP-bank has sent reply to the complainant as per letter dated 09.07.2007 furnishing details of the circumstances under which the account has been freezed. Thus it becomes clear that the complainant after receiving the letter dated 09.07.2007 of OP-bank, was not satisfied with the reasons, as such it is to be taken that the cause of action arose for filing the complaint after receipt of the said letter dated 09.07.2007 and the complaint filed on 26.06.2009 is within the period of two years from the date on which the cause of action has arisen as provided u/s 24(A) of the C.P. Act. There is no merit in the contention that the cause of action arose on 08.05.2007 the date on which the account was freezed and complaint ought to have been filed within two years from that date. The complainant was not informed by OP regarding his account being freezed; only after he received intimation from other banks regarding credit account’s that the cheques issued to clear the credit card transactions are dishonoured; complainant came to know about the account being freezed. Accordingly we answer point No.1 in affirmative.<br /> <br /> 10. The OP-bank freezed the account of the complainant on the ground that address change confirmation letter sent to the new mailing address was returned with the reason ‘person left the job’. Along with version OP has produced Annexure -1 letter from Team Delta Outsourcing Services (P) Ltd., dated 02.09.2009; wherein it is stated that they had picked up document (new change letter) on 02.05.2007 to be delivered to Mr. Sukesh Kumar Srivastava. They attempted delivery thrice and were told by the security that the said consignee had left the job. Hence they have returned the document to the bank on 08.05.2007. It is contended for OP that after the letter was returned, OP made attempt to reach the complainant over his mobile number, but they were unable to establish the contact with the complainant. The complainant has produced itemized statement for mobile No.9945374799 which shows that on 07.05, 08.05 and 09.05 he has made out going calls from his mobile and STD calls. The complainant submitted that even he has received incoming calls on those dates, but the mobile company has not preserved the incoming call details. Hence he could not produce any document regarding incoming calls received. In our view when the complainant has made use of his mobile on 08.05.2007 it is difficult to accept the contention of the OP that attempts made to contact the complainant on mobile was not successful. It appears that OP in order to justify it’s action of freezing the account has come up with a false defence that they could not establish contact on mobile. Further in the version no where it is pleaded with regard to any attempt made by sending confirmation letter to the residential address of the complainant. For the first time in the objections filed to the complainant highlights of the case on 22.03.2010 OP has come up at para – 10 that another letter was sent to the residence address, but the same was returned with acknowledgement ‘door locked’. OP has not produced any material to show that the letter sent to the residential address was returned as ‘door locked’. Therefore we are unable to accept the contention that the letter sent to the residence address of the complainant was also returned with acknowledgement ‘door locked’. <br /> <br /> 11. OP has produced the address change process (internal circular). After going through the same with regard to the address change letter, it is stated that if the address of the system is same as on the packet then immediately put ‘total freeze’ – T status on account. Further the circular itself provides the necessary steps to be taken before freezing the account. The following steps are to be taken:<br /> 1. Branches to ensure that in case the letter has got returned due to a reason ‘House Locked’ or ‘Customer Not Available’, then delivery is tried on a holidays / after working hours without marking the account as frozen. <br /> <br /> 2. Try establishing Tele-contact with customer. Note that Tele calling attempts to be made at the employment / alternate / mobile phone numbers of the customer (if available). In case the account was opened under the VGPB profile, VBPBE to be advised to contact the customer and the address change to be tracked on the system. <br /> <br /> OP has not made any attempts to send the confirmation letter to the residence of the complainant on holidays / after working hours so as to say that the complainant has left the address. OP has not followed the internal circular guidelines before freezing the account of the complainant. Further the confirmation letter sent to the office address is stated to have been returned as ‘person left the job’ based on the information stated have been furnished by security of the company where the complainant is working. Security is not a competent person to furnish such information. OP could have contacted the responsible official of the employer company to confirm that the complainant has left the job. In fact the complainant is working in the same company Tata Consultancy Services since January – 2006. The complainant has produced the account statement address maintained by OP-bank wherein the land line phone number is also available. Though at the time of opening the account the complainant has not furnished land line number, but subsequently he has furnished the same and OP-Bank has updated in the records. OP has not made any attempts to contact the complainant on land line before freezing the account. <br /> <br /> 12. The learned counsel for OP contended that there is no any deficiency in service on the part of the OP, when the confirmation letter regarding change of address was returned as ‘person left the job’, in order to safe guard the account of the complainant from being misused, the same has been freezed. In our view OP without following strictly the internal circular providing the details of procedure to be followed before freezing the account; freezed the account of the complainant. It is nothing but the gross negligence on the part of the officials of the OP-bank in freezing the account. The complainant could not get May – 07 salary credited to his account and two cheques which he had issued to clear the credit card transactions, were sent back as account frozen. There was delay of about 23 days in getting the salary being credited to the account of the complainant. The complainant has to suffer mental agony and financial stringency for no fault of his. For the purpose of paying rental of the premises and for day to day expenses he was made to borrow the amount from others, thereby putting him in humiliation. Taking into consideration of all these facts and circumstances we are of the view that the complainant proved deficiency in service on the part of the OP. <br /> The complainant has claimed compensation of Rs.3,00,000/- but the same is on higher side. Taking into consideration all the facts and circumstances we are of the view that the ends of justice would be met by awarding compensation of Rs.25,000/- with litigation cost of Rs.3,000/-. Accordingly we proceed to pass the following: <br /> <br /> O R D E R<br /> <br /> The complaint filed by the complainant is allowed in part. OP is directed to pay compensation of Rs.25,000/- with litigation cost of Rs.3,000/- to the complainant within four weeks from the date of this order. <br /> <br /> Send the copy of this order to both the parties free of cost.<br /> <br /> (Dictated to the Stenographer and typed in the computer and transcribed by him, verified and corrected, and then pronounced in the Open Court by us on this the 19th day of August 2010.) <br /> <br /> <br /> PRESIDENT<br /> <br /> MEMBER MEMBER <br /> <br /> Snm:<br />