Tamil Nadu

South Chennai

547/2002

S.Elangovan - Complainant(s)

Versus

American Express Banking corporation - Opp.Party(s)

m/S.Srinath sridevan

01 Aug 2017

ORDER

                                                                        Date of Filing :   20.11.2002

                                                                        Date of Order :   01.08.2017

DISTRICT CONSUMER DISPUTE REDRESSAL FORUM, CHENNAI (SOUTH)

     2^nd Floor, Frazer Bridge Road, V.O.C. Nagar, Park Town, Chennai-3

PRESENT: THIRU. M.MONY, B.Sc., L.L.B. M.L.,                     : PRESIDENT            

                  TMT. K.AMALA, M.A. L.L.B.,                                 : MEMBER I

             DR. T.PAUL RAJASEKARAN, M.A ,D.Min.PGDHRDI, AIII,BCS : MEMBER II

C.C.NO.547/2002

TUESDAY THIS  1^ST    DAY OF AUGUST 2017

 

S. Elangovan,

o.9, Kovalan Street,

Pallikaranai,

Chennai 601 302.                                        .. Complainant

                                        ..Vs..

 

American Express Banking Corporation,

Cyber City – Tower “c”,

DLF Building, Number 8,

Sector 25,

Phase II,

Gurgoan 122 002.                                      .. Opposite party.

 

 

Counsel for Complainant         :    M/s. Srinath Sridevan & others

Counsel for opposite party       :    M/s. Poovayya & Co & others

ORDER

THIRU. M. MONY, PRESIDENT

          This complaint has been filed by the complainant against the opposite parties under section 12 of the Consumer Protection Act 1986 seeking direction to refund the amount of Rs.1,72,750/- invested by the complainant and also to pay a sum of Rs.50,000/- for mental agony and to pay cost of the complaint.

 1. The averment of the complaint in brief are as follows:

         The complainant submit that he purchased a Tata Indica Car bearing registration No.TN-07-P-1751 from the opposite party for a sum of Rs.3,50,000/-.  The opposite party advanced a loan of Rs.3,00,000/- as car loan to the complainant in 36 installments from 1.4.2001 @ Rs.12,313/- for the first 12 months and at Rs.10,313/- for the next 12 months and Rs.7,313/- for the last 12 months.     The complainant further submit that  due to the financial difficulties the complainant could not pay the installments for three months (viz) October, November, and December 2001.  However on the basis of the complainant’s letter dated 20.1.2002 delivered to the opposite party recovery agent, the opposite party granted time upto 26.1.2002.   

2.     Further the complainant also submit that on 24.1.2002 when he was preceding to the opposite party bank to pay the installment dues opposite party seized the complainant’s car near Guindy Roce Course at about 11.00 a.m.    The complainant also state that the opposite party’s action of seizing the car within the time given by the  opposite party and without any notice to the complainant and without sending the complainant a demand for arrears with details, preventing the complainant from paying the amount and keeping the car without proper service for the past 8 months and depriving the complaint from the using the car will amount to deficiency in service on the part of the opposite party.     Accordingly the complainant sent notice dated 28.9.2002 to the opposite party  demanding the opposite party to send the complainant statement of account.   Even though the opposite party received the notice on 4.10.2002 there was no reply.     As such the act of the opposite party clearly amounts to gross deficiency in service and thereby caused harassment, mental agony  and hardship to the complainant.  Hence the complaint is filed.

3. The brief averments in Written Version of  the opposite party    are as follows:

         The opposite party denies each and every allegation except those that are specifically admitted herein.  At the outset, the complainant has made this opposite party wrongly as a party.   During the pendency of the above case, the department of Banking operations and Development Central office, Mumbai on February 27, 2008 granted the opposite party herein  a license to carry on banking business in India, however subject to certain conditions annexed therewith.  The opposite party further state that  the above mentioned license and in compliance of the conditions issued by the Reserve Bank of India, there was a Global Sale of American Express Bank Ltd to Standard Chartered Bank and by the said sale, only the businesses  mentioned below were allowed to be carried on by the opposite party herein.

1. Credit card business at branch and at the four credit card centers for which AEBL already holds approval from RBI.

 

2. Distribute American Express Travelers Cheques.
3. Accept only institutional deposits as defined by RBI.

4.     The opposite party therefore seeks the permission of this Honble court to remove American Express Banking Corporation from the above matter and substitute name of Standard Chartered Bank as the opposite party, as they are the rightful party carrying on such business and the only party who also possess and have access to all the records pertaining to the instant case.   The opposite party herein has absolutely no role to play in the above matter and does not have any access to the records thereof.   Hence there is no deficiency in service on the part of the opposite party and therefore this complaint is liable to be dismissed.

5.      In order to prove the averments of the complaint, the complainant had filed proof affidavit as his evidence and documents Ex.A1 to Ex.A12 marked.  Proof affidavit of opposite party  filed and Ex.B1 to Ex.B3 marked on the side of the opposite party.  

6.   The point for the consideration is:  

 

1. Whether  the complainant is entitled to a sum of Rs.1,72,750/- with interest at the rate of 24% p.a. as prayed for ?
2. Whether the complainant is entitled to a sum of Rs.50,000/- towards mental agony for the deficiency of service caused with cost  as prayed for ?

 

7. POINTS 1 & 2 : -

        The learned counsel for the complainant contended that admittedly the complainant purchased a Tata Indica Car bearing registration No.TN-07-P-1751 from M/s. Concord Motors Limited for a sum of Rs.3,50,000/-.   It is also admitted that the complainant availed loan of Rs.3,00,000/- from the opposite party towards purchasing the car repayable within 36 installment at the rate of 12,313/- for the first 12 months and at the rate of Rs.10,313/- for the next 12 months and at the rate of Rs.7,313/- for the last 12 months i.e. till the completion of loan.  It is also admitted by the opposite party that the complainant has paid the amount till September 2001 without any default.     Thereafter the complainant has not paid three installments consequently from October 2001 to December 2001.  The complainant made requests as per Ex.A10 dated 20.1.2002 one week time i.e. till 26.1.2002 for payment of all arrears and subsequent payment.   In the mean time the opposite party without giving any notice on 24.1.2002 seized the vehicle and thereby the complainant was abstained from using the car caused great mental agony.  Immediately the complainant issued notice Ex.A12 and filed a suit in O.S.No.559/2002  on the file of XVII Assistant City Civil Court, Chennai  and obtained an interim injunction, restraining the opposite party from selling the car as per Ex.A8.   The opposite party after seizing the car has not taken proper care and exposed to open area.    The complainant further contended that he has invested a sum of Rs.1,72,750/- towards purchasing the car i.e. Rs.46,500/- towards registration fee and Rs.12,950/- towards life tax, Rs.8750/- towards Insurance fee, Rs.3,000/- towards processing fee, Rs.10,000/- towards extra fitting and Rs.86,191/- towards installment paid and Rs.5,000/- towards service charges; because of the sudden seizure of the vehicle the complainant was put to great hardship.   The complainant  is claiming a sum of Rs.1,72,750/- towards the cost of the car and Rs.50,000/- towards mental agony for such unfair trade practice and deficiency of service.

 

8.     The learned counsel for the opposite party contended that the opposite party American Express Banking Corporation is now called as  Standard Chartered Bank.  The complainant has not availed any loan much less vehicle loan from American Express Banking Corporation.  The complainant has availed vehicle loan only from American Express Banking Corporation Limited claim made with American Express Banking Corporation by the complainant is unsustainable.    But on a careful perusal of the records it is seen that initially the complainant filed this case against the American Express Bank Limited.  On the basis of the Memo filed by the opposite party the complainant was constrained to amend the complaint and impleaded American Express Banking Corporation.  The said facts have been totally suppressed by the opposite party even at the time of argument.   Admittedly the American Express banking Corporation was with the Standard Chartered Bank as per Ex.B3.   Hence the opposite party and the Standard Chartered Bank can very well settle the matter.  Further the learned counsel for the opposite party without raising any substantial contention regarding the loan and seizure contended that the complainant is a chronic defaulter in payment of installment; since the complainant has not paid the installments properly.  The opposite party was constrained to seize the vehicle.   Even after seizure also the complainant has not paid the installments; but it is not denied that immediately after the seizure the complainant took substantial steps including filing of the suit seeking to keep vehicle in better condition but there is no iota evidence in this case.   Further the contention of the opposite party is that the claim of Rs.1,72,750/- towards the value of the car is too high.   But there is no substantial reason on the part of the opposite party.   Further the damages claimed towards mental agony is exorbitant.  Considering the facts and circumstances of the case the opposite party is directed to pay a sum of Rs.1,72,750/-  and also compensation of R.20,000/- for mental agony with cost of Rs.5,000/- to the complaint and the points are answered accordingly.

        In the result, the complaint is allowed in part.   The opposite party is directed to pay a sum of Rs.1,72,750/- (Rupees one lakh Seventy two thousand seven hundred and fifty only) towards value of the car and also compensation of  Rs.20,000/- (Rupees twenty  thousand only) for mental agony with cost of Rs.5,000/- (Rupees five thousand only) to the complainant.

 

The above  amounts shall be payable within six weeks from the date of receipt of the copy of the order, failing which, the said amounts shall carry interest at the rate of 9% p.a to till the date of payment.       

  Dictated by the President to the Assistant, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the  1^st  day  of  August 2017.  

 

MEMBER-I                        MEMBER-II                             PRESIDENT.

Complainants” side documents:

Ex.A1-  18.4.2001 - Copy of Vehicle delivery notice.

Ex.A2-         -       - Copy of abstract of expenses made by the complainant.

Ex.A3- 28.5.2001  - Copy of receipt of the initial payment.

Ex.A4- 28.4.2001  - Copy of receipt of the life tax and registration.

Ex.A5- 16.4.2001  - Copy of receipt of insurance.

Ex.A6- 31.8.2001  - Copy of receipt of payment of installments.

Ex.A7- 5.5.2001    - Copy of other receipts of service of car.

Ex.A8-         -       - Copy of plaint in O.S.559/02.

Ex.A9-         -       - Copy of petition and counter in I.A. 1587/02.

Ex.A10- 20.1.2002         - Copy of letter by complainant to the opposite party.

Ex.A11- 24.1.2002         - Copy of statement of accounts of the complainant.

Ex.A12- 28.9.2002         - Copy of legal notice with Ack.

 

Opposite parties’ side document: -   

Ex.B1- 14.11.2013         - Copy of General Power of Attorney.

Ex.B2- 27.2.2008  - Copy of license issued by the Department of Banking

                              Operations and Development Central office along with

                              Incorporation Certificate.

 

Ex.B3- 4.3.2008    - Copy of order passed by R.B.I.

 

 

 

MEMBER-I                        MEMBER-II                             PRESIDENT.