Against the impugned order of the State Commission, complainant as well as opp.parties have filed the cross-appeals.  Complainant’s appeal is FA No.66/2008.  Appeal filed by the opp.party is FA No.625/2007.  Since these are cross-appeals, parties are referred as by their original status in the complaint.

Complainant, who is a senior advocate, took American Express Bank Credit Card from the opp.party.  Under the scheme, his wife was given a supplementary card effective from March 1999.  In September 1999, a “Globally Valid Card” was also issued to the complainant.  As per allegations made in the complaint, complainant was making regular payments of the demands as per the statement of accounts raised by the opp.party from time to time.  In the first week of April 2000, while paying Rs.5,000/- by demand draft as against minimum payment claim, he informed the opp.party that he and his wife would be visiting United States and would remain absent during April, May and June 2000 from India.  During the said visit to United States, the complainant and his wife presented the ‘Globally Valid Cards’ issued by the opp.party at different places but the cards were not honoured.  Alleging that due to non-acceptance of the cards in different cities in the United States, complainant and his wife suffered embarrassed and humiliation in the presence of other Indian and Americans.  Immediately on return, complainant paid the balance amount of Rs.6,690/- by cheque dated 5.7.2000.  While terminating/cancelling the cards, he demanded damages against the opp.party amounting to $ 1,00,000 equivalent to Rs.44.70 lakh.  Since the amount was not paid, the complainant filed the complaint before the State Commission.  His wife filed a Civil Suit No.395/2000 before the Civil Judge, Sr.Division, Cuttack.

        Opp.party, on being served, entered appearance and took the following pleas :

(a)  Under the agreement, Delhi Court has jurisdiction and not the Courts at Cuttack.

(b)  The complainant had a poor history of payment.

(c)  The credit cards are governed by Prime Lending Rates prescribed by the Reserve Bank of India and therefore the issuing authority has the discretion to charge any rate of interest.  

State Commission allowed the complaint by observing thus:-

“As the complainant was put to harassment and embarrassment and was looked down by the people consequent to the dishonour of the cards on presentation, the opposite party is liable to pay damges and compensation which we fix at rupees 1,00,000/-.  The opposite party is hereby directed to pay the aforesaid amount to the complainant by 30.11.2007 failing which it shall carry interest at the rate of 9 percent per annum from the month when cards were dishonoured (i.e. May, 2006).

The complaint is allowed with costs assessed at rupees 5,000/- (five thousand).”

        Aggrieved against the order of the State Commission, cross appeals have been filed. 

        Counsel for the opp.party states that an out of court settlement has been arrived at between the parties.  Opp.party has agreed to pay a sum of Rs.2 lakh to the complainant in full and final settlement of the dispute including the sum of Rs.50,000/- lying deposited in the State Commission. 

        Counsel for the complainant accepts the statement made by the counsel for the appellant and states that an out of court settlement has been arrived at between the parties.  Complainant is prepared to accept the sum of Rs.2 lakh offered by the opp.party in full and final settlement of the dispute.

        Counsel for the opp.party states that the sum of Rs.50,000/- deposited by the opp.party before the State Commission be paid to the complainant along with accrued interest.  Further states that the balance amount of Rs.1,50,000/- shall be paid by the opp.party to the complainant within 15 days from today.

        In terms of the settlement arrived at between the parties,  opp.party is directed to pay the sum of Rs.2 lakh to the complainant in full and final settlement of the dispute.    State Commission is directed to release the sum of Rs.50,000/- deposited by the opp.party to the complainant along with accrued interest.  Opp.party is directed to pay the balance amount of Rs.1,50,000/- to the complainant within 15 days from today failing which the amount shall carry interest @ 9% from the date of default till the date of payment.

        Appeal stands disposed of in above terms.