Haryana

Karnal

CC/331/2021

Mr. Vinesh Kumar Rana - Complainant(s)

Versus

Axis Bank Limited - Opp.Party(s)

07 Mar 2023

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, KARNAL.

 

                                                        Complaint No. 331 of 2021

                                                        Date of instt.15.07.2021

                                                        Date of Decision:07.03.2023

 

Vinesh Kumar Rana, A-25, Sainik School Kunjpura, District Karnal, Karnal-132001. Phone no.8395933783 email ranavineshkumar79gmail.com.

 

                                               …….Complainant.

                                              Versus

 

Axis Bank Ltd. Newal Karn HR, Karnal-132023 IFSC Code: UTIB0002212.

                                                                      …..Opposite Party.

 

Complaint Under Section 35 of Consumer Protection Act, 2019.

 

Before   Sh. Jaswant Singh……President.

              Shri Vineet Kaushik……Member

      Dr. Rekha Chaudhary…….Member

                   

Argued by: Complainant in person.

                   Shri Deepak Saini, counsel for the OP.

 

                    (Jaswant Singh President)

 

ORDER:   

                

                The complainant has filed the present complaint Under Section 35 of Consumer Protection Act, 2019 against the opposite party (hereinafter referred to as ‘OP’) on the averments that complainant is a consumer of OP having saving account no.915010008831620, credit card no.533346700****9317. On 23.02.2021 complainant’s account got freeze without any notice to complainant. Complainant faced problem while making credit card payment on 08.03.2021 of Rs.33270/-through mobile app. On 09.03.2021, Rs.33270/- was deducted from complainant’s saving account because of auto debit facility but again credited back into his account because it was debit freezed because of which complainant was penalized with late payment fee of Rs.2880/- alongwith GST and late payment fee of Rs.1000/- alongwith GST. On 09.03.2021 complainant had to pay the credit card bill, but complainant could not get any solution. Complainant made may phone calls to OP customer care to know the reason for non-payment of the money but no one told that account is debit freezed. Complainant again tried to make payment of credit card bill through cheque of Rs.33,270/- send through his friend Mr. Dinesh Sharma in the concerned branch as the complainant was himself suffering from Covid-19 and was home quarantined from 02.03.2021 till 17.03.2021 but all in vain and for the first time, complainant came to know that his account was debit freezed since 23.02.2021. Complainant complained regarding the issue to the concerned authority on 16.03.2021 for raising the issue with higher authority with service request on 20.03.2021, complainant again raised the issue with OP through customer care. It is further averred that no timely action was done till next due date of paying credit card bill of Rs.84,598.74 on 04.04.2021 which complainant was again not able to pay fully as his Rs.33,270/- was stuck in his saving account. Complainant had to pay the penalty and interest for not paying the credit card bill at the stipulated time. Complainant faced huge mental harassment due to financial problems as he is already paying Rs.35,000/- EMI in home loan, Rs.9786/- EMI in car loan, Rs.1591/- in cycle loan and Rs.6689/- EMI in AC loan which amounts to a total of Rs.53000/- approximately in different loans in this covid situation. Complainant was made to pay 2^nd penalty of Rs.2436/- alongwith GST for not fully paying the credit card bill dated 04.09.2021. Complainant complained regarding the issue to the concerned authority, but he did not receive any proper response from the concerned authority. Complainant had occurred loss due to such activity of the concerned authority. Complainant requested the OP not to impose the extra interest to complainant. In this way there is deficiency in service and unfair trade practice on the part of the OP. Hence this complaint.

2.             On notice, OP appeared and filed its written version, raising preliminary objections with regard to maintainability; locus standi cause of action and concealment of true and material facts. On merits, it is pleaded that complainant is having account no.175010100121330 in Jamnagar Branch (Gujrat) and the complainant did not operate the abovesaid account for such a long time of 10 years and findings no other way, as per the bank notes, the OP freezed the abovesaid account on 22.02.2021. The complainant lastly operated the account only on 06.10.2008 and thereafter, complainant did not operate the abovesaid account. On 16.03.2021, a complaint no.66374441 was received by the OP in respect of abovesaid account and complainant was advised to submit his KYC and then to defreeze the account and on deposit of ID proof, the OP defreeze the account of the complainant. As such there was no delay on the part of the OP to defreeze the account. There is no deficiency in service and unfair trade practice on the part of the OP. The other allegations made in the complaint have been denied and prayed for dismissal of the complaint.

3.             Parties then led their respective evidence.

4.             Complainant has tendered into evidence his affidavit Ex.CW1/A, copy of statement of account Ex.C1, copy of legal notice Ex.C2 and closed the evidence on 04.02.2022 by suffering separate statement.

5                 On the other hand, learned counsel for the OP has tendered into evidence affidavit of Sushil Kumar, Branch Manager Ex.DW1/A and copy of RBI notification Ex.OP1 and closed the evidence on 04.01.2023 by suffering separate statement.

6.             We have heard the complainant and learned counsel for the OP and perused the case file carefully and have also gone through the evidence led by the parties.

7.             Complainant, while reiterating the contents of complaint, has vehemently argued that he is having saving account and credit card in the OP bank. On 23.02.2021 complainant’s account got freeze without any notice to complainant. Complainant faced problem while making credit card payment on 08.03.2021 of Rs.33270/-through mobile app. because of which complainant was penalized with late payment fee of Rs.2880/- alongwith GST. Complainant had to pay the penalty and interest for not paying the credit card bill at the stipulated time. Complainant was also penalized of Rs.2436/- on account of not paying the credit card bill dated 04.09.2021. Complainant complained regarding the issue to the concerned authority, but he did not receive any proper response from the concerned authority. Complainant requested the OP not to impose the further interest and penalty and refund the same which was recovered illegally and lastly prayed for allowing the complaint.

8.             Per contra, learned counsel for the OP, while reiterating the contents of written version, has vehemently argued that complainant is having bank account in Jamnagar Branch (Gujrat) and the complainant did not operate the abovesaid account for such a long time of 10 years and as per the bank norms, the OP freeze the account of complainant on 22.02.2021. On 16.03.2021, a complaint was received by the OP in respect of abovesaid account and complainant was advised to submit his KYC and on deposition of ID proof, the OP defreeze the account of the complainant and lastly prayed for dismissal of the complaint.

9.             We have duly considered the rival contentions of the parties.

10.           Admittedly, complainant is having a saving bank account no. no.915010008831620, credit card no.533346700****9317. It is also admitted that complainant has account no. 175010100121330 in Jamnagar Branch (Gujrat). It is also admitted that complainant has not operated the abovesaid account for such a long time of ten years.

11.           On 23.02.2021, complainant’s account got freeze by the OP. As per version of the complainant, he was shifted at Karnal in the year 2008 and got opened new account with the bank of OP. OP never asked the complainant to clear previous amount. Complainant had to pay the amount of Rs.33270/-through mobile app. On 09.03.2021, Rs.33270/- was deducted from complainant’s saving account no. 915010008831620 i.e. freezing account because of auto debit facility but again credited into his account because it was debit freeze and complainant  was penalized with late payment fee of Rs.2880/- with GST and late payment fee of Rs.1000/- alongwith GST. Complainant made many phone calls for non-payment and on 17.03.2021 complainant came to know that his account had been debit freeze since 23^rd February, 2021. Complainant had to pay penalty and interest for net paying credit bill at the stipulated time. On 16.03.2021, a complaint no.66374441 was received by the OP in respect of said account and complainant was advised to submit his KYC and on deposition of ID proof, the OP defreeze the account of the complainant.

12.           Account of the complainant had been freeze without any notice. As per Master Direction-Know Your Customer (KYC) Direction, 2016 (updated as on May 10, 2021) RBI/DBR/2015-16/18, Master Direction DBR-AML-BC no.81/14.01.001/2015-2016 before freezing the account of any customer. OP has not followed the abovesaid instruction at the time of freezing of the account of complainant. Relevant Para no.39 of said Master Direction-Know Your Customer (KYC) Direction, 2016 reproduced as under:-

“Provided that before temporarily ceasing operations for an account, the RE shall give the customer an accessible notice and a reasonable opportunity to be heard. Further, RE shall include, in its internal policy, appropriate relaxation(s) for continued operation of accounts for customers who are unable to provide Permanent Account Number or equivalent e-document thereof or form no.60 owing to injury, illness or infirmity on account of old age or otherwise, and such like causes. Such accounts shall, however, be subject to enhanced monitoring”.

In view of the above, the act of the OP for imposing the penalty and interest upon the complainant amounts to deficiency in service.

13.           Complainant is entitled for refund of penalty and interest amount charged by the OP. Complainant had paid Rs.9778/-penalty and interest to the OP. Thus, he is entitled for the said amount alongwith interest, compensation for harassment, mental pain and agony alongwith litigation expenses.

14.           Thus, as a sequel to abovesaid discussion, we allow the present complaint and direct the OP to refund Rs.9778/- to the complainant alongwith interest @ 9% from the date of its debit till its realization.  We further direct the OP to pay Rs.10,000/- to the complainant on account of mental agony and harassment suffered by him and Rs.5500/- for the litigation expense. This order shall be complied with within 45 days from the date of receipt of copy of this order till its realization. The parties concerned be communicated of the order accordingly and the file be consigned to the record room after due compliance.

Announced

Dated: 07.03.2023

                                                                President,

                                                      District Consumer Disputes

                                                      Redressal Commission, Karnal.

 

             (Vineet Kaushik)     (Dr. Rekha Chaudhary) 

                   Member                  Member