DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II U.T. CHANDIGARH Complaint Case No.: 1317 of 2009 Date of Inst: 15.09.2009 Date of Decision:04.05.2010 Madan Mohan Malhotra s/o Sh.Ram Sharan Dass aged 55 years r/o H.No.3398, Sector 46-C, Chandigarh. ---Complainant V E R S U S 1. Citi Bank, Jeewan Bharti Building, 124, Connaught Place, New Delhi through its Regional Credit Manager. 2. Citi Bank, SCO No.132-134, Sector 9, Chandigarh through its Branch Manager. ---Opposite Parties QUORUM SHRI LAKSHMAN SHARMA PRESIDENT SMT.MADHU MUTNEJA MEMBER PRESENT: Sh.Ajit Singh, Adv. for complainant Sh.Rohit Malhotra, Adv. for OPs. --- PER LAKSHMAN SHARMA, PRESIDENT Sh.Madan Mohan Malhotra has filed this complaint under section 12 of the Consumer Protection Act, 1986 praying therein that letter dated 17.04.2009 (Annexure C-14) and the demand notice dated 08.06.2009 (Annexure C-16) issued by OPs be quashed. The complainant further prayed that OPs be directed to pay Rs.1,50,000/- as compensation for mental agony and harassment besides cost of litigation etc. 2. In brief, the case of the complainant is that he availed the facility of three credit cards bearing No.5546199522261007, 5546199738357003 and 4550387718467700 from OP-2. On 18.05.2006, the OPs offered a one time full and final offer to settle the outstanding dues against the said credit card accounts on payment of Rs.2,05,200/- in 36 installments as per details given in the letter (Annexure C-1). According to the complainant, he accepted the said offer and issued 36 cheques @ Rs.5700/- to OPs. OPs encashed one cheque and issued the receipt for the remaining amount of Rs.1,99,500/-. After one year, OPs again offered one time settlement for full and final payment of the entire outstanding dues against these credit cards on payment of Rs.96000/-. Accordingly, the complainant paid a draft No. 293457 dated 21.04.2004 for Rs.96000/- in lieu of full and final settlement of the outstanding dues which was also got encashed by OPs. It has been pleaded that at the time of issuance of the receipt, the complainant was also handed over the remaining 24 cheques which were given to the OP at the time of earlier settlement. According to the complainant, after two years, he received a letter dated 17.04.2009 (Annexure C-14) showing the outstanding balance of Rs.1,49,944.93 which was replied by the complainant vide letter dated 22.04.09 (Annexure C-15). It has further been pleaded that after two months of issuance of the said letter (Annexure C-14), OPs again sent a demand notice dated 08.06.2009 (Annexure C-16) requiring the complainant to pay Rs.6,54,283.92 against the credit card accounts. According to the complainant, the said demand amounts to deficiency in service and unfair trade practice. In these circumstances, the present complaint was filed seeking the reliefs mentioned above. 3. In reply filed by OPs, it has been admitted the OPs offered a structured payment plan of Rs.2,05,200/- payable in 36 installments as full and final settlement of the outstanding dues of all the three credit carts. It has been pleaded that the amount of Rs.96000/- was deposited by the complainant in full and final payment of outstanding dues in respect of two credit cards account Nos. 5546 1997 3835 7003 and 4550 3877 1846 7001 which is duly reflected in the statement of accounts of credit cards (Annexure R-1 and R-2). It has further been pleaded that the cheques were returned to the complainant as they were for the settlement of all three credit cards accounts and not for a single card. It has been pleaded the complainant has not made any payment in respect of credit card account No.5546199522261007 and therefore, the notice was rightly issued. In these circumstances, according to OPs, there is no deficiency in service or unfair trade practice on their part and the complaint deserves dismissal. 4. We have heard the learned counsel for the parties and have gone through the entire record including documents, annexures, affidavits and the written arguments filed by OPs. 5. It is admitted case of the parties that a settlement had arrived at between the parties regarding full and final settlement of the outstanding dues against the 3 credit cards in question. Annexure C-1 is the letter issued by OPs confirming the offer of structured payment plan of Rs.2,05,200/- in full and final settlement of the outstanding dues against three credit cards in question and the said amount was payable in monthly equated installment of Rs.5700/- per month. The relevant portion of the said letter reads as under:- “In view of the exceptional circumstances as explained by you, we confirm the offer of a structured payment plan of Rs.2,05,200/- (Rupees tow lac five thousand tow hundred) in 36 installment(s) via cash/demand draft payable to Citibank. On the appropriation of this payment, the above mentioned card account(s) stands settled in full and final and no further dues would be payable to Citibank N.A. Please not that in the event of nay of the instrument issued by you being returned b your banker unpaid for any reason, this structured payment plan shall stand null and void and the Bank will be entitled to claim the original amount as reflected in the monthly card statements being received by you.” It is also admitted case of the parties that in performance of his liabilities, the complainant issued 36 postdated cheques of Rs.5700/- each to OPs. Out of the said cheques, one cheque was got encashed by OPs as is evident from the statement of account (Annexure C-2) and a receipt regarding the remaining amount of Rs.1,99,500/- was issued by OPs. In this document, it has been clearly mentioned that the above said amount has been received in full and final settlement of the outstanding dues of the 3 credit cards in question. 6. The case of complainant is that later on in the month of April, 2007, OPs again offered a plan to settle the outstanding dues against the 3 credit cards in question for a sum of Rs.96000/-. It was offered that if the complainant paid a sum of Rs.96,000/- in one go, the entries regarding outstanding dues against the 3 credit cards shall be reversed and this amount shall be deemed to be the amount received in full and final settlement of the outstanding dues against the 3 credit cards in question. So the complainant paid a sum of Rs.96000/- and Ops issued a receipt (Annexure C-4) to this effect,’ 7. The payment of Rs.9600/- has been admitted by OPs. However, the case of the OPs is that above said amount was paid in full and final settlement of the outstanding dues against the two credit cards account Nos. 5546 1997 3835 7003 and 4550 3877 1846 7001 and the said payment was not towards the credit card account No.5546 1995 2226 1007. In support of this contention, OPs have placed on record the statement of accounts (Annexure R-1 to R-3). 8. Annexure C-4 is the receipt issued by OPs itself. From this receipt, it is apparent that the amount has been received qua the outstanding dues of 3 credit cards. This receipt (Annexure C-4) supports the contention of the complainant. Furthermore, the act of the OPs of returning the post dated chqeus to the complainant supports the contention of the complainant. Had the amount been received against full and final settlement of two credit cards only, there was no need to return the cheques. The above said cheques may be used for recovery of the outstanding dues in respect of the third credit card. 9. The other act of OPs which supports the contention of the complainant is that OPs remained silent for a period of 2 years and the letter 17.04.2009 and 08.06.2009 were issued after a period of two years. Had the OPs received the amount mentioned against the two credit cards only, the demand regarding outstanding dues of third credit card would have been made at that time also. 10. In view of the above discussion, it is apparent that a sum of Rs.96000/- was paid to the OPs vide receipt (Annexure C-4) against the full and final settlement of all the three credit cards in question and nothing was payable by the complainant to the OPs. So the demand raised by OPs through letters 17.04.2009 and 08.06.2009 is not only deficiency in service but also amount to unfair trade practice on their part. 11. In view of the above findings, this complaint is allowed and OPs are directed to:- i) to withdraw the letters dated 17.04.2009 and 08.06.2009 and to reverse the entries of outstanding dues from all the three credit cards accounts of the complainant. ii) To pay a sum of Rs.1,00,000/- as compensation for mental agony and harassment. iii) To pay a sum of Rs.5000/- as costs of litigation. 12. This order be complied with by the OPs within 45 days from the date of receipt of its certified copy, failing which the OPs shall also be liable to pay the amount of Rs.1,00,000/- to the complainant along with penal interest @ 18 % p.a. from the date of filing of the complaint i.e. 15.09.2009 till its realization besides costs of litigation. 13. Certified copy of this order be communicated to the parties, free of charge. After compliance file be consigned to record room. Announced 04.05.2010 sd/- (LAKSHMAN SHARMA) PRESIDENT cm sd/- (MADHU MUTNEJA) MEMBER
C.C.No.1317 of 2009 PRESENT: None. --- Arguments heard on 23.04.2010. The case was reserved for orders. As per separate detailed order of even date, this complaint is allowed. After compliance file be consigned. Announced. 04.05.2010 Member President
| | MRS. MADHU MUTNEJA, MEMBER | HONABLE MR. LAKSHMAN SHARMA, PRESIDENT | , | | 
