This is an application u/s.12 of the C.P. Act, 1986.
Complainant by filing this complaint has submitted that he was provided a Corporate Credit Card being Card No.5531623000002507 at the time of his employment with HDFC Bank Ltd. attached with Business Loans Department at Gillander House, 1st Floor, Block – A, 8, N.S. Road, Kolkata – 700 001, but complainant resigned from the service of HDFC Bank, on 17-01-2011 and on 15-02-2011 a letter issued by the HDFC Bank Ltd. confirming no outstanding and at present he is an employee with Tata Motors Ltd. at its Regional Office in Kolkata.
At the time of final settlement of above referred credit card it was not taken back from the complainant, so the complainant continued to use the same as there was no embargo on usage of the same and neither any such communication was made to the complainant by the HDFC Bank. Fact remains complainant was availed the credit facility and during the subsistence of the said credit facility as provided in the credit card the complainant arrived at a settlement with the OPs as per terms of settlement vide letter no.S1232307 dated 18-01-2013 issued by the OP2 and the complainant was asked to repay an amount of Rs.67,800/- in 10 equal instalment from 30-01-2013 to 01-10-2013. Accordingly, in place of the settlement of the scheme complainant paid Rs.68,473/- by 10 instalment starting from January, 2013 to 31-01-2014.
Since, there was delay of about three months in making payment of the full and final payment, the complainant paid Rs.673/- as additional amount towards interest on the balance outstanding amount of Rs.16,507/- and OP3 has confirmed receipt of the above amount by mail dated 3rd April, 2014 and on receipt of the full and final amount as on 31-01-2014 the OP in spite of assurances did not issue the NOC till date and on the contrary communicated to the complainant that a further sum of Rs.89,000/- is outstanding which included accrued interest on the outstanding amount of Rs.16,507/- for three months against which the complainant raised objection and without issuing a no outstanding certificate to the complainant the OPs have called upon the complainant and intimated vide notice dated 01-09-2014 duly received by the complainant on 08-09-2014 that as on 01-09-2014 a further sum of Rs.93,621/- became outstanding without raising any statement of Accounts for the same and without disclosing how such an abnormal amount became outstanding against the said credit card when the card is already blocked and no usage has been done against the card in dispute.
Before receipt of the notice several incidents occurred by which the complainant become astonished to observe that in spite of receiving the full and final settlement amount the OPs had illegally sealed or blocked the operation of the SB A/c. No.01841020002260 of the complainant maintained in HDFC Bank, Indira Nagar, Bangalore Branch which is his salary account as well as is the only source of subsistence for a salaried person like the complainant. By a letter dated 01-09-2014 the Legal Manager, HDFC Bank communicated to the complainant that the sum of Rs.66,812-32 lying in the SB A/c. of the complainant will be set off by exercising bankers lien and right of set off as on 16-09-2014. This letter has been received by the complainant as on 08-09-2014 and by issuing this letter the bank is trying to paralyze the complainant as well as forcefully trying to extract money by forgoing the right of equity and fare play and complainant on receiving the aforesaid letter immediately thereafter issued a mail dated 07-09-2014 at about 10:18 P.M. to the OPs as well as posted a notice on 08-09-2014 at about 10:44 a.m.addressed to all the OPs’ complainaing about the illegal activities of the OPs demanding Rs.93,621-18 and on the same date at about 11:30 a.m. the notice from the OPs was received by the complainant.
In the above circumstances, complainant submits that at the time of resignation from the service of the HDFC Bank they did not provide the terms and condition of the corporate card. Complainant claimed for the same as the complainant believed that there was no due in his loan account. Moreover, even after resigning from the service of the HDFC Bank the terms and condition of usage of the corporate card was not communicated to the complainant. Further complainant submits that in this process a sum of Rs.67,204/- became blocked and being a salaried person the complainant was put to tremendous hardship and in fact, OPs as a custodian of the complainants money HDFC Bank cannot act in breach of the faith reposed on the Bank by the complainant and not only that the OPs have started extracting money from the complainant on one pretext or the other without even providing a single statement of accounts showing as to how the said amount of Rs.93,621/- became outstanding and paid by the complainant. OP has no legal right to harass the complainant and in respect of the loan which has been settled and paid by the complainant and in the above circumstances, the complainant has prayed for direction upon the OP to issue an outstanding certificate of the above corporate credit card No.5531623000002507 as well as the unblock the savings account number 01841020002260 maintained with the OPs and the complainant be allowed to withdraw the said amount from the SB A/c. and HDFC Bank for the negligence and deficient manner of act the savings bank account of the complainant was blocked without any reason and for which complainant has prayed for compensation and passing for necessary order for directing the OPs not to disturb the complainant in his Savings Bank Account with the OP at Bangalore and so, complainant has prayed for compensation etc.
On the other hand, OP by filing written statement submitted that the present complaint is mis-conceived one and it is not maintainable in the eye of law and it is further submitted that on the request of the complainant initially card was issued vide card no.5566204500020600 during July, 2008 and subsequently, the card was upgraded to card 5531623000002507 (Master Platinum Corporate Staff Guarantee Card) in the month of May, 2011. However, physical plastic for card 5531623000002507 got returned consecutively post which the said card was destroyed. However the liability in the initial card was transferred to the upgraded card and reflected in the statements generated till charge off in August, 2014.
It is specifically mentioned that usual practice of the credit card holder shall use his credit card and bank will raise monthly bills to the user which he shall have to pay within a certain period of time, if the credit card user fails to pay any amount or makes part payment of the entire amount he shall be charged interest as per terms and conditions as mentioned in the card member agreement and in the present case complainant as a credit card holder failed to pay his monthly due and for which the interest had been charged and even outstanding amount in his credit card has been reported in respect of his credit card and further fact is that complainant had been deposited that settled amount within 10 instalments for the period from 31-01-2013 to 31-10-2013 and in fact, during that time complainant paid Rs.51,773/- out of agreed settlement amount of Rs.67,800/-. So, any payment made by the complainant after settlement tenure had been credited towards outstanding in the credit card or as per terms mentioned in the settlement letter the settlement became void and OP bank in their said notice also mentioned that complainant failed to make payment within 16-09-2014 then outstanding dues for which Rs.66,812-32 would be deducted in the savings bank account and it is the bank’s right as per contract. So, present complaint is completely false and fabricated and that is not tenable in the eye of law for which the complaint should be dismissed.
Decision with Reasons
After proper assessment of the document as filed by the parties and further considering the argument as advanced by the Ld. Lawyers of both the parties it is admitted fact that in respect of that card a settlement was arrived in between the parties and complainant was asked to pay settled amount of Rs.67,800/- by 10 instalments starting from 30th January, to 1st October, 2013 admitted position is that during that period complainant paid Rs.51,773/- out of Rs.67,800/- but fact remains by 31-01-2014 complainant already paid total amount of Rs.67,800/- including the same interest that is a total sum of Rs.68,473/-. Now the question is whether in respect of balance amount of Rs.16,027/- which has been paid by 31-01-2014 that is within three months a huge amount of interest for a sum of Rs.93,000/- and it can be assessed or not in this regard we have gathered the materials and we have gathered that entire settlement amount what have been paid by the complainant by 01-10-2013 and settlement amount was Rs.67,800/- but complainant paid Rs.68,473/- as on 31-01-2014 then it is clear that settlement amount as already been paid by the complainant and for that three months against unpaid amount of Rs.16,027/- complainant also paid Rs.673/- as interest and considering the above fact we are convinced that settlement amount has already been paid by paying additional amount of Rs.673/- as interest and that is total Rs.63,473/- when that is the fact then how the OP can charge interest over the entire amount and that cannot be the principle of law of banking and in fact for some financial cost the OPs has adopted such a procedure that is against the rules of RBI and as per RBI Rules against the credit card if outstanding balance isnot paid within the specified time but within short period from the stipulated time in that case in respect of the balance amount it has not been paid within stipulated time entirely in that case the interest shall be charged only in respect of the balance amount which has not been paid within specific time. But the present private banking authorities violating the directions, regulations of the RBI has been misusing such sort of dreadful charges to the customer which is against the principle of banking laws.
After proper considering the materials we have gathered that particularly Axis Bank, HDFC Bank, ICICI Bank, ING Vysya Bank and other private consumer banks violating the rules and regulations of the RBI and misusing interest and that is completely barred by RBI Regulations and RBI as also issued several guidelines and regulations regarding credit card but all private banks are violating daily and in that case they are violating RBI Guidelines.
Fact remains the banking authority has no legal authority to deduct any amount from salary account of any customer if at the time of pending that salary account no special contract has been executed by the customer and the bank and no doubt in the present case OP authority acted illegally by sealing the complainant’s salary account for deducting some huge amount as interest against credit card but after giving thoughtful consideration and considering the RBI guidelines and also payment of the complainant as per settlement not within 10 months but within 13 months and also for payment of some interest as charges we are convinced that the OP Bank for their no legal right to charge any interest over the amount against the credit card. At the same time the OP has their no legal right to stop transaction in respect of salary account of the complainant by any means whatsoever being SB Account No.01841020002260 of HDFC Bank, Indira Nagar, Bangalore and that order also completely arbitrary in nature and OPs have their no legal right to take any portion from the salary account for any reasons whatsoever. When the settlement amount of Rs.67,800/- has already been paid by paying some interest that is total Rs.68,473/- on 31-01-2014 by the complainant. No doubt in the present case the present OPs tried to convince that National Commission in Revision Petition No.331 of 2013 passed on 11-12-2013 observed that when that complainant used the credit card shall still repay the different as per terms and conditions as per MITC banking law and in that complaint that complainant failed to pay Rs.42,430-77 was that complainant was asked to pay the same but after studying that judgment that found judgment is not applicable in that case in such amount has already been deposited by the complainant on 31-10-2014 but after that present OPs have no right to interest charge what the amount has already been deposited but we have gathered that Kabuliwala in the rural field are still there but we are telling about Kabuliawala but the private corporate banking authorities also has adopted the Kabuliwala business theory but that should be controlled immediately otherwise the middleclass family shall have to starved for handling the service of the private banks and it is not observation of the Forum but the present years Nobel Laureate in economics J. Telero as observed in his so many articles and particularly in so many economic field that banks and insurance company should be controlled with tough hand otherwise middle class family economy shall failed.
Observing that authorization because that authorization has been published by the Swiss Nobel Committee and different countries have adopted the authorization to control private banking business haphazardly they being guided by the Rules and Regulations of the Financial Department or RBI.
In view of the facts and materials we are convinced after 13-01-2014 complainant cannot be treated as a defaulter and there was no outstanding after 31-01-2014 and on that date complainant completely deposited the entire settlement amount with such interest so, subsequent assessment of interest by the OPs is completely arbitrary and deceitful in manner and all the letters as sent by the OPs to the complainant claiming a sum of Rs.93,671/- or anything more is beyond their legal jurisdiction and it is nothing but a squeezing tendency on the part of the OPs at the same time it is also proved complainant has his legal right to operate his savings bank account at HDFC Bank, Indira Nagar, Bangalore Branch and OP has no legal right to deduct any amount from the salary for any reason whatsoever. Accordingly, we have gathered that complainant is not only harassed by the OPs at the same time it has been deceived by the OPs in so many manners and claim of the OPs is completely baseless, without any foundation and at the same time against the RBI Rules. Accordingly, the case succeeds.
Hence,
Ordered
That the case be and the same is allowed on contest against the OPs with a cost of Rs.10,000/- and OPs are directed to issued no claim certificate in favour of the complainant in respect of the disputed credit card at once treating that the said settlement amount has already been paid as on 31-01-2014 finally and it is also ordered that OPs claim in any respect in respect of the disputed credit card is arbitrary and without any legal foundation and OPs cannot claim any amount from the complainant in respect of the said disputed credit card.
OPs are also directed not to deduct any amount from the complainant’s savings bank account (Salary Account) of HDFC Bank, Indira Nagar, Bangalore by any means whatsoever and if there is any such order passed by the Bank that must be withdrawn henceforth and there is no scope to illegally seal and block the operation of the savings bank account No.018410200022660 of HDFC Bank, Indira Nagar, Bangalore Branch.
For adopting deceitful manner of activities in harassing the complainant in such a manner OPs are directed to pay a sum of Rs.10,000/- to the complainant for causing mental pain, sufferings etc. and same shall be paid to the complainant within one month from the date of this order.
If any amount from the Savings Bank account of the complainant(Salary Account) of HDFC Bank, Indira Nagar, Bangalore is sealed and blocked by this order, same is also withdrawn and OPs are directed to give the complainant all chances to use the account as per his wish and from salary account OPs Bank has no legal right to deduct any amount.
For adopting deceitful manner of service by the OPs they are hereby directed to pay penal damages of Rs.15,000/- to this Forum and it is imposed to check and control the uncontrolled and deceitful manner of banking services rendered by the OPs to the complainant and other consumers and it is passed only for the protection of the consumers in society and said amount shall be deposited within Forum’s account within one month from the date of this order failing which penal action shall be started against them for which further penalty and fine shall be imposed.
