BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, MYSORE-570023

CONSUMER COMPLAINT NO.1585/2014

DATED ON THIS THE 31^st March 2017

      Present:  1) Sri. H.M.Shivakumara Swamy

B.A., LLB., - PRESIDENT   

    2) Smt. M.V.Bharathi                    

                                   B.Sc., LLB., -  MEMBER

                     3) Sri. Devakumar.M.C.                  

                                                          B.E., LLB.,    - MEMBER

Sri DEVAKUMAR.M.C,

Member

1.     The complainant has filed the complaint under section 12 of the C.P.Act, 1986, against the opposite party, alleging deficiency in service and seeking a direction to pay a sum of Rs.1,00,000/- damages for the deficiency in service with such other reliefs.
2.     The complainant, having savings Bank Account with opposite party, obtained a credit card during the year 2004.  Subsequently, he sought for cancellation of the account and also the credit card, through an application on 22.06.2004.  The opposite party acknowledged the receipt of the said application.  It is submitted that, he has not all availed the credit facilities using the credit card.  The opposite party issued a letter to the complainant, stating an outstanding amount of Rs.45,016.18 and called upon to remit the same.  Complainant caused a reply on 12.09.2013, narrating the facts and seeking damages for the mental agony caused.  Complainant also lodged a complaint with the police, regarding the threatening call from the opposite party, apart from filing the present complaint and seeking reliefs.
3.     The opposite party represented through its GPA holder filed its version and denies the allegation as false.  It says, the complainant is a defaulter for a sum of Rs.57,981.75.  The opposite party admits the issue of credit card to the complainant, which is subject to the terms and conditions.  The complainant has made use of the card, as such liable to pay.  In order to evade the payments, the complainant has filed a complaint with frivolous and baseless allegations.  Several opportunities were given to appear for conciliation proceedings.  The complainant’s legal notice has been suitably replied on 13.12.2013.  Thereby opposite party submits, it has not committed any deficiency in service and are not liable to pay any damages, as such, prays for dismissal of the complaint with costs.
4.     To establish the facts, both complainant and opposite party lead evidence by filing affidavit and relied on several documents.  Written arguments filed by both side and heard the counsel for complainant and opposite party.  Perusing the material on record, matter posted for orders.
5.     The points arose for our consideration are:-

1. Whether the complainant establishes the deficiency in service on the part of opposite party in demanding amount even though, he has not made use of the credit card issued to him and thereby he is entitled for the reliefs sought?
2.  What order?

6.    Our findings on the aforesaid points are as follows:

Point No.1 :- Partly in the affirmative.

Point No.2 :- As per final order for the following

:: R E A S O N S ::

7.    Point No.1:- The complainant obtained a credit card on opening of a saving bank account with opposite party during the year 2004.  He sought for cancellation of account and also the credit card facility vide letter dated 22.06.2004.  The opposite party acknowledged the receipt of the request letter of the complainant.  Subsequent to cancellation letter, he has not made use of the credit card.  The opposite party issued notice and demanded for a sum of Rs.45,016.18 towards the use of the credit card and threatened to initiate legal proceedings.  Same was replied on 12.09.2013 and demanded a sum of Rs.1,00,000/- damages towards the mental agony caused and deficiency in service.  Hence, the complaint and sought for the reliefs.
8.    The opposite party contended that, there is no lapses on their part and the complainant had falsely alleged to make wrongful gain only.  The complainant owes a dues for a sum of Rs.57,981.75.  The issue of credit card was admitted.  As per agreed terms and conditions, the complainant was bound to fulfil his obligations.  The complainant had utilised  the credit card and failed to repay the dues.  The statement of accounts reflected the various transactions by the complainant and there was due of Rs.57,981.75.  Opposite party invalidated the account. As such, contended that, they have not committed any kind of deficiency in service to the complainant and are not liable to pay any compensation and prays for dismissal of the complaint.
9.    The opposite party bank issued its primary credit card and add-on card to the complainant and to his wife bearing No.4346771003520757 same valid from 02/2004 to 02/2006.  The complainant placed evidence to establish that, he had requested the opposite party bank to cancel the account and also the credit card services vide letter dated 22.06.2014 and acknowledgement by the opposite party bank.  However, the opposite party failed to act on the request letter.  However, complainant failed to surrender the cards.  The statement of account revealed that the complainant owed a sum of Rs.10,620.93 as on 30.06.2005 and the same accumulated to a sum of Rs.57,981.76 as on 13.01.2015 after the reversal or waived off a sum of Rs.65,081.21 by opposite party on 31.07.2013.  However, the opposite party failed to established that, it had demanded for payment of the amount from the complainant, until issuance of the notice on 14.03.2012.  Thereby the complainant established the negligence on the part of opposite party, in not closing the credit card facility and account of the complainant.   As such, demanded for payment of a sum of Rs.57,981.76 is not proper and the complainant is not liable to pay any amount to the opposite party bank.  For the negligence and mental agony caused in demanding the payment, the opposite party is liable to compensate the complainant.  Accordingly, point No.1 is answered partly in the affirmative.
10. Point No.2:- In view of the above observations, we proceed to pass the following

:: O R D E R ::

1. The complaint is allowed in part.
2. The opposite party shall pay Rs.2,000/- towards compensation for the deficiency in service and negligence and Rs.1,000/- towards cost of the proceedings to the complainant, within 60 days of this order.  In default to comply, the opposite party shall pay interest at 10% p.a. on the total sum of Rs.3,000/- until compliance.
3. In case of default to comply this order, the opposite party to undergo imprisonment and also liable for fine under section 27 of the C.P.Act, 1986.
4. Give the copies of this order to the parties, as per Rules.

 (Dictated to the Stenographer transcribed, typed by her, transcript corrected by us and then pronounced in open court on this the 31^st March 2017)

                          (H.M.SHIVAKUMARA SWAMY) 

                                      PRESIDENT     

(M.V.BHARATHI)                           (DEVAKUMAR.M.C.)

      MEMBER                                         MEMBER