DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II

U.T. CHANDIGARH

Mr.Kamal Kumar, S/o Sh.Ronak Lal, R/o H.No.2616, Sunny Enclave Kharar, Distt. Mohali

                                                                                    ---Complainant

V E R S U S

1]       HDFC Bank Ltd., through its Managing Director, HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai, India – 400 013.

2]          Branch Manager, HDFC Bank, Credit Card Division, Chandigarh.

---Opposite Parties

BEFORE:            SHRI LAKSHMAN SHARMA                    PRESIDENT

                        SMT. MADHU MUTNEJA                   MEMBER

                        SH.JASWINDER SINGH SIDHU            MEMBER

Argued By:            None for the complainant.

Sh.Sandeep Suri, Adv. For the OPs.

PER JASWINDER SINGH SIDHU, MEMBER

1]             Complainant (hereinafter referred to as CC for short) has filed the present complaint against the Opposite Parties (hereinafter referred to as OPs for short) on the ground that the CC was approached by the representative of the OPs in the month of June, 2006 and offered Life Time HDFC Bank Credit Card free of cost.  Relying upon the representations of OPs, CC agreed and subscribed for the Credit Card.  The said Credit Card bearing NO.4346 7720 0111 9931 was supplied to the CC.  The CC made purchases against the same and paid the outstanding dues as per receipts Ann.C-1 & C-2. 

                CC was surprised to  notice that the OPs have charged Rs.750/- as annual fee and also on their own charged Rs.3500/- against insurance premium of which the CC was not aware.  Thereafter, CC immediately deposited Rs.15,503/- vide cheque number 413319, drawn on Corporation Bank, Sector 8, Chandigarh.  The same was acknowledged by OPs vide their Receipt NO.9635809, dated 13.11.2007.  The CC stopped using the Credit Card of the OPs any further. 

                CC is aggrieved of the demand of Rs.4000/- through mobile communication of the OPs alleged to be outstanding against his Credit Card account.  Thereafter, regular calls for renewal of insurance policy were also made to the CC and ECS debit on 15.6.2010 was conveyed on the CC’s mobile showing Rs.5313/- being processed and request for its realization. 

                CC further states that because of this illegal demand of OPs and an outstanding amount regularly shown in their records have resulted in denial of a Car Loan from the Axis Bank as him name existed in the Defaulter’s List of CIBIL. 

                Aggrieved of the deficiency in service and unfair trade practice of the OPs, CC demands the waiver of all charges outstanding against him along with a compensation of Rs.50,000/- on account of harassment and mental agony and further Rs.5000/- as litigation costs. 

2]             On notice, OPs filed their collective versions. 

                OPs in their preliminary objections have cited that CC having availed the Credit Card facility had also simultaneously availed a policy of insurance.  The CC had given specific instructions opting for an automatic renewal of the policy of insurance so taken by the CC in the year 2007.  The same is reproduced as under:-

“CREDIT CARD TES AND CONDITIONS : I hereby authorize HDFC Chubb to charge the annual premium for me and my family members policy to my account and renew the policy every year till a written notification by me for non renewal.  I further authorize HDFC Bank to debit my credit card for payment of the annual premium on each renewal.  I authorize HDFC Bank to charge my card account (Master Card and Visa) every year and remit the premium payable to HDFC Chubb General Insurance Company Limited.  I understand that, if there are insufficient funds, HDFC Chubb General Insurance Company Limited may cancel this instruction without prior advice to me.”

On merits, the OPs have contested the claim of the CC on the grounds that the CC having voluntarily subscribed for the Credit Card as well as the insurance policy by signing the proposal form, cannot absolve himself of the liabilities that accrue towards him at a later stage. 

                It was on the demand of CC that a policy bearing NO.93672173 was issued by the insurance company and the CC was bound by the terms & conditions as mentioned in the Proposal Form signed by him. 

                It is also mentioned that CC voluntarily made the first premium and the same was realized from his Credit Card Account as per his instructions.

                On the above mentioned facts, OPs have denied any deficiency on their part or any unfair trade practice as alleged by the CC.  The OPs demand that the present complaint be dismissed with heavy cost against the CC for failing to honour his contractual obligations and unnecessarily dragging the OPs into unwanted litigation. 

3]             Parties led their respective evidences.

4]             Having gone through the entire complaint and version of OPs and the evidence of the parties.  As the CC did not turn up for arguments, proceedings under Rule 4(8) of Chandigarh Consumer Protection Rules, 1987, as per order dated 06.09.2011. We came to the following conclusions:-

i)      We feel that the two points that needs to be addressed in the present complaint are with regard to:-

(a)    Whether the Credit Card issued to the CC was free for Life Time;  And

(b)    Whether the OPs were wrong in demanding the insurance premium from the CC and realizing the same from his Credit Card Account. 

ii)     From the documents on record, it is established that the CC had subscribed for the Credit Card facility voluntarily and made payments against the purchases done by him with the help of said credit card issued by the OPs.  The same are annexured as C-1 & C-2.  Thus, it is very much clear that this fact was in the knowledge of the CC since his subscription in the year June, 2006 and continued thereafter. The CC having made his last payment on 13.11.2007 and having stopped using the Credit Card thereafter, as claimed by him, raising this issue in the year 2010 vide his present complaint is time barred, as per the provisions of Consumer Protection Act, 1986.

iii)    With regard to he second grievance of the CC about the illegal demand of insurance premium by the OPs against the insurance policy subscribed by him is also not tenable as the OPs have proved beyond all reasonable doubts that CC had subscribed the said policy by filling up Personal Accident Insurance Proposal Form (Accident and Sickness), which is Annexured at Page-10 along with the reply of the OPs. 

iii)    On going through this document, it is very clear that the CC had filled up the Proposal Form and had appended his signatures in English.  However, on page-11, under the Heading- CREDIT CARD TERMS & CONDITIONS, it is very clearly mentioned that the CC had authorized the HDFC Chubb Gene. to charge the annual premium, for him and his family members policy, from his account and renew the policy every year, till written notification by him for non-renewal.  CC has failed to bring on record that at what point of time he had ever communicated his desire to the OPs to discontinue with the said policy, in writing.  There is no document on record, which could establish the contentions of the CC.

iv)    We believe that OPs are very much well within their right to demand the subsequent premium amount from the CC as per his authorization signed by him on the proposal form. 

v)     As per the opening lines of the complaint, the CC is a Deputy Manager with the Firm - M/s Surya Pharmaceuticals Limited, which clearly indicates that the CC is a well versed learned man and is also aware of the manner in which he should conduct himself while he enters into an agreement with any entity. 

5]             From above observations, we feel that the CC has miserably failed to prove his contentions of deficiency in service and unfair trade practice against the OPs. Hence, we dismiss the present complaint without cost.  Parties are left to bear their own costs. 

                Certified copy of this order be communicated to the parties, free of charge. After compliance file be consigned to record room.

Announced

09.09.2011                                                                              

                                                           (LAKSHMAN SHARMA)

PRESIDENT

(MADHU MUTNEJA)

MEMBER 

(JASWINDER SINGH SIDHU)

MEMBER