Delhi

East Delhi

CC/588/2013

ASHOK KUMAR - Complainant(s)

Versus

HDFC BANK - Opp.Party(s)

09 Jan 2017

ORDER

DISTRICT CONSUMER DISPUTE REDRESSAL FORUM (EAST)

GOVT. OF NCT OF DELHI

CONVENIENT SHOPPING CENTRE, FIRST FLOOR,

SAINI ENCLAVE, DELHI – 110 092

 

C.C. NO. 588/13

 

Dr. Ashok Kumar

R/o H- Pocket

188-A, Dilshad Garden

Near Hans Raj School

Delhi – 110 095                                                                              ….Complainant

Vs.

1. The Manager

HDFC Bank Cards Division

P.O. Box No. 8654

Thiruvanamiyur, P.O.

Chennai - 600041

 

2. Mrs. Meilda Stanley

Sr. Vice President - Operations

Servicing Branch Office HDFC Sl. Shahdara Branch

101/102, 1^st Floor, Aditya Complex

Karkardooma Communicty Centre

Vikas Marg, Opp. Hargovind Enclave

Shahdara, Delhi – 110 092                                                          ….Opponents

 

Date of Institution: 05.08.2013

Judgment Reserved on: 09.01.2017

Judgment Passed on: 17.01.2017

CORUM:

Sh. Sukhdev Singh (President)

Dr. P.N. Tiwari  (Member)

Ms. Harpreet Kaur Charya (Member)

 

Order By : Ms. Harpreet Kaur Charya (Member)

 

JUDGEMENT

This complaint pertains to the allegations of deficiency in services and unfair trade practice by the complaint Dr. Ashok Kumar against the Manager, HDFC Bank Cards Division (OP-1) and Mrs. Meilda Stanley, Sl. Vice President-Operations (OP-2), praying for directions to OP to reimburse interest charged on Rs. 99,999/- from Novembr 2011 reimburse Rs. 99,999/- withdrawn from the credit card to refrain recovery of interest and Rs. 99,999/-, which have been debited from credit card of the complainant, cancel policy no. 14700755 and to pay compensation of Rs. 5,00,000/- as damaged. 

2.         Facts in brief are that the complainant in August, 2011 had applied for a policy with HDFC Bank for which HDFC Life Crest Policy bearing no. 14511294 was issued.  First premium was paid by the complaint through HDFC credit card bearing no. 5523441001023491.  The said paid premium was interest free.  In November, 2011 again new policy bearing no. 14700755 was issued to the complainant on same condition that the premium of Rs. 99,999/- shall be paid from the above-mentioned credit card and no interest shall be charged on the premium paid.  It is stated that the interest of Rs. 40,000/- was charged on the premium paid, which was withdrawn from the credit card account of the complainant.  The complainant requested cancellation for the policy which was duly acknowledged by OP vide letter dated 07.11.2012.  However, complainant had no asked for refund of Rs. 99,999/-, which was again deducted from the credit card of the complainant on 12.11.2012. 

            Legal notice dated 18.03.2013 was sent to OPs, which was duly replied.

 

            Letter bearing stamp of 31.10.2012 addressed to OP-1 requesting for refund of the interest charged on Rs. 99,999/-, letter dated 31.10.2012 for cancellation of policy no. 14700755 and stop further collection of premiums on the said policy, acknowledgement letter dated 01.11.2012, letter dated 07.11.2012 by OP, emails exchanged between the complainant and OP, letter dated 05.12.2012 to insurance ombudsman, legal notice dated 18.03.2013 and reply to the legal notice dated 06.05.2013 are annexed with the complaint.

3.         Notice of the complaint was served upon OPs.  OP-1 failed to file written statement, hence, right to file WS was closed on 22.01.2014.  The said order was set aside by Hon’ble State Commission vide order dated 06.03.2014.  Thereafter, they filed their written statement stating that there was no deficiency in services on their part.  It was submitted that OP-1 and OP-2 were two separate and distinct corporate entities.  It was stated that OP-1 was legally entitled to recover dues on the said credit card as the complainant was bound by card member agreement  and payment of premium was only a mode of payment.    It was further stated that waiver of interest on premium was an understanding/agreement was between the complainant and OP-2.  Receipt of legal notice dated 18.03.2013 was also denied.  Rest of the contents of the complaint were denied. 

            OP-2, HDFC Life  Insurance Co. Ltd. filed their reply, where they took the plea that the complainant was not entitled to refund of the premium as he had failed to exercise his option during the free look period of 30 days.  It was stated that the complainant had also given credit card mandate for deduction of first and subsequent premiums.  It was also stated that OP-2 did not give any commitment relating to interest free usage of the credit card.  Copy of the proposal dated 02.11.2011 for policy no. 14700755 and copy of the mandate were annexed as Annexure OP1/1 and OP2/2 respectively were annexed with the reply.

4.         Rejoinder to the reply of OP-1 & OP-2 was filed by the complainant, where all the contents of the reply were denied and that of the complaint were reiterated.

5.         Evidence by way of affidavit was filed by the complainant and OPs.  Dr. Ashok Kumar, the complainant deposed on oath the contents of the complaint.

            OP-1 examined Shri Saurabh Kumar Bhatia, authorized representative of HDFC Bank Ltd., who deposed on oath that the complainant had been erratic in making payments and was regularly defaulting in paying credit card dues.  Reliance was placed on Ex.RW1/A-General Power of Attorney, Ex.RW1/B & Ex.RW1/C – card member agreement copy and Ex.RW1/D (colly), the credit card statement.  It was also stated that the premium for policy purchased on 25.07.2011 was converted into 12 equal interest free EMIs of Rs. 8333.33/- marked as Ex.RW1/E.  Copy of reply/emails and legal notices was Ex.RW1/F and Ex.RW1/G was reply dated 12.12.2012.

6.         We have heard the Ld. Counsel for all the parties.  Perusal of the file reveals that the complainant had settled with OP-1, the dues payable against the credit card bearing no. 5523441001023491, as per which the complainant had paid Rs. 1,05,900/- payable in 8 installments, thus prayer to refrain OP-1 from recovery of Rs. 99,999/- alongwith interest has become infructous.

            Ex. RW1/F reveals that the premium for Nov. 2012 was paid as per the guidelines/mandate issued by the complainant.  The complainant has annexed letter dated 31.10.2012 requesting OP-2 to make interest free premium, cancellation of policy no. 14700755 and instruction to stop collection of further premium, further letter dated 07.11.2012 issued by OP-2 to the complainant referring to the free look period proves that the complainant had made request for the cancellation of the policy, having done so, request for premium  for 12^th November 2012 by OP-2 with OP-1 was illegal.  Further careful reading of email dated 04.12.2012 to the complainant by one Senthil S. states that “Further we regret to inform you that only the initial premium paid for the aforesaid policy and be converted into 0% equated monthly installments (EMIs)”.

            Another email dated 14.11.2012 addressed to the complainant by one Shri Ramesh Kale, customer service officer also bears the abovementioned statement.

            During the course of the arguments, Ld. Counsel for the OP-2 submitted that they were willing to give refund value of Rs. 2,24,451/- as against the 3 premiums of Rs. 99,999/- each paid, which was not acceptable to the complainant.   

            As the complainant has been successful in proving that he was assured by OP-2, the first interest free premium as per emails, he is entitled to avail the same.  Hence, we direct OP to refund all the premiums paid by the complainant with respect to policy bearing no. 14700755 alongwith interest @ 6% p.a. from the date of filing of the present complaint.                    

Copy of the order be supplied to the parties as per rules.

File be consigned to Record Room.

 

 

(DR. P.N. TIWARI)                                              (HARPREET KAUR CHARYA)

Member                                                                                Member    

     

      (SUKHDEV SINGH)

             President