Haryana

Yamunanagar

CC/493/2011

Santok Singh S/o Sardara Singh - Complainant(s)

Versus

HDFC Bank - Opp.Party(s)

Parmod Gupta

27 Feb 2017

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, YAMUNA NAGAR

                                                                                               Complaint No. 493  of 2011.

                                                                                               Date of institution: 16.05.2011

                                                                                               Date of decision: 27.02.2017.

 

       Santok Singh son of Sh. Sardara Singh, resident of Village Kotar Khana, District Yamuna Nagar.

                                                                                                                           …Complainant.

                                        Versus

1. HDFC Bank, Plot No.1, Rajesh Nagar Colony, Ambala Road, Yamuna Nagar, Jagadhri, Haryana 135003 through its Branch Manager.
2. HDFC Bank, Cards Division, 8, Lattice Bridge Road, Thiruvanmiyur, Chennai 600 041 through its Legal Manager.                                                                                                                                                                                        

                                                                                                                           …Respondents.

 

BEFORE:         SH. ASHOK KUMAR GARG PRESIDENT,

                         SH. S.C.SHARMA, MEMBER.

 

Present:  Sh. Parmod Bansal, Advocate, counsel for complainant.  

                Sh.  K.K.Gupta, Advocate, counsel for respondents.              

 

ORDER

1                           Complainant has filed the present complaint under section 12 of the Consumer Protection Act. 1986 praying therein that the respondents (hereinafter respondents will be referred as OPs Bank ) be directed to pay amount of Rs. 24,094/- alongwith interest and further to pay compensation as well as litigation expenses.

2.                   Brief facts of the present complaint, as alleged by the complainant, are that he is having a saving account bearing No. 08721000005822 with the OPs Bank  and OPs Bank represented to the complainant that they are going to issue a Credit Card to him upto the limit of Rs. 20,000/- as the complainant is running his saving account very smoothly with them. The complainant started using the said card but after some time he has found that a huge balance has been shown to the extent of Rs. 40,421/29 and when he approached the officials of the OP No.1 then they disclosed that if the said card is used below Rs. 300/- and more than Rs. 900/- in a single time then surcharge would be applied and the said amount has taken place due to this. When, the complainant refused to make the said illegal payment, then the officials of the OP No.1 asked that if a sum of Rs. 15,500/- is paid to them they will settle the account of complainant. Accordingly, the official of the OP No.1 issued a settlement letter in which an amount of Rs. 15,500/- has been shown to be paid in 7 installments. Accordingly, the complainant deposited a sum of Rs. 9,145/- on 28.01.2011 i.e. installments of October, 2010 to January, 2011 and also deposited a sum of Rs. 2115/- on 08.02.2011. In this way only two installments for March & April 2011 of Rs. 2120/- each were due towards the OP No.1.  In his saving account, a sum of Rs. 24094/- as on 15.01.2011 was lying  and he had issued a cheque No. 039247 to one Narender to the tune of Rs. 23,320/- on 14.01.2011 which had been got dishonoured by the Op No.1 Bank on 21.01.2011 with the reason “ Fund Insufficient” whereas in the said account sufficient balance was in existence. Due to dishonour of cheque, the reputation of the complainant has been jeopardized in general public and the said person is threatening to implicate the complainant in criminal proceedings. Thereafter, the complainant received a letter from Op No.2 in the month of March, 2011, which had been issued on 16.01.2011 by virtue of which the entire balance of saving account had been transferred i.e. Rs. 24,094/- in Credit Card, whereas in that account the settlement had already been taken place and complainant had already deposited the amount in the said account according to settlement  and only two installments of March 2011, which had been issued on 16.01.2011 by virtue of which the entire balance of saving account had been transferred in Credit Card whereas in that account the settlement had already taken place and complainant had already deposited the amount in the said account according to said settlement and only two installments of March and April, 2011 were due. As such, there is a great deficiency in service and unfair trade practice on the part of OPs Bank and the complainant is suffering a lot due to act and conduct of OPs Bank. Hence, this complaint.

3.                     Upon notice, OPs Bank appeared and filed its written statement by taking some preliminary objections such as present complaint is not maintainable; the complainant has no locus standi to file the present case; the complainant is estopped from filing the present complaint due to his own act and conduct; the complainant has concealed the true and material facts from this Forum and has not come to this Forum with clean hands; there is no relationship of consumer and supplier between the parties and on merit it has been submitted that the complainant himself had approached the OPs Bank and requested to issue the credit card and prior to issuance of said , all the terms and conditions were narrated to him and he after satisfying himself has agreed to purchase the said card. It has been further submitted that the complainant has remained defaulter in making the payment of the amount due and requested the OPs Bank to waive off the amount and accordingly, the OPs Bank at the request of complainant arrived at a compromise with the complainant and asked him to pay Rs. 15,500/- in 7 installments against the outstanding amount of Rs. 38,511.13 which was duly agreed by complainant. Accordingly a settlement letter No. Sol. No. S 85225 dated 20.10.2010 was issued to the complainant in which terms and conditions had been mentioned and the same had also been read over to the complainant and it was told to him that he is bound to make the payment on due date, failing which this settlement offer would be rendered null and void and he would be required to pay entire outstanding at the point of time. The complainant instead of complying with the terms and conditions of settlement letter, has not deposited the settled installments and make the payment on dated 28.01.2011 to the tune of Rs. 9145/- and thereafter on 08.02.2011 to the tune of Rs. 2115/- instead of making payment from 20.10.2010, therefore, the said settlement became void and the complainant is liable to pay the entire outstanding amount till realization. It has been further submitted that as per Section 171 of Contract Act, the bank has every right to lien and right of set off, which has been legally done by the OPs Bank. Hence, there is no negligence and deficiency in service on the part of OPs bank and the complainant cannot take benefit of his own wrong and lastly prayed for dismissal of complaint.

4.                     In support of his case, counsel for the complainant tendered into evidence affidavit of complainant as Annexure CX and documents such as photo copy of settlement letter as Annexure C-1, Photo copy of cheque of Rs. 23,320/- as Annexure C-2, Photo copy of cheque bounce letter for return of cheque as Annexure C-3, Photo copy of UCP as Annexure C-4, Photo copy of receipt of Rs. 2115 dated 08.02.2011 as Annexure C-5, Photo copy of receipt of Rs. 9145/- dated 28.01.2011 as Annexure C-6, Photo copy of letter dated 16.01.2011 as Annexure C-7, Photo copy of statement of account as Annexure C-8 and closed the evidence on behalf of complainant.

5.                     On the other hand, counsel for the OPs Bank tendered into evidence affidavit of Aman Gupta, Manager, HDFC Bank Limited as Annexure RX and documents such as International Gold Card booklet  as Annexure R-1, Photo copy of terms and conditions as Annexure R-2, Photo copy of Credit Card Application Form as Annexure R-3, Photo copy of duplicate statements (Credit Card Statements) as Annexure R-4 to R-15, Photo copy of amicable settlement as Annexure R-16, Photo copy of courier receipt as Annexure R-17, Photo copy of notice dated 16.01.2011 as Annexure R-18 and Annexure R-19 which is not legible and closed the evidence on behalf of the OPs Bank.  

6.                     We have heard the learned counsel for both the parties and have gone through the pleadings as well as documents placed on file very carefully and minutely.

7.                     It is not disputed that complainant was having a saving bank account bearing No. 08721000005822 with HDFC Bank i.e. OP No.1 Bank and further he had availed a credit card facility from the OP No.1. It is also not disputed that an amount of Rs. 40,421.29 has been shown as balance on account of using the card below Rs. 300/- and more than Rs. 900/- in a single time. It is also admitted fact that a settlement of Rs. 15,500/- had been taken place between both the parties and in this regard a settlement letter has been issued by the OPs Bank and amount of Rs. 15,500/- was to be paid in 7 monthly installments i.e. Ist installment on 20.10.2010 for Rs. 2800/-, 2^nd installment on 07.11.2010 for Rs. 2115/-, 3^rd installment on 07.12.2010 for Rs. 2115/-, 4^th installment on 07.01.2011 for Rs. 2115/-, 5^th installment on 07.02.2011 for Rs. 2115/-, 6^th installment on 07.03.2011 for Rs. 2120/- and 7^th installment on 07.04.2011 for Rs. 2120/-. It is also not disputed that complainant deposited a sum of Rs. 9145/- on 28.01.2011 and also deposited a sum of Rs. 2115/- on 08.02.2011, which is evident from Annexures C-5 and C-6.  

8.                     Learned counsel for the complainant argued that a settlement had taken place with the OPs Bank and as per settlement an amount of Rs. 15,500/- was shown to be paid to the OPs in seven installments. Accordingly, the complainant deposited a sum of Rs. 9145/- on 28.01.2011 i.e. installments of October 2010 to January 2011 and also deposited a sum of Rs. 2115/- on 08.02.2011. In this way only two installments for March and April 2011 of Rs. 2120/- each were due towards the OP No.1 Bank whereas the Ops Bank transferred an amount of Rs. 24,094/- in lieu of Credit Card from his saving account. Learned counsel for the complainant further argued that the complainant issued a cheque bearing No. 039247 to one Narender to the tune of Rs. 23,320/- on 14.01.2011 which had been dishonoured by the OP No.1 Bank on 21.01.2011 with the reason “ Funds Insufficient” whereas the complainant is having a sufficient amount in his account at the time of issuance of cheque which constitute the deficiency in service and unfair trade practice on the part of Ops Bank and lastly prayed for acceptance of complaint.

9.                     On the other hand, counsel for the Ops Bank argued at length that at the request of complainant they have arrived at a compromise and as per compromise a settlement letter dated 20.10.2010 was issued to complainant in which terms and conditions had been mentioned and according to compromise the complainant was required to Pay Rs. 15,500/- in 7 installments against the outstanding amount of Rs. 38.511.13 failing which the settlement offer would be rendered null and void and he would be required to pay entire outstanding amount. Learned counsel for the OPs Bank further argued that the complainant has not deposited the settled installments and make the payment on dated 28.01.2011 to the tune of Rs. 9145/- and thereafter on 08.02.2011 an amount of Rs. 2115/- instead of making payment from 20.10.2010, therefore, the said settlement became void and the complainant is liable to pay the entire outstanding amount till realization. As such, there is no deficiency in service on the part of OPs Bank and lastly prayed for dismissal of complaint.

10.                   After hearing both the parties, we are of the considered view that there is a deficiency in service and unfair trade practice on the part of OPs bank as from the perusal of settlement letter Annexure R-16/ C-1, it is evident that the complainant was required to pay  an amount of Rs. 9145/- till 07.01.2011 out of Rs. 15,500/- and the same has been deposited by the complainant vide receipt dated 28.01.2011 which is evident from Annexure C-6 and thereafter the complainant deposited a sum of Rs. 2115/- on 08.02.2011 which is evident from Annexure C-5 and the remaining amount of Rs. 4240/- was to be deposited by the complainant in two installment in the month of March & April 2011 whereas the Ops Bank has placed “put hold on funds” on 16.01.2011 and later on withdrawn the amount of Rs. 24094/- from the account of the complainant on 31.01.2011 which is duly evident from the copy of letter Annexure C-7 dated 16.01.2011 issued by the OPs Bank to the complainant. No doubt complainant did not comply with the terms and conditions of the settlement letter Annexure C-1 and did not deposit the monthly Ist four (4) installments in time but when the complainant made the payment due against him as per settlement letter Annexure C-1 up to 07.01.2011 on 28.01.2011 by making payment of Rs.9145/- and the OPs Bank accepted the same without any protest then the OP Bank was having only right to recover the balance amount of Rs. 6345/- ( 15,500- 9145= 6345) from the complainant but the OPs Bank transferred the amount of Rs. 24094/- from the account of the complainant on 31.01.2011. Further, even the complainant deposited next 5^th installment on 08.02.2011 of Rs.2115/- which was due on 07.02.2011 and this installment was also accepted by the Op Bank without any protest. In this way, only two installments of amounting to Rs. 2120/- each for March and April 2011 i.e. total amount of Rs. 4240/- were due against the complainant which was due on 07.03.2011 and 07.04.2011 respectively but the Op Bank illegally and wrongly withdraw the amount of Rs. 24,094/- from the account of the complainant on 31.01.2011 prior to the due date as per settlement letter which constitute the deficiency in service on the part of OP Bank. The arguments advanced by the counsel for the complainant that complainant has suffered financial loss as well as mental agony as a cheque of Rs. 23,320/- was dishonoured due to negligence of the OPs Bank is not tenable because the complainant himself was at fault due to not making payment of installments as per settlement letter Annexure C-1 and OPs Bank was having right to put lien on the funds pending in the account of the complainant. Accordingly, a hold was put on fund by the OPs Bank on 16.01.2011 prior to presented the cheque in question which was return as “Insufficient Fund” so, we are of the considered view that the complainant is not entitled to get any compensation on this account.

11                    Overall taking into consideration all the facts of the case and a settlement which was taken place between the parties and according to that settlement, complainant deposited an amount of Rs. 9145/- + 2115= 11260/- to the Op Bank out of Rs. 15,500/- which was payable up to 07.04.2011 whereas the OP Bank had withdrawn the amount of Rs. 24094/- from the account of the complainant on 31.01.2011. So, we are of the considered view that the complainant is entitled to refund of remaining amount of Rs. 19854 ( 24094-4240= 19854/-).

12                    Resultantly, we partly allow the complaint of complainant and direct the OPs Bank to refund an amount of Rs. 19854/- to the complainant within a period of 30 days after preparation of copy of this order failing which complainant shall be entitled to recover the interest at the rate of 7% per annum from the date of filing of complaint till its realization. Parties are left to bear their own costs. Copies of this order be sent to the parties concerned free of costs as per rules. File be consigned to the record room after due compliance.

Announced in open court: 27.02.2017.

 

                                                                                    (ASHOK KUMAR GARG)

                                                                                    PRESIDENT

                                                                                    D.C.D.R.F. YAMUNANAGAR.

 

 

                                                                                     (S.C. SHARMA)

                                                                                      MEMBER