BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-I, U.T. CHANDIGARH

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Complaint  Case  No : 179 of 2010

Date of Institution :  17.03.2010

Date of  Decision   :  19.12.2011

Vikas Bhatnagar, C-18B, D.D. Puram, Bareilly, U.P.

 ….…Complainant

V E R S U S

[1] HDFC Bank, SCO No. 78-79, Sector 8, Chandigarh, through its Branch Manager.

[2] HDFC Bank Credit Cards Division, 51-52, Ph-3B2 Mohali, through its Branch Manager.

[3] Bajaj Allianz Insurance Company, SCO No.139-140, Sector 8-C, Chandigarh, through its Branch Manager.

.…..Opposite Parties

CORAM:  Sh.P.D. GOEL                     PRESIDENT

SH.RAJINDER SINGH GILL            MEMBER

           DR.(MRS).MADANJIT KAUR SAHOTA        MEMBER

Argued by: Sh.Hitesh Verma, Counsel for Complainant.

Sh.Sandeep Suri, Counsel for OPs No.1 & 2.

Sh.Varun Chawla, Proxy counsel or Sh.Rajneesh Malhotra, Counsel for OP No.3. .

PER RAJINDER SINGH GILL, MEMBER

         The brief factual backdrop culminating into the present complaint is that believing the rosy pictures portrayed by the OPs regarding their Credit Card and unmatched customer service, the Complainant opted for the same and a credit card bearing no. 5176351003393521 was issued to him. It was alleged that in March/April 2009, on receipt of credit card statement, he came to know that one Bajaj Allianz Policy was issued to him, which he never opted for and it was only after great efforts that the same was got cancelled. Subsequently, the Complainant also got his aforesaid credit card cancelled. It was further alleged that to his utter shock, despite being nothing against him, the Complainant received summon dated 20.8.2009 from the Lok Adalat, District Courts, Chandigarh on a complaint moved by OP Bank against him, for non-payment of outstanding amount, on his aforesaid credit card. He, immediately, sent letters and e-mails to the OPs, upon which he was informed that there was an outstanding amount of Rs.1296.16/-, due to non-receipt of payments, finance charges and late payment charges billed against his credit card. Adding insult to the injuries, the OPs started harassing him in one way or the other and were hurling threats to pay the outstanding amount to avoid the consequence of issuance of non-bailable warrants. When all the frantic efforts made by the Complainant failed to elicit any fruitful results, he got served a legal notice dated 05.02.2010, as a measure of last resort, calling upon the OPs to redress his grievance, but the same came back with refusal report. Hence this complaint, alleging that the aforesaid acts of the OPs amount to deficiency in service and unfair trade practice.

2]       Notice of the complaint was sent to OPs, seeking their version of the case.

3]       OPs in their joint reply, while admitting the factual matrix of the case, pleaded that the Complainant himself opted for the Bajaj Allianz Insurance Policy, the premium of which was to be made through the credit card. The Complainant seems to have opted for the cancellation of the said policy with the insurance company, however, the same was not reversed and hence, the amount continues to be shown in the credit card account. The credit card was never closed. It was asserted that the Complainant was called for conciliation and settlement of dispute, however, he chose not to appear. The Complainant was repeatedly requested to clear his dues, however, he failed to do so. It was submitted that apart from normal collection calls, as was permissible by the RBI, no threat was used. Finally, the payment was made and the amount due became zero. All other material contentions of the complaint were controverted. Pleading that there was no deficiency in service on their part, a prayer has been made for dismissal of the complaint.

4]      OP-3 (Bajaj Alliance) also filed reply stating therein that the complainant did not mention the insurance policy number or to give any details thereof, thus, they are unable to trace the relevant policy record.  It is also stated that as mentioned by the complainant, the policy was got cancelled by him, therefore, there is no grievance/cause of action against the answering OP. Even in Ann.C-1 & C-2 no policy number is mentioned. It is submitted that any communication by the complainant was made to OP-1, therefore, neither there is any allegation regarding any deficiency in service on the part of the OP nor any cause of action has arisen to the complainant qua answering OP. Pleading no deficiency in service and denying rest of the allegations of the complainant, it is prayed that the complaint be dismissed.  
5]       Parties led evidence in support of their contentions.

6]       We have heard the learned counsel for the parties and have also perused the record.

7]         It is the case of the complainant that OPs No.1 & 2 had shown him rosy pictures about the benefits of their Credit Card. The complainant had paid for the same and was issued Credit Card No. No.5176351003393521 in the year 2006.  In 2009, he got Statement of Account of his credit card from OPs No.1 & 2 and was surprised to see that a policy of Bajaj Allianz Insurance Company was shown to have been issued to him, for which he had never opted, nor agreed or signed any document with OPs.  Thereafter, he approached the OPs No.1 & 2 for reversal of the premium amount and for cancellation of Policy from OP-3, but they did not do anything.  Then, the complainant at his own got the policy cancelled, but inspite of that the OPs No.1 & 2 did not reverse the entry of premium amount against his credit card account.  It is also the case of the complainant that the OPs No.1 & 2 instead have been compelled the complainant to deposit Rs.19,673/-, showing the same as outstanding and they have used coercive methods and also filed a complaint against him in the District Courts, Chandigarh for non-payment of outstanding amount on his credit card. The complainant on being compelled had to deposit a sum of Rs.19,730/- with OP Bank on 11.11.2009 vide Receipt Ann.C-4.

8]       On the other hand, the OPs No.1 & 2 had contended that it was on the complainant’s instruction; they got the insurance policy issued from OP-3 (Bajaj Allianz) and paid the premium amount to OP-3, which was subsequently made a party.  It is also contended that the complainant himself had opted for purchase of said insurance policy being issued by Bajaj Allianz Insurance Company and it was confirmed by him on telephone. It is further contended that the complainant did not pay any amounts due to the bank.

9]       OPs No.1 & 2 has not placed on record any documentary evidence such as the instruction, consent or acceptance ever given by the complainant for purchase of any insurance policy from OP-3 Company through them against his credit card account.  Therefore, this plea of OPs No.1 & 2 is not tenable.   

10]      Moreover, OPs No.1 & 2 had admitted in their reply at Para No.3 that they are ready to reverse all the charges that had been levied in the credit card account of the complainant, subject to the complainant completing all necessary formalities as required for the purposes of cancellation of the policy issued by insurance company.  However, OPs No.1 & 2 have not been able to clarify as to what type of formalities the complainant had to complete for getting the amount reversed in his account.  Once it is proved that complainant had not opted for any such policy, he is not liable to complete any formalities. The policy should have been got cancelled by OPs No.1 & 2 at their own from OP-3 the way they got it issued.

11]      The OPs No.1 & 2 has also failed to prove on record that the policy document was ever supplied/delivered to the complainant after getting the same issued from OP-3 Company.  When complainant did not receive any policy document, terms & conditions, he is not bond by that nor liable for the same.  

12]      In view of the foregoing, we are of the opinion that OPs No.1 & 2 were grossly deficient in rendering proper services and have also indulged in unfair trade practice, thereby causing financial loss to the complainant as well as mental agony & physical harassment.  The complaint has lot of merit.  We therefore allow this complaint.  OPs No.1 & 2 are directed to refund a sum of Rs.19,730/- to the complainant deposited vide Ann.C-4 and to issue him No Due Certificate against his credit card account.  They are also directed to pay compensation of Rs.10,000/- along with litigation cost of Rs.5500/-.  However, OPs No.1 & 2 are at liberty to recover premium amount of Rs.19,730/- from OP-3 Insurance Company, at their own, as per law. 

13]      The complaint qua OP-3 stands dismissed as no deficiency in service is proved against them.

14]      This order be complied with by the OPs No.1 & 2, within a period of 30 days, from the date of receipt of its copy, failing which they would be liable to pay the awarded amount, alongwith interest @ 12% p.a. from the date of filing of the present complaint i.e. 17.03.2010, till the amount is actually paid to the complainant, besides paying the litigation cost of Rs.5500/-.       

15]      Certified copies of this order be sent to the parties free of charge.  The file be consigned.