Delhi

North

CC/51/2019

M/S. ROYAL VALUE CARDS PVT. LTD. - Complainant(s)

Versus

HDFC BANKS LTD & ANR. - Opp.Party(s)

K.B. SHANKAR

02 Aug 2023

ORDER

District Consumer Disputes Redressal Commission-I (North District)

[Govt. of NCT of Delhi]

Ground Floor, Court Annexe -2 Building, Tis Hazari Court Complex, Delhi- 110054

 

CC No.:51/2019

 

M/s Royal Value Card Pvt. Ltd.,

Through its Authorised Director  ,

WZ-112 Meenakshi Garden,

Near Subhash Nagar, Metro Station,

Tilak Nagar, Delhi-110018                            …                Complainant

                                                                                                Vs

 

HDFC Bank Ltd.

Through its Vice President

HDFC Bank House,

2^nd Floor, Senapati Bapat Marg,

Lower Parel, Mumbai-400013.                            …                  Opposite Party No.1

 

HDFC Bank Ltd.

Through its Branch Manager

39, Shradhanand Marg,

Delhi-110006.                                                                     …      Opposite Party No.2

 

ORDER

02/08/2023

 

Ashwani Kumar Mehta, Member:

 

(1)          The present complaint has been filed under Section 12 of the Consumer Protection Act, 1986 against the Opposite Parties alleging deficiency in service coupled with unfair trade practices by not realising the amount of the Complainant and not disclosing the true accounts status to the Complainant.

 

(2)          The brief details of facts, as alleged by the Complainant in the Complaint in hand, are that the Complainant is having an account with OP-2 which is the branch of OP-1.  One Sh. Surendra Bahadur Singh S/o Sh. Dinanath, R/o Village-Jirha, Post office- Badgaon, Tehsil Ameethi, District- Ameethi, U.P. (herein referred as the "Third Party") purchased 16 different cards of M/s Royal Value Cards Pvt. Ltd (herein referred as the "Complainant") of worth Rs.3,70,000/- (Rupees Three Lakh Seventy Thousand Only) on different dates for providing the hotel bookings during the tour, gifts, consumer items purchase, health check-ups etc. but the complainant has not provided such facilities and therefore, third party did not utilise the said cards. The complainant promised him to return the amount of remaining unused cards with interest. He made several communication to the complainant through letters/correspondence, telephonic calls and even individually for returning the amount of Rs.3,70,000/- with interest and other benefits but the complainant did not discharge its liabilities. Sh. Surendra Bahadur Singh (third party), therefore, filed the consumer complaint before Hon'ble District Consumer Redressal Forum, Ameethi, U. P. bearing CC/No.308/2014 titled as "Sh. Surendera Bahadur Singh versus Royal Value Card Private Ltd. and Anr." which was allowed and an award of Rs.3,70,000/- principal with 7% simple interest on the principal from the date of filing of the complaint till date of realisation, Rs. 50000/- as compensation of damage to the third party and alongwith the litigation charge is Rs.50,000/- was passed by the Hon'ble Consumer Forum, Ameethi on dated 03.05.2016 which was to be paid within one month of the order but the Complainant failed to do so and DH/third party filed the execution petition bearing no. 07/2016 (israi vaad 07/2016) titled as "Sh. Surendera Bahadur Singh versus Royal Value Cards Pvt. Ltd. " before the Hon'ble Consumer Forum, Amethi and after receiving the notice, the complainant settled the matter with third party for Rs.2,70,000/- as a whole on dated 12.04.2018 and Affidavit cum settlement papers were executed and filed before the Hon'ble Consumer Forum Amethi on which the Hon'ble Consumer Forum, passed the order on the 12.04.2018 wherein the Complainant (Royal Value Cards Pvt. Ltd.) had furnished details of its account as 502xxxxxxx7940, at, 39, Shradhanand Marg, Ajmeri Gate Delhi/ OP No.2 alongwith  execution for direct transfer of the agreed and compromised amount in the said matters in a good faith that the amount would be credited to the account of the Third party as the complainant had come to know from the through Mr. Fahad, an employee of  OP No. 2 and even the complainant made the written letter to the branch manager of OP No.2 for obtaining the account status of the complaint through its representative in the month of February 2017 which was duly acknowledged by the OP No.2.

 

(3)          The complainant has also submitted the complete original certified copies of the said matter with the order of Hon'ble Consumer Forum, Amethi, Uttar Pradesh to OP No.2 for payment to third party on which was acknowledged by the OP No.2 to the complainant on 05.05.2018 but the amount was not transferred to Third party. The complainant made two communications with the OP No.1 /OP No.2 on 17.05.2018 and 25.05.2018 for releasing the amount to third party from the complainant's account maintained with the OP No.2 and the third party also had the discussion with the OP on 24.05.2018 but the OPs did not take any action to transfer the amount to third party for which the complainant agreed and settled to pay to third party. Therefore, the third party again moved an application before the Hon'ble Consumer Forum, Amethi on 11.09.2018 u/s 25/27 of Consumer Protection Act, 1986 and the Hon'ble Consumer Forum issued show cause notice and summoned the complainant to appear before the Hon'ble Consumer Forum, Amethi, UP. Accordingly the Complainant appeared before the Hon'ble Consumer Forum, Amethi Uttar Pradesh on 12.11.2018 and  submitted its reply thereof to the above mentioned Hon'ble Forum on 12.11.2018 and thereafter, on  22.11.2018 the third party moved another application before the Hon'ble Consumer Forum, Amethi, UP, for taking proceedings u/s 25/27 under Consumer Protection Act, 1986 and the dates were fixed thereafter by the Hon'ble Consumer Forum, Amethi, U.P. and the Complainant was noticed to appear and then the Complainant again has to face the judicial proceedings against the Complainant which is deliberately caused by the OPs for not discharging its liabilities to transfer the amount to third party as per the instructions of the complainant and has, therefore, attracted the provisions of the Consumer Protection Act, 1986 for the deficiency of services and unfair trade practices, as alleged by the complainant.

 

(4)          It has specifically been alleged by the Complainant that none of the OPs have responded to the communications made by the Complainant and third party. The Complainant has also made its representation before the OP No.2 through its representative for obtaining the account status of the Complainant in the month of February, 2017 but the OP No.2 did not provide the same to the Complainant and hence, the Complainant was not properly informed about his account status correctly. Therefore, the OP No.2 breached the contract between the Complainant & OP and performed the illegal act which amounts to deficiency of services alongwith the unfair trade practices in the ambit of the Consumer Protection Act, 1986 amended till date. It is further alleged that the complainant through its representative asked in the mid of the month of February, 2017 to the Manager Mr. Fahad for the withdrawal of amount in any case between the Complainant and third party in a court order matter, then the above stated manager stated that it would be done as there is the court order. Therefore, the OP had made the false commitment towards the Complainant in this case/matter/complaint which clearly shows that the OPs are involved in unfair trade practices with the deficiency of the services. Therefore, the present complaint has been filed with the prayer :-

1. to allow the present complaint.
2. to direct the OPs to transfer the settled and compromised amount of Rs.2,70,000/- in the account of the third party with the amount of damages, compensation, and 18% of interest p.a. alongwith the litigation charges from the date of filing of the complaint of the third party before the Hon'ble Consumer Forum, Amethi, U. P.
3. to direct the OPs to pay the damages to the Complainant calculated at the rate of 1.5% per month on the amount of Rs.2,70,000/- from the date of filing the consumer complaint before the Hon'ble Consumer Forum, Amethi, U.P. till date of the disposal of the present matter/complaint of the Complainant.
4. to direct the OPs to pay the damages/compensation to the Complainant of Rs.10,00,000/- on account of mental and physical harassment suffered by the Complainant.
5. to direct the OPs to pay the litigation cost of Rs.1,00,000/- to the Complainant.

 

(5)          Accordingly, notices were issued to the OPs and in response to the Notice issued, the OPs have filed reply jointly stating that the Complainant has withheld and/or misstated facts most germane which are necessary for a proper adjudication of the grievance raised. While the Complainant has stated that it is the holder of an account no. 502xxxxxxx7940 with the OPs, it has deliberately and maliciously glossed over the fact that the said account is a Current Account; one which is utilised by it in furtherance to its business activities. In light of the said fact, the Complainant does not fall within the definition of 'consumer' as defined under Section 2(1)d of the Consumer Protection Act, 1986 ["the Act"] as it is availing the services offered by the OPs, admittedly, for commercial purposes. Not being a 'consumer' as defined under the Act, the present complaint is liable to be dismissed for want of jurisdiction.

(6)          The OPs have further contended that the Complainant has also not come before the Court with clean hands inasmuch as it has categorically failed to disclose the fact, which is well within its knowledge and reflected from the Complainant's own documents, that the Current Account has been in a state of 'Debit Freeze' since 02.05.2015 and that too on account of the OPs having been served with a Police Notice dated 01.05.2015 relating to an FIR No.70/2015 registered at PS. Supa, Ahmednagar, Maharashtra. The fact that the Complainant is aware of the said developments is evident from Annexure C- filed by the Complainant itself, wherein Sh. Kumar Bhawani Shankar has been authorised to receive Request Letters pursuant to alleviating the status of the Current Account held by M/s Royal Value Cards Pvt. Ltd./Complainant from 'Inactive/Freeze'. However, as demonstrated hereinafter, the Complainant has not brought the said facts to the notice of not only this Forum but also other judicial authorities and third person and issued false assurances to all and sundry. The despicable conduct of the Complainant warrants dismissal/ rejection of the present complaint on this ground also. It is further stated by the OPs that the present complaint is frivolous and based on false and fabricated facts and has been filed with the malicious intent of obtaining unjust monetary benefits at the cost of the OPs. It is settled principle of Law that a benevolent legislation, such as the Act, cannot be misused for personal gains sans any basis. The Complainant is trying to use the Act in a manner so as to cause unjust gains to itself at the cost and prejudice of the OPs. The claims as stated, being bereft of any corroborative material, are nothing more than afterthought and a mischievous attempt to wriggle out of judicial liabilities/ compensation payable by the Complainant and the claims are hence, liable to be rejected alongwith the complaint as a whole.

 

(7)          The OPs have admitted that the Complainant, M/s Royal Value Cards Pvt. Ltd. is a banking services customer of the OPs and is holding the Current Account number 502xxxxxxx7940 with the OP No.2 branch. The Current Account was opened on 19.06.2014 and is admittedly used by the Complainant herein in furtherance to its commercial activities. The certificate issued by the OPs reflecting material particulars relating to the Current Account has been annexed as Annexure R-2. Within a year of the Current Account being operational, the OP No.1 branch at Parner, Ahmednagar, Maharashtra ["Parner Branch"], received a Police Notice, on 01.05.2015, relating to FIR No. 70/2015 dated 01.04.2015 from P.S. Supa, Ahmednagar, Maharashtra ["Police Notice''] directing the OPs to block the Current Account. In view of the instructions received from law enforcement agency, the OPs placed a 'Debit Freeze' on the Current Account on 02.05.2015. Importantly, the said status of the Current Account is continuing till date, a fact which is within the knowledge of the Complainant. True copy of the police Notice has been annexed as Annexure R-3. On 05.05.2018, the OPs received some documents on behalf of the Complainant comprising of an Order dated 12.04.2018 passed in Ex. No.07/2016 in Consumer Complaint No.308/2014 ["Amethi Proceedings"] by the Hon'ble District Consumer Redressal Forum, Amethi, Uttar Pradesh [" Hon'ble Amethi DF"] alongwith a settlement agreement dated 12.04.2018 entered into between the Complainant and the Third Party ["Settlement Agreement"] and the Settlement Agreement has reference to the Current Account and stated that payment would be made through the said account to the Third Party. Thereafter, the OPs received certain representations from the Third Party on 17.05.2018 and 25.05.2018, requesting for transfer/ credit of the amount to his account from the Current Account. It has already been stated that the Complainant’s Current Account is presently in a state of 'Debit Freeze' on account of the police notice and no subsequent directions have been received by the OPs to lift the same and in the absence of any such lawful directions having been issued, the prayer sought by the Complainant cannot be entertained and the OPs cannot act upon any request from the Third Party in the given circumstances.

 

(8)          The OPs have also highlighted the conduct the complainant stating that the documents placed on record by the Complainant relating to the Amethi Proceedings make it manifest that the disputes brought before the Hon'ble Amethi DF were purely inter se the Complainant and the Third Party, which arose out of commercial dealings between them. Further, the Complainant was very much aware about the status of the Current Account (which had been put in a Debit Freeze state on 02.05.2015) at the time of executing the Settlement Agreement and making its submissions in the Amethi Proceedings before the Hon'ble Amethi DF. The OP has also referred to  the communication placed on record by the Complainant, being Annexure C-4, issued on its behalf in the month of February, 2017 wherein the Complainant has clearly sought information on certain formalities required to alleviate the status of the Current Account, which was 'non-operative' or 'Inactive/Freeze'. It has been pointed out by the OPs that despite being aware of the said circumstances, the Complainant misled the Hon'ble Amethi DF as well as the Third Party in so far as its ability to compensate the latter from the Current Account. It is beyond comprehension as to why the Complainant insisted on paying the Third Party through an account which it knew had become inoperative due to steps having been taken by law enforcement agencies. It is also pointed out by the OPs that instead of offering to pay the Third party through any other mode or account available to it, the Complainant was unnecessarily dragging the issue of compensating the Third Party by insisting on paying only though the freezed Current Account and the said manner, prolonging the harassment and hardship of the Third Party while at the same time trying to saddle liability on the OPs vide the present unlawful and mischievous complaint.

 

(9)          While praying for dismissal of the instant complaint with exemplary costs against the Complainant and in favour of the OPs, the OPs have pleaded that with the above stated conduct of the Complainant, it is clear that the present complaint has been filed without any basis or foundation. The Complainant's attempt at seeking a direction from this Hon'ble Forum for transfer of an amount from the Current Account to the Third Party is patently misconceived and a mischievous attempt on its part to obtain indirectly what it cannot obtain directly. The Complainant's conduct is deplorable and reflective of the cunning manner in which it has hoodwinked the whole judicial system these last few years and misled consumers like the Third Party. The fact of the matter remains that it is the Complainant alone which has to be blamed for not meeting the liabilities cast on the Hon'ble Amethi DF and the Settlement Agreement. The question of the Complainant's claim for damages/ compensation is utterly bereft of material, contrary to record, false fabricated, unfound and malicious.

 

(10)       Accordingly, the complaint has been examined in view of the facts of the case and averments/documents put forth by the complainant & OPs and it has been observed that the Complainant was holding a current account bearing number 502xxxxxxx7940 with the OP No.2 branch which was being used by the Complainant in furtherance to its commercial activities. Therefore, it can hardly be disputed that the services of the bank were hired or availed by the complainant for a commercial purpose. In this regard, the judgments passed by the Hon’ble Supreme Court in the matters of (1) Shrikant G. Mantri Vs. Punjab National Bank [(2022) 5 SCC 42] and  (2) M/s. National Insurance Co. Ltd. Vs. Harsolia Motors & Ors. in CA No. 5352-53 of 2017 decided on 13.04.2023 are relevant in this matter. In view of the law settled, the District Forum does not have inherent jurisdiction to entertain this Consumer Complaint and the complaint filed by the Complainant is not maintainable in this Commission. Hence, the complaint is liable to be dismissed.

(11)       It has also been observed that the Complainant was the well aware of the fact that the complaint is not maintainable in this Commission and on  the application under Section 26 of the Consumer Protection Act, 1986, read with Order 7 Rule 11 of the Code of Civil Procedure, 1908 filed by the OPs seeking dismissal of the complaint, the Complainant avoided to file reply after realizing that his mischief has been unveiled and accordingly, he offered to withdraw the complaint on 07.01.2020 which was opposed by the OPs on the ground that the complaint is vexatious and frivolous for which it should be dismissed with cost. Thereafter, the Complainant has not put appearance in any of the proceedings of this Commission. Besides, the Complainant’s conduct has also been found highly deplorable in light of the following observations:-

I)             A perusal of the documents placed on record by the Complainant relating to the Amethi Proceedings make it manifest that the disputes brought before the Hon'ble Amethi DF were purely inter se the Complainant and the Third Party, which arose out of commercial dealings between them;

II)            The Complainant was very much aware about the status of the Current Account (which had been put in a Debit Freeze state on 02.05.2015) at the time of executing the Settlement Agreement and making its submissions  before the Hon'ble Amethi DF.

c)        The Complainant has also misled the Hon'ble Amethi DF as well as the Third Party in so far as its ability to compensate the latter from the Current Account which it knew had become inoperative due to steps taken by law enforcement agencies. Further, instead of offering to pay the Third party through any other mode or account available to it, the Complainant has unnecessarily dragged the issue of compensating the Third Party by insisting on paying only though the Current Account. And in the said manner, has prolonged the harassment and hardship of the Third Party, while at the same time tried to saddle liability on the OPs by way of filing the present   complaint.

4.        The Complainant’s attempt of praying for directions,       

from this Commission, for transfer of an amount from the Current Account to the Third Party is a mischievous attempt on its part to obtain indirectly what it cannot obtain directly.

 

(12)       In view of the above observations, it is proved that the complainant’s conduct is highly deplorable and reflective of the cunning manner in which it has hoodwinked the whole judicial system at Distt. Consumer Commissions at Amethi & Delhi both and also the third party during the last few years. Therefore, we feel it appropriate to Dismiss this complaint with  cost of Rs.2,00,000/- upon the Complainant out of which Rs.1,00,000/- shall be paid to the OP-1 and OP-2 jointly in the name of HDFC Bank Ltd. and Rs.1,00,000/- shall be deposited in the “State Consumer Welfare Fund (L/Aid), SBI Account No.10310544717, IFSC No.SBIN0018175” within 30 days from the receipt of this order failing which the Complainant shall be liable to pay interest @ 9% per annum from the date of expiry of 30 days period.

 

(13)       Order be given dasti to the parties in accordance with rules. Order be also uploaded on the website. Thereafter, file be consigned to the record room.

 

 

                    ASHWANI KUMAR MEHTA                                           DIVYA JYOTI JAIPURIAR      

                    Member                                                                                     President       

            DCDRC-1 (North)                                                                        DCDRC-1 (North)