Tamil Nadu

South Chennai

512/2007

B.V.Ramanakumar - Complainant(s)

Versus

ICICI Bank Ltd.,Manager - Opp.Party(s)

M/S.Devika & T.Mohan

02 Mar 2017

ORDER

                                                                        Date of Filing :   11.12.2007

                                                                        Date of Order :   02.03.2017

DISTRICT CONSUMER DISPUTE REDRESSAL FORUM, CHENNAI (SOUTH)

     2^nd Floor, Frazer Bridge Road, V.O.C. Nagar, Park Town, Chennai-3

 

PRESENT: THIRU. S. PANDIAN, B.Sc., L.L.M.                       : PRESIDENT            

                 TMT. K.AMALA, M.A. L.L.B.,                                 : MEMBER I

               DR. T.PAUL RAJASEKARAN, M.A ,D.Min.PGDHRDI, AIII,BCS : MEMBER II

 

C.C.NO.512/2007

THURSDAY THIS 2^ND   DAY OF MARCH 2017

 

Mr. B.V.Ramanakumar,

F1, MRP Flats,

New No.4, Old No.57,

Second Cross Street,

Minor Trustpuram,

Choolaimedu,

Chennai 600 094.                                              ..Complainant

                                              ..Vs..

ICICI Bank Limited,

Rep. by its Manager,

No.1, Cenotaph Road,

Teynampet,

Chennai 600 018.                                              ..Opposite party.

 

For the Complainant                   :    M/s. S.Devika & T.Mohan     

For the opposite party                 :    Exparte.

 

ORDER

THIRU.   T.PAUL RAJASEKARAN ::    MEMBER-II      

This complaint is filed by the complainant against the opposite party to pay a sum of 31,386.85 together with interest and also to pay a sum of Rs.50,000/- as compensation for loss and mental agony and also to pay a sum of Rs.5,000/- as cost of the complaint.

 

1. The averment of the complaint are brief as follows:

       The complainant is an account holder with the opposite party and his account number is 000101570908.  The salary and other perks paid by his employer is regularly remitted into his account directly from Mumbai.   The complainant attempted to withdraw some amount on 19.5.2007 and was horrified to find that a sum of Rs.31,386.85 had been debited from his account.   The complainant immediately contacted the opposite party and sought clarification for such unauthorized debits of amounts in his  account and was informed vide letter dated 23.5.2007 that his account  had been marked for Rs.82,670.33 against dues towards Credit card account bearing No.4477470138178000 at Kotturpuram Branch at Chennai.

2.     The complainant states that a cheques that have been issued on 10.5.2007 and 17.5.2007 had been returned for lack of sufficient funds due to unauthorized removal of funds from his account by the opposite party.    The complainant caused issuance of a notice by a lawyer on 6.6.2007, calling upon the opposite party to credit a sum of Rs.31,386.85 and to pay compensation of Rs.50,000/-.  The opposite party despite receipt of the said notice, failed to respond or pay the amounts demanded by the complainant.    The complainant, however received a notice dated 15.6.2007 from the Kottupuram Branch of the opposite party, calling upon him to pay a sum of Rs.82,670.33 towards outstanding dues.

3.     The complainant was subjected to humiliation and mental trauma when cheques issued by him were dishonoured for lack of  sufficient funds due to the improper, illegal and deficient service on the part of the opposite party, he is liable to be paid a sum of Rs.50,000/- towards compensation.  Hence the complaint.

4. Written Version of  opposite party is  in brief as follows:

        The opposite party denies all the allegations that contents of the complaint filed herein except such facts that are specifically and put the complainant for the strict proof of the same.    The complainant had approached and applied for a credit card and the same was issued by the opposite party in credit card bearing No.4477 4701 3817 8000 after due verification of the documents submitted by the complainant.  For the purpose of availing the credit card the complainant had executed agreements and other related documents in accordance with the rules and regulations of the bank.  The opposite party further submit that the complainant after availing the said credit card had used the same for purchases / cash withdrawals at various places for which the opposite party effected the payments to the said shops and establishments.

5.     The opposite party further submit that if the card member / complainant fails and neglect to pay the amount within the due date, he is liable to pay interest on that amount and other applicable charges with penalties which are contractual and bindings that they are governed by the terms and conditions governing regulating the usages of credit card which is informed and sent to the card member / complainant with the Welcome Package at the time of issuing the credit card.  

6.     The opposite party submits that all the charges and penalties levied as per the banking policy and as per the guidelines of the Reserve Bank of India of which all the customers are will informed including the complainant.   In spite of repeated receipt of the statement furnished by the bank the complainant was least bothered either to pay the minimum amount due or to pay the total outstanding shown in the statements.    Whenever the bank or its officials sought for the payment the complainant have refused to pay the same in order to achieve his wrongful gain.   The bank had issued the credit card to the complainant under the good faith but the complainant has misused the same with criminal intention to cheat and defraud the bank.  

7.     On 22.5.2007 the opposite party in order to exercise their banking rights have marked a lien in the savings bank account of the complainant in consistence with the permitted rules and regulations of the Reserve Bank of India and the same have been communicated to the complainant vide a communication dated 22.5.2007.  On the same day i.e. 22.5.2007 the bank have been sent a Pre debit intimation to the complainant in accordance with the rules and regulations.   As a matter of fact the complainant had kept an outstanding of Rs.82,670.33 as on 22.5.2007 the bank bad lawfully debited a sum of Rs.31,385.85 on 25.5.2007 to the card No.4477 4701 3817 8000 from his savings bank account  since the complainant was chronic defaulter.   After adjusting the debited amount the complainant is still due and payable a sum of Rs.51,283.48 to the opposite party.    The relevant extract of the terms and conditions is given below :

In addition to the general right to set off or other right conferred by law or under any other agreement, ICICI Bank may, without notice, combine or consolidate the standing balance on the card account with any other accounts which the card member maintains with ICICI bank and its Group Companies, and set-off or transfer money standing to the credit of such other accounts in or towards the satisfaction of the card member’s liability to ICICI bank under his/her card account.

 

8.     It is submitted that the before the presentation of the cheques by the complainant that the bank had sent an SMS alert to the complainant as a regular practice with regard to the line marked in his savings account since the credit card account held by the complainant have become a defaulted account.   The opposite party bank have never committed any deficiency in service as alleged by the complainant and the compliant is liable to be dismissed.

9.      In order to prove the averments of the complaint, the complainant has filed proof affidavit as his evidence and documents Ex.A1 to Ex.A14 marked.  Proof affidavit of opposite party filed and Ex.B1 to Ex.B6 marked on the side of the opposite party. 

10.   At this juncture, the point for the consideration before this

        Forum is:  

 

1. Whether there is any deficiency of service on the part of the 

     Opposite party as alleged in the complaint?

 

2.  Whether the complainant is entitled to any relief as prayed for?

 

11. Point Nos. 1 & 2 :-

            The complainant is an account holder of opposite party’s bank, where his salary and other perks are being remitted in his account by opposite party.   On 19.5.2007 he found an amount of  Rs.31,386.85 had been debited from his account and the complainant contacted the opposite party sought clarification about the debit.  It was informed by the opposite party on 23.5.2007 that he had been lien of Rs.82,670.33 against dues in his credit card he had maintained.   In the mean time complainant had issued four cheques on 10.5.2007 and on 17.5.2007 which was returned with a mark of lack of funds.    The contention of the complainant is without his concerned Rs.31,386.85 was debited from his account where his salary and other allowance are credited in that account and there is no communication for the past three years from the Credit card division that too  he was paying his credit card due promptly.    

12.        The allegations raised by the complainant is that without his concerned a refund of Rs.31,386.85 was debited from his account for credit card payments and demanded a refund of Rs.31,386.85 with interest at the rate 12% from 19.5.2005.  It is contended because of this he had lost repudiation and suffered mental agony for which he was claiming Rs.50,000/- and for litigation charges claiming Rs.5000/-.

             

13.        The opposite party contended that if the card member /complainant fails and neglect to pay the amount within the due date, he is liable to pay interest on that amount and other applicable charges with penalties which are contractual and binding that they are governed by the terms and conditions governing regulating the usages of credit card which is informed and sent to the card member / complainant with the welcome package at the time of issuing the credit card.    The opposite party also contended that on 22.5.2007 the opposite party in order to exercise their banking rights have marked a lien in the savings bank account of the complainant in consistence with the permitted rules and regulations of the Reserve Bank of India and the same have been communicated to the complainant on 22.5.2007 and the same day the bank have sent a pre-debit intimation to the complainant in accordance with the rules and regulations.   As a matter of fact the complainant had kept an outstanding of Rs.82,670.33 as on 22.5.2007 the bank had lawfully debited a sum of Rs.31,385.85 on 25.5.2007 to the card No.4477 4701 3817 8000 from his savings bank account since the complainant was chronic defaulter.   Hence there is no deficiency in service on the part of the opposite party.  

14.        The opposite party had sent a letter to the complainant on 22.5.2007 stating he had a lien and an outstanding amount of Rs.82,670.33 and asking to pay within 7 days from the date of the letter Ex.B1.    The opposite party had submitted a statement dated 8.7.2008 stating that there was an amount of Rs.51,283.48 was due from the complainant (Ex.B2).    The statement Ex.B5  for the  period from 8.7.2003 to 8.3.2005 which clearly shows that the outstanding to be paid by the complainant to the opposite party.  Ex.B6 the statement dated 8.8.2005 the complainant is having an outstanding of amount Rs.82,670.30 on going through all these exhibits it is crystal clear that the complainant is a defaulter.

15.        The counsel for the opposite party  had submitted citations stated below:

2003-2-L.W. 517

IN THE HIGH COURT OF JUDICATURE AT MADRAS

The City Union Bank Limited Thirukattupalli Branch

by its Branch Manager

..Vs..

C.Thangarajan

Held that

 

     In view of the principles laid down by the Supreme Court in an unequivocal term we cannot say that the bank had committed an error in exercising its lien over the respondent’s FDR amount.    

THE STATE CONSUMER DISPUTES REDRESSAL COMMISSION, CHENNAI

F.A. NO. 189 /2012

(Against order in CC.20/2008 on the file of the DCDRF, Chennai (North)

R.Rani

..Vs..

ICICI Bank & another

Therefore it is evident the opposite party’s bank is entitled to exercise its right of lien and can debit any amount from the card holders account due on the credit card.  Therefore we hold that there is no deficiency in service on the part of the opposite party.

16.        Pursuant on the credit card application, in the statement of accounts submitted by the opposite party from Ex.B1 to Ex.B6 and the opposite party had clearly mentioned in their letter dated 22.5.2007 to the complainant “we have therefore exercise the rights of bankers lien whereby or bank has put lien charge over your S.B account for Rs.82,670.33 towards unpaid credit card dues.  Kindly note we will be constrained exercise our right of lien unset of in conformity to the terms and conditions of the credit card facility whereby the said line amount will be adjusted towards outstanding credit card use.   The opposite party had clearly informed the adjustment of the credit card use in S.B. account to the complainant and there is no question of saying not to debit any amount from the complainant account.   In view of this the complainant and the opposite parties action in debiting the credit card dues in complainants’ account is the right of the bank to make recovery.

17.        The prayer raised by the complainant to repay Rs.31,686.86 together with interest is not justifiable and the claiming the compensation of Rs.50,000/- from the opposite party is not agreeable by this forum since the complainant  is a defaulter and defaulter cannot asked the opposite party to repay the amount what is due to the bank which was debited from his saving account is an order.  Hence the complaint is dismissed.  No cost.   Thus the points 1 & 2 are answered accordingly.

            In the result the complaint is dismissed.  No cost.

              Dictated by the Member-II to the Assistant, taken down, transcribed and computerized by her, corrected by the Member-II and pronounced by us in the open Forum on this the  2^nd   day  of  March  2017.

 

MEMBER-I                        MEMBER-II                             PRESIDENT.

 

Complainant’s side documents:

 

Ex.A1- 10.5.2007  - Copy of cheque No.387751 drawn on ICICI bank.

Ex.A2- 17.5.2007  - Copy of cheque No.387762 drawn on ICICI Bank.

Ex.A3- 21.5.2007  - Copy of letter from complainant to opposite party bank.

Ex.A4- 21.5.2007  - Copy of credit card statement.

Ex.A5- 21.5.2007  - Copy of BPO No.837276 drawn on Indian Bank, Teynampet.

Ex.A6- 22.5.2007  - Copy of pre debit intimation from opposite party to

                             complainant.

Ex.A7- 22.5.2007  - Copy of Cheque return Memo.

Ex.A8- 23.5.2007 - Copy of reply from opposite party to the complainant.

Ex.A9- 31.5.2007  - Copy of telegram sent by the complainant to opposite party

Ex.A10- 6.6.2007  - Copy of legal notice.

Ex.A11- 11.6.2007         - Copy of initiation letter from VST Audio vision to the

                             Complainant.

Ex.A12- 15.6.2007         - Copy of detailed statement of the account of the

                             Complainant.

Ex.A13- 15.6.2007         - Copy of legal notice of the opposite party.

Ex.A14- 25.6.2007         - Copy of intimation letter from the Indian Hospital

                              Supplies Co. as to cheque bounce.

Opposite party’s side documents:   

 

Ex.B1 -  22.5.2007         - Copy of letter from the opposite party to the complainant.

Ex.B2-   8.7.2008  - Copy of statement.

Ex.B3-         -       - Copy of Address proof submitted by the complainant.

Ex.B4-         -       - Copy of credit card application from submitted by the

                             Complainant.

 

Ex.B5-         -       - Copy of statement for the period from 8.7.03 to 8.3.05

Ex.B6- 8.8.2005    - Copy of Statement.

 

MEMBER-I                        MEMBER-II                             PRESIDENT.