Haryana

Ambala

CC/333/2017

Baikunth Nath - Complainant(s)

Versus

IDBI Bank - Opp.Party(s)

In Person

21 Jun 2018

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, AMBALA.

Consumer Complaint No	:	333 of 2017
Date of Institution	:	26.09.2017
Date of Decision	:	21.06.2018

Baikunth Nath S/o Late Sh.Lajja Ram, R/o 20, Vikas Vihar, Ambala City.

 

.…Complainant

 

Versus

 

IDBI Bank, 12-14, Vikas Vihar Shopping Complex, Ambala City, through its Branch Manager.

                                                                                   …. Opposite Parties

 

Complaint Under Section 12 of the Consumer Protection Act

 

BEFORE:             SH.D.N.ARORA, PRESIDENT.

                             SH.PUSHPENDER KUMAR, MEMBER.

                  

For the Parties:     Complainant in person.

                        Mr.N.S.Malhotra, Adv., for the OPs.

 

ORDER

(D.N.Arora, President)

 

                             Brief facts of the present complaint are that the complainant deposited a sum of Rs.4,00,000/- in Suvidha Fixed Deposit vide receipt No.7691440 dated 03.09.2015 under consumer ID-76980482 for a period of 24 months and was to mature on 03.09.2017 (Sunday). The complainant availed the facility of Imperium Credit Card acknowledged by OP on 04.02.2016. The complainant visited the Bank-OP on 02.09.2017 for issuing instructions to renew the abovesaid deposit receipt for a period of 12 months which was carrying maximum interest i.e. @ 6.67% P.A. instead of 24 months duration and also requested to provide photocopy of the renewed receipt to complainant for record purposes as the original has to be retained principally by the OP. The Op assured the complainant to collect photocopy of renewed deposit receipt on 04.09.2017 but OP failed to provide status report of deposit receipt till 10.09.2017. Thereafter, on 11.09.2017, the complainant sent a written request by giving specific instructions upon this on 15.09.2017, the OP sent a reply alongwith photocopy of renewed deposit receipt No.83356604 for a period of 24 months which was carrying interest @ 6.50% per annum instead of a period of 12 months which was carrying maximum interest i.e. @ 6.67% P.A. despite request made by the complainant. The OP was maintaining Code of Customer Rights under the Banking Code & Standards Board of India and clause 2.1.1.D of said code is as under:

“Ensuring that our dealing with you rests on ethical principles of integrity and transparency”

Therefore, due to choice of Bank-OP, the complainant had caused a financial loss of Rs.1000/- per annum for a period of 2 years. This act and conduct of the Ops amounts to deficiency in service on their part.

2.                          Upon notice, the Op appeared and filed written statement by taking preliminary objection such as not maintainable, concealed the true and material facts and no cause of action. It is submitted that while availing Fixed Deposit Scheme, the complainant has signed a form for the same whereby he acknowledged the terms and conditions of fixed deposit. Furthermore, while purchasing the product of Imperium Credit Card, the complainant had acknowledged the terms and conditions of the product and agreed that “the Fixed Deposit will be linked to the cardholder’s Secured Credit Card account and the Fixed Deposit shall be converted into an auto-renewal mode with immediate effect”. The terms and conditions regarding renewal of F.D.R. had been mentioned in the card holder’s agreement under secured credit card and clause II (i) which is reproduced as under:

“(i) In the event that Card holder/joint fixed deposit holders, as the case may be has an existing Fixed Deposit with IDBI Bank, the Fixed Deposit will be linked to the Cardholder’s Secured Credit Card account and the Fixed Deposit shall be converted in to an auto-renewal mode with immediate effect. The prevailing rate of interest applicable at the time of auto renewal of the Fixed Deposit shall be applicable on the said Fixed Deposit amount”.

A copy of cardholder’s agreement was provided to card holder (complainant) with welcome kit, therefore, the complainant was bound by the agreement and clause thereof and could not claim any right. Furthermore, the Fixed Deposit is kept as security and not free from lien/charge of any change in the term of FDR. Thus, there is no deficiency in service on the part of Ops and prayed for dismissal of the present complaint with costs.

3.                          In order to prove the case, the counsel for the complainant has tendered the evidence by way of affidavit Annexure C-A and documents Annexure C-1 to C-3 and closed the evidence. On the other hand, counsel for the Ops has tendered the evidence by way of affidavit Annexure R-A and documents Annexure R-1 to R-6 and closed the evidence.

4.                          We have heard learned counsel for the parties and perused the record carefully and minutely.

5.                          It is admitted fact that the complainant has deposited a sum of Rs.4,00,000/- in Suvidha Fixed Deposit Scheme for a period of 24 months which was to be maturated on 03.09.2017 and Op issued the abovesaid FDR (Annexure C-3) in the name of the complainant. Admittedly the complainant has also availed Imperium Credit Card facility from Op by keeping the abovesaid FDR as a security. It is proved from Annexure C-1, the complainant approached the Op by way of submitting the application for renewal of the FDR for the period of one year. In response to the application given by the complainant, the Op had informed to the complainant that FDR which was issued got renewed with the Imperial Credit Card at prevailing rate on 03.09.2017 as per the term of the issued of the credit card. It is admitted fact that the OP has renewed the said FDR for the period of 24 months which carried the interest @ 6.50% per annum.

6.                          Main grouse of the complainant is that when the complainant had sent a letter to the Bank for renewal of the said FDR for the period of one year how they can renew the FDR for 24 months and OP was not competent to impose the condition for duration of the deposit on the money for 24 months for the choice of the Bank that too which is carrying lesser rate of interest so that the abovesaid act of the OP for renewal of the deposit for a period for two years unilaterally at a lesser rate of interest. On this point, the complainant draw our attention that rate of interest for the period of one year is applicable as per the Bank norm i.e. 6.75% and if FDR issued for 2 years the rate of interest shown 6.50% due to this reason the complainant has caused a financial loss Rs.1000/- per annum for the period on one year.

7.                          On the other hand, counsel for the OP has argued that the terms and condition of the Secured Credit Cardholder Agreement (Annexure R-6) in column II (i), which is reproduced as under:-

“(i) In the event that Cardholder/Joint Fixed Deposit Holders, as the case may be has an existing Fixed Deposit with IDBI Bank, the Fixed Deposit will be linked to the Cardholder’s Secured Credit Card account and the Fixed Deposit shall be converted in to an auto-renewal mode with immediate effect. The prevailing rate of interest applicable at the time of auto-renewal of the Fixed Deposit shall be applicable on the said Fixed Deposit amount.”

8.                          After perusal of the abovesaid provision mentioned above, there is no specific clause mentioned in this provision that the FDR will be renewed for the same period for the period which was earlier issued. As per the written statement the Op has specifically mentioned that as per terms and conditions of the Secured Credit Cardholder Agreement (Annexure R-6) whereby the complainant specifically agreed that unless prior written notice is received by the Bank, the Bank will automatically renew the deposit plus accrued interest for the same period. In the present case, the complainant himself approached to the Op for renewal of the FDR for the period of one year and the abovesaid fact has not been denied in reply filed by the OP in para 4 of the written statement. In that situation, as per the credit agreement the clause II (i) of Secured Credit Cardholder Agreement of auto-renewal policy is not applicable in the present case and the choice of the Bank for renewal of the FDR for two years is tentamount unfair trade practice. In this way, the OP did not act accordingly to well-established bank principal and caused wrongful loss to the complainant without any fault on his part.

9.                In view of the above discussion, we are of the view that the Bank has wrongly renewal the FDR for two years and the rate of interest on the said FDR for the said period is 6.50% and in this way the complainant has caused a financial loss of Rs.1000/- per annum. Therefore, we can easily hold that the complainant has certainly suffered financial loss and entire conduct of the Ops is deficiency in service as such in view of the above circumstances, it is appropriate to give the direction to the Op to renew the FDR in question under the customer ID 76980482 for the period of 12 months w.e.f. 03.09.2017 @ 6.75% per annum within a period of 30 days, if the Op failed to renew the FDR for the abovesaid period then complainant is entitled the difference/loss of the interest from 6.50% to 6.75% per annum. Hence, the present complaint is allowed with cost which is assessed Rs.3000/-. The Op is directed as under:-

1. To renew the FDR in question under the customer ID 76980482 for the period of 12 months w.e.f. 03.09.2017 @ 6.75% per annum within a period of 30 days after receiving the copy of the order if the Op failed to renew the FDR for the abovesaid period then complainant is entitled the difference/loss of the interest from 6.50% to 6.75% per annum till the compliance of the order.
2. To pay Rs.3000/- to the complainant towards compensation for mental agony, physical harassment and cost of litigation within a period of 30 days after receiving the copy of the order.

 

10.              A copy of this order be sent to the parties free of costs and file be consigned to record room after due compliance.

 

Announced on: 21.06.2018               Member                President