BEFORE THE DISTRICT CONSUMER DISPUTES

REDRESSAL COMMISSION, JALANDHAR.

Complaint No.391 of 2018

      Date of Instt. 21.09.2018

      Date of Decision:12.05.2022

Gargi Gupta W/o Vishal Gupta R/o Farm H. No.4.3 Nakodar Road near H. No.3, Estate Model Town, Wadala Road, Jalandhar.

..........Complainant

Versus

1.       Indusind Bank Limited, 10-R, Model Town, Jalandhar.

2.       Romesh Sobti MD, CEO

3.       Paul Abraham Chief Operating Officer

4.       Sumant Kathpalia, Head, Consumer Banking

5.       Sanjeev Anand, Country Head, Commercial Banking and Deputy Head

          C/o Indusind Bank Limited, 2401, Gen Thimmayya Road (Cantonment), Pune-411001

….….. Opposite Parties

Complaint Under the Consumer Protection Act.

Before:        Dr. Harveen Bhardwaj             (President)

                   Smt. Jyotsna                            (Member)

                   Sh. Jaswant Singh Dhillon       (Member)   

Present:       Sh. Bharat Bhushan, Adv. Counsel for the Complainant.

                   Sh. Vinay Kant, Adv. Counsel for OPs No.1 to 5.

Order

Dr. Harveen Bhardwaj (President)

1.                The instant complaint has been filed by the complainant, wherein she has alleged that one of the representative and executive of the OPs Shama Sagar during the sale process met the complainant. She allured the complainant to get the credit card facility from the OPs. At that time, she gave the false promises and even described the benefits which were not there. She never explained about the charges of the said credit card to the complainant. After having faith on her representations, the complainant agreed to get the credit card facility from the OPs. Accordingly, a card No.4147524024861002 was allotted/issued to the complainant. After sometime, some representative of the OP approached the complainant and asked for Rs.25,000/- on the ground that this amount was to be paid by the complainant as GST Charges to the OPs. The complainant was stunned. This fact was never informed to her. However, just to avoid the legal complications the complainant paid this amount vide receipt dated 17.01.2018. At that time, the representative also said Rs.530/- was also due. He further stated after paying Rs.530/- nothing would be due. Relying on the assurances of the representative of the OPs, the complainant paid this amount for the secure side an endorsement was made and the back of the receipt by the representative of the OP as full and final payment and further stated that nothing is due. This receipt was issued on 17.01.2018. Moreover, GST charges as stated by the OP were also paid vide receipt dated 02.01.2018. Thereafter complainant requested the OPs that she did not want to continue with this card. But that representative stopped picking the call of the complainant. Suddenly, the calls were received from the OPs to deposit Rs.1,00,000/- as joining fee and other charges. Complainant noticed that he is receiving the calls in July 2018. Complainant called immediately and stated that these expenses were never informed to her. When the complainant contacted the customer care of the OPs, they promised to cancel his card and further refund an amount of Rs.25,000/- which the OPs got as GST charges. Thereafter, many mails were sent and exchanged in between the complainant and the OPs, but all in vain.

2.                Due to the act and conduct of the OPs, even the sibble scoring of the complainant is also effected. Now the OPs are not settling the matter and further they are claiming Rs.1,50,000/- at present without any calculation and expenses. The expenses as joining fee were never informed by the OPs to the complainant. Moreover, when the OPs issued the receipts in January 2018, they further stated that nothing would be due. So, the OPs have stepped down from their commitments and they are claiming the expenses without any basis. Even the OPs vide their email dated 24.08.2018 stated that the receipt dated 17.01.2018 never stated that no outstanding was pending so, even the stand taken by the OP is wrong and false. Now the OPs are claiming Rs.1,57,329.53/- due. After 17.01.2018 till today the complainant never used the card in any context. The OPs have committed an unfair and restrictive trade practice and further committed the deficiencies service by giving the false assurances and charging the charges without any basis. The OPs are not entitled to get any amount whatsoever and their claim Rs.1,57,329.53/- as on 24.08.2018 is false and baseless and as such, the present complaint filed by the complainant with the prayer that the complaint of the complainant may kindly be accepted and OPs be directed to refund and pay an amount of Rs.25,000/- back to the complainant alongwith interest @ 24% from 02.02.2018 till its realization and Rs.1,00,000/- as compensation for causing mental tension and harassment to the complainant. Further, OPs be not entitled for an amount of Rs.1,57,329.53/- and OPs be directed to pay litigation expenses of Rs.30,000/-.

3.                Notice of the complaint was given to the OPs, who filed its joint written reply and contested the complaint by taking preliminary objections that the OPs have not committed any deficiency in service qua the complainant, hence the present complaint is not maintainable in the eyes of law under the provisions of Consumer Protection Act. It is further averred that the present complaint is filed on mere conjectures and surmises. The contents thereof are vexatious and malafide since it makes false and frivolous allegations against the OPs. There is no deficiency in service on the part of the OPs and therefore no case is made out against the OPs under the provisions of the Act. The present complaint is therefore, liable to be dismissed in limine with exemplary costs thereto under Section 26 of the Consumer Protection Act, 1986 to drag a well reputed Bank into unnecessary unwanted and speculative litigation. It is further averred that the complainant has failed to disclose any cause of action against the replying OPs, therefore the replying OPs has unnecessarily been impleaded as party to the present complaint. It is further averred that as per allegations contained in the complaint, the complainant availed credit card facility from the OP for which she was issued gift vouchers. Therefore as the facility availed was a gift only therefore provisions of Consumer Protection Act are not applicable.  It is further averred that the complainant has failed to disclose any cause of action against the replying OPs, therefore, the replying OP has unnecessarily been impleaded as party to the present complaint. Therefore, the complaint qua the replying OPs is liable to be dismissed. It is further averred that the complainant has alleged fraud committed with her and as per law wherever fraud is alleged, the Commission has no jurisdiction to entertain the complaint and the matter is liable to be decided by the Civil Court where both the parties would get ample opportunity to prove their case. On merits, the factum with regard to issuance of the credit card is admitted, but the other allegations as made in the complaint are categorically denied and lastly submitted that the complaint of the complainant is without merits, the same may be dismissed.

4.                Rejoinder to the written statement of OPs filed by the complainant, whereby reasserted the entire facts as narrated in the complaint and denied the allegations raised in the written statement.

5.                In order to prove their respective versions, both the parties produced on the file their respective evidence.

6.                We have heard the learned counsel for the respective parties and have also gone through the case file as well as written argument submitted by the complainant very minutely.           

7.                Admittedly, the complainant got a credit card no.4147524024861002 from the OP. The contention of the complainant is that he was never informed about any payment of joining fee or GST by the representative of the OP only the benefits of the credit card were explained to him. The OPs demanded Rs.25,000/- as GST charges on the ground that this amount was to be paid by the complainant, but the complainant, though was not explained about the GST charges, deposited the same on 17.01.2018 and the executive of the OPs assured him that Rs.530/- only would be payable by the complainant. The complainant was assured that nothing is due. Now the OP has demanded Rs.1,00,000/- as GST charges alongwith other charges and GST.

8.                 The contention of the OPs is that the complainant was never assured that nothing is due rather at the time of taking the credit card he was given complimentary gift vouchers of Genesis vouchers worth INR Rs.50,000/- and Oberoi vouchers worth INR Rs.50,000/- on 29.12.2017. He was aware about Rs.1,00,000/- as joining fee and Rs.25,000/- as GST which are applicable as per the guidelines of the Government. The complainant himself has signed the application form in which it has specifically been mentioned that he is liable to pay Rs.1,00,000/- as joining charges and Rs.25,000/- as GST. Due to the late payment and irregular payment by the complainant, the card of the complainant was cancelled. He has referred page No.5 of the application form and also referred the statement of the credit card from Ex.OP-1 and Ex.OP-2. He has also referred the correspondence between the complainant and the OPs and has submitted that there is no deficiency in service and unfair trade practice has been adopted by the OP. He has further submitted that since the complainant has alleged the fraud against the OPs, the present complaint is not maintainable, it requires evidence and cross-examination, therefore the complaint be dismissed on this short score only. He has relied upon a pronouncement of Hon’ble Supreme Court, in a case IV (2006) CPJ 1 (SC) titled as “Oriental Insurance Co. Ltd. Vs. Muni Mahesh Patel”.

9.                Admittedly the complainant got the credit card from the OPs. As per the submission of OPs, the complainant has signed the application form. Perusal of the application form Ex.OP-1 shows that the same has been filled in and the signatures of the complainant were obtained on Page no.2 and 3, which is declaration on Page No.6 of the application form which is also declaration. It is admitted that the gift vouchers were given to the complainant when he took the credit card. As per the statement the purchase of Rs.1,00,000/- was made by the complainant’s wife and Rs.1,00,000/- were deposited by the complainant vide receipt dated 14.12.2017 Ex.C-2 and Rs.25,000/- was as GST charges was also made by the complainant on 02.12.2018. Due amount of Rs.530/- were also deposited by the complainant vide Ex.C-1 on 17.01.2018. As per the statement filed on record by the OPs, the amount of Rs.1,00,000/- was utilized by the complainant as per statement for the period 04.10.2017 to 03.11.2017 and Rs.1,00,000/- were deposited as credit card payment on 14.12.2017. There is no dispute about the fact that Rs.1,00,000/- spent by the complainant have been deposited by the complainant.

10.              Now the point is as to whether the OPs are entitled to joining charge fee as the complainant was aware about the joining fee as well as GST and as to whether the OPs have given in writing that nothing is due on 17.01.2018. The application form Ex.OP-1 Page No.5 reveals that there is a declaration by the applicant to the effect that he understand and acknowledge the terms and conditions as mentioned below for the Indusind Bank Credit Card that he has applied for and there is a description and mentioned of the fact that Rs.1,00,000/- as Joining Fee and GST at the current rate, as notified by Ministry of Finance, Government of India. Welcome Gift worth Rs.50,000/- and  Oberoi Hotels and Resorts Gift Vouchers worth Rs.50,000/-. This is the declaration by the applicant, but this declaration is not signed by the complainant. Though, the word mentioned is applicant’s signature, but that is missing. Next to the declaration is under the heading Abridged Terms & Conditions for Welcome Gift. As per the condition No.4 of Abridged Terms & Conditions for Welcome Gift, the request for dispatch of Welcome Gift is to be made by the applicant i.e. the complainant within 30 days and condition No.6 shows that Welcome Gift will be dispatched only once the Bank receives confirmation from the Card Holder, but in the present case nothing has been filed on record by the OP to show that the complainant ever made request for dispatch of Welcome Gift within 30 days of receiving the SMS by contacting the Bank’s helpline given in this condition. No document has been filed by the OPs to show that any confirmation was received by the bank from the Card Holder/complainant. Moreso, as per their own admission in written statement, in para no.3 that the coupons were just complimentary without any consideration and only as a gift for availing credit card facility to encourage the complainant to utilize the said facility of credit card for her own benefits, meaning thereby that these coupons sent, were complimentary and these cannot be equated with the joining fee. As per the correspondence in the shape of the email by both the complainant as well as the OPs show that the complainant has made request to the OP to cancel the credit card and to refund the amount. This correspondence shows that the request to cancel the credit card was already made by the complainant with the request that they have not used the gift vouchers and the OPs were requested to take back the gift vouchers since these remain unused.

11.              The contention of the OPs is that the time of the gift vouchers has already been expired and these gift vouchers were with the joining fee only and as per the statements, the joining fee was due to be paid by the complainant which has remained unpaid. This contention of the OPs is not tenable. As discussed above these gift vouchers were complementary, therefore these cannot be equated with the joining fee. The complainant has relied upon the no due statement given by the representative of the bank on 17.01.2018. The perusal of back of the Ex.C-1 shows that on 17.01.2018 the representative or official of the OP wrote on it full and final payment, nothing due NIL, but the OP has not rebutted this document nor have proved that this statement does not bear the signature of their official/representative, therefore it cannot be said this statement was never made by their employee.

12.              The contention of the OPs is that the complainant is bound to pay Rs.1,00,000/- as joining fee and Rs.25,000/- as GST at the current rate, as notified by Ministry of Finance, Government of India. The OPs have not produced on record any guidelines of the Government of India to show the current rate of GST on the day when the application for credit card was given by the applicant/complainant. So, it cannot be said that GST was rightly taken by the OP. Similarly, once the full and final payment was received and nothing was due as per the statement of OP and non-signing of the declaration on page No.5 of Ex.OP-1, it cannot said that the complainant is bound to pay the joining fee as well as GST.

13.              In view of the above detailed discussion, the complaint of the complainant is partly allowed and the OPs are directed to refund the amount of Rs.25,000/- taken from complainant as GST and to cancel the credit card of the complainant, if not cancelled. The OPs are not entitled to claim Rs.1,00,000/- as joining fee. Further, OPs are directed to pay Rs.5000/- as compensation on account of mental agony and harassment and Rs.3000/- as litigation expenses. The entire compliance be made within 45 days from the date of receipt of the copy of order. This complaint could not be decided within stipulated time frame due to rush of work.

14.              Copies of the order be supplied to the parties free of cost, as per Rules. File be indexed and consigned to the record room.

Dated          Jaswant Singh Dhillon    Jyotsna               Dr. Harveen Bhardwaj     

12.05.2022         Member                          Member           President