Maharashtra

Nagpur

CC/353/2022

MRS. PREETI DINESH KUKREJA - Complainant(s)

Versus

PAYPAL PAYMENT PVT. LTD. - Opp.Party(s)

ADV. DR. MAHENDRA BHASKAR LIMAYE

30 Oct 2024

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, NAGPUR
New Administrative Building
5th Floor, Civil Lines,
Nagpur-440 001
0712-2548522
 
Complaint Case No. CC/353/2022
( Date of Filing : 09 May 2022 )
 
1. MRS. PREETI DINESH KUKREJA
R/O. 203, EKTA PALACE, CMPDI ROAD, JARIPATKA, NAGPUR-4440014
NAGPUR
MAHARASHTRA
...........Complainant(s)
Versus
1. PAYPAL PAYMENT PVT. LTD.
PLOT NO.C, IL & FS FINANCIAL CENTRE, 3RD FLOOR, 22 G BLOCK, BKC, BANDRA EAST, MUMBAI-400051
MUMBAI
MAHARASHTRA
............Opp.Party(s)
 
BEFORE: 
 HON'BLE MR. SACHIN Y. SHIMPI PRESIDENT
 HON'BLE MR. B.B. CHAUDHARI MEMBER
 HON'BLE MRS. SHEETAL A. PETKAR, INCHARGE MEMBER
 
PRESENT:ADV. DR. MAHENDRA BHASKAR LIMAYE, Advocate for the Complainant 1
 
Dated : 30 Oct 2024
Final Order / Judgement

HON’BLE MEMBER SMT. S. A. PETKAR.

  1. This complaint under section 35(1)(a) of the Consumer Protection Act 2019 is filed by complainant named above alleging deficiency in service on the part of the Opposite Party. The complaint of Complainant is as under:- 
  2. The complaint was having her personal account with the Opposite party since 2020. The complainant had various fund transferred, amount Rs. 20 to 21 lakhs in financial year 20-21. And 70 lakhs in financial year 21-22. The complainant was running professional activities of web consultation to her various overseas and domestic clients. The complainant was having Rs. 46,60,000/-in her account. As per user agreement with opponent, The opposite party will act only as an intermediatory for receipt of funds from buyers to the sellers and does not act as a repository or custodian with respect to the funds. For which the opponent was received service charges.
  3. On dated  08/09/2021 the opponent sent mail to the complainant regarding holding and access of the amount deposited in the account of the complainant, also  informed about permanently limit of account and the complainant will not able to conduct for their business using PayPal. The fund in account will hold for 180 days and after that period will inform about the access of funds. as per that the complainant waited for withdrawal of amount. Several communication have been done for the same. 
  4. But the Opponent on 27/01/2022 have transferred entire fund in opponents own account. Before the stipulated period of 180 days, the opponent have taken this action which is arbitrary and against law of land. As there was no any charge back pending with the complainant from the buyer.
  5. The complainant had made several telephonic communication protesting one sided action by the opponent, sent legal notice but till date not received any credit. The opponent exit its authorized permissible limits and excesses and transferred fund which were laying in complainants account to its own account without intimating to the complainant about its reason for such act nor provided any opportunity to the complainant to explain its position.
  6. Arbitrary transferring the amount of complainant, to its own account without assigning any valid reason or without notice to the complainant and failed to return the money, amounts to deficiency in services and used unfair trade practices.As per that the opposite party have done unfair trade practice with complainant,  intentionally harassed to the complainant by way of unfair trade  practice as well as deficient in service.
  7. In the circumstances, the Complainant left with no other alternate and efficacious remedy, than to approach this Hon'ble Commission. Therefore present complaint filed and prayed the Opposite Party be  directed:-

 

  1. To direct and order that the opposite party is deficient in their services by unfair trade practice with the complainant.
  2.  To direct and order that the opponent to  reverse/ credit/allow withdrawal of the amount of 60658.99 USD, 397.84 CAD and 644.34 AUD which is amounting approximately Rs.46,60,000 (Rs. Forty- Six Lakh Sixty Thousand only) to the complainant,
  3. The complaint be allowed with cost of Rs. 49,90,000 (Rs. Forty-Nine Lakh Ninety Thousand only) /- in the interest of justice.
  4. To direct and order that the opponent to pay the cost for mental harassment and  the Legal Expenses of Rs.3,30,000/-  in favour of the complainant.
  5.  Any other order and/or direction be given as the nature and circumstances of the case may require in the spirit of justice, equity and good conscience.

 

  1.  The complainant has filed a attested copy of   documents as per a list of document of the complaint.
  1. Intimation of limiting account
  2. Notice of change in agreement
  3. Intimation of funds transfer
  4. Intimation of closure of account
  5. Notice of change in agreement
  6. Communication with Paypal
  7. Legal Notice(Post/E-mail)
  8. Agreement Performa.  

 

  1.   After the complaint was admitted, a notice was issued by Commission to the opposite party, the notice was duly served to the opposite party, but he remain absent in proceeding of the complaint, hence Ex-parte order passed against him.

 

  1. In order to prove his side the complainant has filed documents on record and filed written argument. Heard oral argument of the complainant.

 

  1. In the light of averment, evidence, and written argument of the complainant, following points arise for consideration. We have recorded our finding thereon for the reason stated below. 

Sr.No.

                   POINTS

FINDINGS

1.

 Whether the complainant  is consumer as per consumer protection act?

….yes……..

 

2.

 

Whether the complainant has proved deficiency of service and unfair trade practice on the part of opposite party?

…Yes…..

3.

Whether the complainant is entitled for relief sought? 

….Yes…….

4.

What Order?

Partly allowed….As per Final Order. 

 

                                REASON FOR FINDINGS

 

POINT NO-1 TO 4 

  1. Heard oral argument of the complainant, perused documentary evidence on record. Considered oral and written argument of Complainant.
  2. The opponent remain absent, therefore we have scope to rely on the documentary evidence filed by the complainant.

 

  1. Documents no-8 on page no- 31 is a  Paypal user agreement which reflects that, the Paypal is a payment services provider in India and its services allowed to send payment to anyone with a PayPal account. Export payment services allows to receive payment from buyer for the export of goods and services outside India.  Paypal acts as an  intermediary for receipt of  fund from buyers by sellers.

 

  1. From the abovesaid act of the Paypal, it comes to the knowledge that, it is an intermediatory for receipt of funds it has very limited liability regarding fund. The complainant has availed services of Paypal, the entries in the bank account of indusind Bank of the complainant shows that, there were  regular deposition of amount which was brought forwarded from paypal. Statement of account of indusind bank for the periods from 01/04/2021 to 30/08/2021 has been filed on record.

 

  1. From the abovesaid observation, it comes to the knowledge that the opposite party is an intermediary for receipt of funds from buyers to the sellers only and not other acts has been performed by the opponent, it provides only platform for receipt of funds and no other monitory transaction or purpose has to be perform by the opponent. The complainant availed the abovesaid service of opponent with some consideration amount. With this aspect it is clear that the complainant is a Consumer as per the provision of the Consumer Protection act 2019.

 

  1. Document no. 1 at page no 9 is a mail dated 08/09/2021 send by the opponent, Paypal to the complainant, containing the information that, the complainant can no longer do business and  use Paypal. It contain that due to change in the complainant’s business model or business model which was considered risky. The complainant will not be able to conduct any further business using Paypal.

 

  1. It is important to consider that, the last three line of the same e-mail reproduce here is that, "if you have funds in your Paypal balance we will hold it for up to 180 days. After that period, we will email you with information on how to access your funds" The complainant stated on affidavit on record that, as of dated 08/09/2021 the account of Paypal of the  complainant was contained amount of Rs.  46,60,000/-. As per the abovesaid email of the opponent, it is to be considered that, the said amount will be on hold up to 180 days. that means till 08/03/2022 and after that the opponent will have to give information to the complainant of how to access that funds.

 

  1. Therefore it was expected that, the opponent will give information about the access of fund after 180 days, but instead of sticking on the words of the opponent, the opponent transferred the entire funds of the complainant in its own account on dated 27/01/2022 and taken custody of the amount. The Document no-3  at page no 13 to 19 shows the same.

 

  1. It is to be noted that, once the opponent has given assurance on 08/09/2021 about the balance payment is on hold up to 180 days, In this circumstances, the opponent should not take any action against the said amount before expiry of the said period, as the complainant relied on the  same email dated 08/09/2021  and keep waiting till 180 days gets over. Therefore the Memo and the reason mentioned in the transaction details of dated 27/01/2022 will not be taken  into consideration.

 

  1. The complainant sent email also legal notice to the opponent requesting to revert back the amount but the opponent failed to answer the mail and legal notice and  not reverted the  complainant’s amount.

 

  1. From the abovesaid observation we are on the view that, the action taken by the opponent was arbitrary and not justified the email dated 08/09/2021 of the opponent.

 

  1.  Therefore, from the abovesaid documentary evidence and observation we are of the opinion that the arbiterary action of the opposite party is unreasonable, unsustainable, illegal, and without application of mine. On the basis of above discussion, submission of evidence by complainant the deficiency in service gets confirmed on the part of the opposite party. Therefore the opposite party has given deficiency in services and used unfair trade practice.

 

  1. Therefore it is justified to consider prayer of complainant. The complainant has prayed that the opponent to reverse/credit/allow withdrawal of the amount of Rs.46,60,000/-to the complainant. Considering the record that, the complainant is not able to conduct any further business using Paypal, it is proper to  direct to the opposite party to revert back Rs. 46,60,000/-in the Paypal account of the Complainant and allow to withdraw the amount as per terms of the User Agreement executed between both the parties.

 

  1. The complainant has prayed that the complaint be allowed with cost of Rs. 49,90,000 and claimed towards mental agony and cost of litigation of Rs. 3,30,000/-. It is clear from the evidence on record that, the complainant has been taken various follow up   and suffered a lot for asking revert  but the opposite party had not considered it. Hence he force to file the complaint.  Thus, considering all facts, circumstances and evidence it will be desirable to direct the opposite party to pay towards compensation for mental agony and cost of litigation of Rs. 50,000/-to be paid by the opposite party to the complainant. Hence the point number 1 to 4 answer accordingly.

 

  1. Considering the fact of present case and the evidence on record as discussed above. We find it appropriate to allow the complaint. Hence we proceed to allow the consumer complaint with the following order.

                                  FINAL ORDER

 

  1. The Consumer Case No. 353/2022 is hereby partly allowed.
  2. It is declared that the Opposite Party has given deficiency in service and used unfair trade practice to the Complainant.
  3. The Opposite Party is directed to  revert back Rs. 46,60,000/-in the Paypal account of the Complainant and allow to withdraw the amount as per terms of the User Agreement executed between both the parties.
  4.  The Opposite Party is directed to pay compensation for mental agony and cost of litigation of Rs. 50,000/-  to the Complainant.
  5. The above said order shall be complied within 45 days from the date of order.
  6. The copy of order be send to both the party with free of cost.
 
 
[HON'BLE MR. SACHIN Y. SHIMPI]
PRESIDENT
 
 
[HON'BLE MR. B.B. CHAUDHARI]
MEMBER
 
 
[HON'BLE MRS. SHEETAL A. PETKAR, INCHARGE]
MEMBER
 

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