…Opposite party
Complaint under section-12 of Consumer Protection Act, 1986
Now amended Section 34 of Consumer protection Act 2019.
BEFORE: Amit Arora……………..President
Mukesh Sharma…………Member.
Indira Bhadana………….Member.
PRESENT: Sh. Akash Bhadana , counsel for the complainant.
Sh. Jasmeet Singh , counsel for opposite party.
ORDER:
The facts in brief of the complaint are that the complainant had applied for the credit car in October 2015 and the opposite party had issued him the credit card No. 4726-4277-5937-6544 later on change to credit card No. 4726-4290-5682-4135 in the month of September 2016 in his name and the credit card issued by opposite party updated time to time. Complainant had preferred the present complaint under the extraordinary circumstances, when the world was witnessing unprecedented times due to the spread of Covid-19 pandemic. India had been able to remain unsheathed from the spread of the contagion. To deal with the emergent situation the Government of India and the Hon’ble Supreme Court of India had taken certain stringent measures. The country had been under nationwide lockdown since 24.03.2020. The courts were also taking only urgent matters and the physical functioning of the courts were majorly restrained due to which lawyers were suffering through their hard times. In order to provide certain reliefs to the citizens, RBI had issued a notification NO. RBI/2019-20/186 dated 27.03.2020 which provides for a covid-19 regulatory package whereby RBI had permitted to grant a moratorium of three months to all the loans account son payments of all the installments falling due between March 01,2020 to May 31,2020. Thereafter, a second notification No. RBI/2019-20/244 dated 23.5.2020 comes out stating that the moratorium period was extended to 31.08.2020. In the present case, the opposite party had confirmed vide its email dated 16.04.2020 that the complainant falls under moratorium period. However, in April 2020, the opposite party had charged compounded interest ofRs.1702.69 (including GST) in April 2020 as excess interest. Hence, an amount of Rs.1702.69 was charged extra by the OP in the month of April 2020. Further to dismay more, in May 2020 the opposite party had charged 1 upon same compounded interest of Rs.1719.43 (including GST) in May 2020 as excess interest. Hence, an amount of Rs.1719.43 was charged extra by the opposite party in the month of May 2020. Further to dismay more, in June 2020 the opposite party had charged finance charges/interest of Rs.1857.66 (including GST) and the opposite party had also charged late fine of Rs.1,121/- (including GST) in June 2020. So, after raising he complaint in tweeter account of opposite party i.e. @SBICard Connect the opposite party reverse the charges of Rs.2,978.66 (including GST) in the month of July 2020. Further to dismay more, in August 2020, the opposite party had charged finance charges/interest of Rs.1974.56 (including GST) and the opposite party had also charged late fine of Rs.1,121.00 (including GST) in September 2020. And opposite party charges and the opposite party charged over limit charges of Rs.590.00 (including GST) which was justified. Hence, an amount of Rs.3832.64 was charged extra by the opposite party in the month of September, 2020. Further to dismay more, in October 2020 the opposite party had converted, the outstanding of Rs.55,651.19 in 24 EMI’s of Rs.2671.97 itself. So, the complainant paid the amount of Rs.2700/- to the opposite party to avoid further increase of interest liability. Thereafter the opposite party charged finance charges of Rs.1,295.56 (including GST) which was totally unjustified. Hence, an amount of Rs.1,295.56 was charged extra by the opposite party in the month of October 2020. The opposite party had offered a loan repayment plan to the complainant in the month of October, 2020 wherein he was assured by the opposite party that all his outstanding amounts would be converted into EMI’s and the complainant would only had to pay the monthly EMI’s . The executives of opposite party also committed that on acceptance of ibid offer, all the unnecessary charges levied by the opposite party would be waived off & his credit card would be reactivated again. From November 2020 to October 2021, the opposite party charged finance charges (including GST) which was total unjustified. The aforesaid act of opposite party amounts to deficiency of service and hence the complaint. The complainant has prayed for directions to the opposite party to:
a) provide reversal of Rs.30,649.15/- towards the illegal finance charges late fees, compounded interest or other charges.
b) not to charge any late fees, compounded interest, GST or any other illegal charges from Oct. 2021 onwards till the pendency of this matter.
c) lodge FIR against the employees/agents of OP who harassed, insulted, tortured, even threatened and abused continuously on daily basis over the calls for the recovery of the credit card outstanding balance.
d) pay Rs. 5,00,000/- as compensation for causing mental agony and harassment
e) recommendation to Reserve bank of India to cancel the financial license of the opposite party for violating the notifications issued by the RBI.
f) pay Rs. 55,000 /-as litigation expenses.
g) give written letter of unconditional apology in this concern to the complainant.
2. Opposite party put in appearance through counsel and filed written statement wherein Opposite party refuted claim of the complainant and submitted that the complainant was bound by the jurisdiction set forth in the agreement executed between himself and SBI Cards and Payment Service Pvt. Ltd.. As per Card holder agreement there was an arbitration clause, which stipulates that in all events of dispute/difference between the card holder and the SBI Cards, the same should be resolved by appointment of a Sole Arbitrator and the answering opposite party should have the powers to appoint the Arbitrator, as such this Hon’ble Commission was devoid of jurisdiction to entertain the complaint as the complainant was bound by the terms and conditions which were supplied to him alongwith a book let through a Welcome Kit before the complainant had made any transaction through the Credit Card, As per Clause 10 of the aforesaid Card Holder Agreement, it was agreed that all the disputes between the parties with respect to the said agreement should be referred to the arbitration of a Sole Arbitrator to be appointed by the answering defendant. Opposite party denied rest of the allegations leveled in the complaint and prayed for dismissal of the complaint.
3. The parties led evidence in support of their respective versions.
4. We have heard learned counsel for the parties and have gone through the record on the file.
5. In this case the complaint was filed by the complainant against opposite party–SBI Cards with the prayer to: a) provide reversal of Rs.30,649.15/- towards the illegal finance charges late fees, compounded interest or other charges. b)not to charge any late fees, compounded interest, GST or any other illegal charges from Oct. 2021 onwards till the pendency of this matter. c)lodge FIR against the employees/agents of OP who harassed, insulted, tortured, even threatened and abused continuously on daily basis over the calls for the recovery of the credit card outstanding balance. d) pay Rs. 5,00,000/- as compensation for causing mental agony and harassment .e) recommendation to Reserve bank of India to cancel the financial license of the opposite party for violating the notifications issued by the RBI. f) pay Rs. 55,000 /-as litigation expenses. g) give written letter of unconditional apology in this concern to the complainant.
To establish his case the complainant has led in his evidence, Ex.CW1/A – affidavit of Gaurav Gupta, Ex.C-1 & 2 – notifications of RBI, Ex.C-3 – email dated 16.04.2020, Ex.C-4 to C-22– monthly statements, Ex.C-23 – screen shots of call, Ex.C-24 - Engagement of Recovery Agents.
On the other hand counsel for the opposite party strongly agitated and opposed. As per the evidence of the opposite party Ex.RW1/A- affidavit of Anwar Hussain, Authorized Representative of Opposite party, M/s. SBI Cards & Payment Services Ltd., having its registered office at Unit 401 & 402, 4th floor, Aggarwal Millennium Tower, E 1,2,3, Netaji Subhash Place, Wazirpur, New Delhi, Ex.RW2/1 – power of attorney, Ex,R-2 (colly) – SBI Card Monthly Statement (Account Summary).
6. During the course of arguments, complainant who himself is an Advocate has stated at Bar that he is ready to pay the principal amount alongwith interest from the date of purchased from the credit card. On the other hand, counsel for the opposite party has admitted to this fact . After hearing arguments of both the parties, the Commission is of the opinion that the complaint is allowed. Opposite party is directed to process the claim of the complainant only with the principal amount alongwith interest @ 9%. Opposite party is further directed to issue the NOC to the complainant. Opposite party is also directed to send a letter to the CIBIL Deptt. Copy of this order be sent to the parties concerned free of costs. File be consigned to the record room.
Announced on: 03.05.2023 (Amit Arora)
President
District Consumer Disputes
Redressal Commission, Faridabad.
(Mukesh Sharma)
Member
District Consumer Disputes
Redressal Commission, Faridabad.
(Indira Bhadana)
Member
District Consumer Disputes
Redressal Commission, Faridabad.
