IN THE DISTRICT CONSUMERS’ DISPUTES REDRESSAL FORUM AT MYSORE<br /> <br /> PRESENT: 1. Shri.D.Krishnappa<br /> B.A., L.L.B - President <br /> <br /> 2. Smt.Y.V.Uma Shenoi<br /> M.Sc., B.Ed., - Member<br /> 3. Shri. Shivakumar.J.<br /> B.A., L.L.B., - Member<br /> CC 92 & 93/08 DATED 25-06-2008<br /> COMMON ORDER<br /> <br /> Complainant in 92/08 S.Naganna, S/o Late Siddaiah, No.311, 9th Cross, 4th Main, 1st Stage, E & F Block, Ramakrishna Nagar, Mysore.<br /> Complainant in 93/08 S.Shivashanakara, S/o Siddaiah, No.730, 20th Cross, Jayanagar, Mysore.<br /> (By Sri.B.D.Pradeep., Advocate)<br /> Vs. <br /> Opposite Parties in both the cases 1. SBI Card Officer, SBI Cards and Payments Services Pvt. Ltd., Registered Office SBI, Local Head Office, No.11, Parliament Street, New Delhi-110001.<br /> 2. The Supervisor, SBI Card Collection Centre, No.1774, 2nd Floor, 5th Cross, Near Hero Honda Showroom, Anikethana Road, Kuvempunagara, Mysore.<br /> (EXPARTE)<br /> <br /> Nature of complaint : Deficiency in service<br /> Date of filing of complaint : 04.04.2008<br /> Date of appearance of O.P. : -<br /> Date of order : 25.06.2008<br /> Duration of Proceeding : -<br /> <br /> <br /> PRESIDENT <br /> <br /> MEMBER<br /> MEMBER<br /> Sri.D.Krishnappa,<br /> President<br /> <br /> 1. These complaints are presented by the complainants against the same Opposite parties with similar grievance and allegations, therefore taken up together for disposal by a common order.<br /> 2. The grievance of the first complainant in brief is that he is a credit card holder issued by the Opposite parties. From February 2006 he started using the card. After using the card for some time problem started from May 2006, wherein the statement sent by the Opposite parties during April 2006, they had shown that he is liable to pay Rs.7,222/- towards outstanding bills. Then he paid Rs.5,000/- through a cheque and has paid the balance amount with interest during July 2006. That in the statement of July 2006 sent by the Opposite parties they have stated that the cheque issued for Rs.5,000/- by him is unpaid, misposting has been done and debited Rs.5,000/- of that cheque amount. But, he has cleared the entire amount as per the statement issued by the Opposite parties during August 2006. From thereafter he has not used the credit card as evident from the statement of September 2006. The Opposite parties thereafter imposing certain charges in delayed payment sent a statement for Rs.10,660.93. That he wrote a letter to the first Opposite party on 26.09.2006 about issue of cheque for Rs.5,000/- and also a copy of the letter issued by his banker to show that Rs.5,000/- has been sent to the Opposite parties after honouring the cheque given by him, but the Opposite parties did not reverse the statement and not responded. Therefore, contended that the claim of the Opposite parties to pay Rs.10,660.93 is without any basis, therefore has prayed for allowing the complaint and to direct the Opposite parties not to demand illegal payment of Rs.10,660.93 and to award damages.<br /> 3. The second complainant of these complaint who is also the credit card holder of the Opposite parties stated to had started using the card from April 2007 purchased several articles on different dates amounting to Rs.2,200/- and has paid the entire amount. On 19.06.2007, the Opposite parties have informed him through a letter that his credit card has been temporarily stand withdrawn with immediate effect and requested him to pay Rs.5,887.77. After the credit card service has been withdrawn from June 23007 he never used the credit card and made any purchases, but the Opposite parties again sent him a bill for Rs.8,034.55 as per the notice dated 28.02.2008. The claim of the Opposite parties is illegal, therefore has prayed for holding that the demand of Opposite parties is illegal and to award compensation and cost.<br /> 4. The second Opposite party in both these cases was duly served with the notice of this complaint, but remained absent as such is placed exparte. One counsel called H.S.K. filed a memo undertaking to file power for the first Opposite party in both these cases, but later on submitted that he has no instructions from that Opposite party, therefore he is helpless in defending the Opposite parties. Thereafter, the complaints were posted for complainant’s affidavit who have filed their affidavit evidence reproducing what they have stated in their complaints. The complainants have produced certain statements issued by the Opposite parties, copies of certain correspondence letters and purchase bills. Heard the counsel for complainants and perused the records.<br /> 5. On consideration of the complaints allegation, affidavit evidence and the documents of the complainants have produced including the statements sent by the Opposite parties discloses that these complainants are issued with credit cards by these Opposite parties and they were using them. The first complainant in his complaint and the affidavit evidence has stated that during April 2006, the Opposite party had sent him a statement claiming Rs.7,222/- towards which he issued a cheque for Rs.5,000/- bearing No.560106 and he paid the balance amount with interest during July 2006. But, the Opposite parties thereafter who had taken into account Rs.5,000/- paid by him through cheque later on reversed it on the ground that the cheque remained un realized and that there has been misposting. The complainant in support of his grievance he invited our attention to April 2006 statement of the Opposite parties, in which the complainant was shown due a sum of Rs.7,222/-, that was shown as opening balance in the May statement of 2006. In which certain purchases are also shown besides showing the payment of Rs.5,000/- under cheque no.560106. But, in the bill of July 2006 Opposite parties reversed the payment of Rs.5,000/- showing the above cheque amount as unpaid and treated it as misposting, besides showing the payment of Rs.8,268/- paid by the complainant. The Opposite parties after deducting the payments made by the complainant sent a statement on 19th August 2006 to the complainant showing that the complainant was due only a sum of Rs.5,135.75. Therefore, as on that it is evident that the complainant was due to the Opposite parties in a sum of Rs.5,252/- as on 19.08.2006. Thereafter, the Opposite parties shown to have issued several statements charging the complainant various charges, but after issue of all these statements it is found on 12.10.2006, the Opposite parties wrote a letter to the complainant stating that they have not received the amount of Rs.5,000/- paid through cheque no.560106 and requested the complainant to make necessary enquiries and arrangements and also requested the complainant to send a certificate to them issued by his banker stating that payment due under the cheque has been made to them. As noticed from this letter, the complainant was due in a sum of Rs.5,135.75 as per the July 2006 statement. Therefore, it is clear from this letter that including the unpaid amount of Rs.5,000/- by the complainant due under the cheque, the complainant was due only Rs.5,135.75 and later on they added some other charges and shown the total balance as Rs.5,612.27. The complainant as could be seen from his letter dated 26.09.2006 brought to the notice of the Opposite parties about cheque issued by him for Rs.5,000/- and further telling that he is not due any more amount and that imposing of other charges is illegal. Then the Opposite parties in their letter dated 12.10.2006 requested him to send a certificate of the banker of the complainant regarding encashment of the cheque, the complainant addressed a letter to the Manager, Syndicate Bank, NIE College Branch, Mysore on 04.11.2006 requesting to issue a letter as to whether cheque he had issued to Opposite parties has been encashed or not. For which, his banker on 06.11.2006 issued a certificate that the cheque no.560106 issued by the complainant for Rs.5,000/- in favour of Opposite parties has been honoured on 10.05.2006 in the name of SBI Card name. The complainant thereafter on 13.11.2006 addressed a letter to first Opposite party by also enclosing a copy of certificate issued by his banker showing the honouring of the cheque and sending that amount to the Opposite parties. The complainant further requested the Opposite parties to correct their records suitably, but the Opposite parties without correcting their accounts kept quite for some time and again on 28.02.2008 sent a notice to the complainant demanding a sum of Rs.10,660.93. Challenging this act of the Opposite parties and calling their acts as not only deficient, but also amounts to unfair trade practice has come up with this complaint.<br /> 6. As referred to above by us, the Opposite parties through their letter dated 12.10.2006 claiming that the cheque amount of Rs.5,000/- is unpaid claimed a sum of Rs.5,135.71 from the complainant. Admittedly from August 2006 onwards the complainant has not made use of the credit card in purchase of any articles or in any other manner. This fact is not controverted by the Opposite parties, therefore when the complainant has not made use of the card after August 2006 liability of the complainant could not have been gone beyond Rs.5,135.71 as claimed by the Opposite parties. The certificate of the complainant’s banker that the cheque issued by the complainant in favour of the Opposite parties has been encashed on 10.05.2006 is accepted then if that amount is deducted from Rs.5,135.71. Then this complainant would be liable to pay only Rs.135.71 and not more. The Opposite parties despite bringing all these materials to their notice and requesting them to correct their accounts have not bothered to do so, but went on adding several charges on the amount, which was not legally due and claimed a sum of Rs.10,660.93 through their letter dated 28.02.2008 which in our view is unreasonable, and it is a illegal claim. Therefore, we find merits in the grievance of the complainant and as per the statement of 19.08.2006 after Rs.5,000/- was paid by him through cheque, was only due in a sum of Rs.135.71 to the Opposite parties. <br /> 7. Coming to the case of the second complainant. This complainant in his complaint has detailed the purchases he has made through the credit card amounting to Rs.2,200/- and further stated that he has paid the entire amount and not due anything to the Opposite parties. This complainant has produced the extract of his bank account pass book wherein on 24.05.2006 a sum of Rs.1,000/-, on 08.07.2006 Rs.100/-, on 29.08.2006 Rs.100/-, on 07.11.2006 Rs.300/-, on 05.12.2006 Rs.200/-, on 13.01.2007 Rs.700/- and on 06.03.2007 Rs.150 paid to the Opposite parties by way of issuing cheques and has argued that the he was not due any amount to the Opposite parties. The complainant further stated after he made purchase under the card as detailed in the complaint thereafter made any purchases and invited our attention to the letter of the Opposite party dated 19.06.2007, wherein the Opposite parties withdrawn the service of the credit card as such he has stated that the question of paying any amount to the Opposite parties did not arise. The complainant also invited our attention to the bill issued by the Opposite parties on 19.06.2007 claiming Rs.5,887.77 and stated, later on through a notice dated 28.02.2008 the Opposite parties claimed Rs.8,034.55 and therefore has stated that there is no basis for this claim of the Opposite parties. The Opposite parties though were served with the notice of this complaint have not appeared and put up defence to this complaint. The complainant has sworn to the affidavit narrating the purchases he has made, further by also stating to have paid the entire amount to the Opposite parties and consequent withdrawal of the card facility from June 2007. Therefore, as per the purchase bill produced by the complainant we do not find any purchase bills made after June 2007. The Opposite parties when sent statement of 19.06.2007 to the complainant have claimed a sum of Rs.5,887.77, for which we find no basis. Thereafter admittedly no purchases are made by the complainant, but the Opposite parties by imposing several charges claimed a total amount of Rs.8,034.55 as on 28.02.2008. The extract of the bank pass book of the complainant as we have referred to above speaks for payments made by him to the Opposite parties. Therefore, on perusal of the entire materials placed before us, we find no reasons to disbelieve the case of the complainant as the same has remained unrebutted. The Opposite parties on the other hand have not appeared before this Forum to defend the action of the complainant. Probably they must have felt shy to face the enquiry and to justify their action in penalizing the complaint. Therefore, we hold that the grievances of the complainants have gone unrebutted and we find no reasons disbelieve the case of the complainant.<br /> 8. As could be seen from the account statements of the Opposite parties, the letters addressed to them by the complainants, the complainants brought all these material irregularities to the notice of the Opposite parties but without correcting themselves started demanding those payments by even issue of legal notices. This act of the Opposite parties who have failed to justify their action amounts to indulging in unfair trade practice of extracting money from the innocent card holders. We have in few cases of this type have made similar observations and even directed them to pay damages to the parties and also to Legal Aid Account of this Forum, but despite that the Opposite parties appears to have not changed their attitude. Therefore, under these circumstances, we find these cases are just for imposition of punitive damages besides giving reliefs to the complainants:- <br /> ORDER<br /> <br /> 1. The Complaints are allowed.<br /> 2. The first complainant is directed to pay Rs.135.71 which is due to the Opposite parties towards credit card amount within 30 days from the date of this order.<br /> 3. The Opposite parties in both these cases are held to have indulged in Unfair trade practice and the claim made by them against the 1st complainant for a sum of Rs.10,660.93 and for Rs.5,887.77 against the second complainant is held as illegal and therefore is quashed.<br /> 4. The Opposite parties are jointly and severally held liable to pay Rs.3,000/- each to each of these complainants as damages for their mental agony within 30 days from the date of this order failing which they shall pay interest at 6% p.a. from the date of this order till the date of payment.<br /> 5. The Opposite parties are jointly and severally shall pay punitive damages of Rs.15,000/- each in each of these cases to the Legal Aid Account of this Forum within 30 days, failing which they shall pay interest at 6% p.a. from the date of this order till the date of payment.<br /> 6. Keep original order in C.C.92/08 and Xerox copy in C.C.93/08<br /> 7. Give a copy of this order to each party according to Rules.<br /> <br /> (Dictated to the Stenographer, transcribed by her, transcript revised by us and then pronounced in the open Forum on this the day 25th June 2008)<br /> <br /> <br /> <br /> <br /> <br /> (D.Krishnappa) <br /> President <br /> (Y.V.Uma Shenoi)<br /> Member<br /> (Shivakumar.J.)Member<br /> <br />