BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II, U.T. CHANDIGARH

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Complaint  Case No :  752 of 2009

Date of Institution :  25.05.2009

Date of  Decision   :  09.03.2010

Devinder Singh s/o Sh. Tirath Singh, R/o H.No. 1092, Sector 8-C, Chandigarh.

 ……Complainant

V E R S U S

SBI Cards and Payment Services Pvt. Ltd., through its Managing Director, 11, Parliament Street, New Delhi.

.…..Opposite Party

CORAM:     SH.LAKSHMAN SHARMA              PRESIDENT

          SH.ASHOK RAJ BHANDARI       MEMBER

PRESENT: Sh. R.S. Guron, Adv. for the Complainant.

          Ms. Kanwal S. Walia, Adv. for OP.

PER ASHOK RAJ BHANDARI, MEMBER

        Concisely put, the Complainant was holding SBI Credit Card No.400 666 101 417 3343 issued by the OP having credit limits of Rs.60,000/-. He has been using this card since last 8-9 years and had never defaulted in making payment as and when raised by the OP from time to time. It was alleged that OP raised a demand of Rs.46,000/- vide statement dated 5.9.2006 (Annexure C-1), on account of purchase of 09 air tickets (02 tickets of Air Deccan and 07 tickets of Kingfisher Airlines) on 29.8.2006, on the card of the Complainant. He immediately protested the said illegal demand & lodged complaint with the OP and also got the said credit card blocked on 20.10.2006, so that it could not be misused in future. However, vide another statement dated 5.10.2006 (Annexure C-2), the OP levied interest of Rs.1767.99 on the said disputed transaction. Finally, acting on the protest of the complaint, the OP, after investigating the matter, withdrawn the aforesaid illegal demand. Subsequently, the Complainant made a request to reverse the interest charges also. But to the utter surprise & dismay of the Complainant, the OP vide statement dated 5.1.2007 (Annexure C-10) again reversed the temporary credit of 7 tickets out of 9 tickets i.e. of Kingfisher Airlines only. As such, the demand of the said tickets were wrongly again raised by the OP, inspite of the fact that the Complainant had not purchased, nor authorized the purchase on behalf of any other person, on his card. He again lodged a protest with the OP, upon which he was assured that the matter would be considered. However, the OP, vide statement dated 5.2.2007 (Annexure C-12) had charged a sum of Rs.1396.26 as interest. Thereafter, the Complainant took up the matter with the OP through telephone, e-mails, but every time he was told that the dispute would be sorted out, but nothing positive could come out. Finally, on 17.12.2008, he received a legal notice from OP, demanding a sum of Rs.87,284.88 as outstanding dues in respect of the transaction of Kingfisher Airline along with interest (Annexure C-15). Hence, this complaint, alleging that the aforesaid acts of the OP amount to deficiency in service and unfair trade practice. In the end, the Complainant has prayed for the following reliefs:-

(a)  To direct the OP to withdraw the illegal demand of Rs.39,100/-, along with interest, wrongly debited in the account of the Complainant.

(b)     To direct the OP to pay a sum of Rs.50,000/- as compensation for mental trauma and harassment.

(c)     Litigation cost of Rs11,000/-.

2]      Notice of the complaint was sent to OP seeking its version of the case. 

3]      OP in its written statement, while admitting the factual matrix of the case/reply, pleaded that the Complainant had used the credit card for the purchase of air tickets, for which the OP had sent the bill, describing the transaction made by him through his Card. He was legally bound to make the payments against the purchases made through his credit card and the OP was legally entitled for the same. It was denied that the demand notice had been sent wrongly. The Complainant had concocted the whole story, just to escape his liability and to make unnecessary gain. Since the Complainant did not make the payment against the purchases made by him, therefore, the OP had rightly imposed interest. It was denied he OP had fully withdrawn the disputed transaction because there were specific mention of ‘temporary credit’. All other material contentions of the Complainant were controverted. Pleading that there was no deficiency in service on their part, a prayer has been made for dismissal of the complaint with exemplary costs.

4]      Parties led evidence in support of their contentions.

5]      We have carefully gone through the entire case thoroughly, including the complaint and the relevant documents tendered by the complainant / OP. We also heard the arguments put forth by the learned counsels for the Complainant and OP. As a result of the detailed analysis of the entire case, the following points/issues have clearly emerged and certain conclusions/arrived at, accordingly:-

i]  The basic facts of the case in respect of the Complainant holding SBI Credit Card No. 400 666 101 417 3343 issued by the OP with credit limit of Rs.60,000/- and that he had used the said card for several years without being a defaulter till 2006, have all been admitted. The problem arose only on 5.9.2006, when the OP sent him a bill (Annexure C-1), in which it was shown that the Complainant had purchased 09 air tickets on 29.8.2006 (02 from Air Deccan and 07 from Kingfisher Airlines) for a total amount of Rs.46,000/-. The Complainant protested to the OP, saying that he had never purchased these tickets and that the demand for payment for the sum of Rs.46,000/- made by OP be withdrawn forthwith. The Complainant also asked the OP to block is Credit Card forthwith, so that the same could not be misused any further. The Complainant also completed the formalities for settlement of dispute by filling in and submitting the Dispute Form to the OP (Annexure C-4). After receiving the protest letter from the Complainant and also on completion of the dispute settlement formalities, the OP gave temporary credit to the Complainant on 31.10.2006, by reversing all the 09 entries in his Credit Card Account by providing temporary credit in each case (Annexure C-5). The amount of reversal was Rs.46,115/- and thereafter outstanding balance shown in the credit card account of the Complainant was shown to be only Rs.3886.60P.

ii] Considering the gesture of the OP of reversing the sum of Rs.46,130/-, the Complainant further requested the OP to reverse the interest component of Rs.1767.99P on the said disputed transaction also. But, instead of reversing the interest amount, as requested by the Complainant, the OP reversed the temporary credit earlier given to the Complainant by it on 31.10.2006, for 07 entries, relating to the air tickets of Kingfisher Airlines; whereas, the temporary credit given for 02 air tickets of Air Deccan was maintained and not reversed for the sum of Rs.4600/- and Rs.2300/- respectively, which shows that the demand for the 02 Air Deccan tickets for a total of Rs.6900/- was permanently waived by the OP in favour of the Complainant. But, the remaining amount of Rs.39,100/- was shown as still outstanding in the Credit Card Statement dated 5.1.2007 (Annexure C-10) by showing it as reversal of temporary credit. The Complainant paid the undisputed amount of Rs.2,995/- vide Cheque on 22.01.2007, but continued to contest the disputed amount of Rs.39,100/-, as also the interest amount of Rs.1767.99P. The Complainant sent an e-mail to the OP on 21.1.2007, apprising the OP about all the facts of the case and also requested it to reverse the remaining 07 entries in respect of seven air tickets of Kingfisher Airlines. He also apprised the OP about the photocopies of the Kingfisher statements received by him from them, in which it was shown that some Mr. & Mrs. Khan had traveled from Hyderabad to Bangalore and that the same was not authorized by the Complainant. Despite all this, the OP continued to send the Credit Card Statements at regular intervals i.e. during February, March, April and May, 2007 to the Complainant charging varying amounts of interest from time to time in respect of the disputed transactions. Finally, the OP sent a legal notice dated 17.12.2008 to the Complainant, demanding the sum of Rs.87,284.28P as arrears of payment against the disputed entries in the Credit Card, which led to the present complaint.

iii] The OP in its written statement/ reply, while admitting the basic facts of the case has stated that all the disputed transactions have been made by the Complainant himself through his Credit Card and, therefore, it was entitled to receive the due amount including interest, finance charges and penalties etc. from the Complainant. It further says that the Complainant had concocted the whole story to escape his liability of making payment to the OP and also to make certain undue gains. In respect of the reversal of entries for and giving temporary credits to the Complainant for 09 air tickets (02 for the Deccan Airlines and 07 for Kingfisher Airlines), it states that only temporary credit was given to the Complainant in the bill and at no stage, it has waived or exempted the payment of these amounts, which are still due and payable by the Complainant to the OP, as the disputed transactions were made only through the Credit Card of the Complainant.

iv]  During the course of arguments and also through the written statement submitted by the OP, the Forum categorically asked the OP to produce the relevant bills for all the 09 disputed transactions. The standard procedure for making any transaction against a Credit card is that the Credit Card Holder goes to the Vendor and makes purchases or utilizes services and in return, the Vendor/ Shopkeeper/ Service Provider gives him bills. These bills are made in triplicate. The first copy is given to the Credit Card Holder, the second copy goes to the Party which has issued the Credit Card (OP) for recovery of the amount from the Credit Card Holder and the third copy is retained by the Shopkeeper/ Vendor/ Service Provider. The Agency which has issued the Credit Card while claiming the payment of the bills from the Credit Card user, sends an appropriate Credit Card Statement to the user, also attaching therewith the respective bills as issued by the concerned Shopkeeper/ Vendor/ Service Provider. The OP was repeatedly asked by the Forum to produce all the 09 bills relating to the disputed transactions (02 of the Air Deccan and 07 for the Kingfisher Airlines). But, the OP failed to produce any such bill or give any other proof of the transactions in support of its case or demand made by it on the Complainant. In our opinion, by merely sending a statement of Credit Card account and demanding any arbitrary amount from the Credit Card user, is in itself an unfair trade practice. It is also a deficiency in service on the part of the OP, as it has not followed the due procedure, which is normally being followed by all the Credit Card issuing authorities. The Complainant was not obliged to pay any amount to the OP in the absence of the relevant bills, especially when he has categorically denied having purchased any air tickets either from Air Deccan or from Kingfisher Airlines for himself or anybody else. The Complainant further says that he does not know any Mr. & Mrs. Khan and that he has never traveled from Hyderabad to Bangalore. The OP has not been able to contest the pleadings and arguments made by the Complainant and, therefore, it has no case in its favour. The only documents produced by the OP are the Credit Card Accounts Statements and an affidavit in support of its contentions. Despite the protest made by the Complainant, the OP has been adding interest amounts in the different Credit Card Statements issued from time to time, which has resulted the disputed amount to multiply so much that it has reached as high as Rs.87,284.28P, which was initially only Rs.46,000/-. The very fact that the OP initially demanded payment of 09 air tickets (02 of Air Deccan and 07 of Kingfisher Airlines), but subsequently, not only gave the temporary credit in each case by reversing all the 09 entries, but also later permanently waived its claim in respect of the 02 air tickets of Air Deccan, has completely exposed the malafide intentions of OP. It has not explained the discrepancy as to why it has finally waived amounts due for the 02 air tickets of Air Deccan and yet continued to claim the amounts for the remaining 07 tickets of Kingfisher Airlines. All this shows the very poor conduct of the OP and clearly proves not only deficiency in service on its part, but also indulgence in unfair trade practice.   

6]      In view of above, in our opinion, the present complaint has a lot of merit, weight & substance and it must succeed. We, therefore, allow the complaint in favour of the Complainant and against the OP. We pass the following order.

7]      The OP shall do the following:-

i)  The OP shall finally withdraw the illegal demand of Rs.39,100/-, made on the Complainant on 29.8.2006, along with interest upto date, which was being wrongly debited in the credit card account of the Complainant. 

ii) The OP shall pay a sum of Rs.25,000/- as compensation for causing physical harassment, mental agony and pain to the Complainant, on account of making illegal demands on the Complainant, without following proper procedure in the case of Credit Card transactions.   

iii) The OP shall pay a sum of Rs.5,000/- as litigation cost.

8]      The aforesaid order be complied with by the OP within a period of 30 days from the receipt of its certified copy, failing which the OP shall pay the sum of Rs.25,000/-, along with interest @18% per annum from the date of making illegal claim on the Complainant i.e. 29.08.2006, till the date of realization, besides paying the cost of litigation as Rs.5,000/- and also withdrawing the illegal demand of Rs.39,100/-, along with upto date interest, which had been earlier wrongly debited in the Credit Card account of the Complainant.

9]     Certified copy of this order be communicated to the parties, free of charge. After compliance file be consigned to record room.

Announced

09.03.2010                                       Sd/-

(LAKSHMAN SHARMA)

PRESIDENT

                                              Sd/-

(ASHOK RAJ BHANDARI)

MEMBER

‘Dutt’