Mr.Shanmugasundaram Viswanathan filed a consumer case on 12 Nov 2018 against Standard charted Bank in the North Chennai Consumer Court. The case no is CC/110/2016 and the judgment uploaded on 18 Dec 2018.
Complaint presented on: 05.07.2016
Order pronounced on: 12.11.2018
DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (NORTH)
2nd Floor, Frazer Bridge Road, V.O.C.Nagar, Park Town, Chennai-3
PRESENT: TMT.K.LAKSHMIKANTHAM, B.SC., B.L., DTL.,DCL, DL & AL - PRESIDENT
THIRU.D. BABU VARADHARAJAN B.Sc., B.L., : MEMBER – I
MONDAY THE 12th DAY OF NOVEMBER 2018
C.C.NO.110/2016
Mr.Shanmugasundaram Viswanathan,
S/o.Shanmugasundaram,
No.654, 18th East Cross Street,
Mahakavi Bharathi Nagar,
Vyasarpadi, Chennai – 600 039.
….. Complainant
..Vs..
1.The Manager,
Standard Charted Bank,
No.19, Rajaji Salai,Chennai – 600 001.
2.The Manager,
M/s. Shaha Finlease Pvt. Ltd.,
Plot No.17/9, MIDC Taloja, Tal Panvel,
Dist.Raigad, Navi Mumbai 410 208.
| .....Opposite Parties |
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Date of complaint : 14.07.2016
Counsel for Complainant : K.Murugan, B.Bindhu
Counsel for 1st opposite party : R & P Partners
Counsel for 2nd opposite party : Ex – parte (17.08.2016)
O R D E R
BY PRESIDENT TMT.K.LAKSHMIKANTHAM, B.SC., B.L., DTL.,DCL, DL & AL
This complaint is filed by the complainant to direct the opposite parties to issue No Due Certificate, to give instructions to CIBIL to remove the complainant’s name from the defaulter’s list and also to pay a sum of Rs.4,00,000/- towards compensation for mental agony with cost of the complaint u/s 12 of the Consumer Protection Act.1986.
1.THE COMPLAINT IN BRIEF:
The complainant availed the Credit card facilities for Two Credit cards bearing Nos 4129 0380 8621 2220 & 5543 7480 8611 5042 from the 1st opposite party bank. Due to Old age and physical condition he decided to close the cards and as per the advice of the first opposite party he had paid full and final settlement and surrendered the cards to the 1st opposite party . After 13 years from then , the second opposite party had sent a false notice on 24.03.2016 claiming for a sum of Rs.63,14,844/- as due on behalf of the 1st opposite party’s Recovery Agency and the said agency sent the message to CIBIL and the complainant’s name is added in the defaulter’s list. Due to the said activity of the opposite parties, the complainant has faced financial loss and was not permitted to avail any loan facility. The complainant’s approached to the opposite parties ended in vain. The complainant has not transacted single Rupee with the opposite parties bank after closing and settled his credit card dues with the 1st opposite party. Therefore there is deficiency and unfair trade practice on the part of opposite parties and prays for directing the opposite parties to issue No due certificate and to give directions to opposite parties to remove the name of the complainant from the defaulter’s list in CIBIL and also to pay compensation for Mental agony and also for costs.
2.WRITTEN VERSION OF THE 1st OPPOSITE PARTY IN BRIEF:
The 1st opposite party is not deficient in rendering any service to the complainant. The complainant is not a consumer. The complaint should be redressed before a civil court. The complaint is barred by Limitation. The 1st opposite party is a bank and two Credit card bearing No.4129038086212220 & 5543748086115042 has been extended by the 1st opposite party bank to the complainant during 1995 with a combined credit Limit of Rs.79,000/-. The Customer is expected to make payment as per the terms and conditions agreed with the 1st opposite party, Bank towards the outstanding in the credit card. As the payment has not been received by the 1st opposite party bank in time by the complainant, Charges have been levied to the complainant’s card accounts. Due to Vintage the 1st opposite party is unable to share the transaction details of the aforesaid card accounts. The 1st opposite party is within its right to levy late charges and interest for non-receipt of payment within due date. This opposite party confirms from their records that the 1st opposite party bank neither offered any settlement nor issued zero balance statements to the complainant. The last payment effected by the complainant was on 30th December 2003. 1st opposite party normally interact with the customers to arrive at a settlement. The settlements are offered for a lesser amount against the actual outstanding balance to facilitate the customers to settle the account to avoid further accrual of interest and charges. But there is no settlement offered to the complainant and the 1st opposite party had not received any surrendered card as alleged by the complainant. The accounts held by the complainant had been moved to written off in the bank with effect from May 01, 2004. This opposite party had sold the Credit card to the financial institution namely, “SHAHA FINLEASE PVT.LTD” by way of assignment dated Feb 9th 2010 as per the business decision in the year 2010. The complainant was also duly informed. There is no deficiency in service and the complainant is not entitled to any amount of Compensation.
3. POINTS FOR CONSIDERATION:
1. Is thecomplaint filed within limitation?
2. Whether the complainant is the Consumer?
3. If so, is there any deficiency in service on the part of the opposite parties?
4. Whether the complainant is entitled to any other relief? If so to what extent?
4. POINT NO :1 & 2
The complainant availed Two Credit card facilities bearing Nos. 4129 0380 8621 2220 & 5543 7480 8611 5042 The complainant had paid for the two cards as full and final settlement in Receipt No.001467 dated 11.09.2003, a sum of Rs.17,200/- by way of Cheque bearing No.564305 and also surrendered two credit cards to the 1st opposite party and it was accounted also. Receipts are Ex.A1 and Ex.A2 is dated 11.09.2003 wherein above the signature of the collecting agent of 1st opposite party words written as, “Towards Full and Final settlement for the Two cards”. As per the Account statement of the Complainant in Ex.A3, the amount paid by the complainant is accounted in the 1st opposite party’s account.
5. The 1st opposite party is said to have transferred and assigned the cards to the 2nd opposite party vide a deed of assignment dated 09.02.2010, based on the said transfer 2nd opposite party had issued a notice dated 24.03.2016 for the first time in writing for the alleged amount in Ex.A4. Ex.A5 Reply was sent to the 1st opposite party requesting to withdraw the alleged claim and the copy of the reply was sent to 2nd opposite party concerned and the acknowledgements are Ex.A6. Then the reply from the Customer care of 1st opposite party is sent in Ex.A7 to the complainant. Ex.A8 is the reply by 1st opposite party requesting the complainant to contact 2nd opposite party. Again on 17.05.2016 the complainant sent a legal notice through his Counsel and its acknowledgement cards is Ex.A10. Again a reply was given to the complainant in Ex.A11. Complainant’s Medical Records are submitted in Ex.A12.
6. On the side of the 1st opposite party, Card Holders rules and regulations are marked as Ex.B1, Circular issued by Reserve Bank of India is Ex.B2, reply notice to the Complainant is Ex.B3. The 2nd opposite party had not turned up even after the receipts of the notice and was set Ex-parte.
7. The Complainant had received the notice from the 2nd opposite party on 24.03.2016, whereas the Complainant has settled the dues on 11.09.2003 itself to 1st opposite party . Even though the 2nd opposite party had not appeared before this forum, the cause of action had arisen at the time when the amount said to be due is questioned by the 2nd opposite party on 24.03.2016 therefore the complaint is filed within the Limitation period of two years. Therefore the complaint is well within the period of Limitation.
8. The complainant is also utilised the Credit cards issued by the 1st opposite party earlier, in such a way he becomes the Customer of the said bank and the Bank is a service provider and then at one stage, the 1st opposite party is said to have transferred the alleged dues for collection by way of assignment to the 2nd opposite party and therefore the complainant becomes the Consumer. Hence the 1st opposite party’s contention as the complainant is not a Consumer and the Complaint is barred by Limitation is not considered as Correct as discussed earlier. Therefore Point No.1 and 2 are answered accordingly.
09. POINT NO:3
Under Ex.A2, on payment of Rs.17,200/-was paid and it was towards the full and final settlement of the Two Cards as per the endorsement made on the receipt just above the collecting agent Signature of 1st opposite party. Exchange of notice and the Correspondence between the Complainant and the 1st opposite party reveals that the 1st opposite party had a search over the payment matter and had investigation. According to complainant there was no claim made by the 1st opposite party till the year of 2010 and no correspondence has been made by the 1st opposite party since the Full and Final settlement is made and also till date of the alleged outstanding amount was questioned by the 2nd opposite party. It is also admitted by the 1st opposite party that the balance amount of Rs.900/- was written off during the month of May 2004 itself. According to the complainant, no such statement or accounts is sent to the complainant from the 1st opposite party’s bank. The 1st opposite party had also not sent any letter to the complainant regarding the transfer of Credit cards to the 2nd opposite party . No account statement is filed by any of the opposite parties.
10. 1st opposite party would contend that the 1st opposite party had sold the said Credit cards to the 2nd opposite party by way of an assignment deed in the year 2010 and the complainant was duly informed. Owing to non-receipt of payment for considerable period of time, the bank had invalidated the complainant’s card account and subsequently, written off in the year 2004. Due to vintage they are unable to produce the records. There is no negligence on the part of the 1st opposite party and the complaint is filed only to harass the 1st opposite party and the complainant is not entitled any amount as compensation.
11. Admittedly there were Two Credit Cards having numbers 4129 0380 8621 2220 & 5543 7480 8611 5042 were availed by the Complainant from the 1st opposite party and there is a proof in Ex.A2 for returning the same and paid the entire dues. The receipt is given by the 1st opposite party branded as Cheque/Draft Collection receipt. A cheque No. 564305 was given by the complainant for the settled amount of Rs.17,200/-. It is also admitted by the 1st opposite party as the amount was received but not as a final and full settlement. Having given in writing as the full and final settlement, the 1st opposite party is estopped from saying that they have not received the amount as full and final settlement. Moreover there is no correspondence by the 1st opposite party from the date of settlement till date of receipt of notice from the 2nd opposite party. There is no proof submitted by the 1st opposite party as the complainant had transacted to 1st opposite party after settlement and also that the 1st opposite party had corresponded for the alleged due amount till the 1st opposite party transfers by way of assignment to 2nd opposite party.
12. It is admitted by 1st opposite party that the settlements are offered for lesser amount against the actual outstanding balance to facilitate the customers to settle the account in order to avoid further accrual of interest and charges. To coincide the same Ex.A2 is produced to prove the payment in full and final settlement, whereas, it is for the 1st opposite party to disprove the same by submitting their records. The assignment of transfer between the 1st opposite party and the 2nd opposite party had happened only in the year of 2010 , and 1st opposite party cannot escape by saying that the records are not available due to Vintage, and it cannot be accepted also. Mere filing of Ex.B1 to Ex.B3 will not serve any purpose since the complaint is filed only for the deficiency in service and the negligence of the opposite parties.
13. The 2nd opposite party had not appeared before the forum to contest and disprove the case of the complainant. There was no claim made by the 1st opposite party till 2010 and no proof is filed by the 1st opposite party pertaining any amount of claim. As per the own admission of the 1st opposite party, settlement was offered lesser than the actual outstanding amount as in the case of the complainant, where the complainant had paid an amount of Rs.17,200/- as full and final settlement. Moreover once the bank had taken steps to write off , there will not be any claim and there ends the matter. No proof is filed by the 1st opposite party as they have intimated the transfer or sale of credit cards to the 2nd opposite party . Therefore we come to the conclusion that without giving importance to the settled amount, the 1st opposite party without giving information to the complainant, 1st opposite party had committed negligence and deficiency in service. The 2nd opposite party had not appeared to disprove the case of the complainant and therefore the complainant’s case has to accepted with the submitted records on his side as proved. Hence, point No.3 is answered accordingly.
14. POINT NO:4
As per the discussions held, both the opposite parties have committed negligence and deficiency on their part, and the complainant had proved the same and he would have suffered mental agony due to the ex-orbitant amount of false claim and therefore the complainant is entitled for the relief’s as prayed for. Since the claim is questioned by the 2nd opposite party and 2nd opposite party is liable to issue No Due Certificate and issue directions to CIBIL to remove the complainant’s name from the defaulter’s list. The opposite parties can be directed to pay 25,000/- compensation for mental agony and to pay Rs.5,000/- for litigation expenses.
In the result, the complaint is partly allowed. The opposite parties jointly or severally are ordered to pay a sum of Rs.25,000/- (Rupees twenty five thousand only) towards compensation for mental agony besides, a sum of Rs.5,000/-(Rupees five thousand only) towards litigation expenses and the 2nd opposite party is also directed to issue No Due Certificate to the complainant and to give instructions to CIBIL to remove the complainant’s name from the defaulter’s list.
The above amount shall be paid to the complainant within 6 weeks from the date of receipt of the copy of this order failing which the above said amount shall carry 9% interest till the date of the payment.
Dictated to the Steno-Typist transcribed and typed by her corrected and pronounced by us on this 12th day of November 2018.
MEMBER – I PRESIDENT
LIST OF DOCUMENTS FILED BY THE COMPLAINANT:
Ex.A1 dated 09.08.2003 Copy of Cheque Receipt No.000324
Ex.A2 dated 11.09.2003 Copy of Cheque Receipt No.001467
Ex.A3 dated 01.04.2003 Copy of Complainant Account Statement
Ex.A4 dated 24.03.2016 Notice to complainant
Ex.A5 dated 09.04.2016 Copy of Complainant sent reply RPAD letter to
opposite parties
Ex.A6 dated 13.04.2016 Copy of Postal Acknowledgement Cards
Ex.A7 dated 18.04.2016 Letter from 1st opposite party
Ex.A8 dated 09.05.2016 Letter from 1st opposite party
Ex.A9 dated 17.05.2016 Legal notice to opposite parties
Ex.A10 dated 23.05.2016 Copy of Postal Acknowledgement Cards
Ex.A11 dated 08.06.2016 Reply given by the 1st opposite party
Ex.A12 dated 30.11.2009 Copy of Complainant Heart Medical Records
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LIST OF DOCUMENTS FILED BY THE OPPOSITE PARTIES:
Ex.B1 dated NIL Copy of Card Member Rules and Regulations
Ex.B2 dated 13.07.2005 Copy of Circular issued by Reserve Bank of India India
Ex.B3 dated 08.06.2016 Copy of Response Notice of the opposite Party to the complainant
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MEMBER – I PRESIDENT
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