Tamil Nadu

North Chennai

CC/110/2016

Mr.Shanmugasundaram Viswanathan - Complainant(s)

Versus

Standard charted Bank - Opp.Party(s)

k.Murugan

12 Nov 2018

ORDER

 

                                                            Complaint presented on: 05.07.2016

                                                                Order pronounced on: 12.11.2018

 

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (NORTH)

    2^nd 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 12^th  DAY OF NOVEMBER 2018

 

C.C.NO.110/2016

 

 

Mr.Shanmugasundaram Viswanathan,

S/o.Shanmugasundaram,

No.654, 18^th 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

Date of complaint                                        : 14.07.2016

Counsel for Complainant                             : K.Murugan, B.Bindhu

Counsel for 1^st  opposite party                             : R & P Partners

Counsel for 2^nd 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 1^st 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 1^st 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 1^st  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  1^st 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 1^st OPPOSITE PARTY IN BRIEF:

          The 1^st 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 1^st opposite party is a bank  and two Credit card bearing No.4129038086212220 & 5543748086115042 has been extended by the 1^st 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 1^st opposite party, Bank towards the outstanding in the credit card. As the payment has not been received by the 1^st opposite party bank in time by the complainant, Charges have been levied to the complainant’s card accounts. Due to Vintage the 1^st opposite party is unable to share the transaction details of the aforesaid card accounts. The 1^st  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 1^st opposite party bank neither offered any settlement nor issued zero balance statements to the complainant. The last payment effected by the complainant was on 30^th December 2003. 1^st 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 1^st 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 9^th 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 1^st 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 1^st 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 1^st opposite party’s account.

           5. The 1^st opposite party   is said to have transferred  and assigned the cards  to the 2^nd opposite party  vide a deed of assignment dated 09.02.2010, based on the said transfer 2^nd 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 1^st opposite party  requesting to withdraw the alleged claim  and the copy of the reply was sent to 2^nd opposite party  concerned and the acknowledgements are Ex.A6. Then the reply from the Customer care of 1^st opposite party is sent in Ex.A7 to the complainant. Ex.A8 is the reply by 1^st opposite party requesting the complainant to contact 2^nd 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 1^st 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 2^nd 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 2^nd opposite party  on 24.03.2016, whereas the Complainant  has settled the dues on 11.09.2003 itself to 1^st opposite party .  Even though  the 2^nd 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 2^nd 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 1^st 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 1^st opposite party  is said to have transferred  the alleged dues for collection by way of assignment to the 2^nd opposite party   and therefore the complainant becomes the Consumer. Hence the 1^st 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 1^st opposite party. Exchange of notice and the Correspondence between the Complainant and the 1^st opposite party reveals that the 1^st opposite party had a search over the payment matter and had investigation. According to complainant there was no claim made by the 1^st opposite party  till the year of 2010  and no correspondence has been  made by the 1^st opposite party  since  the Full and Final settlement is made and also till date of the alleged outstanding amount was questioned by the 2^nd opposite party. It is also admitted by the 1^st 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 1^st opposite party’s bank. The 1^st opposite party  had also not sent any letter to the complainant regarding the transfer of Credit cards  to the 2^nd opposite party . No account statement is filed by any of the opposite parties.

           10. 1^st opposite party  would contend that the 1^st opposite party  had sold the  said Credit cards to the 2^nd  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 1^st opposite party  and the complaint is filed only to harass the 1^st 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 1^st 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 1^st 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 1^st 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 1^st 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 1^st opposite party  from the date of settlement till date of receipt of notice from the 2^nd opposite party. There is no proof  submitted by the 1^st opposite party  as the complainant had transacted to 1^st opposite party after settlement  and also that the 1^st opposite party  had corresponded for the alleged due amount till the 1^st opposite party  transfers by way of  assignment to 2^nd opposite party.

         12.  It is admitted by 1^st 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 1^st opposite party  to disprove the same  by submitting their  records. The assignment of transfer between the 1^st opposite party  and the 2^nd opposite party  had happened only in the year of 2010 , and 1^st 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 2^nd opposite party  had not appeared before the forum to contest and disprove the case of the complainant. There was no claim made by the 1^st opposite party  till 2010 and  no proof is filed by the 1^st opposite party  pertaining  any amount of claim. As per the own admission of the 1^st 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 1^st opposite party as they have intimated the transfer or sale of credit cards to the 2^nd opposite party . Therefore we come to the conclusion that without giving importance to the settled amount, the 1^st opposite party without giving information to the complainant, 1^st opposite party  had committed negligence and deficiency in service. The 2^nd 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 2^nd opposite party  and 2^nd 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  2^nd 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 12^th 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 1^st opposite party

Ex.A8 dated 09.05.2016                   Letter from 1^st 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 1^st opposite party

Ex.A12 dated 30.11.2009                 Copy of Complainant Heart Medical Records

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
MEMBER – I                                                               PRESIDENT