Tamil Nadu

South Chennai

399/2007

K.Jayaraman - Complainant(s)

Versus

State Bank Of India - Opp.Party(s)

V.T.Venkataram

01 Jun 2018

ORDER

                                                                        Date of Filing  : 13.09.2007

                                                                          Date of Order : 01.06.2018

 

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (SOUTH)

@ 2^ND Floor, Frazer Bridge Road, V.O.C. Nagar, Park Town, Chennai – 3.

 

PRESENT: THIRU. M. MONY, B.Sc., L.L.B, M.L.                    : PRESIDENT

                 TMT. K. AMALA, M.A., L.L.B.                                : MEMBER-I

 

C.C. No.399 /2007

DATED THIS FRIDAY THE 01^ST DAY OF JUNE 2018

                                 

Mr. K. Jayaraman,

S/o. Mr. K. Kuppuswamy,

No.A-1, Rajaram Colony,

Kodambakkam,

Chennai – 600 024.                                                .. Complainant.                                                        ..Versus..

 

1. M/s. State Bank of India,

Saidapet Branch,

Represented by its Branch Manager,

Nandanam,

Chennai – 600 035.

 

2.  M/s. SBI Credit Cards,

Represented by its Authorized Signatory,

Time House Building,

“Jesus Calls”, 3^rd Floor,

No.72, Rajaji Salai,

Chennai – 600 001.                                             ..  Opposite parties.

          

Counsel for complainant           :  Mr. V.T. Venkataram

Counsel for 1^st opposite party  :  M/s. P.D. Audikesavalu & others

Counsel for 2^nd opposite party  :  M/s. Karthik & others

 

ORDER

THIRU. M. MONY, PRESIDENT

       This complaint has been filed by the complainant against the opposite parties under section 12 of the Consumer Protection Act, 1986 seeking to issue the statement showing nil balance for both card numbers 0004006676015675724 and 4006676019351801 and to pay a sum of Rs.2,00,000/- towards compensation for mental agony, inconvenience and hardship caused on account of unfair trade practice and to pay the cost of the complaint.

1.    The averments of the complaint in brief are as follows:

The complainant is the account holder of the 1^st opposite party and Credit Card holder of the 2^nd opposite party bearing SBI credit card no.4006676019351801.  The complainant submits that on 07.04.2006, the complainant issued a cheque bearing no.612218 of Rs.8503.40 in favour of SBI card No.4006676019351801 to settle the payment dues drawn on SBI Saidapet Branch, Nandanam, Chennai.   Though the complainant is having sufficient funds in his account, the cheque was not honoured by the bank stating that “insufficient funds”.  Further the complainant submits that on 18.04.2006,  the 2^nd opposite party issued a letter stating that the cheque has not been honoured.  Hence the complainant issued another cheque bearing No.676658 dated:19.04.2006 for Rs.8503.50 drawn in ICICI Bank, Chennai to settle the payment.   On the same day, the complainant issued a letter to the 1^st opposite party pointing out its lapses enclosing the copy to the 2^nd opposite party.  On 01.05.2006, a statement issued by the 2^nd opposite party shows dishonour fee of Rs.275.50 + finance charges of Rs.531.01 totalling Rs.806.51 to be paid.   For that, the complainant  issued a letter dated: 25.08.2006 to the 1^st opposite party explaining the details regarding the default and claiming default charges, penalty etc  by the 2^nd opposite party.   On 25.08.2006, the 2^nd opposite party withdrew his card No. 4006676019351801 and asked to pay the outstanding balance of Rs.2205.36 along with a sum of Rs.806.51.    The complainant took the matter to the 1^st opposite party and thereafter, the matter was settled and agreed to pay a sum of Rs.800/-.  Accordingly, the complainant paid a sum of Rs.800/- towards settlement.   But the 2^nd opposite party repeatedly issued statement and showing some arrears amount.   Even after repeated requests and demands, the opposite parties had not taken effective steps to issue the ‘Nil Balance Account Statement’ or ‘Closure Certificate’ which caused great mental agony and hardship.  Hence the complaint is filed.

 

 2.    The brief averments in the written version filed by the 1^st opposite party is as follows:

The 1^st opposite party specifically denies each and every allegation made in the complaint and puts the complainant to strict proof of the same.  The 1 opposite party states that, it is a Nationalised Bank.  The 1^st opposite party has no role in the 2^nd opposite party’s Credit Card transactions.   The 1^st opposite party is an unnecessary party. The complainant issued a cheque bearing No.612218 dated:07.04.2006 for Rs.8,503.40 from the 1^st opposite party in favour of the 2^nd opposite party when there was a balance of Rs.5,780/- only in the complainant’s account which was not sufficient to honour the aforesaid cheque.  The complainant also had a Fixed Deposit with MOD facility with the 1^st opposite party and the 2^nd opposite party had charged a sum of Rs.275.50 towards payment of dishonour fee and Rs.531.01 towards finance charges aggregating to Rs.806.51 for the aforesaid return of his cheque, it was represented by the complainant to the 1^st opposite party to take up the matter with the 2^nd opposite party and settle the same.   In response, the 1^st opposite party took up the matter with the 2^nd opposite party as a business gesture and a settlement was reached between the complainant and the 2^nd opposite party on 20.11.2006 whereby a sum of Rs.800/- was accepted by the 2^nd opposite party in full settlement of that claim against the complainant and in turn the 1^st opposite party credited the aforesaid Savings Bank account of the complainant with the said sum of Rs.806.51, which is admitted by the complainant.  The complainant also had paid the entire amount towards the credit card and other charges which was duly credited in the credit card No.0004006676015675724.   For the averments of the complainant in his complaint, the 1^st opposite party was not at all responsible for the events that had occurred between the complainant and the 2^nd opposite party after the settlement entered  by them on 20.11.2006.   Therefore there is no deficiency in service on the part of the 1^st opposite party and hence the compliant is liable to be dismissed.

  3.   The brief averments in the written version filed by the 2^nd  opposite party is as follows:

The 2^nd opposite party specifically denies each and every allegation made in the complaint and puts the complainant to strict proof of the same.   The 2^nd opposite party is a Public Sector Bank and a body corporate constituted under an Act of the Parliament i.e. the State Bank of India Act, 1955.  The use of Card is governed by the terms and conditions contained in the Card holder Agreement.  The opposite parties have acted strictly in accordance with the same.  The 2^nd opposite party states that the alleged cause of action does not have any relation to the credit card transactions and is an independent transaction.  The complainant has not established any loss or injury suffered by him, which has been caused due to the negligence of the 2^nd opposite party.  Therefore, this complaint is liable to be dismissed.

4.   In order to prove the averments in the complaint, the complainant has filed proof affidavit as his evidence and documents Ex.A1 to Ex.A14 are marked.  Proof affidavit of the 1^st opposite party filed and no documents are filed and marked on the side of the 1^st opposite party.   Proof affidavit of the 2^nd opposite party filed and documents Ex.B1 to Ex.B3 are filed and marked on the side of the 2^nd opposite party.   

5.     The points for consideration is:-

1. Whether the complainant is entitled to the nil balance statement for the Credit Card nos.0004006676015675724 & 4006676019351801 as prayed for?
2. Whether the complainant is entitled for a sum of Rs.2,00,000/- towards compensation for mental agony with cost as prayed for?

6.     On point:-

Both parties filed their respective written arguments.  Heard the complainant and 1^st opposite party also.  Perused the records namely the complaint, written versions, proof affidavits, documents, etc.  Admittedly, the complainant is the account holder of the 1^st opposite party and Credit Card holder of the 2^nd opposite party bearing SBI credit card no.4006676019351801.  The learned Counsel for the complainant contended  that on 07.04.2006, the complainant issued a cheque bearing no.612218 of Rs.8503.40 in favour of SBI card No.4006676019351801 to settle the payment dues drawn on SBI Saidapet Branch, Nandanam, Chennai.   Though the complainant is having sufficient funds in his account, the cheque was not honoured by the bank stating that “insufficient funds”.  Ex.A1 is the copy of pass book. 

7.     Further the learned Counsel for the complainant contended  that on 18.04.2006,  the 2^nd opposite party issued a letter stating that the cheque has not been honoured as per Ex.A2.  Hence the complainant issued another cheque bearing No.676658 dated:19.04.2006 for Rs.8503.50 drawn in ICICI Bank, Chennai to settle the payment.   On the same day, the complainant issued a letter to the 1^st opposite party pointing out its lapses enclosing the copy to the 2^nd opposite party as per Ex.A3.  On 01.05.2006, a statement issued by the 2^nd opposite party shows dishonour fee of Rs.275.50 + finance charges of Rs.531.01 totalling Rs.806.51 as per Ex.A4 to be paid.   For that, the complainant  issued a letter dated: 25.08.2006 to the 1^st opposite party explaining the details regarding the default and claiming default charges, penalty etc  by the 2^nd opposite party as per Ex.A5.   On 25.08.2006, the 2^nd opposite party withdrew his card No. 4006676019351801 and asked to pay the outstanding balance of Rs.2205.36 along with a sum of Rs.806.51.    The complainant took the matter to the 1^st opposite party as per Ex.A6 and thereafter, the matter was settled and agreed to pay a sum of Rs.800/-.  Accordingly, the complainant paid a sum of Rs.800/- towards settlement vide Ex.A8.   On a careful perusal of Ex.A8, the said amount was credited into the credit card No.6112006384771 on 20.11.2006.  The 2^nd opposite party also explained that the difference in card number is not material, only the account number alone is important.    But the 2^nd opposite party repeatedly issued statement and showing some arrears amount.   Even after repeated requests and demands, the opposite parties had not taken effective steps to issue the ‘Nil Balance Account Statement’ or ‘Closure Certificate’ which caused great mental agony and hardship.

 8.    The contention of the 1 & 2^nd opposite parties is that, the 1^st opposite party is a Nationalised Bank the 2^nd opposite party is a separate legal entity.   The 1^st opposite party have no role in the 2^nd opposite party’s Credit Card transactions.   The 1^st opposite party is an unnecessary party.   But it is not denied that since the complainant is having an account with the 1^st opposite party bank and the 2^nd opposite party issued Credit Card subject to the terms and conditions.    Further the contention of the opposite parties is that, the cheque was duly dishonoured and the payment to the 2^nd opposite party was not made.    But it is not denied that on the date of issue of cheque, the complainant  is having sufficient amount with the 1^st opposite party.   Further the contention of the opposite  parties is that, for dishonouring of cheque, there shall be cheque bounce charges and other charges to be rightly claimed along with the credit card balance amount.   After due negotiations and discussions with the complainant and opposite party officials, it was settled that the complainant has to pay a sum of Rs.800/-.     The complainant also had paid the entire amount towards the credit card and other charges which was duly credited in the credit card No.0004006676015675724.    But the opposite parties have not issued any ‘Credit Card Closure Certificate’ or ‘Nil Balance Certificate’.      On the other hand, the opposite parties regularly sending statements showing some amount, which amounts to deficiency in service and unfair trade practice.  The opposite parties have not explained for what reason, the amount related to the Credit Card No.4006676019351801 is credited into the Credit Card No.0004006676015675724.   The opposite party has also submitted Ex.B3, showing ‘Nil Balance’.  Considering  the facts and circumstances of the case, this  Forum is of the considered view that  the opposite parties shall issue a statement showing ‘Nil Balance’ or ‘Closure Certificate’ with compensation of Rs.5,000/- and cost of Rs.5000/- to the complainant.

  In the result, this complaint is allowed in part.  The opposite parties 1 & 2 are jointly and severally liable to issue the statement showing ‘Nil Balance’ or ‘Closure Certificate’ and to pay a sum of Rs.5,000/- (Rupees five thousand only) towards compensation for mental agony with cost of Rs.5,000/- (Rupees five thousand only) to the complainant.

The above amounts shall be payablewithin six weeks from the date of receipt of the copy of this order, failing which, the said amounts shall carry interest at the rate of 9% p.a. to till the date of payment.

Dictated  by the President to the Steno-typist, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 01^st  day of June 2018. 

 

MEMBER –I                                                                      PRESIDENT

COMPLAINANT SIDE DOCUMENTS:

		Copy of pass book details
		Copy of letter from the 2nd opposite party
		Copy of letter of the complainant to the 1st opposite party
		Copy of letter of the complainant to the 1st opposite party
		Copy of Statement issued by the 2nd opposite party
		Copy of letter from the 2nd opposite party
		Copy of settlement letter
		Copy of cash receipt
		Copy of letter of the 2nd opposite party
		Copy of Arbitrators letter
		Copy of legal notice issued by the complainant
		Copy of postal acknowledgement
		Copy of email from the 2nd opposite party
		Copy of Nil balance statement issued by the 2nd opposite party

 

1^ST OPPOSITE  PARTY SIDE DOCUMENTS:  NIL

2^ND OPPOSITE  PARTY SIDE DOCUMENTS:  

Ex.B1		Copy of Card holder Agreement
Ex.B2		Copy of terms and conditions
Ex.B3	01.02.2011	Copy of Monthly Statement

 

 

MEMBER –I                                                                      PRESIDENT