Tamil Nadu

North Chennai

227/2014

D.Genh Rathnaraj - Complainant(s)

Versus

The Manager, Indusind Bank Ltd., - Opp.Party(s)

E.Maharajan

01 Sep 2016

ORDER

                                                           Complaint presented on:  21.11.2014

                                                                Order pronounced on: 28.09.2016

 

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (NORTH)

    2^nd Floor, Frazer Bridge Road, V.O.C.Nagar, Park Town, Chennai-3

 

PRESENT: THIRU.K.JAYABALAN, B.Sc., B.L.,        PRESIDENT

                    TMT.T.KALAIYARASI, B.A.B.L.,           MEMBER II

 

WEDNESDAY THE 28^th DAY OF SEPTEMBER 2016

 

C.C.NO.227/2014

 

 

D.Gentley Rathnaraj,

S/o.A.S.Devadoss,

No.59, Outer Circular Road,

Kilpauk Garden Colony,

Kilpauk, Chennai – 600 010.

                                                                                         

                                                                                         ..... Complainant

 

..Vs..

	The Manager, Induslnd Bank Ltd., (Credit Card Division), P.O.Box 9421 Chakala, MIDC, Andheri (East), Mumbai – 400 093.
	...Opposite Party

Date of complaint                                   05.12.2014

Counsel for Complainant                      : M/s.E.Maharajan

Counsel for   opposite parties                  : M/s.Sai Krishnan  Associates

 

O R D E R

 

BY PRESIDENT THIRU. K.JAYABALAN B.Sc., B.L.,

          This complaint is filed by the complainant u/s 12 of the Consumer Protection Act.1986.

1.THE COMPLAINT IN BRIEF:

          The Complainant is one among the opposite party’s loyal customer and he has been sanctioned with their privileged product INDUSIND MAXIMA SAVING ACCOUNT bearing No.100012175501 at Teynampet branch for the past several years. The Complainant applied for opposite party’s bank credit card by paying a sum of Rs.28,090/- as enrollment fees and obtained a credit card bearing No.4147521063073002. The Complainant is a genuine customer and he used to pay the amount promptly without any default in his payment and never chosen to pay the minimum amount till now.  As soon as he received the credit card bill he is in the habit of paying full outstanding amount well in advance before the due date. When things thus stood the Complainant’s wife was admitted in the hospital on 26.02.2014 for delivery.  When she was about to discharge his wife from the hospital on 03.03.2014, the Complainant was advised to pay the hospital bills, so he swiped opposite party’s bank credit card in order to pay money to the hospital.  But to his shock and surprise his attempt was failed and it was intimated that the transaction was declined.  The Complainant once again swiped the card but the same was not approved. With much frustration and disappointment the Complainant called phone banking, but the opposite party representative responded callously and replied that it was due to some error and she can do nothing with it.  He had received two SMS stating “TXN ON INDUSIND BANK CREDIT CARD No. xxxxxxxxxx300 for Rs.37,800/- on 03.03.14 14:16 at Joseph Nursing Home is declined”.  Though the Complainant was eligible to swipe or withdraw a sum of Rs.1,00,000/- he could not swipe and use the card even for a sum of Rs.37,800/- when it was needed badly.  The above acts of the opposite party bank are nothing but deficiency in service and unfair trade practice. In order to pay the hospital bills he withdrew cash of Rs.25,000/- (which he has to maintain as minimum balance) through his IndusInd debit card at Kilpauk branch and for remaining amount he was made to run pillar to post and tossed to fetch money.  After desperate efforts the Complainant strenuously managed to arrange funds and paid the hospital bills to discharge his wife and new born child from the hospital.  The opposite party’s negligence of deficiency in service and unfair trade practice he is liable to compensate the Complainant.  Therefore the Complainant filed this complaint as compensation for the mental agony, stress and loss of reputation to him with the cost of the complaint.

2.WRITTEN VERSION OF THE OPPOSITE PARTY IS IN BRIEF:

          The customer submits his credit card in a commercial establishment for making payment of his bill, the said credit card is swiped by the commercial establishment in an EDC (Electronic Data Capture Machine) which is in their possession and the same is maintained by them and by the concerned bank.  Then the EDC processor submits the transaction to the credit card network like visa/MasterCard. The said credit card network routes the transaction to bank that issued the credit card to the said customer. The issuing bank approves or declines the transaction based on the customer’s available funds and passes the transaction results back to the credit card network. The credit card network relays the transaction results to the EDC processor, when the transaction is successful, two copies of the charge slip is generated and one is handed over to the customer and the other is signed and acknowledged by the customer and the same is handed over to the commercial establishment/merchant. In the present case when the credit card of the Complainant was swiped in the establishment as mentioned by the Complainant, the transaction declined due to technical errors which might have occurred in the EDC processor or in the credit card network or even some times when the credit card might cause errors. In such event the Complainant ought to have joined the hospital which was holding the possession of the EDC machine, the owner of the EDC machine and the concerned credit card network as the opposite parties in the present complaint. As the Complainant failed to join the necessary parties in the present complaint, the said complaint ought to be dismissed in limini for non-joinder of necessary parties. The Complainant has agreed to the card holder agreement and most important and conditions of the opposite party bank. It is pertinent to note here that in clause 36.2.4 it is mentioned as follows “ATMs/EDC and similar electronic terminals are machines and errors could occur while in operation. The cardholder agrees to indemnify the bank for any such machine/mechanical error/failures”. It is therefore clearly evident that on the basis of the said clause the Complainant himself has agreed to indemnify the bank such machine/mechanical errors/ failures, moreover the Complainant has not suffered any monetary loss because of the failure of the said transaction. Hence this opposite party has not committed any deficiency in service and prays to dismiss the complaint.     

3. POINTS FOR CONSIDERATION:

          1. Whether there is deficiency in service on the part of the opposite party?

          2. Whether the complainant is entitled to any relief? If so to what relief?

 

4.POINT NO:1

It is an admitted fact that the Complainant is the customer of the opposite party/bank and has Saving Bank Account No.100012715591 and on the application of the Complainant the opposite party issued credit card bearing No.4147521063073002 to the Complainant.

5. The Complainant contended that his wife was admitted in a hospital for delivery on 26.02.2014 and after delivery she was about to discharge on 03.03.2014 and at that time the Complainant swiped the credit card in the hospital for payment of Rs.37,800/- towards her medical bill and however the transactions was declined and again  he swiped the card and the same was not approved and when he contacted the phone banking of the opposite party, it was no use and the Complainant received two SMS about the failure of transaction. The Complainant was unable to pay the bill and thereafter he arranged the amount with the great difficulty and paid to the hospital and therefore the opposite party committed deficiency in service. 

6. The opposite party contended that, he do not know how the card was swiped or whether the EDC machine is faulted or not and therefore to know this facts, the hospital should have been added as a party and mere declined transaction and no loss of money caused to the Complainant while swiping the credit card.  It is common that due to network error would occur  and since no loss of money to the Complainant and hospital has not been arrayed as a  party this opposite party has not committed any deficiency in service. 

7. Admittedly the Complainant swiped his credit card in the hospital. The fact remains that the card was declined. What for the card was declined and how the card was swiped may be known only within the knowledge of the hospital authority.  Even the EDC machine which was used to swipe the card is at fault or not could be spoken only by the hospital person.  Therefore in the circumstances the Complainant has not added the hospital as opposite party is fatal to his case.  Ex.B2 is the card member agreement of the credit card holder. In clause 36.2.4 it has been mentioned as follows:

ATMs/EDU and similar electronic terminals are machines and errors could occur while in operation. The cardholder agrees to indemnity the Bank for any such machine/mechanical errors/failures.

As per the above clause when the credit card  was swiped the EDC machine error could occur while in operation, likewise in the case in hand also such error might have occurred while in operation and the transaction might have been declined. Therefore in such circumstances and considering the foregoing discussions and since there is no loss of money to the Complainant, We are of the view that the opposite party has not committed any deficiency in service and accordingly this point is answered.  

8. POINT NO: 2

          Since the Opposite Party has not committed any deficiency in service, the Complainant is not entitled for any relief in this Complaint and the Complaint is liable to be dismissed.

          In the result the Complaint is dismissed. No costs.     

Dictated to the Steno-Typist transcribed and typed by her corrected and pronounced by us on this 28^th day of September 2016.

MEMBER – II                                                               PRESIDENT

LIST OF DOCUMENTS FILED BY THE COMPLAINANT:

Ex.A1 dated 17.08.2013                   Induslnd Bank

Ex.A2 dated NIL                     Induslnd Bank Signature Credit Card Statement

Ex.A3 dated 03.03.2014                   Joseph Nursing Home Bill

Ex.A4 dated NIL                     Message copy Xerox

Ex.A5 dated 21.04.2014                   RPAD Letter

LIST OF DOCUMENTS FILED BY THE OPPOSITE PARTY :

Ex.B1 dated NIL                     Credit Card Application Form

Ex.B2 dated NIL                     Card Member Agreement

Ex.B3 dated NL                      Statement of Accounts

 

MEMBER – II                                                               PRESIDENT