Karnataka

Chitradurga

CC/109/2016

B.V.Gangappa Shetty and sons - Complainant(s)

Versus

The Manager,Canara Bank - Opp.Party(s)

Sri.Basavaraj.S

01 Jun 2017

ORDER

COMPLAINT FILED ON:01/12/2016

DISPOSED      ON:01/06/2017

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHITRADURGA.

 

C.C.NO: 109/2016

 

DATED: 1^st JUNE 2017

PRESENT: - SRI. T.N. SREENIVASAIAH  : PRESIDENT                                   B.A., LL.B.,

                   SRI.N. THIPPESWAMY        : MEMBER

                          B.A., LL.B.,   

 

……COMPLAINANT/S	B.V. Gangappa Shetty and Sons, BPC Petrol Bunk, Bharamasagara, Chitradurga, Represented by Smt. H.T. Rathnamma, W/o Late H.R. Thippeswamy, Age: 51 Years, Bharamasagara, Chitradurga.   (Rep by Sri.Basavaraj. S, Advocate)
V/S
…..OPPOSITE PARTY	The Manager, Canara Bank, Bharamasagara Branch, Chitradurga Taluk & District.      (Rep by Sri.C.M. Veeranna, Advocate)

ORDER

SRI. T.N. SREENIVASAIAH:   PRESIDENT

The above complaint has been filed by the complainant u/Sec.12 of the C.P Act, 1986 for the relief to direct the OP to repay the amount deducted by the OP for cash handling charges on 13.03.2015 for a sum of Rs.3,36,016/- from the complainant account No.0483285001137 and Rs.10,00,000/- towards mental agony, in all a sum of Rs.13,36,016/- with interest @ 2% p.m from 13.03.2015 till realization.

2.      The brief facts of the case of the above complainant are that, the complainant is having CC A/c No.0483285001137 with the OP since from 19.09.06 along with partnership firm in the name and style as M/s B.V. Gangappa Shetty and Sons and running a BPC Petrol Bunk at Bharamasagara and there is a transaction of 5 to 10 lakhs per day.  At the time of opening of the account and made a transaction, the OP told that, there will be no bank charges, cash handling charges and other charges.  The complainant was running a business transaction nearly Rs.40 to 50 lakhs every year.  The complainant send the amount to the Bharath Petrol Bunk through his CC A/c.  The complainant kept Rs.10 to 15 lakhs in his A/c for every year transaction.  As per the guidelines of the Head Office, the Op has deducted an amount of Rs.3,36,016/- from the complainant A/c on 30.03.2015 towards Bank charges and cash handling charges.  It is further submitted that, the complainant is running a business with the OP since from 40 years.  The OP has not written any letter or orally told that, they will deduct the cash handling charges from the account of the complainant.  The OP straightaway deduct the amount from the complainant account without any information, which amounts to deficiency of service.  On 01.06.2015 OP sent a letter to the complainant stating that, they have deducted the about said amount towards cash handling charges.  Complainant sent reply to the OP requesting him to redeposit the deducted amount to his account for which the OP orally told the complainant that, they will deposit the deducted amount to the above said CC A/c.  The complainant submitted that, there is a rule of RBI that, levying of charges without adequate prior notice to the customer.  The complainant is having transaction since from 2006 to 2015 by that time, the OP never stated any day or any time with regard to deduction of cash handling charges or any other charges.  On 03.08.2015, the complainant sent a legal notice through his Advocate to the OP, the same was served on 04.08.2015.   On 06.08.2015, OP sent a reply to the complainant stating that, they will discuss with our Senior Officers and informed the same to you.  The conduct of the OP amounts to deficiency of service and unfair trade practice which caused mental agony and pain to the complainant.  Earlier the same complainant has filed a complaint in C.C, No.87/2015 on 02.11.2015 before this Forum, the same was withdrawn for the reason that the GPA in the said complaint by name Sri. Thippeswamy S/o H. Rangappa was died on 18.08.2016.  The cause of action for the complaint arose on 03.08.2015, when the legal notice was issued by the complainant and reply notice given by the OP on 06.08.2015 and the date of withdrawn and the date of return of complaint orders passed by this Forum on 25.10.2016.  Therefore, the complainant respectfully prayed before this Forum to allow his complaint. 

3.      On service of notice, OP appeared through Sri. C.M. Veeranna, Advocate and filed version denying the allegations made in the complaint.  It is not in dispute that, the complainant is a partnership firm under the name and style as M/s B.V. Gangappa Shetty and Sons and complainant is running a BPC Petrol Bunk at Bharamasagara and he is the dealer of Bharath Petroleum Corporation is not in dispute.  The other allegations made in para 2 is specifically denied and not known by this OP.  It is admitted that, the OP has collected an amount of Rs.2,99,053 + 36,963/- in all Rs.3,36,016/- towards cash handling charges for the period from 01.08.2013 to 28.02.2015 and same was done in view of the guidelines issued by the Head Office and also on account of Auditors report and as such the amount has been debited from the account of the complainant and the same was non-refundable.  The OP has debited the above said amount against to the RBI Rules and complainant transacted with the OP since from 40 years and OP deducted the cash handling charges from the complainant account without any intimation which is put to strict proof of the same.  The other allegations made in para 3 are specifically denied as false.  The allegations made in para 4 of the complaint that, there is no deficiency in service and not intimated to the complainant that, from 2006 to 2015 cash handling charges has been done and no information is given to the complainant.  All of a sudden, the above amount debited from the account of the complainant and the said act is illegal and apart from above illegal act to debit the said charges for three years in a lump sum are all denied as false and complainant is put to strict proof of the same.  The allegations made in para 5 of the complaint i.e., the complainant has issued a legal notice through counsel on 03.08.2015 and the same was served on 04.08.2015 and the OP informed to the complainant through a letter dated 06.08.2015 is denied as false and the other allegations in para 5 of the complaint that, OP has committed a deficiency of service are denied as false and put to strict proof of the same.  The allegations made in para 6 of the complaint that, on act of the OP, the complainant has suffered mentally and also sustained financial loss are all false.  The complainant is not entitled for any relief.  The OP has submitted that, the cash handling charges are lawful charges collected from the CA/OD/OC holders in accordance with Bank guidelines and the complainant has agreed in agreement executed in his favour of the Bank.  It is further submitted that, the complainant has not been impleaded the parties in accordance with Sec. 20 of CPC i.e., without impleading the Head Office, Regional Office and not filed in accordance with the statutory requirements and the complainant never produced any documents wherein the complainant is represented by Sri. H.R. Thippeswamy S/o H. Rangappa without authorization by the firm and the complaint is not maintainable.  It is further submitted that, the complainant is doing the commercial transactions and in a definition laid down u/Sec.2(d) of C.P. Act and accordingly the complainant is not a consumer.  The complaint is bad for non-joinder of necessary parties.  It is submitted that, 30 days notice has been displayed in the Bank Notice Board and also it is find a place in Website and therefore, there is no deficiency of service on the part of OP and prayed for dismissal of the complaint.               

4.      Complainant has examined as PW-1 by filing affidavit evidence and the documents Ex.A-1 to A-8 were got marked. On behalf of OP, one Sri. D. Pradeep, Branch Manager has examined as DW-1 by filing the affidavit evidence and no documents have been got marked.  

5.      Arguments heard.

6.      Now the points that arise for our consideration for decision of above complaints are that;

 

(1)  Whether the complainant proves that the OP has committed deficiency of service and unfair trade practice and entitled for the reliefs as prayed for in the above complaint?

              (2) What order?

          7.      Our findings on the above points are as follows:-

          Point No.1:- Partly in Affirmative.

          Point No.2:- As per final order.

REASONS

8.      It is not in dispute that, the complainant is holding an CC A/c No.0483285001137 with the OP since from 19.09.2006 along with partnership firm in the name and style as M/s B.V. Gangappa Shetty and Sons and running a BPC Petrol Bunk at Bharamasagara and there is a transaction of 5 to 10 lakhs per day.  At the time of opening of the account, the OP told that, there will be no bank charges, cash handling charges and other charges.  The complainant send the amount to the Bharath Petrol Bunk through his CC A/c.  The complainant kept Rs.10 to 15 lakhs in his A/c for every year transaction.  As per the guidelines of the Head Office, the OP has deducted an amount of Rs.3,36,016/- from the complainant A/c on 30.03.2015 towards Bank charges and cash handling charges.   On 01.06.2015 OP sent a letter to the complainant stating that, they have deducted the amount towards cash handling charges as per the guidelines of the RBI, for which complainant sent a reply to the OP requesting him to redeposit the deducted amount to his account for which the OP orally told the complainant that, they will deposit the deducted amount to the above said CC A/c.  But, the OP levying of charges without adequate prior notice to the customer.  On 03.08.2015, the complainant sent a legal notice through his Advocate to the OP, the same was served on 04.08.2015.   On 06.08.2015, OP sent a reply to the complainant stating that, they will discuss with the Senior Officers and informed the same.  But, the same went on vain.  According to the complainant, the conduct of the OP amounts to deficiency of service and unfair trade practice. 

9.      In support of her contention, the complainant has filed her affidavit evidence and reiterated the contents of complaint and relied on the documents like Special Power of Attorney executed by M/s B.V. Gangappa Shetty and Sons and its Partners in favour of complainant marked as Ex.A-1, Letter dated 14.04.2015 written by Manager, Canara Bank, Bharamasagara to M/s B.V. Gangappa Shetty and Sons for deducting of cash handling charges as per the guidelines of RBI marked as Ex.A-2, Office copy of the legal notice dated 03.08.2015 issued by the H.R. Thippeswamy to the OP Manager and prays for deposit the deducted amount from the CC A/c of the M/s B.V. Gangappa Shetty and Sons marked as Ex.A-3, Postal receipt and served acknowledgement to the OP marked as Ex.A-4, letter dated 06.08.2015 issued by the Manager of OP Bank to M/s B.V. Gangappa Shetty and Sons stating that, we taken up the matter with our higher authorities marked as Ex.A-5,  attested copy of the partnership deed dated 01.04.2006 made between the M/s B.V. Gangappa Shetty and Sons and others marked as Ex.A-6, attested copy of the partnership deed dated 08.07.2008 made between the M/s B.V. Gangappa Shetty and Sons and others marked as Ex.A-7 and statement of account issued by the Manager, OP Bank in favour of M/s B.V. Gangappa Shetty and sons on 04.10.2010 it shows that, the complainant is having the CC
account and the transaction has been made with the OP Bank marked as Ex.A-8.

10.    On the other hand, it is argued by the OP that, the complainant is a partnership firm under the name and style as M/s B.V. Gangappa Shetty and Sons and complainant is running a BPC Petrol Bunk at Bharamasagara and he is the dealer of Bharath Petroleum Corporation is not in dispute.  It is argued and admitted that, the OP has collected an amount of Rs.2,99,053 + 36,963/- in all Rs.3,36,016/- towards cash handling charges for the period from 01.08.2013 to 28.02.2015 and same was done in view of the guidelines issued by the Head Office and also on account of Auditors report and as such the amount has been debited from the account of the complainant and the same was non-refundable.   The OP further argued that, the cash handling charges are lawful charges collected from the CA/OD/OC holders in accordance with Bank guidelines and the complainant has agreed in agreement executed in favour of the Bank.  The complainant has not been impleaded the parties in accordance with Sec. 20 of CPC i.e., without impleading the Head Office, Regional Office and not filed in accordance with the statutory requirements and the complainant never produced any documents wherein the complainant is represented by Sri. H.R. Thippeswamy S/o H. Rangappa without authorization by the firm and the complaint is not maintainable.  The complainant is doing the commercial transactions and in a definition laid down u/Sec.2(d) of C.P. Act and accordingly the complainant is not a consumer.  The complaint is bad for non-joinder of necessary parties.  It is argued that, 30 days notice has been displayed in the Bank Notice Board and also it is find a place in Website and says there is no deficiency of service on the part of OP.    

11.   On hearing the rival contentions of both the parties and on perusal of the documents including the affidavit and documentary evidence, it clearly made out that, the OP never produced any admissible documents to disprove the case of the complainant.  Further the OP stated in its version that, the cash handling charges and other charge has been deducted as per the guidelines of the RBI but, the OP never produced any documents to prove the same.  The complainant has stated in its pleading that, the OP has told to the complainant that, we have not deducted any amount from your account for handling of CC A/c and other charges.  The complainant is having transaction with the OP Bank since from 40 years, the same is admitted by the OP.  Since from 40 years, the OP has not deducted any amount from the CC A/c of the complainant.  But, all of a sudden from 2006 to 2015 the OP has deducted Rs.3,36,016/- from the CC A/c of the complainant, it is opposed to the Principles of Natural Justice.  The complainant is having transaction with the OP nearly 40 to 50 lakhs per year.  The OP will get benefit from the amount maintained by the complainant in the CC A/c.  Such being the case, the question of deducting cash handling charges and other charges does not arise.  Hence, the OP has committed a deficiency of service and unfair trade practice and the complainant is entitled to get the relief.  Accordingly, this Point No.1 is held as partly affirmative to the complainant.          

 

            12.     Point No.2:- As discussed on the above point and for the reasons stated therein we pass the following:-

ORDER

The complaint filed by the complainant U/s 12 of CP Act 1986 is partly allowed.

It is ordered that, the OP is hereby directed to return a sum of Rs.3,36,016/- to the complainant along with interest at the rate of 9% p.a from 13.03.2015 till realization. 

It is further ordered that, the OP is are hereby directed to pay Rs.3,00,000/- as compensation and Rs.5,000/- towards costs of this proceeding.  

It is further ordered that, the OP is hereby directed to comply the above order within 30 days from the date of this order.

 (This order is made with the consent of Member after the correction of the draft on 01/06/2017 and it is pronounced in the open Court after our signatures)         

 

                                     

 MEMBER                                                   PRESIDENT

-:ANNEXURES:-

Witnesses examined on behalf of Complainant:

PW-1:  Complainant by way of affidavit evidence.

Witnesses examined on behalf of OP:

DW-1:  Sri. D. Pradeep, Branch Manager of OP by way of affidavit evidence. 

Documents marked on behalf of Complainant:

01	Ex-A-1:-	Special Power of Attorney executed by M/s B.V. Gangappa Shetty and Sons and its Partners in favour of complainant
02	Ex-A-2:-	Letter dated 14.04.2015 written by Manager, Canara Bank, Bharamasagara to M/s B.V. Gangappa Shetty and Sons
03	Ex-A-3:-	Office copy of the legal notice dated 03.08.2015 issued by the H.R. Thippeswamy to the OP Manager
04	Ex-A-4:-	Postal receipt and served acknowledgement to the OP
05	Ex-A-5:-	Letter dated 06.08.2015 issued by the Manager of OP Bank to M/s B.V. Gangappa Shetty and Sons
06	Ex.A-6:-	Attested copy of the partnership deed dated 01.04.2006 made between the M/s B.V. Gangappa Shetty and Sons and others
07	Ex.A-7:-	Attested copy of the partnership deed dated 08.07.2008 made between the M/s B.V. Gangappa Shetty and Sons and others
08	Ex.A-8:-	Statement of account issued by the Manager, OP Bank in favour of M/s B.V. Gangappa Shetty and sons on 04.10.2010

 

Documents marked on behalf of OP:

-NIL-

 

MEMBER                                                            PRESIDENT

Rhr**