Tamil Nadu

South Chennai

100/2010

C.Jayanthilal - Complainant(s)

Versus

The Manager,HDFC Bank & other - Opp.Party(s)

M/S.L.Baskaran & A.Damodaran

20 Jun 2018

ORDER

                                                                        Date of Filing  : 24.02.2010

                                                                          Date of Order : 20.06.2018

 

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.100 /2010

DATED THIS WEDNESDAY THE 20^TH DAY OF JUNE 2018

                                 

Mr. C. Jayantilal

Proprietor,

S/o. Mr. Chunilalji,

M/s. Sha Kantilal Jayantilal,

No.4/17, First Floor,

Strotten Muthiah Mudali Street,

Chennai – 600 079.                                                    .. Complainant.                                                 

 

           ..Versus..

 

1. The Manager,

HDFC Bank Limited,

No.56, G.N. Chetty Road,

T. Nagar,

Chennai – 600 017.

 

2.  The General Manager,

HDFC Bank Limited,

HDFC Bank House,

Senapati Bapat Marg,

Lower Parel (West),

Mumbai – 400 013.                                             ..  Opposite parties.

          

Counsel for complainant         :  M/s. A. Damodaran

Counsel for Opposite parties  :  M/s. V. Adhivarahan & 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 praying to release the sum of Rs.1,70,530.44 which was illegally detained by the opposite parties to the complainant and credit the same in the complainant’s account No.0162790000196 and to pay a sum of Rs.2,00,000/- towards compensation for deficiency in service, mental agony and loss of reputation with cost of the complaint.

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

The complainant submits that he is a current a/c holder of the opposite party having cash credit facility.   The complainant is a whole sale dealer of commodity in respect of spices.  The complainant  transferred his cash credit facility to Standard Chartered Bank and persuaded the 1^st opposite party bank for such re-transfer the cash credit which was duly agreed vide letter Dated:25.08.2009.   Further  the complainant submits that in continuation of the sanction letter the 1^st opposite party communicated on 24.09.2009 to the complainant that the disbursal of loan by releasing pay order dated:02.09.2009 for a sum of Rs.4,37,76,000/- for which, the complainant issued counter indemnity for guarantee limit for the letter of credit the US$ 1,76,550 as per the letter dated:29.08.2009.  Further the complainant submits that the 1^st opposite party even after disbursed the loan by releasing the pay order dated:02.09.2009, has not released the amount to the Standard Chartered Bank and has not intimated to the complainant in a reasonable time.  The Standard Chartered Bank also refused to receive such pay order of the 1^st opposite party.  On 12.09.2009, when the complainant sent email, to one Mr. P. Kiran Kumar, the 1^st opposite party bank officials, woke up and cooked up some stories and replied that the Standard Chartered Bank has not accepted the pay order and the same was duly informed to the complainant on 10.09.2009 over phone.  Hence the complainant requested the 1^st opposite party to cancel the loan and pay order since no amount has been encashed or transferred or received either by Standard Chartered Bank or by the complainant.  Further the complainant submits that he issued a cheque bearing No.317053 dated:22.09.2009 for a sum of Rs.1,50,000/- was returned dishonoured on 24.09.2009 as ‘funds insufficient’. Further the complainant submits that, the 1^st opposite party informed the complainant that a sum of Rs.1,70,530.44 is kept on hold in his account towards the interest charges on the amount of Rs.4,37,76,000/-.  Even after repeated requests and demands, the opposite party has not released the amount, withheld for no reason. Hence the complainant issued legal notice for which, reply sent by the opposite parties with untenable contentions. Thereafter this complaint is filed.

2.     The brief averments in the written version filed by the opposite parties is as follows:

The opposite parties specifically deny each and every allegations made in the complaint and puts the complainant to strict proof of the same.  The opposite parties state that the complainant is a current account holder having cash credit facility.  On the instruction of the complainant, a sum of Rs.4,37,76,000/- was released by way of pay order dated 02.09.2009 after the receipt of the letter of counter guarantee for the letter of credit in favour of Standard Chartered Bank.  The Standard Chartered Bank had refused to receive the 1^st opposite party’s pay order which was duly informed to the complainant through phone on 10.09.2009.  Further the opposite parties state that on 12.09.2009, the complainant through his email requested not to proceed further and cancel the pay order.  Accordingly, the pay order was liquidated on 14.09.2009 with a condition that 12% cancellation rate of interest shall be charged from 02.09.2009 to 13.09.2009.   Therefore, on 14.09.2009, an interest at the rate of 12% had been charged on the sum that was disbursed  from the date of disbursement being 02.09.2009 till 13.09.2009.  Further the 1^st opposite party states that since the complainant has not paid the interest, and a sum of   Rs. 1,70,530/- was withheld from the a/c of the complainant and the cheque issued for a sum of Rs.1,50,000/- was returned dishonoured with an endorsement as ‘insufficient fund.  Further the opposite parties state that the complainant is not entitled to any direction, to release the sum of Rs.1,70,530/- withheld in lieu of the interest towards cancellation of pay order and the complainant is not entitled to any compensation.   Therefore, the complaint has to be dismissed.

3.   In order to prove the averments in the complaint, the complainant has filed proof affidavit as his evidence and documents Ex.A1 to Ex.A4 are marked.  Proof affidavit of the opposite parties filed and documents Ex.B1 to Ex.B19 are filed and marked on the side of the opposite parties.

4.     The points for consideration is:-

1. Whether the complainant is entitled to release of the sum of Rs.1,70,530.44  illegally detained by the opposite parties and credit the same in the complainant’s a/c No.01662790000196 as prayed for?
2. Whether the complainant is entitled to a sum of Rs.2,00,000/- towards compensation for deficiency in service, mental agony and loss of reputation with cost as prayed for?

 

 

5.     On point:-

Both parties filed has not filed any written arguments.  The opposite parties has not turned up to advance any oral arguments also.   Heard the complainant’s Counsel.  Perused the records namely the complaint, written version, proof affidavits, documents etc.   The learned Counsel for the complainant contended that admittedly, the complainant is a current a/c holder of the opposite party having cash credit facility.   The complainant is a whole sale dealer of commodity in respect of spices .  The complainant  transferred his cash credit facility to Standard Chartered Bank and persuaded the 1^st opposite party bank for such re-transfer the cash credit which was duly agreed vide letter Dated:25.08.2009.   Ex.B1 is the sanction letter for credit facility.   Further the contention of the complainant is that in continuation of the sanction letter Ex.B1, the 1^st opposite party communicated on 24.09.2009 to the complainant that the disbursal of loan by releasing pay order dated:02.09.2009 for a sum of Rs.4,37,76,000/- for which, the complainant issued counter indemnity for guarantee limit for the letter of credit the US$ 1,76,550 as per the letter dated:29.08.2009 vide Ex.B9.  Further the contention of the complainant is that the 1^st opposite party even after disbursed the loan by releasing the pay order dated:02.09.2009, has not released the amount to the Standard Chartered Bank and has not intimated to the complainant in a reasonable time.  The Standard Chartered Bank also refused to receive  such pay order of the 1^st opposite party.  On 12.09.2009, when the complainant sent Ex.B16 email, to one Mr. P. Kiran Kumar, the 1^st opposite party bank officials, woke up and cooked up some stories and replied that the Standard Chartered Bank has not accepted the pay order and the same was duly informed to the complainant on 10.09.2009 over phone.  But the opposite parties has not produced any record proves unfair trade practice. Hence the complainant requested the 1^st opposite party to cancel the loan and pay order since no amount has been encashed or transferred or received either by Standard Chartered Bank or by the complainant.  

6.     Further the contention of the complainant is that admittedly, the complainant issued a cheque  bearing No.317053 dated:22.09.2009 for a sum of Rs.1,50,000/- was returned dishonoured as per Ex.A1 on 24.09.2009 as ‘funds insufficient’.  On the other hand, the complainant was having sufficient amount in his account as per Ex.A4, Bank statement; proves the deficiency in service.   Further the contention of the complainant is that, the 1^st opposite party informed the complainant that a sum of Rs.1,70,530.44 is kept on hold in his account towards the interest charges on the amount of Rs.4,37,76,000/-.  But it is very clear that even a single paisa has not been transferred to the a/c of the complainant in the Standard Chartered Bank or encased by the complainant proves the unfair trade practice.  Even after repeated requests and demands, the opposite party has not released the amount and withheld the amount for no reason. Hence the complainant issued legal notice as per Ex.A2 & Ex.A3 for which, reply Ex.B18 sent with untenable contentions and thereafter, filed this complaint.  The complainant is claiming a sum of Rs.2,00,000/- towards compensation for mental agony, deficiency in service and loss of reputation etc with a direction to release a sum of Rs.1,70,530.44 illegally detained by the opposite parties. 

7.     The contention of the opposite parties is that admittedly, the complainant is a current account holder having cash credit facility.  On the instruction of the complainant, a sum of Rs.4,37,76,000/- was released by way of pay order dated 02.09.2009 after the receipt of the letter of counter guarantee for the letter of credit in favour of Standard Chartered Bank.  The Standard Chartered Bank had refused to receive the 1^st opposite party’s pay order which was duly informed to the complainant through phone on 10.09.2009.  But no document filed to prove such contentions of intimation and refusal. Further the contention of the opposite parties is that on 12.09.2009, the complainant through his email requested not to proceed further and cancel the pay order.  Accordingly, the pay order was liquidated on 14.09.2009 with a condition that 12% cancellation rate of interest shall be charged from 02.09.2009 to 13.09.2009.   But it is not denied that even a single paisa of the 1^st opposite party has been neither transferred to the account of the complainant in the Standard Chartered Bank nor encashed by the complainant.   Under such circumstances, for mere cancellation of pay order of the 1^st opposite party without disbursement of loan cannot carry any interest.  The opposite party also has not explained how the paper order of pay order carry 12% interest.   The 1^st opposite party has not produced any guidelines put forth by the Reserve Bank of India regarding such subject matter also proves the unfair trade practice.  Further the contention of the 1^st opposite party is that since the complainant has not paid the interest, and a sum of Rs. 1,70,530/- was withhold from the a/c of the complainant and the cheque issued for a sum of Rs.1,50,000/- was returned dishonoured with an endorsement as ‘insufficient fund proves the illegal withholding of amount.

8.     Further the contention of the opposite parties is that the complainant is not entitled to any direction muchless, to release the sum of Rs.1,70,530/- withheld in lieu of the interest towards cancellation of pay order and the complainant is not entitled to any compensation.  But on a careful perusal of the entire records, it is apparently clear that no amount of any kind has been transferred and credited to the a/c of the complainant or Standard Chartered Bank a/c or withdrawn by the complainant and the complaint is not liable to pay any interest towards cancellation of pay order which is a paper order.  Considering the facts and circumstances of the case, this Forum is of the considered view that the opposite parties shall release the sum of Rs.1,70,530/- kept on hold from the a/c of the complainant with a compensation of Rs.30,000/- with cost of Rs.5,000/- to the complainant.

  In the result, this complaint is allowed in part.  The 1 & 2^nd   opposite parties are jointly and severally liable to release a sum of Rs.1,70,530/- (Rupees one lakh seventy thousand five hundred and thirty only) being the amount kept on hold from the account of the complainant and to pay a sum of Rs.30,000/- (Rupees Thirty 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 20^th day of June 2018. 

 

MEMBER –I                                                                      PRESIDENT

COMPLAINANT SIDE DOCUMENTS:

Ex.A1	22.09.2009	Copy of the dishonoured cheque
Ex.A2	29.10.2009	Copy of legal notice issued by the complainant’s Counsel to the opposite parties
Ex.A3	16.12.2009	Copy of legal notice issued by the complainant’s Counsel to the opposite parties
Ex.A4		Copy of statement of complainant by the HDFC Bank

 

OPPOSITE  PARTIES SIDE DOCUMENTS:  

Ex.B1	25.08.2009	Copy of sanction letter by the opposite party bank granting cash credit facility, letter of credit facility and PSR facility to M/s. Shankantilal Jayantilal for its working capital requirements
Ex.B2	28.08.2009	Copy of letter of continuity to DPN dated:28.08.2009, executed by M/s. Shankantilal Jayantilal in favour of HDFC Bank
Ex.B3	28.08.2009	Copy of Demand Promissory Note for Rs.6,00,00,000/- with interest at the rate of 12% p.a. executed by M/s. Shankantilal Jayantilal in favour of HDFC Bank
Ex.B4	28.08.2009	Copy of letter of General Lien and set off executed by M/s. Shakantilal Jayantilal in favour of HDFC Bank
Ex.B5	28.08.2009	Copy of Agreement for overdraft executed by M/s. Shakantilal Jayantilal in favour of HDFC Bank
Ex.B6	28.08.2009	Copy of letter of Hypothecation for Rs.6,00,00,000/- executed by M/s. Shakantilal Jayantilal in favour of HDFC Bank
Ex.B7	28.08.2009	Copy of Power of Attorney executed by M/s. Shakantilal Jayantilal in favour of HDFC Bank
Ex.B8	28.08.2009	Copy of General Undertaking / Indemnity for Commercial Letters of Credit executed by M/s. Shakantilal Jayantilal in favour of HDFC Bank
Ex.B9	29.08.2009	Copy of Counter Indemnity for Guarantee Limit for Rs.6,00,00,000/- executed by M/s. Shakantilal Jayantilal in favour of HDFC Bank
Ex.B10	28.09.2008	Copy of Authorization to debit account for Legal Report and Valuation Charges executed by M/s. Shakantilal Jayantilal in favour of HDFC Bank
Ex.B11	28.09.2009	Copy of Authorization letter for taking over facilities from Standard Chartered Bank executed by M/s. Shakantilal Jayantilal in favour of HDFC Bank
Ex.B12	28.09.2009	Copy of Authorization letter to release pay order for a sum of Rs.4,37,76,777.64 to SCB Bank account executed by M/s. Shakantilal Jayantilal in favour of HDFC Bank
Ex.B13	01.09.2009 to 24.09.2009	Copy of account statement of the firm M/s. Shankantilal Jayantilal
Ex.B14	04.09.2009	Copy of Auditors’ Certificates regarding Commercial Solvency of M/s. Shakantilal Jayantilal
Ex.B15		Copy of the Reliance bill Statement for the period from 01.09.2009 to 30.09.2009 for Telephone calls from HDFC Bank
Ex.B16	12.09.2009	Copy of the mail of the complainant addressed to the opposite parties bank sent at 5.21.04 PM
Ex.B17	26.09.2009	Copy of the letter from M/s. Shakantilal Jayantilal to Bank
Ex.B18	26.11.2009	Copy of reply letter to legal notice from Bank to M/s. Shakantilal Jayantilal
Ex.B19	30.11.2009	Copy of receipt from the Professional Couriers for POD No.MAA495767099

 

 

 

MEMBER –I                                                                      PRESIDENT