BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM

VAZHUTHACAUD : THIRUVANANTHAPURAM

PRESENT:

SHRI. G. SIVAPRASAD : PRESIDENT

SMT. BEENA KUMARI .A : MEMBER

SMT. S.K. SREELA : MEMBER

C.C.No. 264/2008 Filed on 07/11/2008

Dated: 15..10..2010

Complainant:

Dr. Faizal, "Nazrin", T.C.9/2760 (18), TNRA-B-7, Thampuran Nagar, Edapazhanji, Sasthamangalam – P.O., Thiruvananthapuram.

(By Advs. Binu S.R & Narayan. R)

Opposite parties:

1. The Manager, SBI Credit Card Section, Ivth Floor, Rohini Building, Panavila Junction, Thampanoor,Thiruvananthapuram.

2. SBI Cards & Payment Services Pvt. Ltd., represented by its Chief Executive Officer, DLF Infinity Towers, Tower C, 12^th Floor, Block 2, Building 3, DLF Cyber City, Gurgaon – 122 002.

   (2^nd opposite party deleted vide memo dated 27/04/2009)

    

3. SBI Life Insurance Company Ltd., 2^nd Floor, Turner Morrison Building, G.N Vaidya Marg, Fort, Mumbai – 400 023.

4. Royal Sundaram Alliance Insurance Company Ltd., "Sundaram Towers, 45 & 46, Whites Road, Chennai – 600 014.

(By Adv. V. Manikantan Nair)

This O.P having been heard on 16..08..2010, the Forum on 15..10..2010 delivered the following:

ORDER

SHRI.G. SIVAPRASAD, PRESIDENT:

The facts leading to the filing of the complaint are that, complainant applied for a Credit Card during February, 2007 with the 1^st opposite party of the credit services offered by the 2^nd opposite party, that the complainant was issued with a SBI Credit Card bearing No. 0004317575164227333 together with an additional card in the name of his wife Nazrin bearing No. 0004317575164227334 by the 2^nd opposite party, that thereafter without any demand from the complainant, he was issued an Easy Money Draft (EMD) bearing No. 937728 dated 9/3/2007 for an amount of Rs. 6,000/- by the 2^nd opposite party, that complainant accepted the draft and deposited the same in his Savings Bank Account No. 57027046045 maintained at State Bank of Travancore, Sasthamangalam Branch and the said amount was credited in his account, that on receipt of the first account statement dated 17/3/2007 of his credit card, complainant was shocked to see that 3^rd opposite party had debited a total amount of Rs. 5,226/- ie., Rs. 2,613/- from the credit card of the complainant and Rs. 2,613/- from the additional credit card issued in the name of his wife on 15/3/2007, further 4^th opposite party had also debited a sum of Rs. 4,331/- from the credit card account. It is submitted by the complainant that 3^rd & 4^th opposite parties (SBI Life Insurance Company Ltd & Royal Sundaram Alliance Insurance Company Ltd.) had done the above said transactions unlawfully without the consent or knowledge of the complainant or his wife, that complainant had not applied nor signed any application for the said purpose, that immediately complainant contacted the 1^st opposite party and demanded to cancel all the transactions carried through his credit card and not availed by him, that complainant also asked the 1^st opposite party to set straight his credit card account at the earliest, that there was no response from the opposite parties 1 & 2. In the meanwhile complainant paid Rs. 6,655/- by way of installments and collected by the agents of the opposite parties 1 & 2. It is further submitted by the complainant that he had never used the credit card for any other purposes except the aforesaid EMD, that since opposite parties 1 & 2 failed to act complainant further requested the 1^st opposite party to cancel both the cards immediately, that thereafter complainant received a letter dated 7/12/2007 from the 2^nd opposite party informing him of withdrawal of credit card service with a demand to pay a sum of Rs. 18,770.04 for the alleged usage of credit facility not at all availed by the complainant, that thereafter the present outstanding balance makes mounted up to Rs. 31,814/-, that opposite parties 1 & 2 harassed the complainant continuously with the demand to pay the aforesaid amount, that the acts of the opposite parties has caused huge menal agony to the complainant and they are continuing their illegal actions causing heavy pain and distress to him. Hence this complaint to direct opposite parties to pay Rs. 50,000/- towards compensation for unfair trade prctice and for mental agony and sufferings meted by the complainant and Rs. 2,500/- as cost.

2. 1^st opposite party has not turned up and hence 1^st opposite party set exparte.

3. 2^nd opposite party deleted from party array on application filed by the complainant.

4. 3^rd & 4^th opposite parties filed version. 3^rd opposite party filed version contending inter alia that SBI Life offers both individual assurance and Group Life Insurance covers. In the case of Group Life Insurance, a group of individuals having some commonality are assessed to risk as a group and offered insurance coverage as a group, that a Master policy issued to the group master policy holder (the Credit Card Company, the employer etc...) and the terms and conditions contained in the Master policy are binding on the members of the scheme, that 3^rd opposite party is not at all a party to the transactions that have taken place between SBI Cards and the complainant, that complaint is therefore faulty for the misjoinder of SBI Life Insurance Co. as a party to the dispute, that 3^rd opposite party does not accept any credit cards towards the payment of premium, that premium is received from the Master policy holder in a group insurance policy, that how the premium is collected from the members of the group insurance scheme by the Master policy holder is not within the purview of the 3^rd opposite party, that the allegation levelled as against 3^rd opposite party is false. Hence 3^rd opposite party prayed for dismissal of the complaint.

5. 4^th opposite party filed version contending inter alia that there is no cause of action disclosed by the complainant, that 4^th opposite party acts only upon the instructions given by the 2^nd opposite party, that 2^nd opposite party has neither received any premium in respect to the above referred credit cards at any point of time nor issued any policy to the complainant, that 4^th opposite party has been wrongly impleaded in the complaint since the main grievance of the complainant is against the SBI Cards and not against the 4^th opposite party, that 4^th opposite party has no dealing with the complainant whatsoever in regard to issuance of the policy or debiting the credit card account of the insured. Hence 4^th opposite party prayed for dismissal of the complaint.

6. The points that arise for consideration are :

1. Whether there is deficiency in service and unfair trade practice on the part of opposite parties?

    

2. Whether complainant is entitled to compensation and cost?

In support of the complaint, complainant has filed affidavit in lieu of examination in chief and has marked Exts. P1 to P6. 1^st opposite party set ex-parte. 2^nd opposite party deleted from the party array. Opposite parties 3 & 4 have not filed affidavit or documents.

7. Points (i) & (ii) : It has been the case of the complainant that, he had applied for SBI Credit Card during February 2007 with 1^st opposite party of the Credit Services offered by the 2^nd opposite party and obtained credit card bearing No. 0004317575 164227333 together with an additional card in the name of his wife Nazrin bearing No. 004 317575164227334. It has also been the case of the complainant that without any demand from the part of complainant opposite parties 1 & 2 issued an Easy Money Draft (EMD) bearing No. 937728 dated 9/3/2007 for an amount of Rs.6,000/-, that complainant accepted the said EMD and deposited the same in his Savings Bank Account No. 57027046045 maintained at SBT, Sasthamangalam and the amount of Rs. 6,000/- was credited in his account on 24/3/2007 as per Bank statement. It has also been the case of the complainant that on receipt of the fresh statement of account dated 17/3/2007 of his credit card, he was astonished to see that 3^rd opposite party had debited Rs. 2,613/- from the credit card of the complainant and Rs.2,613/- from the additional credit card issued in the name of his wife on 15/3/2007, further 4^th opposite party had debited a further sum of Rs.4,331/- from the credit card account. Since the said transactions were done by opposite parties 3 & 4 unlawfully without consent or knowledge of the complainant/his wife. Complainant immediately, on the next day contacted 1^st opposite party and demanded to cancel all transactions carried through his credit card and asked them to set straight his credit card account at the earliest. Ext. P1 is the monthly statement dated 17/3/2007 wherein transaction for Nazrin and Faizal are mentioned. On perusal of Ext. P1 the total purchase and debits come to Rs. 16,902.76. Ext. P2 series consist of different receipts – i) receipt for Rs.2,200/- dated 18/4/2007 issued by SBI Cards in connection with Account No. 575164227333, ii) receipt for Rs. 850/- dated 11/6/2007 issued by SBI Cards in connection with Card No. 575164227333, receipt for Rs. 900/- dated 20/7/2007 in connection with card No. 575164227333, iii) receipt for Rs. 855/- dated 22/8/2007 issued by SBI Cards in connection with the above said Card, receipt for Rs.950/- dated 18/9/2007 issued by SBI Cards in connection with the aforesaid credit card, receipt for Rs. 900/- dated 20/10/2007 issued by SBI Cards in connection with the aforesaid Card No. Ext. P3 is the copy of the Advocate notice addressed to the complainant dated 10/4/2008 by the opposite party. As per Ext. P3 complainant was informed by opposite parties that as on date he is in arrears of payment amounting to Rs. 24,298.74. Ext. P4 is the reply notice issued by complainant to opposite parties informing them that all the transactions carried through the credit cards of the complainant and his wife except for the EMD transaction amounts to cheating unfair trade practice and deficiency in service on the part of the opposite parties. Ext. P5 is the postal receipt. Ext. P6 is the acknowledgment card. Complainant has not been cross examined by opposite parties 1 & 2. Opposite parties 3 & 4 are SBI Life Insurance Company and Royal Sundaram Alliance Insurance Company Limited. Complainant has been cross examined by opposite parties 3 & 4. The very case of the complainant is that neither the complainant nor his wife had requested or applied nor consented for insurance of issuance of policies in their favour, but opposite parties 3 & 4 have debited Rs. 5,526/- and 4,331/- respectively from their credit card account. 3^rd opposite party has filed version contending that the complaint is against SBI Cards and there is no whisper against SBI Life Insuance Company Ltd. 3^rd opposite party is not at all a party to the transactions that have taken place between the SBI cards and the complainant. The stand of the 3^rd opposite party is that they never accept any credit card towards the payment of premium, that premium is received from the master policy holder in a Group Insurance Policy, that 3^rd opposite party has issued a Group Insurance Policy (a master policy) to the credit card company, that 3^rd opposite party has a scheme of group insurance for card holders known as Super Suraksha which offers Insurance Coverage to Credit Card holders of SBI cards. It is argued by 3^rd opposite party that how the premium is collected from the members of the Group Insurance Scheme by the master policy holder is not within the purview of 3^rd opposite party. 3^rd opposite party is of the view that the complaint is totally misplaced against SBI Life Insurance Company, that SBI Cards collect the necessary documents and the premium from the members who have enrolled under the Group Insurance Scheme, that they retain the documents with them and remit the same to the SBI Life Insurance Company, only when a claim arises SBI Cards intimate the 3^rd opposite party and send the enrollment form along with necessary requirements to the SBI Life Insurance Co. Ltd for the settlement of the claim, that till such a claim arises, SBI Life Insurance Co. Ltd is not in possession of any documents like declaration of good health, enrollment form etc...... It is further argued by 3^rd opposite party that the allegations are totally ill-conceived and that there is no cause of action against 3^rd opposite party. Royal Sundaram Alliance Insurance Company Ltd is the 4^th opposite party. It is submitted by 4^th opposite party that they had neither received any premium in respect to the aforesaid credit cards pertaining to the complainant at any point of time nor issued any policy to the complainant. It is submitted that 4^th opposite party cannot be liable for the charge deducted by opposite parties 1 & 2 while dealing with the credit card transaction of the complainant. 4^th opposite party denied that they debited a sum of Rs. 4,331/- from the complainant's credit card account. In his cross examaination, complainant has deposed that without his consent or knowledge transaction was done by opposite parties 3 & 4. On perusal of Ext. P1 monthly statement it is seen that opposite parties 1 & 2 have mentioned purchase and other debts of Rs. 16,902.76. In the description column it is seen mentioned that Easy Money Draft Fee – Rs. 167.24, Annual fee charged – Rs. 841.80, Fee charged due to exceeding credit LMT – 336.72, transactions for Nazrin, additional credit card includes SBI Life Super Suraksha (Premium and Administration Fee) – Rs. 2,613/- while under transactions for Faizal's card, Draft for Easy Money – Rs. 6,000/-, SBI Life Super Suraksha (Premium and Administration Fee) – Rs. 2,613/- and Royal Sundaram Alliance, Chennai – Rs. 4,331/- are mentioned. The very case of the complainant is that all the transactions carried through complainant's credit card on 15/3/2007 and 16/3/2007 except for EMD transaction amounts to cheating. It is the say of the complainant that he has received EMD of Rs. 6,000/- from opposite parties 1 & 2 which was credited in his account while an amount of Rs. 6,655/- was paid by the complainant by way of installments by Ext. P2 series. 1^st opposite party has never furnished any documents to show that the aforesaid transactions as per Ext. P1 were done with the consent or knowledge of the complainant. The terms of the card accepted by the complainant etc... are yet to establish by the 1^st opposite party. In view of the affidavit of the complainant and documents in support of the petition we are of the considered opinion that 1^st opposite party has received Rs. 6,655/- from the complainant in return for the EMD amount of Rs. 6,000/-. 1^st Opposite party cannot claim any amount from the complainant without disclosing the details of the transaction substantiated by cogent and relevant documents. The burden is on the part of 1^st opposite party to show that the alleged transaction was done with the consent of the complainant. 1^st opposite party has not contested the case. The affidavit filed against 1^st opposite party remains uncontroverted. As such we find there is deficiency in service and unfair trade practice on the part of 1^st opposite party. It is to be noted that no service is directly availed by the complainant from opposite parties 3 & 4 and the privity of contract is between 1^st opposite pary and opposite parties 3 & 4. The issue herein is not of repudiation of claim by opposite parties 3 & 4 nor any claim application sent by the complainant to opposite parties 3 & 4 for settlement of claim. The amounts are seen deducted by 1^st opposite party vide Ext. P1 thereby we deem that opposite parties 3 & 4 are unnecessary parties as they have not received any amount directly from the complainant nor have they issued any policy to the complainant individually. In view of the above we find the act of 1^st opposite party in the name of credit card might have caused much mental agony to the complainant to the extent of which we find deiciency in service and unfair trade practice on the part of 1^st opposite party.

In the result, complaint is allowed. 1^st opposite party is directed to cease and desist from indulging in unfair trade practice in the name of credit cards. 1^st opposite party shall pay Rs. 5,000/- towards compensation to the complainant. Opposite parties 3 & 4 are exonerated from any liability to the complainant. Parties are left to bear their costs.

A copy of this order as per the statutory requirements be forwarded to the parties free of charge and thereafter the file be consigned to the record room.

Dictated to the Confidential Assistant, transcribed by her, corrected by me and pronounced in the open Forum, this the 15^th day of October, 2010.

G. SIVAPRASAD,

PRESIDENT.

BEENA KUMARI .A,

MEMBER.

S.K. SREELA,

MEMBER .

ad.

C.C.No: 264/2008

APPENDIX

I. Complainant's witness:

PW1 : Dr. Faizal. S

II. Complainant's documents:

P1 : Monthly statement dated 17/3/2007

P2 : Receipts

P3 : Advocate notice dated 10/4/2008

P4 : Copy of reply notice dated 5/5/2008.

P5 : Postal receipt dated 14/5/2008

P6 : Acknowledgement card.

III. Opposite parties' witness : NIL

IV. Opposite parties' documents : NIL

PRESIDENT