D.O.F:18/03/2023
D.O.O:26/09/2023
IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, KASARAGOD
CC.82/2023
Dated this, the 26th day of September 2023
PRESENT:
SRI.KRISHNAN.K : PRESIDENT
SMT.BEENA.K.G : MEMBER
M/s City Gold Fashion Jewellery
D No, 16 2-T 74-7 Ground Floor
Presidency Vintage Block
Kankanady Bypass Road
Mangalore, Karnataka
Represented By Mr. Abdul Kareem,
R/at. Koliyad Mahal, G T Road, Kudlu
Kasaragod.
(Adv: Vinod Kumar K.) : Complainant
And
- The Managing Director
HDFC Bank Ltd
Registered Office, HDFC Bank House
Senepathi Bapet Marg, Lower Parel West
Mumbai – 400013.
- The Branch Manager
HDFC Bank Ltd, Kayarganj Branch,
M G Road, Ballalbhag, Mangalore, 575003. : Opposite Parties
ORDER
SMT.BEENA.K.G : MEMBER
The brief facts in this case is that complainant is a leading firm, dealing with business in gold and diamond, in Kasaragod and Mangalore. The complainant is a consumer of opposite parties, doing the business for earning his livelihood by means of self-employment. After a mutual discussion with opposite parties, the complainant opened an overdraft account at the Kasaragod branch of the first opposite party and the branch office of the second opposite party bank. The interest payable for the facilities availed in the account number 50200000467409 from September 2015 to March 2017 was 10.2%, from April 2017 to March 2019 was 9.85%, from April 2019 to August 2020 was 9.6%, from September 2020 to December 2020 was 8.9%, January 2021 to October 2021 was 8.85%, and November 2021 to March 2022 was 7.9%. The complainant made hundreds of transaction amounting crores of rupees through the account made with opposite parties. Recently some foul play has been noticed in calculating the interest on account by opposite parties. So the complainant made a detailed check up on accounts with respect to the monthly interest charged by opposite parties. The complainant had found that the opposite party charged huge amount as interest against the actual interest chargeable as per terms and conditions. An amount of Rs. 31,51,655/- had been charged as extra interest in his account from September 2015 to March 2022. After noticing the above said facts, the complainant immediately informed the said facts to opposite party no2. Even though the opposite parties had agreed to check the matter and cure the defects if any, they failed to do so. So, the complainant send emails to the opposite parties in 2 or 3 occasions. But opposite parties failed to cure the defects and to return the amount except the refund of the excess interest charged in November 2021 and December 2021 in the account. The above act on the part of opposite parties amounts to deficiency in service and unfair trade practice as per Consumer Protection Act 2019. The complainant caused to issue a registered lawyer notice dated 12/05/2022 to the first and second opposite parties demanding the return of the excess amount taken from the two accounts of the complainant. But opposite party has not taken any steps either to cure the defects or to pay the amount. As per the terms and conditions of WC-CC accounts, the penal interest of 2% is applicable to the accounts of the complainant due to the delay/non-submission of stock statement, property and stock insurance inadequate. They have already refunded penal interest charged to both the accounts during financial year 2021-2022. There is no basis in charging additional interest as per the terms and conditions of the accounts also. The opposite party did not show any such defect on the part of the complainant in charging the penal interest, the complainant then took steps to transfer the facilities from the opposite party bank to ICICI bank. The opposite party delayed the transfer of the loan document and the records to the new bank and committed deficiency in service and thereby caused huge loss to the complainant. The complainant filed a complaint before the ombudsman and got it transferred as per the direction of ombudsman. The cause of action for the complainant has arose on and since 12/05/2022, the date of registered lawyer notice and from 27/06/2022 when opposite party officially rejected the claim of the complainant through mail, since then at Kasaragod. Therefore the complainant claims for an amount of Rs. 31,51,655/- with 18% interest per annum till the realization from opposite parties along with a compensation of Rs. 10,00,000/- and a cost of Rs. 5,00,000/- to the complainant.
Notice of opposite party No.1 returned. But the notice of opposite party No.2 served. Name of opposite parties called absent set exparte.
The complainant filed proof affidavit in lieu of chief examination and the documents produced are marked as Ext. A1 to A8. Ext. A1 is the legal notice send by the complainant to opposite party. Ext. A2 is the postal acknowledgment, Ext. A3 is the schedule of excess penal interest charged, Ext. A4 is the copy of the email send to opposite party dated 04/02/2021, Ext.A5 is the copy of the email send to opposite party dated 09/04/2021, Ext. A6 is the copy of the email send to opposite party dated 17/01/2022, Ext A7 is the copy of the email send to opposite party dated 17/01/2022, Ext. A8 is the copy of the email send to opposite party dated 09/03/2022. The main questions raised for consideration are:
- Whether there is any deficiency in service or unfair trade practice on the part of opposite parties in charging penal interest on complainant’s overdraft account?
- Whether the complainant is entitled for relief?
- If so, what is the relief?
For convenience, issues nos 1 to 3 can be discussed together. The complainant had opened overdraft account with opposite parties. They had a mutual agreement for the interest chargeable for the facilities availed in each account. Recently the complainant noticed some discrepancies in calculating the interest on the account by opposite party. So the complainant made a detailed check-up of the accounts with respect to the monthly interest the opposite party had charged. The grievance of the complainant is that the opposite party had charged huge interest against the actual interest of the above said overdraft accounts of the complainant as per terms and conditions. Thus, they have charged an extra interest of an amount of Rs.31,51,655/- in the account from September 2015 to March 2022. So, the complainant caused to send a registered lawyer notice dated 12/05/2022 which is marked as Ext.A1 and postal acknowledgement is marked as Ext.A2. The schedule of the excess penal interest charged is marked as Ext.A3. Ext. A3 proves that there is unfair trade practice and deficiency in service on the part of opposite parties. Ext. A4 to Ext.A5 are email messages send by the complainant to opposite party informing that there are some discrepancies in the interest charged on the accounts of the complainant. Ext. A7 is also an email message send by the complainant to opposite party to cure the defects in charging penal interest of overdraft on account 50200014497324 and 50200014596212.
We carefully gone through the affidavit and documents produced by the complainant. In the absence of rebuttal evidence, there is serious unfair trade practice and deficiency in service on the part of opposite parties. The act of opposite parties caused huge loss and severe mental agony to the complainant. Even after, sending repeated email messages by the complainant to opposite parties also, they could not cure the defects increases the gravity of the fraudulent activity committed by the opposite party. Moreover, the opposite parties delayed the transfer of the loan documents and records to the new bank and thus caused additional mental agony to the complainant. The opposite parties are liable to compensate the loss and agony undergone by the complainant. The relief claimed by the complainant is Rs. 31,51,655 with 18% interest per annum till realization from opposite, with a compensation of Rs. 10 lakh and Rs. 5 lakh as cost. The complainant is entitled for the unauthorized penal interest charged from his overdrafts accounts. Considering the facts and circumstances of this case, the commission holds that an amount of Rs. 5 lakh is a reasonable compensation in this case with a cost of Rs.5,000/-. Hence both opposite parties are jointly and severally liable to pay the amount of Rs.31,51,655/- with 9% interest to the complainant with compensation and cost.
In the result, complaint is partly allowed directing opposite parties to refund Rs. 31,51,655/-(Rupees Thirty One lakhs Fifty One thousand Six hundred and Fifty Five only) with 9% interest per annum along with compensation of Rs.5,00,000/-(Rupees Five lakhs only) and Rs.5,000/- (Rupees Five thousand only) as cost to the complainant within 30 days from the date of receipt of copy of this order.
Sd/- Sd/-
MEMBER PRESIDENT
Exhibits
A1 - Legal Notice send by the complainant
A2 - Postal acknowledgment
A3 - Schedule of excess penal interest charged
A4 - Copy of the email send to opposite party dated 04/02/2021
A5 - Copy of the email send to opposite party dated 09/04/2021
A6 - Copy of the email send to opposite party dated 17/01/2022
A7 - Copy of the email send to opposite party dated 17/01/2022
A8 - Copy of the email send to opposite party dated 09/03/2022
Sd/- Sd/-
MEMBER PRESIDENT
Forwarded by Order
Assistant Registrar
JJ/
