Tamil Nadu
South Chennai
CC/204/2016
Adv. K.V.James - Complainant(s)
Versus
The Branch Manager, Karur Vysa Bank Ltd - Opp.Party(s)
Party in Person
08 Aug 2022
ORDER
Date of Complaint Filed : 28.04.2016
Date of Reservation : 22.07.2022
Date of Order : 08.08.2022
DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,
CHENNAI (SOUTH), CHENNAI-3.
PRESENT: TMT. B. JIJAA, M.L., : PRESIDENT
THIRU. T.R. SIVAKUMHAR, B.A., B.L., : MEMBER I
THIRU. S. NANDAGOPALAN., B.Sc., MBA., : MEMBER II
CONSUMER COMPLAINT No.204/2016
MONDAY, THE 8th DAY OF AUGUST2022
1.K.V.James,
Plot No.10, Flat No.S-1,
Right Street, Saravananagar,
Manikandapuram,
Chennai – 600 062.
2.Faith Tours and Travel,
Represented by K.V.James,
Sole Proprietor, … Complainants
-Vs-
The Branch Manager,
Karur Vysa Bank Ltd,
Egmore Branch,
Egmore,
Chennai – 600 008. … Opposite Party
******
Counsel for the Complainant : Party in Person
Counsel for the Opposite Party : M/s. A.V Radhakrishnan
On perusal of records and on endorsement made by the Complainant written arguments being treated as oral arguments, and upon hearing the oral arguments of the Opposite Party we delivered the following:
ORDER
Pronounced by the President Tmt. B. Jijaa, M.L.,
1. The Complainant has filed this complaint as against the Opposite Partyunder section 12 of the Consumer Protection Act, 1986 and prays to pay Rs.2,00,000/- by way of compensation to the Complainant as compensation for his mental agony, stress and strain, loss of earnings from his business, inconvenience, loss of reputation and good will also for the negligent, wilful act of delaying the settlement of the issue in question, for by passing and sidelining the direction of RBI’s direction which was known to him well before the cause of action and direct the Opposite Party to pay costs of this complaint.
2. The averments of Complaint in brief are as follows:-
The Complainant is a Sole Proprietor of M/s Faith Tours & Travel and he is having Current Account with the Opposite Party bearing A/C No.1283135000001578, and the said Current Account was operated under the name and style of Faith Tours and Travel. The Current Account is opened with the Opposite Party to Conduct his Christian Faith Pilgrimage Tours to JERUSALEM also leisure tours within the country. The Complainant runs this business own his own funds and that he has not availed any loan from the Opposite Party at any point of time for his business. The money in the Current Account is MONEY IN BUSNIESS for making his payments for Hotel, Vehicle, Bus & Train bookings for domestic tours For international tours he needs to block Air tickets by paying advance to Airlines, for Visas and Hotel bookings which are paid to the Parties by way of Bank transfer or through Cheques. He was admitted in MADRAS MEDICAL MISSION for serious heart ailment and he was in ICU for a week there after he was discharged after making Angiogram test the Doctors Diagnosis was that the Complaint has serious blocks in his heart and he needs to undergo immediate Bye Pass Surgery and advised rest and medication. Due to his acute financial constraints to support his family and College going Children decided not to undergo Bye Pass surgery as it is costly and decided to go on medication and rest. Due to his aliments, rest and medication he was not able conduct his tour and as such he was not able to operate his Current Account as mentioned above. The Complainant has approached the Opposite Party to revive his Current which was INOPERATIVE & DORMANT because of his hospitalisation due to acute heart ailment followed by treatment rest at home as advised by his Doctors. The Complainant was advised by the Opposite Party to make a letter stating all the above said reasons addressing the Branch Manager to activate his account and asked him to deposit money in the said Current Account No.1283135000001578 to activate the account. The Complainant having no liquid cash in his hand to make deposit as Required by the Opposite Party, pledged some Gold Ornaments with the Opposite Party's Bank An Amount of Rs.69,840/- to the said Current account No. 1283135000001578. As per the Bank statement Dated 01.06.2015 the Opening Balance in the Current Account was Rs.00.00 and with the deposit of Rs.69,840/- the New balance reflected was Rs.69,840/-. On 22.7.15, his account was debited with Rs.140/- under the head TR14653 and thereafter on 23.7.15 the first deduction was Rs.551.70/- from his account followed by 24 deductions of which 23 deductions were Rs.561.80/ each and one deduction was of Rs.570/- totalling to Rs.14,043/-. The surprise is that all 25 deductions as mentioned were done on the same day, ie. on 23.7.15. He approached the Opposite Party in person on 28.7.15 and informed the Opposite Party of the discrepancies and requested the Opposite Party to rectify the same for which the Opposite Party has requested the Complainant to give a written letter to waive of this charges and the Complainant did so immediately and the Opposite Party gave the Complainant an assurance that the matter will be settled within 10-20 days time at the maximum. The Opposite Party has sent an email on 13.10.15, to which the Opposite Party has replied saying that issue is being discussed at the Divisional Office level and expressed his sorrow on the delay. There after on 1.11.15, 13.11.15 and on 13.1.16 sent emails to the Opposite Party regarding the issue in question and no reply has been received for such emails sent. The Complainant sent a letter of notice to the Opposite Party mentioning all his grievances by Post with AD along with a request for compensation which is received by the Opposite Party on 25.04.16, but no response. Hence the complaint.
3. Written Version filed by the Opposite Party in brief is as follows:-
The 1st Complainant approached the Opposite Party Bank in the year 2011 and stated that he is the Proprietor of the 2nd Complainant Proprietor Concern, in furtherance of his business he required a current account. In pursuance to it, the 1st Complainant submitted a filled and signed Account Opening Form in the name of the 2nd Complainant whereby accepting the Terms and conditions in opening and maintaining the current account. On this the Opposite Party Bank assigned a Current Account Number.1283135000001578 in the name of the 2nd Complainant. Immediately the Complainant deposited a sum of Rs.10,000/-, on 20.06.2011 in the aforesaid Current Account of the 2nd Complainant. This current account the 1st Complainant agreed among other Terms and Conditions agreed that failure to maintain monthly, quarterly minimum average balance in the SB/CA attracts penal charges, further under Clause 4 the Complainant agreed that the bank may debit his account for services charges as applicable from time to time. Moreover under Clause 5 under the heading Core Banking, the Complainant agrees that in the event of failing to maintain the minimum balance, the Bank will at its discretion be entitled to levy service charges. In violation of the terms and the said current account from 20.05.2013 was having a balance of Rs.10/-. Since the Opposite Party Bank is entitled to levy charges, the balance of Rs.10 in the 2nd Complainant Current Account has been debited and the said Current Account continued with a zero balance in contravention to the Terms and Conditions for a period of 26 months. On 22.07.2015, the 1st Complainant approached the Opposite Party Bank and requested the Opposite Party Bank to activate his Current Account which became dormant for the reason of inoperative for a period of 26 months. The Opposite Party Bank stated that due to non-maintaining of minimum balance which is in violation of the Terms and Conditions quoted above and agreed by the Complainant while opening the Current Account, the System will charge penalty, service charges, as the Current Account was not operative with minimum balance of a period of 26 months, there accumulated a sum of Rs.14,043.11 and only on paying this amount, the Current Account will be opened and on opening a minimum amount should be paid and maintained. The Complainant is not having liquid cash to pay the aforesaid amount, voluntarily pledged his Jewels with the Opposite Party Bank and on the Pledging the Opposite Party Bank gave a Jewel Loan bearing Account No.1283929000038465 and the Loan Amount was credited to the said Current Account. In this background on remitting the amount to the Current Account on 22.07.2015 at the end of day, the System charged a sum of Rs.14,043.11/- being the charges of Non-maintaining Minimum Balance accumulated from May 2013 to June 2015 and this has been reflected on the successive next day being 23.07.2015. The charges raised by the system is in-built one under core banking system and wherever a violation occurred in respect of the business of the Banking whole of the country, the System will charge and this cannot be altered for the sake of any individual. The 1st Complainant who has activated his current account by paying the charges on 22.07.2015, on pledging of his jewels, in contradiction gave a request Letter dated 22.07.2015 to reverse the Charges. The Opposite Party Bank expressed its inability by highlighting the terms and conditions governing the maintenance of current account in the Opposite Party and in order to help the 1st Complainant request, the issue was brought to the knowledge of the Divisional Office for their advice which is reflected in the Reply Email of the Opposite Party Bank dated 13.10.2015 It is crucial to note that at any point of time the Opposite Party Bank never gave any assurance of the definite reversal and this can be gauged from the Typed Set of Papers of the Complainant and the 1st Complainant was informed that his request of waiver has not been considered. On 25.09.2015, again the 1st Complainant knowingly allowed the Current Account to go below the Minimum Balance and there is zero balance at this juncture the Complainant issued a Cheque to one KAPICO Motors India Pvt, for a sum of Rs 2,251 and the same was presented on 05.10.2015 since there is zero balance the cheque was returned. This will expose the Complainant awful intention where in one way or other wanted to gain illegally by giving false allegation against the Opposite Party Bank. Yet another malevolent attempt of the Complainant is quoting of the alleged circular of the Reserve Bank of India which has nothing do with the Current Account. The Opposite Party Bank has the every right to charge in the course of business and these are the administrative expenses and it has been allowed by law, procedures of the bank and the Apex Bank, concurring and knowing all these charges, the Complainant cannot deviate from the terms and conditions for his individual gain. Hence prayed to dismiss the complaint.
4. The Complainant submitted his Proof Affidavit and Written Arguments. On the side of the Complainant, documents Ex.A-1 to Ex.A-11 were marked. The Opposite Party submitted his Proof Affidavit and Written Arguments. On the side of the Opposite Party, documents Ex.B-1 to Ex.B-7 were marked
Points for Consideration
1. Whether there is deficiency in service on the part of the Opposite Party?
2. Whether the Complainant is entitled for reliefs claimed?
3. To what other reliefs the Complainant is entitled to?
Point No.1:
The case of the Complainant is that he was maintaining a Current Account bearing No.1283135000001578 with the Opposite Party for running a small entrepreneurship in the name and style of Faith Tours and Travel, to conduct small package tours domestic and occasionally International Tours to earn his livelihood. The Complainant was admitted in Madras Medical Mission for serious heart ailment and the doctors diagnosed blocks in his heart and due to acute financial constraints he did not undergo bypass surgery as advised and was in medication and rest. Due to his ailments, rest and medication he was not able to conduct tour and was not able to operate his Current Account with the Opposite Party. Thereafter when the Complainant wanted to activate the Current Account he was asked to deposit amount, so he pledged some gold ornaments with the Opposite Party for Rs.69,480/-, and the Bank Statement dated 01.06.2015 the Opening Balance in the Current Account was zero and new balance reflected Rs.69,480/-. On 22.07.2015 a sum of Rs.140/- was deducted under the head TR14653 and thereafter on 23.07.2015 first deduction was Rss.551.70 from his account followed by 24 deductions of which 23 deductions were at Rs.561.80 each and one deduction was Rs.570/- totalling amounting to Rs.14,043.10. Inspite of repeated requests the deductions were not reversed by the Opposite Party.
The contention of the Opposite Party is that the 1st Complainant had approached the Opposite Party in the year 2011 and opened a Current Account in the name of the 2nd Complainant by depositing a sum of Rs.10,000/- on 20.06.2011, and agreeing the terms and conditions in opening the Current Account, whereby the Complainant had agreed that failure to maintain minimum balance attracts penal charges, bank may debit for service charges as well. The 1st Complainant inviolation of the terms and conditions had not maintained the minimum balance from 20.05.2013 and the 2nd Complainant Current Account continued with a zero balance for a period of 26 moths. On 22.07.2015 the 1st Complainant had requested the Opposite Party to activate the dormant account, which required minimum amount to be maintained and hence he availed Jewel Loan which was credited to the Current Account on 22.07.2015 and a sum of Rs.14,043.11 was charged for non-maintaining minimum balance accumulated from May 2013 to June 2015. When the 1st Complainant requested by letter dated 22.07.2015 to reverse the charges the Opposite Party expressed its inability by highlighting the terms and conditions governing the maintenance of Current Account.
On careful perusal of records it is evident that the Current Account maintained by the Complainants with the Opposite Party remained inoperative / dormant for more than two years. When at the request of the Complainants, and on crediting a sum of Rs.69,480/-, which was availed by the Complainants through Jewel Loan from the Opposite Party the Opposite Party had activated the inoperative Current Account on 22.07.2015, subsequently the Opposite Party had deducted a sum of Rs.14,043.11 towards non maintenance of the minimum balance. The Counsel for the Opposite Party pointed out the terms and conditions of the Account Opening Form Ex.B-1 executed by the Complainant wherein the 1st Complainant had agreed that the Bank may debit from his account for applicable service charges and penal charges for failure to maintain minimum average balance and also referred the Circular of the Opposite Bank, Head Office dated 01.06.2009 for charging Rs.500/- for non maintenance of MAB, i.e., Minimum Balance Account.
A perusal of Ex.A-9, the RBI Circular dated 06.05.2014 on the levy of penal charges on non maintenance of minimum balances in inoperative Accounts, proposing certain measures towards consumer protection, it was advised that banks are not permitted to levy penal charges for nonmaintenance of minimum balances in any inoperative account.
The applicable charges in non maintenance of mimimum balance would be applicable to the Accounts which are in operation and where services are being provided to the customers by the banks. In this case the Opposite Party had admitted that the Current Account of the Complainants were inoperative for more than 2 years and was classified as dormant Account. Hence the Opposite Party ought not to have levied charges for non maintenance of minimum balance in the inoperative account of the Complainants as per the circular of RBI dated 06.05.2014, Ex.A-9.
Considering the facts and circumstances of this case this Commission is of the view that the Opposite Party in levying charges on the inoperative Current Account of the Complainants against the RBI guidelines would amount to deficiency in service. Accordingly Point No.1 is answered.
Point No.2 and 3:
As discussed and decided Point No.1 in favour of the Complainant, the Opposite Party is liable to refund a sum of Rs.14,043.10, being the charges levied by the Opposite Party , to pay a sum of Rs.10,000/- as compensation towards the deficiency of service and mental agony caused to the Complainant and also to pay a sum of Rs.3000/- towards cost of the complaint.The Complainant is not entitled for any other reliefs. Accordingly, Point No.2 and 3 are answered in favour of the Complainant.
In the result the complaint is allowed in part. The Opposite Party is directed to refund a sum of Rs.14,043.10/-(Rupees Fourteen Thousand Forty Three and Ten Paise Only) being the charges levied by the Opposite Party , to pay a sum of Rs.10,000/-(Rupees Ten Thousand Only) as compensation towards the deficiency of service and mental agony caused to the Complainant and also to pay a sum of Rs.3000/- (Rupees Three Thousand Only) towards cost of the complaint, within 8 weeks from the date if this order, failing which the above amounts shall carry interest at the rate of 6% p.a from the date of this order till the date of payment.
In the result the Complaint is allowed.
Dictated to Steno-Typist, transcribed and typed by her, corrected and pronounced by us in the Open Commission, on 8th day of August 2022.
S. NANDAGOPALAN T.R. SIVAKUMHAR B.JIJAA
MEMBER II MEMBER I PRESIDENT
List of documents filed on the side of the Complainant:-
Ex.A1 | 30.09.2015 10.09.2015 | Copy of Letter sent by the Complainant |
Ex.A2 | 13.10.2015 | Copy of Email sent by the Complainant to the Opposite Party |
Ex.A3 | 13.10.2015 | Copy of Reply Email by the Opposite Party |
Ex.A4 | 17.10.2015 | Copy of Email sent by the Complainant |
Ex.A5 | 01.06.2015 To 14.10.2015 | Copy of Bank Statement |
Ex.A6 | 01.11.2015 | Copy of Email sent by the Complainant |
Ex.A7 | 13.11.2015 | Copy of Email sent by the Complainant |
Ex.A8 | 13.01.2016 | Copy of Email sent by the Complainant |
Ex.A9 | 06.05.2014 | Copy of RBI Order Copy |
Ex.A10 | 06.05.2014 | Copy of News Paper cuttings “PTI Mumbai” |
Ex.A11 | - | Copy of News paper cuttings “Team Money Today” |
Ex.A12 | 20.04.2016 | Copy of Notice copy of Acknowledgement |
List of documents filed on the side of the Opposite Party:-
Ex.B1 | - | Copy of Account opening form filled and signed by the 1st Complainant in the name of the 2nd Complainant. |
Ex.B2 | 30.09.2010 | Copy of Circular No.353/POL of the Opposite Party Bank Head Office. |
Ex.B3 |
| Copy of Jewel loan bearing Account No.1283929000038465 availed by the 1st Complainant |
Ex.B4 | - | Copy of Statement of Account in respect of Current Account Number 1283135000001578 in the name of the 2nd Complainant |
Ex.B5 | 22.07.2015 | Copy of Letter addressed by the Complainant |
Ex.B6 | 27.04.2016 | Copy of Reply Legal Notice of the Opposite Party Bank |
Ex.B7 | 01.06.2009 | Circular No.223/2009 of the Opposite Party Bank, Head Office. |
S. NANDAGOPALAN T.R. SIVAKUMHAR B.JIJAA
MEMBER II MEMBER I PRESIDENT
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