A RANGANATHAN Vs. STANDARD CHARTERED BANK

JUDGEMENT

(1.) THE complainant availed credit card facility from the opposite party. The 1st complainant maintains Non Resident External Account, Non Resident Ordinary Account, Foreign Currency Non Resident Deposits and Non Resident Non Repatriable Deposits. There were adequate funds maintained by the 1st complainant in the said accounts viz., NRE account, NRO account, NRNR deposits and FCNR account. The 1st complainant has also given standing instructions for payment of credit card dues standing in his wifes name from his NRO account which is further guaranteed by NRE account as well as NRNR deposits. There were standing instructions to replenish funds regularly on the utilization of card by the 2nd complainant. As on 31.12.1996, there was no amount due and payable. Hence, the 2nd complainant was surprised to receive a telegram stating that the cheque for Rs. 27,022.35 had been returned for insufficient funds. The complainants never issued any such cheque nor there was any need to do so inasmuch as amounts due under the credit card are to be adjusted as per the standing instructions. Even before the complainants could verify the demand, the opposite party sent hirelings and thugs in the name of bill collector, who visited the complainants house and demanded payment and behaved in a undignified and threatening manner. The 2nd complainant was threatened and insulted in the presence of her guests. She informed the NRI department of the opposite party about the demand made by an unknown person making threats. She also informed the 1st complainant who by way of fax complained to the opposite party regarding the illegal demand and the threatening attitude of the opposite party. The opposite party owned their mistake and also conceded that the demand for payment made by the bill collector was wrong, but they put the blame upon the computer. The attitude of the opposite party is thoroughly irresponsible and not in keeping with the tune of Multinational Banks. The 2nd complainant was put to a lot of mental agony, insult and torture. The sending of goondas and making threat is unbecoming of the opposite party. Thus, there is deficiency in service on the part of the opposite party for which a compensation of Rs. 20,00,000 is claimed.

(2.) THE case was opened on 18.4.2005. Ex. A1 to Ex. A7 were marked and the arguments of complainants Counsel were heard. This Commission suggested to the opposite party to bring their Manager in person and explain the circumstances and tender apology to the complainants. The Counsel appearing for the opposite party agreed to produce the Manager before this Commission on 20.4.2005. Accordingly the matter was adjourned to 20.4.2005. On 20.4.2005 when it was called the Manager was not present. But some other person said to be a staff was alone produced before this Commission. The manner in which the matter is treated and dealt with by the opposite party is really abhorrent. Having accepted to produce the Manager before this Commission, the opposite party is trying to wriggle away from such a situation by making false excuses. In the circumstances, holding that the opposite party are trying to procrastinate and stultify the proceedings, we have no hesitation in setting the opposite party ex parte.

(3.) THE 1st complainant is working as a pilot. The 2nd complainant is his wife. The 2nd complainant holds credit card facility from the opposite party. The 1st complainant has made certain deposits with the opposite party under the following heads namely Non Resident External Account, Non Resident Ordinary Account, Foreign Currency Non Resident Deposits and Non Resident Non Repatriable Deposits. It is not disputed. In fact, it is admitted by the opposite party in their letter that there were standing instructions that the amounts due towards credit card shall be adjusted and settled from the NRO account which further stands guaranteed by NRE account as well as NRNR deposits. There has been standing instruction issued by the 1st complainant to transfer funds from the NRI account to NRO account to cover bills. While so, the 2nd complainant received a telegram to the effect that the cheque given towards credit card bill was returned for insufficiency of funds and if the amount is not paid, legal proceedings would be initiated. When there are standing instructions given to adjust the amount from out of the deposits held by the 1st complainant, it is really strange for the opposite party to contend that a cheque was issued by the second complainant. In fact, the said cheque is also not produced by the opposite party. The opposite party has stooped so low that they deputed hirelings and thugs to the residence of the 2nd complainant and made threats to her. She was threatened and insulted in the presence of her guests with dire action unless the amount is settled. It is really heart -rending to hear that a Multinational Bank should stoop so low and engage thugs and hirelings to recover money from the customers especially from a lady who was alone in her house. This is absolutely an unbecoming conduct of the opposite party. This only underlines the fact that they have no faith in their banking ability but trust their muscle power. Such attitude and behaviour only sully the name of the banking institution. If at all there was any amount due, it is always open to the banker to initiate legal action to recover the same. After all it is dispute civil in nature. To employ thugs and hirelings and send them to the house of the borrowers and threaten is a despicable act. One can perhaps understand it in case of private money lenders but not banking institutions and such as Standard Chartered Bank which boasts of international reputation. It is a disreputable act which no gentleman will dare to do. Nor would even think of. That the opposite party has degraded themselves to such a low point would show that they do not believe in democratic ways or legal method but are only too happy to flex their muscles in their attempt to collect the amounts due to the Bank. It is but an exhibition of Mafia mentality. It is high time the Reserve Bank of India takes strong note of it and come down severely upon such Banks. We would even suggest that they do not hesitate to cancel the licence of such Bank. Having insulted, intimidated and threatened a lady, the opposite party had the cheek and temerity to write a letter as though butter will not melt in their mouth. After referring to the letter of the 1st complainant dated 22.1.1997, they write to say as follows: 'I can understand the anguish you have been through when we had incorrectly approached you for payment of the credit card bill dues by ignoring your standing instructions for payment by debit to your accounts with us'. Thus they admit that they approached the 2nd complainant for the collection of amount by sending thugs and hirelings. They admit that they made a mistake and have sent such persons ignoring the standing instructions for payment of debit amount. Conveniently they offer apology as though nothing serious had happened. On the other hand they find a convenient peg in the computer system for the bloomer committed by them. For they say that they now understand that the problem had arisen on account of their new computer system not being able to handle standing instruction. They cannot simply escape by saying that on account of the mistake in the computer system, it has happened. It is like slapping a person and then saying sorry and they thought that it was somebody else. This very letter which thus incorporates a confession and a declaration of inefficiency and deficiency is sufficient to nail the opposite party with all dire consequences. By their act, the opposite party had wounded not only the complainants but also the large body of the credit card users. They have thus got a set of thugs to set upon those persons, who are behind in payment. For when things hot up, they can always turn round and say it is a mistake of the computer. Such an attitude and flagrant violation of principle of natural justice, equity and insult to dignity of an individual cannot be tolerated by any person in a democratic setup. The action of the opposite party deserves to be condemned by everyone. The opposite party deserves to be reprimanded. They have given up decency in their transaction with the public and have chosen to engage thugs and hirelings. They have no respect for law or for that matter the honour and self -respect of the card holders. They beg, plead and woo. Once a person becomes a card holder they treat him/her shabbily. Since they are multinational Bank, perhaps, they think that they can do anything and get away easily. It is right time the Reserve Bank of India takes note of the other face of such banking institutions and come down upon them with a cane.