BHASKAR SEN Vs. AMERICAN EXPRESS BANK LTD

JUDGEMENT

(1.) The complainant Bhaskar Sen, Chairman and Managing Director, M/s. B.C.C. Shipping and Ship Building Company Ltd. filed a complaint in the State Consumer Disputes Redressal Commission, West Bengal, stating that he is a credit card holder of American Express Bank Ltd., the opposite party, which had issued him 3 cards for his use viz., Gold Card (Credit), Corporate Rupees Charge Card (Charge) and Platinum (Charge). In addition to these, the complainant was holding three more cards issued by the Bank, mostly as supplementary cards. The complainant had drawn a cheque on 8.1.2003 for Rs. 3 lakh on his IDBI account at Bangalore for payment towards the outstanding bill against corporate rupee charge card. It is the contention of the complainant that though the cheque should have been drawn on Indian Bank (Russel Street Branch), it was inadvertently drawn on IDBI Bank. The cheque was returned by the Bank with the remark "effect not cleared, please produce again". On receipt of this information, the complainant issued another cheque for Rs. 3,10,000 drawn on Indian Bank within six days. The respondent Bank took a strong view relating to the matter on return of the cheque, on grounds of insufficient funds, and cancelled corporate rupee charge card along with two other cards.

(2.) The complainant contended that such an action, on the part of the opposite party, is arbitrary and harsh, which has brought disgrace to his reputation. He made several representations to the opposite party Bank to restore his card with no positive result. Accordingly, he came up with the prayer to the State Commission for compensation of Rs. 1 crore alleging arbitrary cancellation of 3 cards.

(3.) The matter was contested before the State Commission by the opposite party-American Express Bank, according to which, the payment history of the complainant in respect of all three cards was unsatisfactory, which was brought to notice of the complainant, from time-to-time, over telephone and also in writing. The Bank had made the reasons of its cancellation known to the complainant in its letter dated 18.1.2003. It further contended that the complainant had paid Rs. 1,20,000 on 16.1.2003 towards the outstanding dues of platinum card but the cheque was dishonoured. It also added that cheque for Rs. 1,66,353.53 dated 6.3.2002 drawn on Syndicate Bank towards payment of outstanding of corporate rupee charge card was dishonoured by the drawer Bank. It has also stated that cheque for Rs. 1,05,000 dated 15.3.2002 drawn on Syndicate Bank towards payment of outstanding dues on corporate Indian rupee card was dishonoured by the drawee Bank. The O.P. further contended that cheque for Rs. 1,66,500 dated 18.3.2002 drawn on Syndicate Bank in payment of corporate Indian rupee card was dishonoured by the drawee Bank.