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CHANDIGARH CONSUMER DISPUTES REDRESSAL COMMISSION
Sham Sunder, President, Mr. Dev Raj and Mrs. Padma Pandey, Members
ICICI BANK LIMITED - Appellant
Versus
SANDEEP SHARDA - Respondent
First Appeal No. 513 of 2013
Decided on : 22-01-2014
Mr. Sandeep Suri, Advocate, for the Appellant; Ms. Aparna Jain, Advocate, for the Respondent
The complainant's responsibility to safeguard the credit card and exercise due diligence in preventing fraudulent transactions.
Headnote:
Credit Card Fraud - Consumer Protection - Consumer Protection Act, 1986, Section 12
Fact of the Case:
The complainant's credit card was misused by an unauthorized person, leading to a fraudulent transaction. The complainant filed a complaint under Section 12 of the Consumer Protection Act, seeking waiver of the fraudulent charges, compensation, and litigation expenses.
Finding of the Court:
The District Forum accepted the complaint, ruling in favor of the complainant. The opposite party was directed to waive off the fraudulent charges, pay compensation, and litigation expenses. The opposite party appealed against this decision.
Issues: The main issue was whether the opposite party was liable for the fraudulent transaction and if there was a deficiency in service on their part.
Ratio Decidendi: The court held that the complainant's act of handing over the credit card to an unauthorized person and disclosing the PIN number made him responsible for the fraudulent transaction. It was ruled that the opposite party was not liable for the fraudulent charges as the complainant failed to safeguard the credit card and did not exercise due diligence.
Final Decision: The appeal was accepted, and the order of the District Forum was set aside.
ORDER
Mr. Justice Sham Sunder, President - This appeal is directed against the order dated 15.10.2013 rendered by the District Consumer Disputes Redressal Forum-I, U.T., Chandigarh (hereinafter to be called as the District Forum only), vide which, it accepted the complaint, filed by the complainant (now respondent) and directed the opposite party (now appellant), as under:
"In view of the fore goings, we are of the opinion that the complainant has proved his case. Therefore, the complaint stands allowed. The OP is directed to waive of the charges of Rs. 29,000 from the Credit Card account of the complainant forthwith. The OP is also directed to pay a sum of Rs. 5,000 as compensation as well as litigation expenses to the complainant.
This order be complied with by the OP within a period of 30 days from the date of receipt of copy of this order, failing which it shall be liable to pay a penalty of Rs. 50,000, besides paying litigation cost as aforesaid."
2. The facts, in brief, are that the complainant availed of Credit Card facility, from the opposite party Bank, against Credit Card No. 4629 8642 3733 1006. The representative/agent of the opposite party Bank informed the complainant that it (opposite party Bank) shall enhance his credit limit from Rs. 1.36 lacs to Rs. 2.80 lacs, without charging anything. It was stated that the said representative/agent of the opposite party, namely Amit, visited the complainant, and filled up a form, and got it signed from him. The complainant was requested to cut the Credit Card into pieces, and hand over the same to him (representative/agent of the opposite party), as he had to deposit the same, with it (opposite party), with a view to get the new card, in a week's time. The complainant acted accordingly. However, on the next day i.e. 15.12.2011 at around 8.41 p.m., the complainant received an SMS, on his mobile phone, stating that a transaction for Rs. 29,000 was done at CROMA. The complainant immediately contacted the ICICI Bank-24 hours Customer Care Helpline and got his Credit Card blocked. The complainant was also apprised that the Credit Card was used at New Delhi outlet of CROMA. The matter was reported to the Police, which made investigations, and traced the ID Card of the person, who fraudulently used the Credit Card of the complainant. The matter was also brought to the notice of the opposite party Bank. However, the Bank did not take any action, to trace the actual user of the Credit Card, which proved that its Officials were also in-connivance with the said person.
3. It was further stated that the opposite party Bank also issued a letter dated 27.12.2011 to the complainant, stating that it had temporarily reversed the charges, billed to his account, towards the said transaction. It was further stated that the Bank, issued another letter dated 2.5.2013, stating therein that it had investigated the transaction, and came to know that there was a failure, on the part of the complainant, to exercise due diligence, in handling the Credit Card. It was further intimated that the outstanding amount, was required to be paid by the complainant, to avoid accrual of further financial charges. It was further stated that the aforesaid acts of the opposite party, amounted to deficiency, in rendering service, as also indulgence into unfair trade practice. When the grievance of the complainant, was not redressed, left with no alternative, a complaint under Section 12 of the Consumer Protection Act, 1986 (hereinafter to be called as the Act only), was filed, directing the opposite party, to waive off the amount, in respect whereof he had been duped, through fraudulent transaction, aforesaid; provide the CCTV footage, in respect of the said transaction, to aid the Police investigation; pay compensation, to the tune of Rs. l lac, for mental agony, and physical harassment and cost of litigation.
The opposite party was duly served. Mr. Sandeep Suri, put in appearance, on behalf of the opposite party on 26
