A bank cannot exercise the right of lien and set-off to withdraw funds from a customer's account without prior notice, particularly after accepting a settlement amount, as such action constitutes a deficiency in service.

Present: Ms. Amita Kumari, counsel for the appellant, E. mail: gurmeet @ gbalawoffices.com.

Respondent in person, Email: premmalhotra1959@gmail.com

Ms. Yashika Kapoor, counsel for the respondent, Email: adv.yashikakapoor@gmail.com

PER: HON’BLE JUSTICE SANGITA DHINGRA SEHGAL, PRESIDENT

JUDGMENT

1. The facts of the case as per the District Commission record are as under:

“1. The complainant has filed a complaint under Section 12 of Consumer Protection Act 1986 (hereinafter referred to as Act) with the allegations that credit card bearing number 5176521006650701 with credit limit of Rs 70,000/- was issued by OP to him. A dispute has arisen between them which was duly settled in June 2018. He was to pay a sum of Rs. 68180/- in 08 equal installments of Rs. 8522/- each. 06 cheques were duly cleared whereas 02cheques were dishonored upon which he has deposited cash in lieu of dishonored cheques. On 16.12.2009, a sum of Rs. 9180/-was withdrawn from his savings bank account without his consent or approval which is evident from the bank statement for the month of Dec, 2009, In Feb, 2011. OP has issued a legal notice to the effect that they have not received the payment of credit card. The legal notice was duly replied. No communication was received from the OP thereafter.

2. He is having a salary account bearing number 501001984316631 with the OP. In April, 2017 he has applied for fresh credit card at the request of the executive of OP, On 30.05.2017, he was surprised to notice that a sum of Rs. 70,627/- has been blocked by OP and on 14.6.2017, a sum of Rs. 70627/-was illegally withdrawn from his bank account. He contacted OP and tame to know that there is an outstanding amount of Rs. 74,000/- against him. The withdrawal of money from his bank account without his consent and knowledge tantamounts to unfair trade practice. There is a deficiency in service by way of withdrawing the amount from his bank account. He has issued a legal notice dt 24.6.2017 to the OP which was duly replied on 18.07.2017. Hence, this complaint.

2. The OP has filed a reply wherein preliminary objections qua suppression of material facts, maintainability, cause of action and complaint is filed with baseless allegations against the OP are raised. On merits, it is averred that OP is a banking company and engaged in the business of banking, financing and providing credit card facilities to the customers. Ms. Jyoti Rani is the Legal Manager of the OP and duly authorized through power of attorney to file the case. A credit card bearing no. 5176521006650701 was issued to the complainant on filing credit card application form. The credit card agreement is duly received by the complainant which contains the detailed information including late fee charges. The complainant has defaulted in making the payment and settlement between the parties took place. The complainant was to pay Rs. 68,187/- in 08 installments out of which 04 installments were of Rs 8522/- and 04 were of Rs. 5523/- . The amount was to be payable by Feb, 2009. The complainant failed to abide by the settlement and defaulted in making the entire payment. The OP has requested the complainant to honour the settlement but in vain. The settlement has become null and void as per third term & condition of settlement. On 01.12.2009, OP has placed hold on funds of Rs. 23245.68 in favour of OP due to Bankers lien and right of set-off. A letter dt 04.02.2011 was issued to the complainant for conciliati