Bhaskar Sen vs AMERICAN EXPRESS BANK LTD.

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.

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. 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.

The State Commission heard the arguments of both the sides. After going through the records of the case and various clauses of agreement relating to the issuance of the credit card, the State Commission held that "American Express Bank has full authority to withdraw the cards from its member any time without assigning any reason thereto. In the present case there is adequate justification for the O.P. to withdraw such cards consequent to repeated defaults made by the complainant in adhering to its payment schedule in respect of different cards issued to him."

WE have heard Mr. S.N. Biswas on admission. The learned Counsel submitted that for a single default, which was rectified later by the complainant, the bank has withdrawn all the three cards instead of one card. This has resulted in disgrace and loss of reputation of the complainant. The complainant had not signed any agreement with the Bank, giving authority to the Bank, to cancel the credit cards at its sweet will. The complainant was not aware of the clauses of the agreement, if any, applicable to the issuance of the credit card, and as it was not signed by him and it was not a valid contract. Accordingly, he pleaded that the appeal may be allowed and compensation may be awarded as prayed for. Findings : We have gone through the records of the case. Prior to this incident, 3 other cheques issued by the complainant had bounced due to derogatory reasons. (i) 22.3.2002 166,500.00 Return-ed Cheque Drawn against uncleared effects (ii) 19.3.2002 105,000.00 Return-ed Cheque Insufficient Funds (iii) 11.3.2002 166,353.53 Return-ed Cheque Drawn against uncleared effects.

IT is clear that the complainant had defaulted time and again. The complainant''s Counsel showed us the credit cards, which are duly signed by the complainant on the reverse, during the hearing. IT is written on the same side where signature of the complainant appears as follows : "The use of this card is governed by the terms and conditions of the Bank''s Credit Card Agreement." "This card is the property of the issuer and must be returned upon request." The complainant is literate person and he cannot claim to have not read these conditions while signing on the reverse of the card as the card is not valid without signature. The complainant had not pleaded, in his complaint, before the State Commission that he has not read the clauses of the agreement, and as the agreement was not signed by him, it is not a valid contract. It is relevant to go through the Clause 16 of the agreement. 16. The Card Remains Our Property- The Card remains our property and we can revoke your right and the right of any Additional Card member to use it at any time. We can do this with or without giving you notice and with or without cause, if we have revoked the card without cause, we will refund a proportion of your annual Card Account fee. We may list revoked Cards in our "Cancellation Bulletin", or otherwise inform establishment that the card issued to you and, if you are the Basic Card member, any Additional Cards have been revoked or cancelled. If we revoke the Card or it expires, you must return it to us. Also, if an establishment asks you to surrender an expired or revoked card you must do so. You must not use the card after it has expired or after it has been revoked. You shall continue to be liable for all charges incurred by you after revocation or expiry of your card till the date your card is returned to us. The revocation, repossession or request for the return of the card is not and shall not constitute any reflection on your character or creditworthiness and we shall not be liable in any way for any statement made by any person requested the return or surrender of the card. Furthermore, privileges and facilities attached to the card may be withdrawn at any time at our absolute discretion without giving any notice to you or assigning any reason thereof."

IN view of the above analysis, we do not see any merit in appeal. Hence, it is dismissed. There shall be no order as to costs. Appeal dismissed.