National Commission in HDFC Bank vs Anish Munjal on January 23, 2019

Facts:

Anish Munjal had a savings bank account with Centurian Bank of Punjab, which was taken over by the
HDFC Bank in May 2008. Munjal had obtained a credit card from HDFC Bank, which deducted Rs 53,043.68
from the balance in his savings bank account against his credit card dues. Aggrieved with the deduction,
Munjal approached the District Forum, which ruled in his favour. However, the bank had claimed that “the
credit card dues having not been paid, they were justified in deducting the same from the saving bank
account of the respondent.” This claim was dismissed by the District Forum. The bank then appealed
against the District Forum before the State Commission, which also ruled in favour of the customer. HDFC
Bank finally approached the NCDRC.

Contentions:

Munjal specifically stated in his complaint that he had taken credit card from HDFC Bank. The card was
last used in December 2005 and as per the demand of the bank, he had paid the amount and got the said
card cancelled.

The bank, however, said that the total amount of dues against Munjal in his credit card statement dated
5.12.2004 was Rs.9979.85, including the finance charges levied by the bank. The dues kept on increasing
on account of addition of late fee, over-limit fee and finance charges, though no fresh purchase was made
by Munjal. The bank claimed that he made purchases and made several part payments over a period of
this. The bank’s counsel told the National Commission,”However, he (Munjal) having not made full
payment of the credit card dues, the finance charges and late fee etc. continued to be added to his credit
card account and as a consequence, the said dues increased to Rs.53,043.68, till the date the said dues
were deducted from his saving bank account.”

Held:

The NCDRC noted that that Clause-6 of the terms and conditions, on which the credit card was issued,
allowed the bank to set-off dues of the cardmember from his savings account with the bank without any
notice. The commission, hence, set aside previous orders against the bank. It said, “In view of the
aforesaid clause, the petitioner bank was entitled to set off the credit card dues at any point of time,
without any notice to the complainant. Therefore, deduction of the amount of Rs.53,043.68 from the
saving bank account of the complainant was in consonance with the above referred condition stipulated
by the bank, while issuing the credit card to the complainant/respondent.”