Delhi District Court
Kanara vs Mr. Pradip Dadu Jadhav on 22 August, 2015
IN THE COURT OF SH. PRANJAL ANEJA
CIVIL JUDGE-06, CENTRAL, TIS HAZARI COURT, DELHI
Suit no. 460/14
Unique ID No. 02401C0358102012
CORPORATION BANK
LIC Card Center, Delhi, A Body Corporate Constituted
Under the Banking Companies (Acquisition and Transfer of Undertaking)
Act, 1980 (Act No. 3 of 1980) having its Head Office at Mangalore (South
Kanara, Karnataka State) and having a branch at Corporation Bank, LIC Card
Centre, 16/10, FF, Main Arya Samaj Road, Karol Bagh, New Delhi-
110005.
.....Plaintiff
Versus
MR. PRADIP DADU JADHAV
S/O Sh. Dadu Tatoba Jadhav
D- 1/5, J. S. Colony, SV Road,
Santacruz West, Mumbai-400054 (Maharashtra).
ALSO AT
LIC of India, SSS Department,
Jeevan Seva Building, SV Road,
Santacruz West, Mumbai-400054 (Maharashtra)
.....Defendant
SUIT FOR RECOVERY OF RS. 2,24,015.07 ALONG WITH PENDENTELITE
AND FUTURE INTEREST @ 30% PER ANNUM
DATE OF FILING OF THE SUIT : 04.08.2012
DATE ON WHICH RESERVED
Suit. No. 460/14 Page No. 1 of 6
Corporation Bank V. Mr. Pradip Dadu Jadhav On 22nd August, 2015
FOR JUDGMENT : 22.08.2015
DATE OF ORDER/JUDGMENT : 22.08.2015
JUDGMENT
1. The present suit has been filed by the plaintiff against the defendant for recovery of Rs. 2,24,015.07/- along with pendente-lite and future interest @ 30% per annum.
2. Briefly, as per the plaint, the case of the plaintiff is that defendant approached the plaintiff bank for issuing a LIC Credit Card and submitted some documents as application dt. 05.06.2009 along with copies of salary slip, employ ID card, allotment letter etc. for the proof of photo identify and residence and after due consideration of the request of defendant, plaintiff bank sanctioned a limit of Rs. 45,000/- and issued a LIC Credit Card to the defendant. As per the terms and conditions of the LIC Credit Card, the defendant is liable to make the payments of all the outstanding of the said credit card. But defendant failed to maintain financial discipline and to deposit regular minimum amount in the credit account. It is further alleged that plaintiff finally issued a legal notice dt. 15.05.2010 through speed post on 17.05.2010 calling upon the defendant to pay sum of Rs. 65,710.52 which is due, payable and outstanding. But no response has been received by the plaintiff to the legal notice dt. 15.05.2010 neither any amount was paid by the defendant in the LIC Credit Card account.
3. It is further stated that as on 26.07.2012, an amount of Rs. 2,24,015.07/-
is due and payable by the defendant to the plaintiff with future interest @ 30% per annum with monthly rests along with financial charges, late payment etc. Suit. No. 460/14 Page No. 2 of 6 Corporation Bank V. Mr. Pradip Dadu Jadhav On 22nd August, 2015
4. That cause of action firstly arose when the defendant approached the plaintiff bank for issuing LIC Credit Card and again on 16.06.2009 when the plaintiff bank issued a LIC Credit Card to the defendant with a limit of Rs. 45,000/- on 16.6.09. That cause of action further on various dates and is still continuing as the defendant is still under liability to pay the amount to the plaintiff.
5. It is further alleged that this suit falls within the territorial and pecuniary jurisdiction of this Court.
6. It is prayed that decree for recovery of Rs. 2,24,015.07p along with pendentelite and future interest @ 30% per annum with monthly rests along with financial charges, late payment, over limit and other charges thereon be passed from the date of filing of the present suit till its actual realization.
7. Summons were served by way of affixation but none appeared on behalf of the defendant despite service of summons hence, defendant was proceeded ex-parte vide order sheet dt. 09.10.2014.
8. To substantiate its case on judicial file, Sh. Ashwin Trikey, AR of the plaintiff bank appeared as PW-1 and filed his affidavit in evidence as Ex PW 1/A. The documents filed and relied upon on behalf of plaintiff are Credit Card Application Ex PW 1/1, Credit Card Statements (bills) Ex PW 1/2 to Ex PW 1/38, legal notice dt. 15.05.2010 Ex PW 1/39, speed post receipt Ex PW 1/40, computer generated card holder's details Ex PW 1/41, certificate under Banker's Books Evidence Act Ex PW 1/42, terms and conditions of the credit card Ex PW 1/43, agreement dt. 30.03.2009 Ex PW 1/44, agreement between plaintiff and Opus Software Solutions Pvt. Ltd. Ex PW 1/45, power of attorney Ex PW 1/46.
Suit. No. 460/14 Page No. 3 of 6Corporation Bank V. Mr. Pradip Dadu Jadhav On 22nd August, 2015
9. I have heard the arguments and perused the record.
10. Plaintiff has filed the present suit to recover the outstanding amount towards the usage of LIC Credit Card by defendant. The plaintiff has filed various documents in support of the case which are credit card application Ex PW 1/1, Credit Card Statements Ex PW 1/2 to Ex PW 1/38, card holder details Ex PW 1/41 etc.
11. From the record, it has been shown that the defendant was issued a Credit Card which he has used. Plaintiff has claimed a sum of Rs. 2,24,015.07p as total outstanding due against the defendant as reflected in the last statement dt. 21.07.2012. It is noted that although the screen shot of the card holder's detail at page 55 (of Ex PW 1/41) shows the last payment date as 02.09.2009 but in fact the said entry of 02.09.2009 as reflected from statement dt. 21.09.2009 Ex PW 1/4 is mentioned as "LIC Anniversary Credit" of Rs. 50/- which is not a payment actually coming from the side of defendant. Thus, there is no payment at all made by the defendant towards the usage of the credit card. The last usage of the card is therefore of 29.07.2009 as reflected in credit card statement for the date 21.08.2009 Ex PW 1/3. It is further noted that for a period of about three years from this date till the filing of the suit on 04.08.2012, various amounts have been charged by the plaintiff on account of interest, late payment fee, over limit fee and service tax while the usage amount had already exceeded the credit limit of Rs. 45,000/- (including cash advance) by 21.08.2009. This credit limit of Rs. 45,000 is clearly reflected at page 55 of the screen shot of the card holder's details Ex PW 1/41. Therefore, it was incumbent upon the plaintiff to have filed the suit for recovery immediately after the expiry of the credit period from the last usage or when the credit exceeded the limit of the said Rs. 45,000/-, but the plaintiff did not opt for Suit. No. 460/14 Page No. 4 of 6 Corporation Bank V. Mr. Pradip Dadu Jadhav On 22nd August, 2015 filing the present suit and rather continued issuing these credit card statements Ex PW 1/4 to Ex PW 1/38 levying all the above said charges of late payment, interest, over payment fee etc. giving a cascading monthly compounding effect of interest and charges over the interest and charges. The first two credit card statements Ex PW 1/2 and Ex PW 1/3 show the usage and in fact the second statement Ex PW 1/3 mentions the word "immediate" against the payment due late. The plaintiff has come only on the last date of limitation to file the present suit as the present suit has been filed on 04.08.2012 while the payment due date was 05.08.2009 as per card statement dated 21.07.2009 Ex PW 1/2. Thus, it is observed that the plaintiff has been negligent in staking its claim to recover the outstanding against the usage of the credit card when the amount had become payable immediately and the defendant had exceeded the credit limit available to him. Plaintiff has inflated the amount outstanding by levying the above noted various charges. Although plaintiff is entitled to recover the dues towards usage of the credit card but there can be no justifiable reason for the grant of the above said charges of different nature such as interest, late payment, over limit fee etc. on account of above noted reasons of the plaintiff not knocking the doors of the Court when the cause of action immediately arose.
12. As per credit card statement dt. 21.08.2009 Ex PW 1/3 the total amount due is Rs. 47,228.53p. However, this amount is to be reduced by an amount of Rs. 50/- credited on 02.09.2009. Thus, the net amount comes to Rs. 47,178.53p. Plaintiff is entitled to the same.
13. Plaintiff has claimed interest @ 30% per annum pendentelite and future.
However, this rate of interest appears to be highly exorbitant, I consider to grant simple interest @ 18% per annum on the said amount of Rs. 47,178.53p. Since the defendant has used the credit card and has been a defaulter in payment of the liability towards usage, the defendant is hereby liable to pay simple interest Suit. No. 460/14 Page No. 5 of 6 Corporation Bank V. Mr. Pradip Dadu Jadhav On 22nd August, 2015 @ 18% per annum on the said amount of Rs. 47,178.53p from its last usage i.e. 29.07.2009 till recovery.
RELIEF On the basis of above findings, the present suit is hereby decreed for a sum of Rs. 47,178.53p (Rupees Forty Seven Thousand One Hundred Seventy Eight and Paise Fifty Three Only) in favour of the plaintiff bank and against the defendant along with simple interest @ 18% (Eighteen Per Cent) per annum on the said amount w.e.f. 29.07.2009 till realization.
Costs of the suit are also awarded in favour of the plaintiff and against the defendant. Decree sheet be prepared accordingly.
File be consigned to record room after necessary compliance.
Announced in open Court (PRANJAL ANEJA)
on 22.08.2015 CIVIL JUDGE-06, CENTRAL
THC/DELHI/ 22.08.2015
Suit. No. 460/14 Page No. 6 of 6
Corporation Bank V. Mr. Pradip Dadu Jadhav On 22nd August, 2015