Delhi District Court
Unknown vs Sh. V. Thillaikumar S/O Sh. Velliangiri on 2 May, 2013
1 CS No.: 17/13/12
IN THE COURT OF SH. KISHOR KUMAR : CIVIL JUDGE-12 (CENTRAL),
TIS HAZARI COURTS, DELHI
SUIT NO : 17/13/12
In the matter of :-
Corporation Bank
LIC Card Centre, Delhi, A body corporate Constituted
Under the Banking Companies (Acquisition and Transfer
of Undertaking) Act, 1980 (Act No.3 of 1990)
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.
......Plaintiff
VERSUS
Sh. V. Thillaikumar S/o Sh. Velliangiri
193-N, Kandar Nagar, High School Road,
P. Vellur - PO Namakkal - 638182 (Tamilnadu).
Also at:
LIC of India, 190, High School Road,
P. Vellur - Namakkal -638182 (Tamilnadu).
.....Defendant
Date of institution : 07.11.2012
Reserved for Judgment: 02.05.2013
Date of decision : 02.05.2013
SUIT FOR RECOVERY
Contd....
2 CS No.: 17/13/12
J U D G M E N T:
1. Initially, the plaintiffs bank has filed the present suit u/o 37 CPC for recovery of Rs.1,12,779/- alongwith pendente lite and future interest @ 31% per annum, against the defendant through its Chief Manager, who is the constituted attorney for the plaintiff bank. However, vide order dated 09.11.2012 the suit was converted into ordinary suit for recovery.
2. It is further contended that LIC card account is maintained by plaintiff bank and LIC Card is distributed and marketed by the LIC Cards Services Limited. It is further averred that defendant approached the plaintiff bank for issuing a LIC Credit Card and after considering his request, plaintiff bank issued LIC Credit Card No.4628460000621003 to him with a limit of Rs.25,000/- on 12.10.2009. The defendant availed and used the LIC Credit Card for day to day affairs. As per the terms and conditions of the LIC Credit Card user guide, defendant is liable to make the payments of all the outstanding of the said credit card and other charges as applicable for the retentions and utilization of the said Contd....
3 CS No.: 17/13/12credit card. It is further submitted that defendant has been regularly billed by means of periodical monthly statement(s) issued by the plaintiff by way of courier, e-mail and SMS etc. in relation to the said credit cards. The defendant was repeatedly called to clear and liquidate the dues in respect of said credit card, but to no use. The defendant failed to maintain financial discipline and to deposit regular minimum amount in the credit card, as a result of which the card account became over drawn and accordingly as per banking norms as laid down by RBI, defendant's account was classified as a Non Performing Asset (NPA) as on 21.05.2010. Legal notice dated 15.05.2010 was sent to the defendant. Hence, the present suit.
3. In the present case, the defendant had been served with summons for settlement of issues, but none appeared for him, accordingly he was proceeded ex-parte vide order dated 0203.2013.
4. In support of his case plaintiff bank has examined Sh. Arun Verma Ambastha as PW1, who filed his affidavit in evidence Ex.PW1/A, bearing his Contd....
4 CS No.: 17/13/12signatures at point-X and Y. He has relied upon the documents i.e. application made by the defendant Ex.PW1/1, terms and conditions Ex.PW1/2, Legal notice Ex.PW1/3, Speed post receipt Ex.PW1/4, statements / bills from 21.11.09 to 21.10.12 Ex.PW1/5 to Ex.PW1/40, computer generated Card Holder's / screen shot Ex.PW1/41, agreement dated 30.03.09 entered between plaintiff and the LICCSL Ex.PW1/42, agreement executed between Opus Software Solutions Pvt. Ltd. and plaintiff Ex.PW1/43 and power of attorney executed in favour of PW-1 Ex. PW1/44.
5. I have heard counsel for plaintiff and have carefully gone through the record.
6. By way of the present suit plaintiff is seeking recovery of Rs. 1,12,779/- alongwith pendente lite and future interest @ 31 % per annum with monthly rests alongwith finance charges, late payment, over limit and other charges thereon from the date of filing of the present suit till its actual realization. As per the case of the plaintiff, on the request of defendant LIC Credit Card No. Contd....
5 CS No.: 17/13/124628460000621003 was issued to him with a limit of Rs.25,000/- on 12.10.2009 on application form Ex.PW1/1. Further, the plaintiff bank has relied upon Ex.PW1/2 i.e. LIC Card most important terms and conditions. Ex.PW1/2 does bear the stamp of the plaintiff bank and signature of its Chief Manager. However, I find that it is not signed by the defendant, nor the terms and conditions are mentioned in the application form Ex.PW1/1. It only contains the general particulars of the defendant. Then, there is on record Ex.PW1/3 i. e. the legal notice dated 15.05.2010, vide which the defendant had been called upon to make the payment of Rs.25,420.86 paise. Ex.PW1/5 to Ex.PW1/41 are the account summary statement / bills of the defendant, admittedly, maintained by the plaintiff bank. As per the account summary, the suit has been filed well within the period of limitation.
7. Since, the present case of the plaintiff bank is based on an agreement executed between the plaintiff bank and the defendant, but I find that the defendant had not been made aware of the interest part which is being claimed by them in the present case at the rate of 31% per annum with monthly Contd....
6 CS No.: 17/13/12rests alongwith finance charges, late payment, over limit and other charges thereon from the date of filing of the present suit till its actual realization, as the Ex.PW1/2 i.e. the terms and conditions does not bear the signature of the defendant. Under these circumstances plaintiff is entitled only to the sum of Rs.25,420.86paise alongwith interest @ 6% per annum from 20.11.2009 till realization of the decreetal amount in view of Section 34 of the CPC, which reads as follows:
34. Interest- (1) Where and in so far as a decree is for the payment of money, the Court may, in the decree, order interest at such rate as the Court deems reasonable to be paid on the principal sum adjudged, from the date of the suit to the date of the decree, in addition to any interest adjudged on such principal sum for any period prior to the institution of the suit, [with further interest at such rate not exceeding six per cent per annum as the Court deems reasonable on such principal sum], from the date of the decree to the date of payment, or to such earlier date as the Court thinks fit:
[Provided that where the liability in relation to the sum so adjudged had arisen out of a commercial transaction, the rate of such further interest may exceed six per cent per annum, but shall not exceed the contractual rate of interest or where there is no contractual rate, the rate at which moneys are lent or advanced by nationalized banks in relation to Contd....7 CS No.: 17/13/12
commercial transactions.
Otherwise also, the interest being sought for by the plaintiff in the present suit is highly exorbitant and arbitrary. Proportionate cost is also awarded to the plaintiff. Decree sheet be prepared accordingly.
File be consigned to the record room after due compliance.
Announced in the open court (Kishor Kumar)
on 02.05.2013 Civil Judge-12 (Central)
Tis Hazari Courts: Delhi
Contd....