The Hindu Business Line : Credit card cancellation costs Amex Bank Rs 50,000

NEW DELHI: A city consumer court has asked the American Express Bank Limited (AEBL) to pay up Rs 50,000 as fine to one of its customers after holding it guilty of dishonouring the 'Dollar card' and its subsequent cancellation which caused immense humilia tion and hardships to him during his two successive foreign trips.

The Delhi State Consumer Disputes Redressal Commission, holding the bank guilty of causing mental agony and loss of reputation to one Mr Manish Sehgal whose card was cancelled following refusal to honour the same during his stay in Nepal and Australia, a sked it to pay up the amount within a month.

The Commission headed by Justice Mr J D Kapoor and Member Ms Rumnitta Mittal rejected the bank's contention that, as per the Dollar card agreement between the parties, the same can be revoked 'with or without cause'. It was further alleged that Mr Sehgal , instead of using the card for commercial purposes, was making payments in Casinos.

"Any contract which was bilateral in nature can not be allowed to be operated unilaterally and arbitrarily. The words 'with or without cause' show that any such term of contract has to be read in toto and not in isolation. The words 'with cause' is more significant than the words 'without cause'," said the Commission.

The verdict came on a complaint, filed in 1995 by Mr Sehgal, a resident of Golf Link, Delhi and proprietor of Commercial Corporation, wherein he alleged that he bought the Dollar card, for exclusive use in foreign countries, having unlimited credit limit . - PTI

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