• Bank refused payment in approved Credit cards in EDC machine

An EDC machine was installed by ICICI Bank, after entering into a proper Agreement in our Showroom, in Jaipur for online approval of payment made through debit/credit cards. Few credit cards duly approved by bank followed by successful settlement report. The Bank refused payment on frivolous grounds. I filed a Criminal Case filed in ACJM Court.The ACJM Court, after getting Police investigation report, held Bank guilty for non-payment.The Bank appealed against ACJM Court order in Jaipur Bench of High Court.The High Court directed the case to be refiled in Consumer Court for redressal  of grievances.The Consumer Court now asking us to produce case laws related to establishment of relationship as CONSUMER between Showroom and Bank as Court is treating relationship as Commercial.

How do we establish our relationship as CONSUMER as the Consumer Court is treating this transaction as Commercial.

We require few case laws in support of our contention so that we can convince the Consumer Court to treat this relationship as a Consumer.

In case you require any other details, I am ready to furnish the same.
Asked 5 months ago in Civil Law from Jaipur, Rajasthan
If you are not able to produce the case laws or settled laws in this regard, you may ask the consumer court to reject the application quoting reasons and the law involved in rejecting the application after which you may either approach the state commission with a reision petition or can approach civil court for recovery of the amount due from the bank.
T Kalaiselvan
Advocate, Vellore
14056 Answers
127 Consultations
5.0 on 5.0
you do not fall within definition of consumer 

2) you   have installed EDC machine in show room for commercial purposes and hence would not fall within definition of consumer 

3) file appeal against order of HC before SC 
Ajay Sethi
Advocate, Mumbai
23279 Answers
1219 Consultations
5.0 on 5.0
The filing of the criminal case seems to be an ill conceived idea as there is no apparent violation of penal law. You have stated that an agreement was executed with the bank. Therefore, it is a case of breach of contractual obligations. So your remedy is before the civil court and not consumer forum. 
Ashish Davessar
Advocate, Jaipur
18158 Answers
449 Consultations
5.0 on 5.0
The commission must be charged in accordance with what is mandated in the agreement executed between both of you. However, the test to ascertain the relationship of consumer and principal, as set out in the law, is not the charging of commission. I repeat your remedy is before the civil court and not consumer forum. 
Ashish Davessar
Advocate, Jaipur
18158 Answers
449 Consultations
5.0 on 5.0
1) you should rely upon HC order which had directed you to file complaint before consumer forum 

2) it is debatable whether you would fall within definition of consumer as machine has been installed in your showroom for commercial purposes of carrying on your business 
Ajay Sethi
Advocate, Mumbai
23279 Answers
1219 Consultations
5.0 on 5.0
Service Charges and Fees are charged by ICICI bank for rendering services to the list mentioned below and all those avail such services are customers of bank:
Current Accounts
Smart Business Roaming Current AccountSmart Local Account w.e.f November 2015IMPS Charges w.e.f Sep 1, 2014 Roaming Current Account w.e.f November 2015 Trade Roaming Current Account w.e.f November 2015 Privilege Roaming Current Account w.e.f November 2015 Smart Business Account w.e.f November 2015 Seasonal Current A/c w.e.f November 2015 Public Works Contractors Current Account Company Current Account Merchant Current Account w.e.f November 2015 Classic Plus Current Account w.e.f November 2015 Gold Advantage Current Account w.e.f November 2015 Textile Current Account w.e.f November 2015 Prepaid Current Account w.e.f November 2015 Regular current account (Applicable for eBOR new
& migrated accounts only) w.e.f Nov 01, 2011 Agri Current Account w.e.f November 2015 Local Current Account w.e.f November 2015 Shubhaarambh Current Account w.e.f November 2015Chartered Accountant Current Account w.e.f November 2015SBA Gold Current Account w.e.f October 2015SBA Platinum Current Account w.e.f October 2015.
In my opinion you may not come under the list of one such account holder who avail services because the bank is collecting commission for the services rendered and not service charge.   Explanation.— For the purposes of this clause,"commecial purpose" does not include use by a person of goods bought and used by him and services availed by him exclusively for the purposes of earning his livelihood by means of self-employment;
Therefore you may have a civil relief for recovery through  civil money  recovery suit only.
T Kalaiselvan
Advocate, Vellore
14056 Answers
127 Consultations
5.0 on 5.0
Card swipe machine is payment terminal provided by bank on which merchant can swipe cards and receive payments 

2) in order that card swipe machine be installed it is necessary that applicant should have a valid commercial establishment 

3)merchant establishment agreement is entered into with the applicant 

4) if for any reason bank fails to pay your remedy is to file civil suit to recover the amount due and payable 
Ajay Sethi
Advocate, Mumbai
23279 Answers
1219 Consultations
5.0 on 5.0
The bank deducts service charges @ 1.6% from the approved amount of Credit/Debit cards as per Merchant Establishment agreement executed between ICICI Bank and the firm and credits firm's MERCHANT CURRENT ACCOUNT maintained with Bank. Hence, relationship of Bank with firm as Consumer appears to have been  established.

If yo are sure for the respite and are also sure that the service charges so collected by the bank are remitted to government, you can be confirmed to be a consumer hence entitled for a consumer grievance case against them before consumer disputes redressal forum.
A consumer is a person who hires or avails of any services for a consideration that has been paid or promised or partly paid and partly promised or under any system of deferred payment and includes any beneficiary of such services other than the person hires or avails of the services for consideration paid or promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person.
A complaint is an allegation in writing made by a Complainant, i.e., a consumer that he or she has suffered loss or damage as a result of any deficiency of service.
Deficiency of service means any fault, imperfection, shortcoming, or inadequacy in the quality, nature, or manner of performance that is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service.
Now you can analyse next course of action in this regard.
T Kalaiselvan
Advocate, Vellore
14056 Answers
127 Consultations
5.0 on 5.0
Since you are not a consumer the remedy is before the civil court and not consumer forum.
Ashish Davessar
Advocate, Jaipur
18158 Answers
449 Consultations
5.0 on 5.0

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