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Friday, November 20, 1998

Court restrains Stanchart from "arm twisting" to recover dues 

PRESS TRUST OF INDIA  
Mumbai, Nov 19: A local court on Thursday restrained Standard Chartered Bank from adopting "arm twisting'' tactics to recover dues from its credit card holders.

This is perhaps for the first time a foreign bank has been directed not to use muscle power for recovery of dues from its clients.

The interim order was passed by sessions judge RR Wachha on a civil suit filed by one Srijiv Bhattarcharya, advertising consultant with Bydefault Agency, against the bank.

Admitting the suit, the judge remarked that a bank should refrain from using such methods or tactics to collect dues.

Bhattacharya alleged that he owed the bank Rs 18,000 but the latter claimed that he had to pay Rs 53,000. Since the amount was in dispute, eight persons came to his office at suburban Goregaon on November 5 to recover dues. Not finding him there, they allegedly threatened staff members, assaulted one of them and left after issuing a warning that Bhattacharya should pay back the amount or face dire consequences.

The plaintiffclaimed that a bank official had confirmed on telephone that the persons who visited his office were recovery agents. His office had also filed a police complaint.

Stanchart counsel, Anita Trivedi, denied that her client had used ``arm twisting'' methods to recover dues. She refuted allegations that those who had visited the plaintiff's office were recovery agents of the bank. She said three persons had gone to verify Bhattacharya's place of work because he was not traceable at the address given by him earlier.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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