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Author: Advocate Vinayak Srivastava

American Express bank has been penalized for non-acceptance of traveller's cheques by a consumer court and has been directed to pay a compensation of Rs 3 lacs to the complainant.

Complainant Suresh Srivastava, Secretary-General of Indian Federation of UN Association, approached NCDRC stating that travellers' cheques worth the US $ 6000 were purchased from Thomas Cook (India) Limited, issued by American Express bank.

In 2012, when he, along with other members of the delegation, reached Rio-de-Jenerio, the exchange of traveller's cheque in Brazillian currency, was refused by all the banks and the dealers of foreign exchange.

Thomas Cook (India) Limited admitted to having issued travellers' cheque and named five banks/foreign exchange dealers when it received information about the difficulties being faced in Rio-de-Janeiro.

American Express Bank, in its reply, denied the allegations of visiting the banks/foreign exchange dealers' whose names were provided by Thomas Cook (India) Limited.

It also denied that complainant visited the local branch of American Express Bank for the purpose of encashment of the traveller’s cheque.

After hearing arguments of both sides, the court stated,"considering all the facts and circumstances of the case, American Express Bank is directed to pay a sum of Rs 3,00,000 as an all-inclusive compensation to the complainant within three months from the date of issue of the order, failing which the said compensation shall carry interest @ 9% pa from the date of institution of the complaint".

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