Charge card firm ordered to pay trader


  • Nation
  • Friday, 21 Mar 2003

KUALA LUMPUR: Diners Club (M) Sdn Bhd was ordered by a Sessions Court here yesterday to pay RM153,760 to a diamond merchant as payment for a transaction that involved a purported forged charge card.  

Judge B. Sarala Pillai, in allowing the claim by Heartfields Sdn Bhd, said the plaintiff had shown that it had complied with the terms of a merchant agreement with Diners Club. 

Apart from the sum, the judge also ordered that the costs of the action be borne by Diners Club. 

Heartfields had sued Diners Club for the losses it suffered after the charge card company refused to pay out the amount incurred from the transaction carried out on March 19, 1999, where a man had used his Diners Club card to purchase two loose diamonds and a diamond ring.  

The merchant claimed that Diners Club had breached the contract between them by failing or refusing to settle the sum. 

It said even if the transaction was invalid, the defendant was negligent in approving it in the first place. 

Diners Club, however, denied any liability for the transaction, saying that it had never issued the card and that it was forged. 

It also argued that Heartfields had failed to call for authorisation before carrying on with the transaction and that it had lodged a police report regarding the fraud. 

Counsel Cheow Wee represented Heartfields while Amirtha M.C. Pirapu acted for the defendant.  

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