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RAJASTHAN STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, JAIPUR
Honble Mr. Justice S.K.M. Lodha, President;
Mr. Damodar Thanvi. Member; Mrs. Saria Khan, Member
GIRIRAJ SHARMA––Appellant
versus
REGIONAL COMMR., COAL MINES PROVIDENT FUND––Respondent
Complaint Case No. 21/89—Decided on 28.7.1989
Counsel for the Parties :
For the Appellant :Mr. C.S. Bapna, Advocate.
For the Respondent: Mr. S.K. Dubey, Asstt. Commissioner.
The court held that the opposite party was negligent in not making the payment of insurance amount within a reasonable time and that the complainant was entitled to compensation for the loss suffered due to the delay in payment.
Headnote:
CONSUMER PROTECTION ACT, 1986 - COAL MINES DEPOSIT LINKED INSURANCE SCHEME - DELAY IN PAYMENT OF INSURANCE AMOUNT - INTEREST AWARDED AS COMPENSATION - SECTION 14(D) OF THE ACT
Fact of the Case:
The complainant, the widow of an employee of Coal India Ltd., filed a complaint against the opposite party, the Coal Mines Provident Fund, for delay in payment of insurance amount under the Coal Mines Deposit Linked Insurance Scheme (DLIS). The complainant's husband died on 6.2.80, and she submitted an application for payment of DLIS benefits in the prescribed form. However, due to some formal defects in the application, she was asked to resubmit it. She did so, and was informed that the cheques were under issue. However, no payment was received, and despite several reminders, the insurance amount was not released.
Finding of the Court:
The court found that there was negligence on the part of the Regional Commissioner, Coal Mines Provident Fund, in not affecting payment within a reasonable time after the complainant had submitted the application form. The court also found that the complainant had suffered loss due to the delay in payment, and that she was entitled to compensation.
Issues: 1. Whether the opposite party was negligent in not making the payment of insurance amount within a reasonable time? 2. Whether the complainant was entitled to compensation for the loss suffered due to the delay in payment?
Ratio Decidendi: The court held that the opposite party was negligent in not making the payment of insurance amount within a reasonable time. The court also held that the complainant was entitled to compensation for the loss suffered due to the delay in payment. The court awarded interest on the amount of Rs. 10,000/- from 3.5.80 (the date of the letter Anx. III) to 4.7.89 (the date when the amount of Rs. 10,000/- was paid during the pendency of the complaint) @ 18% p.a.
Final Decision: The complaint was partly allowed. The complainant was entitled to receive a sum of Rs. 10,000/- as insurance amount which had already been paid to her on 4.7.80 and nothing remained due against the opposite party on this count. The complainant was further entitled to get Rs. 11,000/- from the opposite party as compensation under Section 14(d) of the Act as detailed hereinabove. Rest of the claims of the complainant were dismissed.
Mr. Justice S.K.M. Lodha, President—Shri S.K.M. Sharma had worked in the Coal Mines since 1967. The Coal Mines were nationalised sometime in 1973 and so Shri S.K. Sharma became an employee of Coal India Ltd. Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 ("the Act") was promulgated. The Act is to make provision for the framing of Provident Fund Scheme (a Family Pension Scheme) a Deposit Linked Insurance Scheme and a Bonus Scheme for persons employed in the Coal Mines. Section. 3(g) of the Act deals with Coal Mines Deposit Linked Insurance Scheme. It empowered the ' Central Govt. to frame Coal Mines Deposit Linked Insurance Scheme for the purpose of providing licensing benefits to such employees as are covered by Coal Mines Provident Fund Scheme. The Central Govt. framed a Scheme as mentioned in the III Schedule appended to the Act. Deposit Linked Insurance Scheme came into force from 1.8.76. Shri S.K. Sharma was covered by the aforesaid scheme and necessary deductions were made from the salary for coverage under the Deposit Linked Insurance Scheme (DLIS). Shri S.K. Sharma expired on 6.2.80. After the death of Shri S.K. Sharma, the complainant (widow of Shri S.K. Sharma and her minor children) became entitled to receive a sum of Rs. 10,000/ under the DLIS. The Opposite-Party is responsible for the payment of the insurance amount under the Act. It has been alleged that the complainant submitted an application in the prescribed form DLIG for payment of DLIS to the opposite-party in the office of the Regional Commissioner, Coal Mines Provident Fund, Jabalpur. There were some formal defects in the form prescribed from, inasmuch as the names of her two minor children were only shown.The complainant was asked to resubmit the application for payment. Photostat copy of the letter dt: 26.4.80 which was sent by the Assistant Finance Officer of the office of the Regional Commissioner Coal Mines Provident Fund, Jabalpurs has been submitted as Anx. I. Thereupon the complainant completed the necessary formalities and sent the proper application form mentioning full details alongwith a letter. Photostat copy has been submitted as Anx. II. The complainant was informed by the office of the Regional Commissioner, Coal Mines Provident Fund, Jabalpur vide letter dated 3.5.80 (photostat copy Anx. III) that the cheques were under issue. To quote from Anx. III. "This is to inform you that as per provision of the scheme payment of DLI will be directly made to the concerned Bank Authority as mentioned in the application of the complainant. The cheques were under issue." In the meantime the complainant shifted to Jaipur. However whenever she visited Jabalpur she was informed that she could expect payment of insurance amount at an early date. However, no payments were received. Several reminders were issued for releasing the insurance amount but they remained unresponded. Subsequently a registered letter dt: 24.11.88 (photostat copy Anx. IV) was sent for releasing the insurance amount. In response to that, the opposite-party sought various information from the Manager of the Colliery vide letter Dated: 23.12.88 (photostat copy Anx. V). The complainant wrote letter dt: 11.1.89 to the Manager of the Colliery to send the necessary information to the Regional Commissioner, Coal Mines, Provident Fund, Bilaspur so that the payment may be released. Again a letter was sent on 17.1.89 (photostat copy Anx. VIII) clarifying the Saving Bank account number. The case of the complainant is that she and her minor children became entitled to receive a sum of Rs. 10,000/- soon after the death of her husband under DLIC but the opposite-party failed to render this service promptly under Section 2(o) of the Consumer Protection Act, 1986. She has prayed that the opposite-party may be directed to pay Rs. 1,42,000/- to her. This amount consists of insurance money Rs. 10,000/-, interest Rs. 30,000/-, expenses Rs. 2,000/- and compensation Rs. 1,00,000/-.
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