Back
THE STATE COMMISSION CONSUMER DISPUTES
REDRESSAL COMMISSION, DELHI
Mr. Justice R.N. Mittal, President; Shri B.L. Anand, Member
S.C. SHARMA—Complainant
versus
THE ZONAL MANAGER, LIFE
INSURANCE CORPN. OF INDIA—Respondent
Case No. C-299/1991—Decided on 6.1.1992
Counsel for the parties :
For the Complainant :Mr. S.K. Punshi, Advocate.
For the Respondent:Mr. S.K. Choudhury Advocate.
The court has the discretion to adjudicate on a complaint despite technical grounds and may award interest as damages based on prevailing interest rates.
Headnote:
Insurance - Payment Dispute - The court adjudicated on the complaint filed by the insured against the insurer for non-payment of the balance amount of the policy after maturity. The court found that an amount of Rs. 8,749.40 was due to the complainant and directed the respondent to pay interest at 16% p.a. on the amount from the date of maturity till the date of the court's order, resulting in a final direction to pay Rs. 11,400/- with interest.
Fact of the Case:
The complainant filed a complaint against the respondent for non-payment of the balance amount of the policy after maturity.
Finding of the Court:
The court found that an amount of Rs. 8,749.40 was due to the complainant and directed the respondent to pay interest at 16% p.a. on the amount from the date of maturity till the date of the court's order. The court also directed the respondent to pay Rs. 11,400/- with interest.
Issues: Dispute over non-payment of the balance amount of the policy after maturity, objection regarding the jurisdiction of the Commission, and excessive claim for damages.
Ratio Decidendi: The court decided not to return the complaint on the ground of pecuniary jurisdiction and adjudicated the same. It found that an amount of Rs. 8,749.40 was due to the complainant and directed the respondent to pay interest at 16% p.a. on the amount from the date of maturity till the date of the court's order.
Final Decision: The court partly accepted the complaint and directed the respondent to pay the amount of Rs. 11,400/- with interest at 16% p.a. from the date of the order till the date of the payment.
Mr. Justice R.N. Mittal, President—The complainant has filed the complaint for directing the respondent to make the payment of Rs. 1,50,000/- as damages and Rs. 5,000/- as costs. Briefly the case of the complainant is that the complainant got himself ensured with the respondent for an amount of Rs. 22,000/- on 15.2.75. In 1983 he applied for Rs. 10,000/- as loan but he received an amount of Rs. 9,400/- only. The policy matured on 15.2.90. The petitioner requested the respondent to make the payment of the balance amount of the policy after maturity but the same has not been paid to him. Consequently the above said prayer has been made.
2. The respondent contested the complaint and inier-alia pleaded that the file of the complainant was not traceable and therefore, it was not possible to make the payment till today. They have also given the details of the amount which is due to the complainant. The amount, which is alleged to be due to the complainant, is Rs. 8,749.40. They have also raised an objection regarding the jurisdiction of the Commission on the ground that it has pecuniary jurisdiction to try the complaint value of which is more rupees one lac.
3. We have heard the agent for the complainant and the Counsel for the respondent. It is true that the amount claimed by the complainant on account of damages is highly excessive but in order to cut short the litigation we have decided not to return the complaint on the ground of pecuniary jurisdiction of the Commission on technical ground but to adjudicate the same. It is not disputed that an amount of Rs. 8,749.40 is due to the complainant. The respondent also agreed to pay interest @ 9% p.a. from 15.2.90 till 11.12.90. It is common knowledge that the rate of interest has gone very high and even the banks are paying interest @ 13% p.a. on the fixed deposits. Taking into consideration we fix 16% p.a. as the interest by way of damages. The respondent shall pay interest on the amount of Rs. 8,749.40 @ 16% p.a. from 15.2.90 till today.
4. Consequently we partly accept the complaint with costs and direct the respondent to pay the amount of Rs. 11,400/- with interest @ 16% p.a. from the date of the order till the date of the payment.
5. Costs Rs. 1,000/-. The Corporation should make enquiry regarding misplacement of the file and take appropriate action against the delinquent officials. The respondent has paid the amount of Rs. 10,237/- to the complainant.
Complaint partly accepted.
–––
