Mr. Justice S.S. Dewan, President — Dissatisfied with the orders dated 19.5.1993 and 14.10.1993 passed by the District Forum, Bathinda in Complaint Case No. 146/1992 the Complainant before it, has filed an appeal before this Commission under Section 15 of the Consumer Protection Act, 1986 (for short ‘the Act’). By the impugned order dated 14.10.1993, the District Forum modified its earlier order dated 19.5.1993 by observing that the Insurance Company shall pay interest to the complainant @ 12% p.a. from the date of the application.

2. In view of the short point involved in this appeal, it is not necessary to recount the facts in detail. Suffice it to state that the complainant-appellant owned a Montana Car, Model 1989 bearing registration No. PIP 2727. It was insured with the National Insurance Company, Bathinda (for short ‘the Insurance Company’) on 18.4.1989. It met with an accident on 23.12.1989 and the same was immediately brought to the notice of the said Insurance Company and a claim was made. As the claim was not settled by the Insurance Company, a complaint was filed before the District Forum, Bathinda. According to the complainant, it suffered inconvenience and mental agony due to the deficiency in service on the part of Insurance Company. In relief, it claimed Rs. 84,500/- as compensation along- with interest @ 18% pa. from the date of the accident as detailed in paragraph 10 of the complaint. On notice being issued, the Insurance Company resisted the complaint. It was pleaded that the Insurance Company on the basis of the report of the surveyor offered to the complainant to pay at Rs, 70,000/- on total loss basis but the insured was un wilting to accept the same. The other allegations of the complaint were controvered by the Insurance Company. After hearing the parties, Counsel and perusing the record, the District Forum allowed the complaint by directing the Insurance Company to pay compensation of Rs. 84,500/- to the complainant alongwith interest @ 12% p.a. and Rs. 500/- as costs. As the date from which the interest was to be paid was not mentioned in the order, the complainant moved an application before the District Forum praying that the date from which the interest shall be paid, be specified in the order. The District Forum by its order dated 14.10.1993 modified its earlier order dated 19.5.1993 by observing that the interest @ 12% p.a. shall be paid from the date of application. Feeling aggrieved, the complainant has now come up in appeal.

3. The core question which arises in this appeal is with regard to the time and the precise date from which the insurer becomes entitled to the admitted liability for the covered risk. On behalf of the complainant, the firm stand is that such entitlement begins from the very date of the accident and not later. In sharp contrast thereto, the stand of the insurer is that the liability arises only after it has been determined and from the date on which it has been accepted by the insurer. Mr. Sanjeev Sharma, the learned Advocate for the complainant-appellant in forceful submission had contended that the insured’s right to indemnification for the loss arises from the very date of the loss itself and not a day later. The firm stand was that the procedure for determination or the stage of acceptance by the insurer are irrelevant to the present issue. To buttress his arguments, Mr. Sharma had drawn support from Smt. Girt Raj Sharma v. Regional Commissioner, Coal Mines Provident Fund, Bilaspur (M.P.) 1991 (1) CPR 259 and Jawesh Kanaiyalal Shah v. Branch Manager, National Insurance Company Ltd., I (1993) CPJ 202, wherein interest has been granted to the insured from the inception of the cause of action from the date closely analogous thereto. On the other hand, Mr. Pardeep Bedi, the learned Counsel for the Opposite Parties had persistenly submitted that there was a legal bar under the Insurance Act with regard to the payment of the claim from the very date of the cause of actio