Judicial Analysis Court Copy Headnote Facts Arguments Court observation

ANDHRA PRADESH STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, HYDERABAD
Hon’ble Mr. Justice S. Parvatha Rao, President;
Mr. K. Ranga Rao & Dr. (Mrs.) Mamata Lakshmanna, Members
KOPPANATHI DEVALLU—Petitioner
versus
DIVISIONAL MANAGER,
ORIENTAL INSURANCE CO. LTD. & ANR.—Respondents
RP No. 214 of 1998—Decided on 5.5.1999

Advocates:
Counsel for the Parties :
For the Petitioner:Mr. M.V.S. Suresh Kumar, Advocate.
For the Respondents:Mr. A. Krishnam Raju, Advocate.

A party cannot have interest twice over.

Headnote:
CONSUMER PROTECTION ACT, 1986 - SECTION 14(1)(d) - INTEREST ON COMPENSATION - CALCULATION - INTEREST ON COMPENSATION AMOUNT DEPOSITED WITH DISTRICT FORUM PENDING APPEAL - NOT PAYABLE TO COMPLAINANT.
Fact of the Case:

The petitioner, a complainant in a consumer complaint, filed a revision petition challenging the order of the District Forum rejecting his application to withdraw the interest amount deposited by the respondents in compliance with the stay order granted by the State Commission during the pendency of an appeal. The petitioner claimed interest on the compensation amount from the date of the cause of action till the date of withdrawal of the deposited amount, while the District Forum held that the petitioner was entitled to interest only up to the date of deposit of the amount.
Finding of the Court:

The State Commission held that the petitioner was not entitled to interest on the compensation amount deposited with the District Forum during the pendency of the appeal, as the amount did not belong to him and he had no right to withdraw it. The Commission reasoned that the petitioner could only have interest on the compensation amount from the date of the cause of action till the date of withdrawal of the amount after the disposal of the appeal.
Issues: Whether the petitioner was entitled to interest on the compensation amount deposited with the District Forum during the pendency of the appeal.
Ratio Decidendi: The State Commission relied on the principle that a party cannot have interest twice over. The petitioner had already received interest on the compensation amount from the date of the cause of action till the date of deposit of the amount with the District Forum, and he was entitled to interest only from the date of deposit till the date of withdrawal of the amount after the disposal of the appeal.
Final Decision: The State Commission disposed of the revision petition and directed the respondents to pay Rs. 7,077/- to the petitioner within four weeks from the date of the order.

order

Mr. Justice S. Parvatha Rao, President—The petitioner in the R.P. was the complainant in OP. No. 267/1994 on the file of East Godavari District Forum. The respondents in the R.P. were the opposite parties in that O.P. O.P. No. 27/1994 was disposed of by the East Godavari District Forum by its order dated 10.10.1996 directing the opposite parties to pay Rs. 1,70,000/- towards the claim amount Rs. 3,500/- towards the amount spent for salvage operation i.e., in all Rs. 1,73,500/- together with interest @ 18% per annum from 1.2.1994 till the date of payment and also costs of Rs. 500/-. That was questioned by the opposite parties in that O.P. before this Commission in FA No. 979/1996. That F.A. was disposed of by this Commission by order dated 2.7.1997 with one modification i.e., reducing the interest of 18% granted by the District Forum to 12% and in other respects this Commission confirmed the order of the District Forum. Pending the appeal, in FA IA No. 1421/96 this Commission granted stay of the order of the District Forum in the O.P. dated 10.10.1996 subject to the condition of the respondent depositing Rs. 1,74,000/- in the District Forum pending further orders. A sum of Rs. 1,74,000/- was deposited in the District Forum by the respondents on 19.12.1996. The said amount was put in a fixed deposit by the District Forum and it was so till the appeal was disposed of. On 15.11.1997 the petitioner was permitted to withdraw the said sum of Rs. 1,74,000/- together with interest of Rs. 11,949/- accrued thereon on the fixed deposit i.e., in all a sum of Rs. 1,85,949/-. Meanwhile, the respondents deposited Rs. 78,417/- by cheque dated 7.11.1997 in the District Forum, being the interest @ 12% on Rs. 1,74,000/- from 1.2.1994 upto 7.11.1997 as per the order of this Commission in FA No. 979/1996. The petitioner herein i.e., complainant in the O.P., filed EA. SR. No. 12/1998 for issuance of a cheque for Rs. 78,417/-. The District Forum rejected that application by its order dated 19.3.1998 holding as follows :

“He (petitioner herein) is not entitled to withdraw whatever amount is available with the Forum to the credit of this petition. The amount in excess of the decree shall be refunded to the respondent/JDR. Hence the petitioner is entitled to only Rs. 59,391.00 being the balance amount as per the decree and he is not entitled to Rs. 78,417/- as claimed. Hence this petition is rejected with liberty to come up with a separate petition as per his entitlement.”

This is being questioned in the present R.P. as illegal and irregular.

2. The petitioner in his affidavit dated 22.4.1999 filed before us in the present R.P. stated as follows :

“It is submitted that as per the orders of this Hon’ble Commission in F.A. No. 979/96, I am entitled for Rs. 1,73,500/- with interest @ 12% per annum from 1.2.1994 till the date of payment. The interest on Rs. 1,73,500/- @ 12% per annum from 1.2.1994 to 15.11.1997 comes to Rs. 78,417/-. It is further submitted that the respondents herein after the disposal of F.A. No. 979/1996 calculated the interest as per the orders and deposited Rs. 78,417/- towards interest...

I submit that the principal amount is Rs. 1,74,000/- and as per the order of the District Forum, I am entitled to interest of Rs. 78,470/- and the total amount comes to Rs. 2,52,470/-. Out of the interest amount of Rs. 78,470/-, I have withdrawn only Rs. 59,391/- and still I have to get a sum of Rs. 19,030/- as the interest accrued on the fixed deposit ensures to my benefit. Even otherwise, alternatively I submit that even the interest accrued on fixed deposit Rs. 11,949/- is deducted still I have to receive a sum of Rs. 7,081/-.”

3. No exception can be taken to the observations of the District Forum in its order dated 19.3.1998 rejecting EA. SR. No. 12/1998 that the petitioner was entitled to take the money with interest only as per the award @ 12% per annum and that he was not entitled to withdraw whatever amount was available with the Forum to the

Click Here to Read the rest of this document