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2005 (1) CPR 141
ORISSA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, CUTTACK .
Dr. (Mrs.) Arati Mohanty, Presiding Member & Mr. Pramodnath Das, Member
A.P.M.G. (PLI), Orissa Circle & Anr.—Appellants
versus
Mukundalal Panda—Respondent
C.D. Appeal No. 371 of 1996
Decided on 3.9.2004

Advocates:
Counsel for the Parties :
For the Appellants :Mr. T.K. Satpathy, Advocate.
For the Respondent: None.

IMPORTANT POINT
Inordinate delay in payment of bonus would constitute deficiency in service but in absence of proof of financial loss and mental agony interest on the amount as well as compensation together could not be granted.

Headnote:Consumer Protection Act, 1986 — Sections 12 and 17 — Non-payment of bonus against PLI policy was grievance of complainant — Distt. Forum holding appellant guilty of deficiency directed appellants to pay bonus due Rs. 536/- with interest at 12% p.a. from 1984-85 and compensation Rs. 1,000/- — Appeal — Inordinate delay in making payment of bonus would constitute deficiency in service — Both compensation as well interest however could not be granted in absence of cogent proof of financial loss and mental agony — Compensation part of the order was liable to be set aside.(Paras 4 to 6)

       Result : Appeal allowed partly.

ORDER

P.N. Das, Member — Non-payment of bonus against the P.L.I, policy is the main grievance of the complainant-respondent. None put in appearance for the consumer-respondent. Heard Mr. Satpathy, the learned Counsel for the appellant. Perused the impugned order and the documents on record.

2. The District Forum directed the appellant-opposite parties 2 and 3 to pay bonus due of Rs. 536/- to the complainant with interest @ 12% per annum from the year 1984-85 till the amount is paid in full to the complainant within two months from the date of receipt of the copy of the order. It further directed opposite parties 2 and 3 to be jointly and severally liable to pay the aforesaid amount and interest and compensation of Rs. 1,000/- to the complainant for harassment, within the aforesaid period from the date of receipt of copy of the order.

3. But the claims of the consumer-respondent for bonus, compensation and interest was negatived on the ground that the complainant could not produce any material to establish the quantum of loss of injury suffered by him because of delay in making payment of bonus, compensation and interest thereon. The learned Counsel for the appellants submitted that there has been no defi-ciency in service on the part of the department as the case itself is not maintainable.

4. On perusal of the judgment as well as from the materials on record it is evident that admittedly there has been inordinate delay in making payment of bonus in question. The appellant-opposite parties have not paid amount on maturity and that fact was not disputed. It is proved beyond doubt that the appellants are clearly guilty of deficiency in service and cannot escape their burden of liability of making payment of bonus to the complainant.

5. The contention of Mr. Satpathy on behalf of the appellant is that both compensation and interest cannot run together which, in our view, has got some force. In absence of any cogent proof of financial loss and mental agony on this account, the compensation sought by the complainant as decreed by the Forum below is not allowed by us. In view of the award of interest we are not making any order relatable to compensation for loss and mental agony alleged to have been suffered. But we see considerable merit in the contention that he is entitled to interest of only @ 12% per annum for the period that money was with the department.

6. With this modification we ordered that there is nothing wrong in the order impugned. The appeal is partly allowed. The direction for payment of compensation is set aside. Rest part of the impugned order is confirmed. The order be complied within a period of two months from the date of communication of this order.

Appeal is allowed in part.

Dr. (Mrs.) A. Mohanty, Presiding Member — I agree.

Appeal allowed partly.

*******


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