IMPORTANT POINT
Location of Branch Office does not give territorial jurisdiction of Consumer Forum of that place.

Mrs. Vineeta Rai, Presiding Member—First Appeal No.428 of 2008 has been filed by New India Assurance Company Ltd., Respondent before the State Consumer Disputes Redressal Commission (hereinafter referred to as the State Commission), being aggrieved by the order of that Commission which had partly allowed the complaint filed by Gopal Gupta (Proprietor of M/s Varun Jute Industries), Original Complainant before the State Commission, and directed the Insurance Company to pay a sum of Rs.15,15,072/- alongwith Rs.20,000/- as costs to the Complainant. Being aggrieved by the award of lesser amount towards insurance claim, Complainant has also filed First Appeal No. 431 of 2008 seeking enhancement of the insurance claim to Rs.50,53,475/- alongwith interest @ 18% per annum from the date of survey report i.e. 28.03.2007.

Since the parties as also cause of action is common in both First Appeals, it is proposed to dispose of these appeals by one common order. The parties will be referred to in the manner in which they were referred to in the complaint i.e. Gopal Gupta as Complainant and New India Assurance Company Ltd. as Respondent.

2. Learned Counsels for both parties made oral submissions.

3. Counsel for Respondent/Insurance Company stated that the State Commission UT Chandigarh erred in not taking cognizance of their preliminary objection that it did not have the territorial jurisdiction to try the complaint as no cause of action had arisen within the territorial jurisdiction of that Commission. It is an admitted fact that the Complainant had his business at Kaithal (Haryana), the insurance policies were also taken at Kaithal and the claim was lodged and repudiated at Kaithal. Respondent No.1, which is a Branch of Respondent/Insurance Company, has nothing to do with the issuance of insurance policy or repudiation of the claim and had only been impleaded as a party by the Complainant to invoke the territorial jurisdiction of the State Commission UT Chandigarh.

4. Counsel for the Complainant had taken a contrary plea stating that since the Respondent/Insurance Company had a Branch in UT Chandigarh, the State Commission UT Chandigarh was fully justified in entertaining the complaint and disposing of the same. However, the Complainant has filed the appeal only for enhancement of the awarded amount.

5. We have carefully considered the preliminary submissions of Respondent/Insurance Company challenging the territorial jurisdiction of the State Commission UT Chandigarh to try this case since admittedly this objection was not discussed or decided by the State Commission in its order. From a perusal of the records filed by both parties, it is not in dispute that the premises which were insured by Complainant were in Kaithal, the insurance policy was issued in Kaithal and the claim was filed and repudiated therein. While it may be a fact that the Respondent/Insurance Company has a Branch office in Chandigarh, this by itself does not give the State Commission UT Chandigarh the territorial jurisdiction to entertain the complaint. This issue is squarely covered by a judgment of the Hon’ble Supreme Court of India in Sonic Surgical v. National Insurance Company Ltd.1 wherein it has been held as under:

“Moreover, even if it had application, in our opinion, that will not help the case of the appellant. Learned counsel for the appellant submitted that the respondent-insurance company has a branch office at Chandigarh and hence under the amended Section 17(2) the complaint could have been filed in Chandigarh. We regret, we cannot agree with the learned counsel for the appellant. In our opinion, an interpretation has to be given to the amended Section 17(2)(b) of the Act, which does not lead to an absurd consequence. If the contention of the learned counsel for the appellant is accepted, it will mean that even if a cause of action has arisen in Ambala, then too the complainant can file a claim petition even in Tamil Nadu or Gauhati or anywhere in I