C.A. No. 2140 of 2007

Abhay Manohar Sapre, J.—This appeal under Section 23 of the Consumer Protection Act, 1986 is filed against the order dated 19.03.2007 of the National Consumer Disputes Redressal Commission (hereinafter referred to as “the Commission”), New Delhi in Original Petition No. 375 of 1999 whereby the Commission allowed the petition filed by the respondent herein and directed the appellant-insurance company to pay a sum of Rs.36,10,211/- with interest @10% p.a. from 03.12.1995 till date of payment and also directed the insurance company to pay costs assessed at Rs.50,000/- to the respondent-Complainant herein.

2. In order to appreciate the issue involved in this appeal, which lies in a narrow compass, it is necessary to set out the relevant facts in brief infra.

3. The appellant herein is an insurance company incorporated under the Companies Act having its registered office at No. 24, Whites Road, Chennai. The respondent herein is also a company incorporated under the Companies Act, 1956 having its registered office at Oceanic Buildings, Quilon, Kerala and its branches inter alia at Janpriya Centre No.34, Sir Thyagaraya Road, Pondy Bazar, Chennai.

4. The responde