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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
V.B. Gupta, Presiding Member
KOTAK MAHINDRA BANK - Appellant
Versus
C.H. ABDULLAH KUNHI AND ANR. - Respondents
Revision Petition No. 581 of 2011 from Order dated 1.11.2010 in Appeal No. 561 of 2010 of State Commission, Kerala
Decided on : 15-04-2011

Advocates Appeared:
Mr. S. Hari Haran, Advocate, for the Appellant; None, for the Respondent

The court emphasized the importance of explaining the delay in filing an appeal and the need to provide relevant documents to support the case.

Headnote:

Insurance Policy - Consumer Dispute - Consumer Protection Act, 1986, Section 21(b) - The court discussed the issue of fake insurance policy and the liability of the petitioner based on the insurance policy. The court also considered the petitioner's absence before the District Forum and the delay in filing the appeal before the State Commission.

Fact of the Case:

The complainant purchased a confiscated vehicle from the petitioner, but later found that the insurance policy for the vehicle was inactive, leading to a loss. The District Forum allowed the complaint, but the petitioner's appeal was dismissed by the State Consumer Disputes Redressal Commission (sCDRC) due to being time-barred.

Finding of the Court:

The court found that the delay in filing the appeal was not sufficiently explained and that the petitioner had no case since the insurance policy was not placed on record. The court upheld the decision of the sCDRC and dismissed the petition with costs.

Issues: The issues included the validity of the insurance policy, the petitioner's absence before the District Forum, and the delay in filing the appeal before the sCDRC.

Ratio Decidendi: The court held that the delay in filing the appeal must be sufficiently explained, and the absence of the insurance policy on record weakened the petitioner's case.

Final Decision: The petition was dismissed with costs, and the petitioner was directed to deposit the cost with the Consumer Legal Aid Account within thirty days.

ORDER

V.B. Gupta, Presiding Member - By way of the present revision petition, there is challenge to order dated 1st November. 2010 passed by State Consumer Disputes Redressal Commission, Kerala (in short. 'sCDRC ).

2. The brief facts of this case are that respondent No. 1-complainant, purchased a confiscated vehicle bearing Registration No. KA 19-B 8978 for Rs. 6,75,000 from the Branch Office of petitioner at Mangalore. Petitioner delivered all the original documents pertaining to the vehicle to the complainant. Consideration for the vehicle was fixed after perusal and inspection of the documents as well as the vehicle. But on verification it was found that insurance policy issued by 2nd opposite party was inactive one as no premium was paid at all. Thus, there is no insurance coverage for the said vehicle on the date of purchase. So, complainant had to buy a fresh policy for the said vehicle on paying Rs. 25,844 from 2nd opposite party on 1.6.2009. According to the complainant, he fixed the price and purchased the vehicle solely on the basis of documents given to him by petitioner. In fact, had there been no insurance coverage for the said vehicle, complainant would not have come forward to buy the vehicle in question. Hence, complainant sustained a loss of Rs. 25,844 in view of the fake assurance offered by the petitioner. Accordingly, complainant filed a complaint before District Forum, Kasargode.

3. Before District Forum petitioner remained absent in spite of receipt of notice sent by registered post.

4. District Forum allowed the complaint and directed the petitioner to pay a sum of Rs. 25,844 with cost of Rs. 2,000.

5. Against order of the District Forum, petitioner filed an appeal before "SCDRC". Vide impugned order, appeal of the petitioner was dismissed, being time-barred.

6. It is contended by learned Counsel for the petitioner that this finding of the District Fora that Exhibit A-1, the 1st insurance policy with regard to the vehicle is a fake document, is perverse and defective, as respondent No. 2 never said that Exhibit A-l is a fake one. Rather their liability is only based upon the insurance policy.

7. Further, respondent complainant himself admits that he was delivered with all the original documents pertaining to the vehicle and the confiscated vehicle was sold on "as is where is" condition. Moreover, the condition of auction reads as follows:

"I fully understand that I am solely responsible for all past and future RTO liabilities. State Permit, National Permit, Tourist Permit, Insurance Premium, etc. or any other Statutory dues unpaid at the time of taking delivery of the vehicle."

8. Other contention is that, since petitioner could not participate before the District Forum, all these aspects could not be brought by cross-examining the respondents. There are no wilful laches or negligence on the part of the petitioner in not appearing before the District Forum and petitioner may be given opportunity to contest the matter on merits.

9. It is well settled that before seeking condonation of delay, petitioner has to explain for each day's delay. The affidavit filed by the petitioner before the State Fora seeking condonation of delay is absolutely vague and the same reads as under:

"The appellants were set ex parte in the above matter. The notice in the complaint had been received by the appellant company in its office at Bangalore and the branch office at Palakkad. The Manager of Palakkad branch of the appellant company was directed to take action in the matter by entrusting the notice, give instructions and Vakalath to the Counsel. For the above purpose, the notice and copy of the complaint received at Bangalore address of the appellant company also was sent to the above Manager of the appellant company. Unfortunately, the Manager of Palakkad branch of the complainant company to whom the matter was entrusted was transferred from Palakkad and during this mess-up of transfer of earlier person and taking charge of new person

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