The need to interpret the law in a rational manner and protect genuine claims, not repudiating them on hyper-technical grounds.

ORDER :

Mr. Balveer Prasad, Member - This appeal has been preferred under Section 15 of the Consumer Protection Act, 1986 against the order dated 28.09.2011 passed by the District Consumer Disputes Redressal Forum, Dehradun (hereinafter referred as ‘The District Forum’) whereby consumer complaint was allowed and The Oriental Insurance Co. Ltd. was directed to pay Rs. 4,14,000 with interest @ 9% per annum, from the date of filing the consumer complaint till payment, along with a sum of Rs. 10,000 as compensation for mental agony and Rs. 10,000 as costs of litigation.

2. The brief fabric of facts, on which the case revolves, is that the complainant Sh. Harminder Singh happens to be the registered owner of the Tempo Traveller No. UA07Q/8574. The vehicle was comprehensively insured for Rs. 5,20,857 with the opposite party from 9.3.2008 to 8.3.2009 and a sum of Rs. 15,607 was paid as annual premium in respect of the said policy No. 2008/18558. On 25.4.2008 at about 7.30 p.m., the said vehicle met with an accident at Kaudiyala, Police Station Devprayag, District Tehri Garhwal. The vehicle fell into a deep ditch, resulting in total damage of the vehicle. The claim was raised, observing all necessary formalities. The opposite party repudiated the claim vide its letter dated 18.11.2008 for two reasons; firstly, that the driver of the vehicle was not having a valid licence and secondly, excess passengers were sitting in the vehicle, at the time of accident. The repudiation is in contravention with the provisions of Motor Vehicles Act, 1988 and The Uttar Pradesh Motor Vehicles Rules, 1998. The vehicle in question was financed by M/s. Magma Shrachi Finance Ltd., Dehradun and the complainant is paying installments with heavy interest.

3. The opposite party admits that the complainant is the registered owner of the vehicle and the factum, as to occurrence of the accident, is also not disputed. By way of written statement, it was pleaded that M/s. Magma Shrachi Finance Ltd. was a necessary party and the case is bad for its non-joinder. The repudiation is justified for the following reasons, as disclosed by the Insurance Company-

1. Transport Department, Uttaranchal issued a route permit of the aforesaid vehicle and in column No. 10, it is clearly mentioned in Hindi language that the aforesaid vehicle is allowed to drive only those persons who have minimum 5 (five) years of valid Driving Licence with experience. At the time of accident you (insured cum driver) were not holding valid Driving Licence as per Route permit issued by the Transport Department, Uttaranchal.

2. As per permit, carrying capacity of the vehicle is 15(fifteen) persons including driver. You have written vide your letter dated 10.9.2008 and also as per FIR No. 14 dated 26.4.2008 of Devprayag Police Station, at the material time of accident the aforesaid vehicle was carrying 18(eighteen) passengers including driver violating the terms and conditions of Route permit and insurance policy.

4. The District Forum, on appreciation of material on record, allowed the consumer complaint in the terms, mentioned in the impugned order dated 28.9.2011. Feeling dis-satisfied, The Oriental Insurance Co. Ltd. filed the present appeal, mainly on the grounds that the order passed by the District Forum is against law and is not in consonance with the available records. It has also been emphasized that the complainant committed breach of terms and conditions of the policy and, hence, the repudiation of the claim was justified. Also specified that the learned Forum erred in awarding the damages as well as interest to the complainant.

5. We have heard learned Counsel for the parties and also perused the record. Learned Counsel for the appellant argued that the order passed by the District Forum is illegal. The Forum has not correctly appreciated the evidence furnished by the parties. It was also urged that the driver of the vehicle was not having five years’ experience in driving the vehicle and, hence