ORDER

K.B. Sangannanavar, Judicial Member—This is an Appeal filed U/s.15 of C.P Act, 1986 by OP-1 in C.C No.31/2019 on the file of District Consumer Disputes Redressal Forum, Davanagere aggrieved by the order dated 26.02.2020.

2. The Commission examined grounds of Appeal, impugned order, Appeal papers and heard learned counsels.

3. The legal representative of Mr.Palaksha M sought for a direction against OPs.1 & 2 to set off the entire loan balance due by deceased and not to claim any amount towards his loan was contested by the OPs. In view of rival contentions, the Forum below held an enquiry passed an award in favour of complainant, directed to set off the entire loan balance and not to claim any amount towards loan availed by deceased T.M Palaksha and not to recover loan from his legal heirs and directed to issue the loan clearance certificate to LRs of deceased Palakshappa and awarded some amount of compensation.

4. Learned counsel for Appellant/OP-1 submits that Mr.Palaksha admittedly died on 03rd August 2017 and as per Ex.B-3 on 06th December 2016, while Palaksha M was alive informed to him Banker is unable to remit the funds to insurance company to process his insurance policy application thereby refunded premium of Rs.16,940/- to his account through NEFT on 02nd December 2016 and to find support copy of Bank statement is also furnished before the Forum below showing NEFT transfer on 02.12.2016 by crediting amount of Rs.16,940/- was not at all considered by Forum below. It was informed to Mr.Palaksha, the proposer that the actual insurance premium payable was Rs.17,057/- and as he had paid Rs.16,940/-, is short of Rs.117/- than the actual insurance premium payable was not at all considered by Forum below. In this regard we are of the view that had Mr.Palaksha died prior to NEFT transfer of Rs.16,940/-, matter would have been different but facts remained as on 06th December 2016 when his account was credited to Rs.16,940/-, was alive and he died only on 03.08.2017 was not at all considered by Forum below.

5. Learned counsel for Appellant/OP submits that even the point of limitation was not considered by the Forum below, since the complaint was filed beyond two years, also has some considerable force was not at all considered by the forum below. On the contrary as Learned counsel for complainant/R-1 placed reliance in the case of SBI Life Insurance Co. Ltd., Vs. D. Srinivas & 2 Ors., decided by Hon’ble National Consumer Disputes Redressal Commission, New Delhi in First Appeal No.560/2012 wherein held in para-10 ….. all decisions thereof shall be communicated by it in writing within a reasonable period not exceeding 15 days from receipt of proposal by the insurer, did not come to the assistance of complainant/R-1, since he kept quite after receipt of Rs.16,940/- and he died on 03.08.2017.

6. The Forum below exceeded not only the jurisdiction but also the powers which did not have, directing Bank to set off entire loan balance and not to recover any due amount from legal heirs and to issue clearance certificate, which in our view has to be held contrary to facts and law is liable to be set aside. Hence proceed to allow the Appeal. Consequently set aside the order dated 26th February 2020 passed in CC No.31/2019 on the file District Consumer Disputes Redressal Forum, Davanagere and in the result dismissed the complaint with no order as to costs.

7. The amount in deposit is directed to be refund to the Appellant with proper identification by his advocate.

8. Provide copy of this order to the District Commission as well as parties to the Appeal.