ADDITIONAL BENCH STATE CONSUMER DISPUTES REDRESSAL COMMISSION, PUNJAB, CHANDIGARH.

Date of institution : 05.10.2023 Reserved on : 28.01.2026 Date of decision : 10.02.2026 The New India Assurance Company Limited, through its Divisional Manager, G.T.Road, Moga, Tehsil and District Moga, through authorized signatory, Regional Office, SCO No.36-37, Sector 17-A, Chandigarh.

…..Appellants/Opposite Party Versus Devi Dass Gopal Krishan, a unit of Puri Oil Mills Ltd., Gandhi Road, Moga, Tehsil and District Moga, through its Director, Ramesh Chander son of Sh. Madan Lal.

…Respondent/Complainant First Appeal under Section 41 of the Consumer Protection Act, 2019 against the order dated 16.08.2023 passed by the District Consumer Disputes Redressal Commission, Moga in CC/15/2023 Quorum:-

Mr. H.P.S. Mahal, Presiding Judicial Member Mrs. Kiran Sibal, Member Argued by:-

For the appellant : Sh. S.S.Sidhu, Advocate For respondent : Sh. Kulbhushan Soi, Advocate KIRAN SIBAL, MEMBER The instant appeal has been filed by the appellants/opposite party against the impugned order dated 16.08.2023 passed by District Consumer Disputes Redressal Commission, Moga (in short, “the District Commission”), whereby the complaint filed by complainant against opposite party (in short ‘OP’), under Section 35 of the Consumer Protection Act, 2019 was partly allowed while granting the following relief:-

“15. From the reasons recorded above, we reiterate that the opposite party illegally and unjustifiably repudiated the genuine claim of the complainant company. By repudiating the genuine claim of the complainant company, Opposite Party has not only rendered deficient service but has also resorted to unfair trade practice, for which complainant company is entitled to be compensated besides their liability to pay the claim under the policy. Hence, we partly allow the complaint of the complainant and direct the Opposite party to pay the sum insured of Rs.12,00,000/- (Rupees Twelve Lakhs only) with interest @9% p.a. from the date of repudiation of the claim till its actual realization. Further Opposite party is directed to pay Rs.1,50,000/- (Rupees One Lakh Fifty Thousand only) as compensation for rendering deficient services coupled with unfair trade practice and Rs.20,000/- (Rupees Twenty Thousand only)

as litigation expenses to the complainant company.……..”

2. It would be apposite to mention that hereinafter the parties will be referred, as have been arrayed before the District Commission.

3. Brief facts for the disposal of the appeal are that the complainant company obtained ‘Fidelity Guarantee Insurance policy’ bearing No.3611004620080000001 for the period from 01.03.2021 to 28.02.2022 from the OP to indemnify it upto Rs.12 lakh against any loss suffered by it due to act of fraud or dishonestly committed by any of its employee. One of its employee covered under the policy i.e. Sh. Gagandeep Singh s/o Balwant Singh was posted/appointed as sales representative on 01.09.2010. During his duty, he collected money from various parties/customers in lieu of sale of mustard oil and cattle feed. However, he did not deposit the said money in the office of complainant and misappropriated that amount for own use. The said employee committed a fraud of Rs.27,25,676/- and the complainant company gave intimation of the said incident to OP on 16.10.2021. An FIR was also got registered against the said employee at P.S. City South, Moga on the advice of OP-insurance company. The complainant also lodged claim under the policy but the OP repudiated the same vide letter dated 08.08.2022 on flimsy and non maintainable grounds and reasons. There was no system lapse in the company as alleged by the OP. The system of updating the pending amounts with debtors is accurate and there is no misrepresentation on the part of the complainant. There was no alleged violation of conditions as stated in the repudiation letter. The accounts of the complainant company have been regularly maintained and audited annu