BANSI LAL vs New India Assurance Co. Ltd

THIS appeal has been filed against the order of the District Forum No. 1 dated 15th July, 1993.

BRIEFLY the facts of the case are that the complainant insured a Motor Cycle with New India Assurance Co. Limited for Rs. 22,000/-. It was financed by State Bank of India (respondent No. 2). It was stolen on 13th Dec, 1991. The complainant lodged a complaint with the New India Assurance Company which was settled on 7.7.1992. However, they did not make the payment. Consequently, the appellant filed a complaint. It was contested by the respondent. The District Forum held that the matter had been settled between the parties and respondent No. 1 was prepared to pay the amount of Rs. 20,000/- in terms of the settlement. Consequently, it directed them to pay Rs. 20,000/- with interest @ 12% p.a. w.e.f. 7th July, 1992 till the date of payment. The complainant has come up. in appeal against the said order to the Commission.

We have heard the Counsel for the appellant. The complainant has produced a certificate from the Branch Manager of the Bank, wherein it is mentioned that the interest charged from the complainant on the loan advanced to him from 1st July, 1992 to 13th June, 1993 came to Rs. 4,003/-. However, it is stated by the complainant that the total amount paid to the complainant by the Insurance Company was Rs. 23,200/- which included interest from 7.7.92 till 13.6.93. The amount of interest, thus paid by the Insurance Company came to Rs. 3,200/- only, whereas the bank charged Rs. 4,003/- from 1st July to 13th June, 1993. Therefore, we are of, the view that the complainant is entitled to interest amounting to Rs. 4,003/- as paid by him to the bank up to 13th June, 1993. He is further entitled to interest from 14th June, 1993 to 2nd December, 1993, on the principal amount.

FROM the letter of the Branch Manager it appears that the principal amount was about Rs. 15,000/-and the rate of interest charged by them was 21.75% to 23.25%. Consequently, we allow interest to the complainant on that amount @ 22% p.a. The amount of interest on that amount from 14.6.93 to 2.12.93 comes to Rs. 1,300/- (rounded figure). As mentioned above, he has been paid Rs. 800/- less up to 13th June, 1993. Thus, in all he is further entitled to Rs. 21,00/- as interest. For the aforesaid reasons we partly accept the appeal and direct the respondent to pay an amount of Rs. 2100/- within a period of three months railing which action shall be taken against them under Section 27 of the Consumer Protection Act, 1986. No costs. Appeal partly allowed.